Inventorymoment -

Exercise Brief

Objective: Learn how to set up stock items and godowns, record inter-godown transfers and stock journals (manufacturing consumption), and run stock valuation reports (FIFO / Weighted Average).

Deliverables

Stock masters for 8 SKUs with UOM
Two godowns (Main & Branch) and a transfer of stock
Stock journal entry consuming raw materials into finished goods
Stock valuation report (by godown and overall) exported to Excel

Sample Stock List (use these values)

Item Code	Description	UOM	Opening Qty
RM-COT-001	Cotton Fabric (Meters)	m	500
RM-WOOD-01	Timber (Kg)	kg	200
FG-CH-01	Wooden Chair (Pcs)	pcs	50
PK-BOX-1	Packaging Box (Pcs)	pcs	200

Note: Record opening balances correctly with valuation method (FIFO or Weighted Average). For assemblies, use BOM to consume components during production entry.

Step-by-step Lab (45–60 mins)

1
Create Stock Items & UOM
Create stock items with codes, default UOM and set opening quantity & rate. Define UOM conversions if needed.
2
Configure Godowns
Create godowns: Main Warehouse and Branch Warehouse. Enable batch/serial tracking if required for perishable/serialized goods.
3
Inter-Godown Transfer
Record a transfer voucher (e.g., Transfer 100 pcs of PK-BOX-1 from Main to Branch). Verify stock levels in both godowns post-transfer.
4
Stock Journal / Production Entry
For assembly: create stock journal consuming RM (e.g., Timber & Screws) to produce Wooden Chairs. Use BOM if available to auto-consume components.
5
Stock Valuation Report
Run stock valuation by godown and overall. Compare FIFO vs Weighted Average valuations if your software supports both. Export to Excel.
6
Reconcile & Audit
Perform a quick stock reconciliation: physical count vs system balance for 3 items and document discrepancies for adjustments.

Practice Tasks & Templates

Create 8 stock items with correct UOMs and opening quantities.
Set up two godowns and transfer 100 units of PK-BOX-1 from Main to Branch.
Record a production entry consuming 4 timber units + screws to create 1 wooden chair (produce 10 chairs).
Run stock valuation and export to Excel.
Perform a sample physical count and post stock adjustment entries.

Downloadable templates

Quick Quiz

Which valuation method assumes oldest inventory is consumed first?

Inventory Movement — Stock Transfers & Valuation