User Guide: Inventory Manager

For: Store Keepers, Procurement Officers, and Cost Controllers Role: Inventory Manager Last Updated: January 27, 2026

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Table of Contents

1. Role Overview
2. Getting Started
3. Purchasing (Stock In)
4. Issuing & Transfers (Stock Out)
5. Stock Taking & Adjustments
6. Reporting
7. Troubleshooting

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Role Overview

As the Inventory Manager, you control the flow of goods. Your goal is to maintain accuracy between "System Stock" and "Physical Stock" to ensure the hotel never runs out of critical supplies while minimizing waste and theft.

Key Responsibilities

• Receiving: Verifying and recording deliveries from Vendors.
• Issuing: Distributing goods to departments (Kitchen, Bar, Housekeeping).
• Count: Performing monthly/weekly physical stock takes.
• Costing: Ensuring items have the correct Unit Cost for accurate financial reporting.

Module Access

• ✅ Inventory - Full access.
• ✅ Accounting - View Purchase Journals.
• ✅ Setup - Manage Items and Categories.

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Getting Started

Locations

Understand your "Virtual" Locations:

• Main Store: The central warehouse.
• Kitchen: Production area (Food cost center).
• Bar: Beverage cost center.
• Housekeeping: Linens and Amenities cost center.

Items

Every product must exist in the system before you can buy it.

• SKU: Unique ID.
• Unit: Measure (KG, Ltr, Pcs). Be consistent: Do not mix KG and Grams.

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Purchasing (Stock In)

process for recording a delivery from a Supplier.

1. Navigate to Inventory > Receive Stock.
2. Header Details:
   • Vendor: Select Supplier (e.g., "City Veg Supplies").
   • Into Location: Usually "Main Store".
   • Invoice #: The vendor's paper invoice number.
   • Payment Mode: "Credit" (AP) or "Cash".
3. Line Items:
   • Search Item (e.g., "Tomatoes").
   • Qty: Weight/Count received (e.g., 50).
   • Unit Cost: Price per unit from invoice (e.g., $2.50). Critical for FIFO.
   • Lot/Batch: (Optional) Expiry date or Batch #.
4. Confirm:
   • System Action:
     1. Increases Stock +50.
     2. Creates a new FIFO Layer (Lot).
     3. Accounting: Dr Inventory Asset, Cr Accounts Payable.

IMPORTANT

Always verify the Unit Cost. If you enter $25.00 instead of $2.50, the Kitchen's food cost will skyrocket when they use these tomatoes.

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Issuing & Transfers (Stock Out)

1. Issuing to Consumption (Expense)

When goods leave the store to be used.

1. Navigate to Inventory > Issue.
2. Source: Main Store.
3. Target: "Kitchen Requisition" (or specific Department).
4. Add Items:
   • Item: Tomatoes.
   • Qty: 10.
5. Confirm:
   • System Action:
     1. Reduces Stock -10.
     2. FIFO: Consumes the oldest valid batch.
     3. Accounting: Dr Food Cost (Expense), Cr Inventory Asset.

2. Transfers (Location Move)

When goods move but are not yet used.

1. Navigate to Inventory > Transfer.
2. From: Main Store.
3. To: Bar Store.
4. Add Items: Beer Cases (Qty 5).
5. Confirm:
   • System Action: Main Store -5, Bar Store +5.
   • Accounting: No Financial impact (Asset swap).

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Stock Taking & Adjustments

Periodically, you must match system records to reality.

Conducting a Count

1. Print Count Sheet (Inventory > Reports > Count Sheet).
2. Go to physical shelf and count.
3. Navigate to Inventory > Adjustments.
4. Select Location.

Posting Variances

If System says 100 but you count 95:

1. Add Item to Adjustment batch.
2. Type: "Physical Count Loss".
3. Adjustment Qty: -5.
4. Reason: "Spoilage" or "Unknown Variance".
5. Confirm:
   • System Action: Reduces Stock -5.
   • Accounting: Dr Inventory Loss Expense, Cr Inventory Asset.

CAUTION

Significant variances (Theft?) should be investigated by the Controller before posting.

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Reporting

• Stock Valuation: Shows total value of assets on hand. (Qty * Avg Cost).
• Movement Report: "Cardex" showing flow of a specific item (In, Out, Transfer).
• Expiry Alert: List of Lots expiring in next 30 days.

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Troubleshooting

Issue	Solution
Wrong Cost	If you received at wrong cost, do not delete. Post a "Value Adjustment" or reverse the receipt and re-enter.
Negative Stock	Usually caused by Issuing before Receiving. Always Receive first.
Item Not Found	Check if Item is "Active". Or ask Admin to create new SKU.
Transaction Locked	Closed fiscal periods prevent back-dating. Post entry in current date with note.

TIP

FIFO Strategy: Always place new stock behind old stock on the shelf. This matches the system's "First-In First-Out" logic and prevents spoilage.