Today we’re thrilled to announce enhanced Inventory to easily track the quantity and value of the products you buy and sell. We’ve had simple inventory in Xero for a while now and it’s always been handy for speeding up your quoting and invoicing. This week’s release upgrades Inventory so it provides complete inventory tracking and accounting for you.
If you have a business that sells finished products, you can now use Xero to easily keep track of the items you have on hand while ensuring your accounting records are always up to date.
Before we delve into the detail of how Inventory can work for you and how you can get started, check out this video to get a quick overview of the benefits:
Always know how much product you have in stock
Whether you’re in your office or out and about, Xero lets you know how much product you have on hand each time you enter a transaction. You can immediately identify when your inventory is running low and if you need to reorder. And if you use our Xero Touch app for Google Android you’ll see your inventory quantities are tracked there now, too.
Improve your decision-making for the products you sell
Each type of inventory item you have has an information dashboard. This dashboard shows you in real-time how many items you have in stock, what the average price is, and how much your total stock is worth. This improved visibility means you can see which products are selling well, and which aren’t. That way you can plan the right level of inventory and reorder at the right time so you don’t have too much, or too little, of anything.
How we track your inventory for you
There are now two types of inventory items: tracked and untracked. The inventory items you’re already using are still available. We’re now calling these untracked inventory items. Use untracked items for anything you don’t need to count. For example, services, freight or items you drop-ship. Use our new tracked items for any products or stock levels you need to keep an eye on.
With tracked items, Xero does all your inventory accounting for you. We continually update the inventory on your balance sheet so you always know the real-time value of your items. Your cost of goods sold is calculated for you, this allows you to keep an eye on your profit.
Tracked inventory is easy – simply enter your bills and invoices like you normally do. Inventory in Xero has always reduced manual data entry when you’re entering your invoices and bills. This is still the case – simply set up your inventory items then select them in your transactions. Just make sure you enter the correct quantities in your invoices and bills.
Make sure Inventory is right for you
Inventory in Xero is a good fit for businesses that sell finished goods. If you’re building products or have large-scale warehousing we recommend talking to your advisor. You could use one of our fantastic inventory add-ons. They work seamlessly with Xero, and are specifically for businesses that have more complex inventory requirements.
Before you start using tracked inventory you’ll need to set up your items and enter your opening values and quantities. You can add your items all in one go, then step through our guided opening balances import.
And if you want more information on how Inventory can work for you, there are a number of other resources available to you:
- Education videos: We’ve prepared Xero U education content for Inventory, with videos on ‘Setting up Tracked Inventory’ and ‘How to Use Tracked Inventory.’
- Documentation: And for more detailed instructions on how Inventory works, visit our Help Centre.
Lastly, if you currently use Xero, there’s one other thing you should know before you get started:
Because Inventory now has full accounting, we’ve got a new place for it on the header. We’ve moved Inventory out of Settings and into Accounts.
What’s next for Inventory?
We’re not stopping here. We’ve got a lot planned for future releases, including additional reports, archive of inventory items, setting and managing minimum re-order levels and inventory count (stock take).
At Xero, we always love your feedback on how we can make your life easier. If there’s something you’d like to see in Inventory, go to our feature requests page in Community and let us know about it.
But wait, there’s more…
In addition to Inventory, there are a lot of other features in this week’s release, including Practice Reports, Online Quotes and Side by Side Files. We’ll be talking about these in more detail on our blog, but in the meantime you can find out more by reading our release notes. You can also join the discussion on Twitter or search for #xerospeed to keep track of the commentary.