Stock records and batch management

Stock records and batch management give you full control and traceability over all movements in your warehouse. You can see exactly when goods came in, what they cost, when they were sold and whether they belong to a specific delivery with its own batch number and expiration date. It's worth its weight in gold for accounting, auditing and day-to-day operations, and indispensable if you sell goods with a shelf life.

In this article, we'll go through how stock records work in Shoporama, what batch management can do, how the two are related, and how to get started. This article is aimed at store owners who want to understand the system without having to dive into technical details.

What are stock records?

A stock entry is a record of one specific movement in your warehouse. Every time an item is added to or removed from stock, a record is automatically created with the quantity, cost price, sales price, date, possible order link and location. Think of it as a cash register, but for your inventory.

The entries give you a complete history. You can always go back and see when a particular item came into stock, what you paid for it and when it was sold. This is exactly the documentation you need when it comes to accounting or when the accountant asks questions.

When is an inventory record created?

Shoporama automatically creates inventory entries in all situations where the amount of stock changes:

• When an order is shipped, a negative entry is created that deducts the item from inventory
• When a customer returns items, a positive entry is created that puts the item back in stock
• When you manually adjust inventory, for example when counting or shrinkage
• When you import stock counts via file
• When synchronizing stock between products or variants

You find the entries under Inventory → Inventory entries in admin. Here you can filter, search and edit the individual entries if something is registered incorrectly.

Can I turn off inventory entries?

Yes, you can. On the inventory page, there is an option to turn off inventory entries. If you enable it, only the current quantity in stock will be updated, but no history of individual movements will be saved.

What is batch management?

A batch is a specific delivery or series of a product. Two deliveries of the same item are two different batches, even if they have the same item number. Each batch has its own batch number and can have its own production date, expiration date, received date, supplier and notes.

Batch management is essential if you sell goods where it is important to know which specific delivery each item comes from. This is typically the case:

• Food with an expiration date
• Cosmetics and skincare with expiration dates
• Medicines and food supplements where traceability is required by law
• Technical products with lot numbers for quality control
• Products where you need to be able to recall a specific production series

With batch management, you can answer questions like "Which orders contain items from batch 12345?" or "How many units of this batch have we sold?". This is invaluable if, for example, you need to withdraw a specific production series from the market.

The FIFO principle in picking

When batch management is enabled, Shoporama automatically selects the oldest batch first when picking an order. This is called FIFO (First In, First Out). The system first looks at the expiration date and selects the batch that expires earliest. If multiple batches have the same expiration date (or none), the batch with the lowest batch number is selected.

This means that as a store owner, you don't have to worry about the order. The system automatically ensures that items with the shortest shelf life are sold first, minimizing waste and avoiding expired items.

How stock records and batches work together

Inventory entries and batches work together. When you receive a new delivery and create a batch, stock records are created for the batch. When sales are made from that batch, negative entries are created linked to that particular batch. If an item is returned, it is put back into the same batch it was originally sold from.

This gives you two layers of information: the entries tell you what happened, and the batches tell you which specific delivery each movement belongs to. Together, this provides full traceability from supplier to end customer.

You can filter stock records by batch so you can quickly see all movements for a specific delivery. This is useful if you need to check how many units of an expired batch are still in stock and how many have already been shipped to customers.

How to get started

Step 1: Turn on inventory management

Stock records and batches require you to have inventory management enabled on your online shop. It is managed on the inventory page in admin. When inventory management is enabled, inventory entries are automatically created from that moment on.

Step 2: Enable batch management (optional)

If you want to use batches, enable the Use batches option on the inventory page. This requires that inventory management is already active.

Step 3: Create and receive batches

When a new delivery comes in, go to Warehouse → Goods receipt and register the delivery as a new batch. Here you enter the

• Batch number, so you can recognize the delivery
• Expiration date if the item has a shelf life
• Production date and date received
• Supplier and any notes
• Quantity and cost price

When you save, the batch and the corresponding stock entries are created in one go. You can always edit a batch under Warehouse → Batches.

Daily use

Keep an eye on expiration dates

Under Warehouse → Batches you can filter by expiration date. You can choose between:

• Expired, so you can see which batches have expired
• Expires within 30 days, so you can react in time with e.g. offers or sales
• Not expired, so you focus on the batches that can still be sold normally
• No expiration date, for items with no shelf life

Expired batches are not automatically hidden from picking. They are still visible in the list, but clearly marked so your warehouse staff know that they need to be handled manually. This allows you to decide whether a batch should be sold or discarded.

Pick list shows which batch to use

On the pick list, your warehouse staff can see exactly which batch an order line should be picked from. This eliminates guesswork and ensures FIFO is adhered to in practice, not just on paper.

Returns go back to the right batch

If a customer returns an item, the return quantity is automatically linked to the batch the item was originally sent from. This means that traceability is maintained all the way around and the number on the correct batch is updated.

Tips and best practices

1. Use consistent batch numbers. If your supplier sends a batch number, use theirs. This makes it much easier to trace goods back to the source if an error or recall occurs.
2. Always record the cost price. The cost price of your entries is used to calculate inventory value and contribution margin. If you use incorrect figures, your reporting will also be incorrect.
3. Check "Expires within 30 days" regularly. Make it a regular routine, e.g. weekly. This gives you time to set up quotes or move items before they become waste.
4. Don't make manual adjustments all the time. Every time you adjust the stock manually, it makes a "noise" in the history. Instead, use goods receipt for incoming goods and only make adjustments for real counts or shrinkage.
5. Combine with warehouse locations. If you have multiple locations (e.g. store and remote warehouse), you can register batches at the right location and keep track of where the goods are physically located. Read more about warehouse locations.
6. Use the order list actively. When you're in control, you'll also have a better overview of which items you need to reorder. See the order list in inventory management.

The value for your store

With stock records, you get full traceability: you can see when items came in, what they cost and when they were sold. This is exactly what your accountant and accounting system need, making inventory valuation accurate and documented.

With batch management on top of that, you get the extra dimension that is crucial for items with shelf life or traceability requirements. FIFO picking reduces waste, and if a delivery needs to be recalled, you can find all orders containing that batch in minutes. It's a security that protects both your customers and your business.

Frequently asked questions

What is the difference between stock entries and the current stock count?

The current stock count is just the number on the product right now. Inventory entries are the history behind the number, i.e. all the movements that have made the inventory bigger or smaller. Every time you sell, receive goods, make a return or make a manual adjustment, an entry is made with quantity, cost price and date. This way, you can always go back and see why your stock looks the way it does.

Where do I find my stock entries in admin?

You can find them under Inventory → Inventory entries. Here you can filter by product, date and batch, so you can see all movements on a specific item or a specific delivery. Negative entries are withdrawals from stock (typically sales or shrinkage) and positive entries are additions (purchases or returns).

My accountant asks about inventory value. How is it calculated?

Inventory value is calculated from your inventory records as a weighted average of cost. Every time you receive goods at a new price, the average is adjusted so that the inventory value reflects what you actually paid for what's on the shelf. That's why it's important to have inventory records enabled if you want to be able to document the inventory value to your accountant.

What happens if I disable inventory entries?

The option "Turn off stock entries" means that the system will only update the current quantity of the product, but will not store a history of the movements. You save some space and work in the database, but you lose the ability to see when something has been sold or received and you can no longer make an accurate stock value calculation. Only turn it off if you really don't need history.

I sell cosmetics with shelf life. How do I get started with batches?

On the stock page of the product itself, enable "Use batches" (this requires that regular inventory management is also enabled). You can then create batches under Inventory → Batches with batch number, expiration date, production date, supplier and notes. When you receive a new delivery, you use the goods receipt, so each delivery gets its own batch number and expiration date.

Which batch is picked first when an order comes in?

The system uses FIFO (First In, First Out) and automatically selects the batch that expires first. If multiple batches have the same expiration date (or none), the one with the lowest batch number is selected. If an order line is larger than the oldest batch, the quantity is automatically distributed across multiple batches so you don't risk sending out new items before the old ones.

What do I do when a batch is about to expire or has already expired?

In the batch list, you can filter by expired, expires within 30 days, not expired and no expiration date, so you can easily find the batches that need attention. Expired batches are clearly marked, but they are not automatically hidden from picking, so it's up to you to decide whether to sell them out, make a manual adjustment for shrinkage or remove them from stock.

A supplier has withdrawn a batch. How do I find out who bought it?

Because each stock record is linked to an order and a batch, you can filter the stock records on that batch and see exactly which orders have received goods from it. This gives you full batch traceability so you can quickly contact the affected customers in the event of a recall without having to guess.

What happens to a batch if the customer returns the item?

When you make a return on an order, the quantity automatically goes back to the same batch that the item was originally picked from. This way, the batch history remains correct and you avoid a returned item with a short shelf life ending up at the back of the queue and being forgotten.

Can I correct a stock record if I've made a mistake?

Yes, inventory entries can be edited directly from the list if, for example, you've entered an incorrect quantity or an incorrect cost price for a goods receipt. Remember that a correction will also affect the stock value going forward, so it might be a good idea to talk to your accountant if the change is large or in a closed fiscal year.

If you have any questions about inventory entries or batch management, you are welcome to contact us at support@shoporama.dk.