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Business And Management

Options For Managing Inventory In Xero

Use Xero's built-in inventory management functions or connect a dedicated inventory application. The Xero feature allows you to save details of the things you usually buy and sell as items. If you have an inventory of these items, you can keep track of the quantities and values available.

If you have more complex inventory needs, Xero integrates with several specialized inventory applications that offer richer functionality. You can also get more information about the xero inventory management via the web.

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Use of inventory items

Save reusable transaction fragments as inventory items. When creating items, you can provide standard prices, invoices, tax rates, and detailed descriptions.

Use your list of custom items to save time and standardize your bills and invoices. When creating a transaction, select from the list of items to fill in the transaction fields with the details stored in the inventory items.

Track inventory items with Xero

Track your inventory items if you want Xero to calculate inventory and take the cost of goods sold into account. You can also determine the quantity and value of your inventory.

When the sale is made, Xero records the sale and the related acquisition costs in the same accounting period.

Several restrictions apply to tracked inventory:

  • They only buy and sell finished goods. Xero is unable to track raw or in-process materials.

  • You need to keep an inventory of the items you sell. You can't manage negative inventory balances or track sales of items if you haven't tracked their purchases.

  • You are no longer using a third-party inventory management application.