Inventory Template

Ready-To-Use Excel Inventory Template

Inventory Template or Stock Register in Excel, OpenOffice Calc, and Google Sheet for efficient and hassle-free management of the inventory of your goods.

Moreover, this template automatically warns you about out-of-stock items and also highlights reorder products when they reach a minimum level.

Furthermore, you can derive the cost of inventory at any given point. It also consists of inward and outward inventory registers where you can easily record the movement of your transactions.

This is an all-in-one Inventory Management System to track and manage your inventory for small and medium-sized businesses.

What is Inventory?

Inventory is the process of quantifying and measuring products or raw material used for business Inventory is an accounting phrase that refers to describing all goods at various stages of manufacturing or in-hand stock. Under Accounting, inventory is a current asset.

Inventory applies to all types of businesses. Wholesale, retail, manufacturing, reselling, etc.  For most businesses, inventory is a valuable asset. It is better to have a balanced inventory. Excess inventory is a burden for any business.

Types of Inventory

Usually, there are 4 types o inventories: raw materials, Work in Progress (WIP), Finished Goods, and MRO (Maintenance, Repair, and Operations goods).

Raw Material

Any goods, materials, or components used to manufacture a product are the raw material. A company has to keep an inventory of raw material to analyze the production and safeguard the excessive use. For every manufacturing business, raw material inventory is of utmost importance.

Work in Progress (WIP)

In the manufacturing business, some products remain in production. They are neither raw material nor a finished good. Inventory of such goods refers to WOrk-in-Progress or WIP inventory. It includes components, labor, overhead, and even packing materials.

Finished Goods

Finished goods refer to any product that is ready to sell. This type of inventory is used by every business. For a raw material supplier raw material is a product but a component for other industries. For example, raw cloth supplier is finished well for him and raw material for a tailor.

Maintenance, Repair and Operations Goods (MRO)

Often businesses require some inventories for maintenance or repair of manufacturing equipment. Such supportive inventory refers to MRO. MRO inventory includes items like repair tools, office supplies, gloves, safety equipment, valves, belts, etc.

Why Inventory Management is Important?

A successful business will always have efficient accurate inventory management. Regular stock tracking helps us to avoid stock losses.

Inventory Management is important because:

  • Safeguard loss, theft, over usage, or wastage of raw materials.
  • Helps to avoid overselling eventually helping lose business and customers.
  • Proper management helps with storage costs and other overhead expenses like transport.
  • Helps to safeguard the shortage of products and also prevent dead stock.
  • Helpful in analyzing product movements and eventually saving from ordering running products.

Inventory Management Techniques

Let’s understand some of the inventory management techniques that you can choose based on the type of your business.

EOQ ( Economic Order Quantity)

Economic order quantity is a method that calculates the optimal quantities for a company’s inventory. It is based on a set of characteristics such as total production costs, the volume of sales, and other variables.

The ultimate purpose of EOQ is to reduce associated costs as much as possible. The technique is used to calculate the maximum number of units to order and reduce multiple purchase transactions.

This technique measures units into delivery and the storage of inventory unit costs into consideration. This helps the businesses to free up cash that is locked in unnecessary inventory.

FIFO and LIFO

LIFO and FIFO are two methodologies for calculating inventory costs. The FIFO method, which stands for “First in, First Out,” implies that the older inventory is sold first. FIFO is an excellent method for keeping inventory fresh.

Last-in, first-out (LIFO) implies that new stock is sold first. LIFO helps to keep inventories from degrading.

Reorder Point Formula

The reorder point formula is an inventory management strategy based on a company’s sales cycles, which vary by product. To avoid waiting time for restocking the item business define a reorder point. Usually, this reorder point is frequently greater than a safety stock level.

Download Inventory Template (Excel, OpenOffice Calc & Google Sheet)

We have created a simple and easy-to-use Inventory Template with predefined formulas and functions. This template helps you to efficiently and effectively manage your inventory along with reordering points.

Download by clicking below on the desired format:

Microsoft Excel OpenOffice Calc Google Sheet

Additionally, you can download Accounting templates like Accounts Payable Template, Cash Book Template, Petty Cash Book Template, Marketing Budget, Expense Report Template, and Payroll Template With Attendance.

Feel free to contact us for the customization of this template as per your requirement. We also design new templates based on your needs. You can hire us for our services on Fiverr or directly contact us at info@msofficegeek.com.

Components of Inventory Template

This template consists of 3 sheets: Master Inventory Register, Inward Register, and Outward Register.

Let us understand how to use this template in detail.

Master Inventory Register

You can use the Master Inventory Register daily, weekly, or monthly depending upon your sales cycle. Update the inward and outward levels from the inward and outward register into this file. It provides you with quantity in stock, stock value and also warns you for “out-of-stock” and “reorder” items.

Inventory Template

This sheet consists of the following columns:

Product ID
Product Name
Inward Quantity
Outward Quantity
Quantity in Stock
Rate per Item
Amount
Reorder Level
Status

Give a unique id to your products and describe them in the product name column. Based on your sales/purchase cycle, insert inward and outward quantities.

Additionally, the temple displays the stock in hand. Insert rate per item and it will automatically display the cost of inventory.

Define a reorder quantity to avoid delays in deliveries and also running out of stock. When the Quantity in Stock column reaches that level, it will display “Reorder” in the status column.

Moreover, if you haven’t received the item and the Quantity in Stock reaches zero then the template displays an “out-of-stock” message in status.  When the quantities are ample, the status column will be blank.

Furthermore, with the help of this, you can find the cost of a particular product using the filter option. The last column displays the total inward, outward, and in-stock quantities. It also displays the total cost of the stock in hand.

Inward Register

To simplify your work, insert product ID, product name, vendor name in the table given on the right side of the register.

Inventory Template

Thus, we have programmed it with Data-validation and it creates a drop-down list. So, you don’t have to type the product name and vendor name again and again.

Inward Inventory Register

This template consists of the following 5 columns:

Date
Product ID
Product Name
Inward Quantity
Vendor

To use this sheet follow the following steps:

  1. Insert the respective date.
  2. Select the Product ID from the drop-down list. Product name is auto-populated using VLOOKUP Function.
  3. Insert Inward quantity.
  4. Select the Vendor name from the drop-down list.

That’s it. The template displays the total inward quantity in the last row.

Moreover, in this sheet also you can generate multiple reports. Using the filter option, you can generate product-wise and vendor-wise reports.

Outward Register

To simplify your work, insert product ID, product name, client/customer name in the table given on the right side of the register.

Inventory Template

Therefore, we have programmed it with Data-validation and it creates a drop-down list. So, you don’t have to type the product name and client name again and again.

Outward Inventory Register

This template consists of the following 5 columns:

Date
Product ID
Product Name
Outward Quantity
Client

To use this sheet follow the following steps:

  1. Insert the respective date.
  2. Select the Product ID from the drop-down list. Product name is auto-populated using VLOOKUP Function.
  3. Insert Outward quantity.
  4. Select the client name from the drop-down list.

That’s it. Moreover, the template displays the total Outward quantity in the last row.

Moreover, in this sheet also you can generate multiple reports. Using the filter option, you can generate product-wise and client-wise reports.

Frequently Asked Questions

What is Demand Forecasting in Inventory?

Retailers use demand forecasting as a method of inventory management. Demand forecasting uses previous sales data to calculate an estimate of consumer demand in the future. In short, it's a forecast of the goods and services a business anticipates which the people will buy in the future.

When is it advisable to take physical inventory?

It depends on the type of product as well as the type of business. If items are perishable they should be done regularly. For seasonal and or highly demanded items, it is advisable to take inventory weekly or at the least monthly.

What is Inventory Forecasting?

Forecasting means estimating the demand for products in the future based on market research or previous data.

What is Lead Time in Inventory Management?

The lead time refers to the time between placing an order to receiving the delivery of goods. Lead time is a crucial factor that determines when to place orders.

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