Inventory Management provides real-time tracking of stock levels, physical count workflows, MTR (Mill Test Report) management, and comprehensive audit trails. Ensure inventory accuracy and maintain complete material traceability.
Overview
The Inventory system provides:
- Real-time inventory tracking (qty on floor, on order, allocated)
- Physical inventory count with built-in calculator for mixed units
- Automated variance detection and financial impact calculation
- MTR management with Google Cloud Storage and automatic OCR
- Write-off and transfer workflows with audit trail
- Complete inventory audit history with filtering
- General ledger integration for all adjustments
Real-Time Inventory Tracking
MeTEY tracks three key inventory metrics:
| Metric | Description | Updated When |
|---|---|---|
| Qty On Floor | Physical quantity available in warehouse | Invoices, PO receiving, adjustments, physical counts |
| Qty On Order | Quantity expected from open purchase orders | PO creation, PO receiving |
| Qty Allocated | Quantity reserved for open orders | Order creation, order fulfillment |
Physical Inventory Count
Streamlined physical inventory counting with built-in calculator for mixed unit entries.
1 Create Count Sheet
Navigate to Inventory → Inventory Count and generate printable count sheets. Filter by material, shape, grade, or warehouse to count specific product groups.
2 Enter Physical Counts
Use the "Enter Count" function to record actual quantities. Two powerful features speed up data entry:
- Quick Copy with "..": Type
..(two periods) and press Enter to auto-fill the current "Qty on Floor" value - 🧮 Unit Calculator: Click calculator icon to handle mixed units (e.g., count pieces in 10FT, INCH, and LBS - system converts automatically)
💡 Using the Unit Calculator
Why use the calculator? Count inventory in mixed units without manual conversion errors.
Example: Product unit is LBS, you have:
- 12 pieces @ 10FT → converts to 462 LBS
- 15 pieces @ 24FT → converts to 1,108.8 LBS
- 75 pieces @ INCH → converts to 32.3 LBS
- Grand Total: 1,603.1 LBS (automatically calculated)
Click "Return Count" to transfer the total to the count field. Your calculation details are saved for future reference.
3 Compare & Validate
Navigate to Compare & Adjust to see variance report. System displays:
- Products with discrepancies (green = gains, red = losses)
- Total financial impact (delta × average cost)
- Percent change from before count
- Products counted vs. products with inventory
⚠️ IMPORTANT: No Count Entry = Zero Found
If a product has inventory on floor but you did NOT enter a count for it, the system assumes you found ZERO during the physical count.
Example:
- Product A: System shows 100 LBS, you enter 95 LBS → Delta: -5 LBS (shown in table)
- Product B: System shows 50 LBS, you enter NO count → Delta: -50 LBS (included in financial summary)
Best Practice: If physical count matches system exactly, enter the count anyway (use ".." shortcut). This confirms you physically verified the product.
4 Process Adjustments
Click "Adjust Inventory" to process changes. System executes in single atomic transaction:
- Master Audit Record: Creates entry in
inventory_count_auditwith statistics and financial impact - Detail Records: Creates
inventory_count_audit_detailfor every product with inventory (even zero delta) - Inventory Adjustments: Updates
inventorytable qty_on_floor for products with non-zero delta - Financial Transactions: Creates offsetting DEBIT/CREDIT entries for financial impact
- Cleanup: Deletes count entries to prepare for next cycle
If delta exceeds 5% or count coverage is below 70%, system requires explanation before processing.
MTR Management
Store and manage Mill Test Reports (material certifications) with automatic OCR extraction.
1 Upload MTR
From product detail, click ☰ menu → MTR Management → Upload MTR
2 Enter Details
Provide:
- Heat Number: Unique identifier from mill
- Lot Number: Batch identification
- Notes: Additional information
- File: PDF, JPG, or PNG (max 10MB)
3 Automatic Processing
System uploads file to Google Cloud Storage and performs automatic OCR extraction of heat numbers and key data.
4 Search and Retrieve
Search MTRs by heat number, lot number, or product. Download, email, or view certificates directly from the system.
Scrap / Transfer Product
Write off damaged inventory or transfer between warehouses with full audit trail.
Write-Off (Scrap)
Remove damaged, obsolete, or unsellable inventory:
- Select source warehouse and add products
- Enter quantity and mandatory comment explaining reason
- Click "Process Write-Offs"
- System creates inventory_audit entry (type: WRITEOFF)
- Financial entries: DEBIT Inventory Loss, CREDIT Inventory (Qty × Cost)
Transfer Between Warehouses
Move inventory between locations:
- Select source warehouse and destination
- Add products with quantities and comments
- Click "Process Transfers"
- System creates two inventory_audit entries (TRANSFER-OUT and TRANSFER-IN)
- No financial impact (internal movement)
Inventory Audit Trail
View complete history of inventory changes for any product:
- Access from product detail → ☰ menu → Inventory Audit
- Filter by activity type (All/Sales/Purchase/Adjustments)
- Date range filtering
- Shows qty changes, cost, reason, user, timestamp
Inventory Count Audit
View historical inventory count adjustments with financial impact analysis.
Navigate to Accounting → Inventory Count Audit to:
- Review all past physical count adjustments (last 180 days default)
- See summary statistics for each count (products, coverage, financial impact)
- Click any record to view product-level details
- Analyze trends in discrepancies and shrinkage
- Export for compliance and auditing purposes
Best Practices
- Use Count Sheets - Print organized lists before physical count
- Use ".." shortcut - Quick verification when count matches system
- Use calculator for mixed units - Prevents conversion errors
- Enter ALL counts - Even when matching system, to confirm verification
- Filter by product groups - Count similar items together for efficiency
- Review variances before adjusting - Large discrepancies may indicate data entry errors
- Provide detailed write-off comments - Helps track damage patterns
- Upload MTRs immediately - Don't wait until needed for customer orders
- Regular cycle counts - Monthly counts of high-value items maintain accuracy
Troubleshooting
Calculator Not Converting Correctly
Problem: Unit conversion shows unexpected values.
Solution:
- Verify product has correct lbs/ft value in product master
- Check that selected unit is supported for conversion
- Ensure quantity and length are entered correctly
- System supports: INCH, FT, 10FT, 24FT, LBS, CLBS, PCS, CPCS, CM, M
Adjustment Requires Explanation
Problem: System requires explanation before processing adjustment.
Solution:
- This triggers when delta exceeds 5% or count coverage is below 70%
- Provide detailed explanation (up to 1000 characters)
- Review discrepancies carefully - large variances may indicate errors
- Consider re-counting high-value items with large discrepancies
MTR Upload Fails
Problem: Cannot upload MTR document.
Solution:
- Check file size - must be under 10MB
- Verify file format - PDF, JPG, PNG only
- Ensure internet connection for Google Cloud Storage
- Check that heat number and lot number are entered
Related Topics
- Product Management - Setting up products and units
- Purchase Orders - Receiving inventory from suppliers
- General Ledger - Financial impact of inventory adjustments