Inventory movement report: Relieve warehouse management headaches

Managing inventory is never easy for any retailer, especially when your business expands in the number of sales channels, number of warehouses, or product catalog. They can encounter the difference between what’s in the system and the actual one. However, inventory discrepancies can be a real headache if they don’t know the reason and solution. In this case, the inventory movement report should be the first choice for merchants to look at.

This article explores how an inventory movement report relieves pains in figuring out warehouse issues.

What is an inventory movement report?

Besides other important inventory reports such as inventory on hand, low inventory, or turnover inventory, inventory movement is the report your business can’t ignore. This report provides business with all the changes in the quantity of products. They know how, when, and why these changes were created. 

Usually, these stock in and out can come from 8 following operations.

  • Deliver items ordered from both website and POS to customers 
  • Return items after customer’s refund or exchange
  • Purchase items from suppliers 
  • Return items to suppliers
  • Transfer items between warehouses
  • Adjust inventory 
  • Delete items in product catalog
  • Import product list including quantity as a master data for the first time using the system
Inventory movement

Inventory movement report sample

The system will save and display all information about the stock movement by item in a grid for easy tracking. An inventory movement report can include the following information:

  • Product: Names and codes (such as SKUs) of items that increase or decrease in quantity
  • Date: Day, month, year, and hour your business create changes of quantity
  • Action: Activities or reason that results in the changes of quantity such as ship to customers or transfer between warehouses
  • Change of quantity: Quantity of stock moved into or out of the location. For example, if you ship 2 items to a customer, it means that the quantity decreases by 2. The report then will show -2. In contrast, if you receive 3 more items from the supplier, you can see +3 in this column. 
  • New quantity: Quantity on hand after the changes
  • Location name: Location that has the changes of quantity
  • Reference: Record related to the stock movement. It can be a purchase order, a sales order, or inventory adjustment record.
  • User: The person in charge of tasks that created the quantity change.
Inventory movement report

(An example of an inventory movement report)

Besides viewing the report, you may want to save it in PDF or Excel for later reference or sending to others.

 Some inventory management pains with the system

inventory pains

To run a business efficiently, merchants nowadays need to utilize technology such as websites, POS system, inventory, or an ERP system. However, no system is perfect, and there’s no guarantee that everything will run smoothly at all times. 

In particular, in inventory systems that record a lot of transactions every day, the differences between theories and real quantity can happen in any period. 

Human error or system issues are where the differences can come from. For example, your staff is unfamiliar with the system, so they record the wrong quantity when receiving items from the supplier. 

Your system upgrade can also result in conflicts and data differences.

Let’s find out some inventory management pains that merchants can face: 

  • The system doesn’t record a decrease in quantity although items have been shipped to customers. 
  • There are no items ordered by customers, but the salable quantity and stock on hand are different.
  • The quantity doesn’t change after an inventory adjustment or transfer.

How does movement report benefit you?

inventory manager role and duties

At the end of the day or week, merchants will count their stock and compare it with data in the system. In the case they detect any differences, they’ll question where the issues come from. It’ll take time for them to check all transactions created in different places. For example, they have to go to the sales order list, purchase order list, and transfer list to track the increase and decrease of the items. It can make store owners burnt out if the discrepancies happen with a lot of SKUs.

If you don’t find the issues and correct them, your customer can still order items that are out of stock or cannot order the items that are in stock. However, with inventory movement reports, you can detect issues at the level of SKU quickly and come up with a solution to correct inventory data.

This report gives you useful insights to keep a clear count of stock items in your store. You can see whether products in your store are up or down in a centralized place. Then you can check who created the transactions, and figure out if it’s a human or system error. If it comes from a staff’s mistake, you can remind and train them. Besides, you can adjust your product quantity accordingly. If it’s because of the system error, you can contact technical support to get the issues fixed.

Make your warehouse control easier with inventory movement

You may invest in a big website, POS system, or a huge inventory system with multiple warehouses and forecasting. However, it still lacks an overview of how each item moves in and out. 

The inventory movement report offers a place to detect issues and find the solution to solve them. 

If you’re interested in implementing a movement report that gives you peace of mind, just let us know and together we will build it.