At a Glance
A couple basic concepts to aid understanding of Erply Inventory.
Inventory Vs. Product
In ERPLY, we consider your items in two ways.
Product: The idea of what you’re selling and all of the information about it. Each line in your “Product Catalog” is an Inventory Item. Each inventory item has its own product card and can be set to one of four different statuses. Products are universal across all locations in your account, and can have “stock” associated with them in “Inventory.”
Inventory: The physical items you have in each location to order, sell, or transfer. Inventory can be registered into ERPLY, sold out of ERPLY, and transferred from one location to another. It is attached to a location within ERPLY. Inventory items all carry a product cost to you and a price to your customer once they’ve been sold. We use this information to calculate your warehouse price and Cost of Goods Sold (COGS).
First in, First out (FIFO)
ERPLY keeps inventory using FIFO (First In, First Out) method. All incoming goods are registered as batches. Each sold, written-off or transferred item is subtracted from the oldest available batch. Hence, oldest inventory items (that arrived first) are also sold first.
COGS (Cost of Goods Sold) is calculated by adding up the costs of each individual sold item.
The remaining value of your inventory is the total cost of all batches still in stock.