Part 4 · Using software and AI · Chapter 4.5
Stock in software
Draft: the wording may change.
The idea
Software keeps stock right only if every movement comes through a document: the goods received note in, the bill out, the credit note back, the count adjustment for the difference. Record the batch and expiry at the door, and the software can sell the earliest expiry first and warn you before stock dies on the shelf.
At the counter: goods in
The company's truck delivers 20 cases of a biscuit. The purchase bill says 20; the godown counts 19 good and 1 crushed.
- Goods received note (GRN). The godown records what arrived: 19 good, 1 damaged, with batch number, manufacturing date, expiry date and MRP from the carton.
- Purchase bill. The accountant enters the company's bill against the GRN. The software shows the difference: billed 20, received 19 good.
- Damage. The crushed case goes into a damage location and a claim on the company (chapter 3.13), not into saleable stock.
Two batches are now on the shelf:
| Batch | Expiry | Cases | Cost per case | Value |
|---|---|---|---|---|
| A | January | 8 | ₹1,200 | ₹9,600 |
| B | March | 19 | ₹1,200 | ₹22,800 |
When Kumar bills Ravi Stores for 3 cases, the software suggests batch A, the earlier expiry. The biller can override it, but has to choose.
Counting and adjusting
Every month, count. The software shows books: 24 cases. The shelf has 22.
- Do not type 22 over 24.
- Raise a stock adjustment for 2 cases, with a reason (damage, theft, billing error, not found), the date, who counted and who approved.
- The adjustment posts the loss — ₹2,400 at cost — so the books show it as an expense, not hidden inside margin.
If the reason turns out to be a missed bill, cancel the adjustment and raise the missing bill instead. The fix should match what actually happened.
Reports to watch
| Report | What it tells you |
|---|---|
| Near expiry (next 60–90 days) | What to push on the beat or return under the company's policy |
| Stock by batch | Which batch to pick |
| Count differences by month | Whether losses are growing |
| Damage location | Claims still to be raised |
Common mistake
Entering purchases without batch and expiry "to save time". The stock total is right, but the software cannot tell which cases expire first, the near-expiry report is empty, and when a batch expires there is no record of when it came in or how much was sold. Many companies ask for batch details on expiry claims, so the claim is weak or rejected. Check your company's claim rules.
Where you'll use this
This chapter automates first to expire, first out (chapter 2.3) and cash on the shelf (chapter 1.13): every case is money, and the software tracks which money expires first. The count adjustment follows replace, never patch (chapter 1.14) — a new document, not a changed number. Expiry and damage claims in chapters 3.13 and 3.14 depend on the batch details captured here.
Check yourself
- Which four details from the carton should be entered on the GRN?
- Books say 24 cases, the shelf has 22. What do you do?
- Why does missing batch data hurt an expiry claim?
Answers
- Batch number, manufacturing date, expiry date and MRP.
- Raise a stock adjustment for 2 cases with a reason, who counted and who approved — never overwrite the figure.
- Without it you cannot show which batch expired, when it was received or how much was sold, so the claim has no evidence.