Last night at about 11pm we released the next big update to Stitch. There were three big updates that all happened at once and they will be covered in this blog post. The updates were:
- Adding stock orders / receiving inventory
- Reconciling inventory
- Average cost
These updates were very important because now Stitch as the ability determine your profits and produce a detailed inventory report for your taxes and accounting. The inventory reports do not exist yet but we are working on them now. There will be a follow-on post to this one when they are released which should be in the near future.
Adding Stock Orders / Receiving Inventory
The first thing you will notice is a new file-folder tab within a product line titled "Add Stock". Whenever you manufacture new items or receive an order for goods that you are going to sell, this is how you get them into the system. For instance, if you make screen printed shirts and buy the shirts from one place, the tags from another, and have them screened at one more when the production was done, you would put them into the system using this tab. Similarly, if you buy shirts you designed and someone else made, you will place the order for the shirts in this tab.
If you were already using Stich, the products you had in inventory were automatically transitioned into a stock order at the stock and unit cost values you had previously input in the system. You can see the green light next to the stock order to indicate that it has already been marked "received in full."
When creating a new stock order click the "Add Stock Order" button on the top left of the tab. This will bring up the window seen below:
Here is where you enter information about the vendor, order date, expected date of delivery, and any other notes. If you were making everything yourself and sourcing the materials elsewhere leave this box blank and the stock order will automatically set the vendor to "Internal."
When building the order, simply enter the unit cost for each product in the order and the amount you ordered. If the cost or order quantity was consistent for each of the products you ordered, simply click the "copy to all" link and it will copy the value in the box to the rest of the products. When the order is complete hit save.
On the products tab itself you will now see that none of the costs or stock values have changed but the production column has been updated for those products that are on order.
When you have received an order, or part of an order, you can go back to the tab and "Mark All Received" or click "Edit" to manually enter how many of each product was received. When you click save, the magic starts to happen... we calculate all the average costs of each product for you! We'll get to that in more detail later.
After the stock order is fully received you will see the "Mark All Received" button disappear and the status light next to the order will turn from red to green. Lastly, on the products tab you should now see that all the production values have gone to zero and the stock and costs have been updated to reflect the newly received order.
Reconciling inventory is something you do when a product is returned or when you perform your physical count and there is a discrepancy with how many units you actually have in stock vs. what Stitch says you have in stock. These things, while frustrating, do happen in business and now there is a way to reconcile them in Stitch!
When editing a product, the screen has been modified a little bit. The bottom right corner is now reserved for "Reconcile Inventory". A zoomed in screenshot can be seen below:
In order to reconcile inventory simply choose whether to increase or decrease the stock. Next choose the reason and if there is money exchanged, for instance a customer returns a product so you need to increase the stock by 1 and return $20 to them, simply enter that there too. Lastly, enter any reconciliation notes as needed. After you click save you will see the stock value updated accordingly and soon there will be a report to view all the reconciliation history over a given time period.
There is one other way to change the inventory which is called "change" in the first drop-down box. "Change" allows you set the actual inventory value which may be very handy after a physical count. For instance, if your current stock level is 150 and you count 187 in storage, you do not need to calculate the difference of 37 products but rather just enter 187 and the tool will know to add 37 products and do the math for you.
Because Stitch is also an order fulfillment tool there are options for how your inventory is calculated. For example, assume you do not remove a product from your inventory until you pack the item for shipment. If this is the case you would choose the third option in the list titled, "stock less packed from orders in progress". The reason you choose this value is because even though you have put the product in an order it does not leave your physical inventory until it is packed and the tool is smart enough to do the correct calculation based on how you manage your orders. Similarly if you remove it right after the order is placed choose the 2nd option, if you remove it after it is shipped choose the 4th option, and if you do not remove it unitl you mark the order complete choose the 1st option.
Averge Cost / Weighted Average Unit Cost
One of the huge benefits to receiving and reconciling inventory is that we now calculate your costs for you! For instance, if you order 10 of a particular product and pay $10 per unit and then later order 10 more and pay $20 per unit, Stich is smart enough to know that during this time period your average cost was actually $15. That is the number we will use to let you know your margins and profits so you don't have to calculate them yourself. Once again, once those reports are complete I will follow-up this post with another about them and how average costing plays an import role.
If you have any questions please feel free to contact us anytime and thank you all for your feedback about wanting Stitch to do this. We love giving you what you asked for!