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Inventory Setup Guide

Set up stock and supply management, step by step

Warehouses, suppliers, categories, items, pricing, purchase orders, and fulfillment — everything your members need to track inventory together.

Inventory Setup Guide

This guide walks you through setting up inventory management for your organization in FlockWorker, step by step. By the end, your members will be able to track products and supplies, manage warehouses and suppliers, process purchase orders, fulfill outgoing orders, request supplies, and keep pricing organized. Follow the steps in order — each one builds on the previous. Want to know exactly what's still missing in your org? Check your setup readiness.

Prerequisites

Before You Begin

What you need to get started:

An organization created in FlockWorker (via the Get Started page)
A subscription that includes Inventory (all tiers from Starter and above)
An Admin role or the Accounting Management permission in your organization

Who can do what

Action	Any Member	Accounting Manager	Admin
View items, stock levels, catalog, warehouses	Yes	Yes	Yes
Submit and track supply requests	Yes	Yes	Yes
View categories, analytics, and reports	Yes	Yes	Yes
Create, edit, and delete products and supplies	—	Yes	Yes
Manage warehouses and suppliers	—	Yes	Yes
Create and manage purchase orders	—	Yes	Yes
Receive shipments	—	Yes	Yes
Adjust stock levels and run transfers	—	Yes	Yes
Create and manage fulfillment orders	—	Yes	Yes
Create, edit, and delete categories	—	Yes	Yes
Approve or deny supply requests	—	Yes	Yes
Update pricing (individual and bulk)	—	Yes	Yes

Accounting Manager = members with the Accounting Management permission, which admins can grant to trusted members. This permission covers all inventory management operations.

Step 1

Set Up Warehouses

Start here. Warehouses represent the physical locations where your organization stores inventory. Everything else — stock levels, transfers, fulfillment — references warehouse locations.

Go to Warehouses, click Add Warehouse, and fill in the name (and optionally a code, address, contact, and capacity). Check Set as primary warehouse for your main location.

Recommended starting warehouses

Warehouse	Purpose
Primary Storage	Your main inventory location
Receiving Dock	Where incoming shipments are processed
Office Supplies	Dedicated storage for office and administrative materials

Tips

Start with a single warehouse representing your primary location — you can add more as you grow.
If you operate from one location, a single warehouse is all you need.
Warehouses can be referenced when creating fulfillment orders and stock transfers.

Add a Warehouse

Step 2

Add Suppliers

Suppliers are the vendors and partners you order from. Setting them up now means you can link them to products and create purchase orders quickly.

Go to Suppliers, click Add Supplier, and fill in the company name (and optionally a contact, email, phone, address, and payment terms such as "Net 30").

Tips

Add suppliers before adding products so you can link them during product creation.
Use the dedicated Payment Terms field rather than burying it in notes — it keeps records consistent.
The Supplier Analytics page shows order frequency and spending per supplier over time.

Add a Supplier Supplier Analytics

Step 3

Organize with Categories

Categories help organize your inventory into logical groups, making it easier to browse, filter, and report on items.

Go to Categories and use the Add Category form. Give it a name, an optional description, and an optional parent to create a sub-category. Categories support a parent/child hierarchy shown as a tree.

Recommended starting categories

Category	Sub-categories	Purpose
Raw Materials	By material type	Inputs used in production
Finished Goods	By product line	Items ready for sale or distribution
Office Supplies	Paper, cleaning, etc.	Administrative consumables
Equipment	Tools, machinery	Durable assets

Keep the structure simple at first — two levels of hierarchy at most (e.g. "Raw Materials → Metals"). Categories are organization-wide; all members see the same structure.

Go to Categories

Step 4

Add Inventory Items

With warehouses, suppliers, and categories in place, you can add the items your organization manages. Products are items you sell or distribute; supplies are materials you consume internally.

Go to Products (or Supplies), click New Product, and fill in the SKU, name, category, unit of measure, cost, selling price, reorder point, reorder quantity, and preferred supplier.

Setting stock levels

Receiving — process incoming shipments to add stock
Adjustments — make manual corrections (counts, damage, etc.)
Transfers — move stock between warehouses

Tips

Set reorder points on all critical items — this powers the low-stock alerts on your dashboard.
Use SKUs consistently — they make it easier to search and reference items.
See the reorder-point vs reorder-quantity reference below to calibrate restock thresholds.

Add a Product

Step 5

Configure Pricing

The pricing management page lets you update prices individually or across your entire product catalog, with a full audit trail.

Individual editing — click the edit icon next to a product's price, enter the new price, and optionally add a reason.
Bulk adjustment — apply a percentage change across the catalog, preview every proposed price, then apply all at once.
Price history — every change records who, when, the old and new prices, and the reason.

Always add a reason when changing prices — it creates accountability. Use the bulk adjustment preview before applying so you catch unexpected results. Pricing requires the Accounting Management permission.

Go to Products & Pricing

Step 6

Manage Supply Requests

The supply request workflow lets any team member request materials. Accounting Managers (or Admins) review and approve or deny requests.

How a supply request moves

SubmittedApproved / DeniedLinked to a PO

Any member submits a request with a title, optional item, quantity, priority, needed-by date, and justification.
Accounting Managers and Admins review pending requests and approve or deny (with a reason).
Approved requests can later be converted into a purchase order, closing the loop from request to fulfillment.

Members with the Accounting Management permission are notified when new requests are submitted, and requesters are notified when their request is approved or denied.

Request Supplies

Step 7

Create Purchase Orders

Purchase orders manage your inbound orders from suppliers. Choose a supplier, add items with quantities and unit prices, set an expected delivery date, and save.

Purchase order lifecycle

DraftPendingApprovedOrderedPartialReceived

An order can also be Cancelled before completion. When a shipment arrives, go to Receiving, select the purchase order, and record which items were received — stock levels update automatically.

Receiving auto-posts to accounting

When you receive a shipment, FlockWorker automatically posts a journal entry — debit Inventory, credit Accounts Payable — so your books stay in sync without manual entry. See the Receiving & Accounting reference.

Create a Purchase Order Receive Shipments

Step 8

Track Order Fulfillment

The fulfillment module tracks outgoing orders from picking through delivery — for shipping products to customers, distributing goods to members, or sending materials to partners.

Fulfillment lifecycle

PendingPickingPackedShippedDelivered

Create a fulfillment order with an order reference, items and quantities, optional carrier, and notes.
During picking, update the picked quantity per item to track progress.
When marking an order Shipped, enter the carrier and tracking number.

Stock is deducted at Shipped

Inventory quantities are subtracted only when an order reaches Shipped — not before. Orders cancelled before shipment don't affect your stock counts.

New Fulfillment Order

Reference

Reorder Point vs. Reorder Quantity

Two numbers keep critical items in stock without over-ordering: the reorder point (when to reorder) and the reorder quantity (how much to order).

Setting	What it means	How to calibrate
Reorder Point	The stock level that triggers a low-stock alert	Roughly average daily usage × supplier lead time (days), plus a safety buffer
Reorder Quantity	How many units to order when you restock	Enough to cover demand until the next order arrives — balance against storage cost and bulk discounts

Practical guidance

Set the reorder point higher for items with long or unreliable lead times.
If you constantly run out, raise the reorder point; if stock piles up, lower the reorder quantity.
Items at or below their reorder point appear as warnings; items at zero appear as critical alerts.

View Stock Alerts

Reference

Receiving & Accounting

Receiving inventory isn't just a stock update — it's a financial event. FlockWorker keeps your inventory and your General Ledger in sync automatically.

When you receive items against a purchase order, the system posts a journal entry for the value received:

Account	Debit	Credit
Inventory (asset)	Value received	—
Accounts Payable (liability)	—	Value received

Why it matters

This means your inventory asset balance and what you owe suppliers both rise the moment goods arrive — no separate bookkeeping step. Partial shipments post for only the value actually received, and the remainder stays open on the order.

Resolving receiving discrepancies

Always verify received quantities against the purchase order before confirming.
If fewer items arrive than ordered, record the actual quantity — the order stays Partial and the rest remains expected.
If more arrive than ordered, or items are damaged, record what's usable and resolve the difference with the supplier (a follow-up PO or a stock adjustment with a reason).

Go to Receiving

Ongoing

Day-to-Day Operations

Once setup is complete, here's how inventory management runs on an ongoing basis.

Activity	How Often
Review low-stock alerts	Daily
Process incoming shipments	As they arrive
Review and approve supply requests	As they come in
Update fulfillment order status	As orders progress
Reconcile stock counts	Monthly or quarterly
Review supplier performance	Quarterly
Audit pricing changes	Monthly

Open the Inventory Dashboard

Quick reference

Setup Checklist

Follow the steps in order — each builds on the previous. The setup readiness page checks your real configuration against this list.

Step	What to Do	Why This Order
1	Set up warehouses	Everything references storage locations
2	Add suppliers	So you can link them to products and orders
3	Organize categories	Groups items for browsing and reporting
4	Add items with SKU, unit, reorder points	The catalog the rest builds on
5	Configure pricing	Sets sell prices and an audit trail
6	Manage supply requests	Lets members request what they need
7	Create purchase orders & receive	Brings stock in and posts to accounting
8	Track fulfillment	Ships outgoing orders and deducts stock

Check your setup readiness

Ready to get started?

Begin with your warehouses, then work through each step. You can return to this guide any time from the Help Center.

Start with Warehouses Back to Help Center

Loading content...

Inventory Setup Guide

Set up stock and supply management, step by step

Warehouses, suppliers, categories, items, pricing, purchase orders, and fulfillment — everything your members need to track inventory together.

Inventory Setup Guide

Prerequisites

Before You Begin

What you need to get started:

An organization created in FlockWorker (via the Get Started page)
A subscription that includes Inventory (all tiers from Starter and above)
An Admin role or the Accounting Management permission in your organization

Who can do what

Action	Any Member	Accounting Manager	Admin
View items, stock levels, catalog, warehouses	Yes	Yes	Yes
Submit and track supply requests	Yes	Yes	Yes
View categories, analytics, and reports	Yes	Yes	Yes
Create, edit, and delete products and supplies	—	Yes	Yes
Manage warehouses and suppliers	—	Yes	Yes
Create and manage purchase orders	—	Yes	Yes
Receive shipments	—	Yes	Yes
Adjust stock levels and run transfers	—	Yes	Yes
Create and manage fulfillment orders	—	Yes	Yes
Create, edit, and delete categories	—	Yes	Yes
Approve or deny supply requests	—	Yes	Yes
Update pricing (individual and bulk)	—	Yes	Yes

Accounting Manager = members with the Accounting Management permission, which admins can grant to trusted members. This permission covers all inventory management operations.

Step 1

Set Up Warehouses

Start here. Warehouses represent the physical locations where your organization stores inventory. Everything else — stock levels, transfers, fulfillment — references warehouse locations.

Go to Warehouses, click Add Warehouse, and fill in the name (and optionally a code, address, contact, and capacity). Check Set as primary warehouse for your main location.

Recommended starting warehouses

Warehouse	Purpose
Primary Storage	Your main inventory location
Receiving Dock	Where incoming shipments are processed
Office Supplies	Dedicated storage for office and administrative materials

Tips

Start with a single warehouse representing your primary location — you can add more as you grow.
If you operate from one location, a single warehouse is all you need.
Warehouses can be referenced when creating fulfillment orders and stock transfers.

Add a Warehouse

Step 2

Add Suppliers

Suppliers are the vendors and partners you order from. Setting them up now means you can link them to products and create purchase orders quickly.

Go to Suppliers, click Add Supplier, and fill in the company name (and optionally a contact, email, phone, address, and payment terms such as "Net 30").

Tips

Add suppliers before adding products so you can link them during product creation.
Use the dedicated Payment Terms field rather than burying it in notes — it keeps records consistent.
The Supplier Analytics page shows order frequency and spending per supplier over time.

Add a Supplier Supplier Analytics

Step 3

Organize with Categories

Categories help organize your inventory into logical groups, making it easier to browse, filter, and report on items.

Recommended starting categories

Category	Sub-categories	Purpose
Raw Materials	By material type	Inputs used in production
Finished Goods	By product line	Items ready for sale or distribution
Office Supplies	Paper, cleaning, etc.	Administrative consumables
Equipment	Tools, machinery	Durable assets

Keep the structure simple at first — two levels of hierarchy at most (e.g. "Raw Materials → Metals"). Categories are organization-wide; all members see the same structure.

Go to Categories

Step 4

Add Inventory Items

With warehouses, suppliers, and categories in place, you can add the items your organization manages. Products are items you sell or distribute; supplies are materials you consume internally.

Go to Products (or Supplies), click New Product, and fill in the SKU, name, category, unit of measure, cost, selling price, reorder point, reorder quantity, and preferred supplier.

Setting stock levels

Receiving — process incoming shipments to add stock
Adjustments — make manual corrections (counts, damage, etc.)
Transfers — move stock between warehouses

Tips

Set reorder points on all critical items — this powers the low-stock alerts on your dashboard.
Use SKUs consistently — they make it easier to search and reference items.
See the reorder-point vs reorder-quantity reference below to calibrate restock thresholds.

Add a Product

Step 5

Configure Pricing

The pricing management page lets you update prices individually or across your entire product catalog, with a full audit trail.

Individual editing — click the edit icon next to a product's price, enter the new price, and optionally add a reason.
Bulk adjustment — apply a percentage change across the catalog, preview every proposed price, then apply all at once.
Price history — every change records who, when, the old and new prices, and the reason.

Go to Products & Pricing

Step 6

Manage Supply Requests

The supply request workflow lets any team member request materials. Accounting Managers (or Admins) review and approve or deny requests.

How a supply request moves

SubmittedApproved / DeniedLinked to a PO

Any member submits a request with a title, optional item, quantity, priority, needed-by date, and justification.
Accounting Managers and Admins review pending requests and approve or deny (with a reason).
Approved requests can later be converted into a purchase order, closing the loop from request to fulfillment.

Members with the Accounting Management permission are notified when new requests are submitted, and requesters are notified when their request is approved or denied.

Request Supplies

Step 7

Create Purchase Orders

Purchase orders manage your inbound orders from suppliers. Choose a supplier, add items with quantities and unit prices, set an expected delivery date, and save.

Purchase order lifecycle

DraftPendingApprovedOrderedPartialReceived

An order can also be Cancelled before completion. When a shipment arrives, go to Receiving, select the purchase order, and record which items were received — stock levels update automatically.

Receiving auto-posts to accounting

Create a Purchase Order Receive Shipments

Step 8

Track Order Fulfillment

The fulfillment module tracks outgoing orders from picking through delivery — for shipping products to customers, distributing goods to members, or sending materials to partners.

Fulfillment lifecycle

PendingPickingPackedShippedDelivered

Create a fulfillment order with an order reference, items and quantities, optional carrier, and notes.
During picking, update the picked quantity per item to track progress.
When marking an order Shipped, enter the carrier and tracking number.

Stock is deducted at Shipped

Inventory quantities are subtracted only when an order reaches Shipped — not before. Orders cancelled before shipment don't affect your stock counts.

New Fulfillment Order

Reference

Reorder Point vs. Reorder Quantity

Two numbers keep critical items in stock without over-ordering: the reorder point (when to reorder) and the reorder quantity (how much to order).

Setting	What it means	How to calibrate
Reorder Point	The stock level that triggers a low-stock alert	Roughly average daily usage × supplier lead time (days), plus a safety buffer
Reorder Quantity	How many units to order when you restock	Enough to cover demand until the next order arrives — balance against storage cost and bulk discounts

Practical guidance

Set the reorder point higher for items with long or unreliable lead times.
If you constantly run out, raise the reorder point; if stock piles up, lower the reorder quantity.
Items at or below their reorder point appear as warnings; items at zero appear as critical alerts.

View Stock Alerts

Reference

Receiving & Accounting

Receiving inventory isn't just a stock update — it's a financial event. FlockWorker keeps your inventory and your General Ledger in sync automatically.

When you receive items against a purchase order, the system posts a journal entry for the value received:

Account	Debit	Credit
Inventory (asset)	Value received	—
Accounts Payable (liability)	—	Value received

Why it matters

Resolving receiving discrepancies

Always verify received quantities against the purchase order before confirming.
If fewer items arrive than ordered, record the actual quantity — the order stays Partial and the rest remains expected.
If more arrive than ordered, or items are damaged, record what's usable and resolve the difference with the supplier (a follow-up PO or a stock adjustment with a reason).

Go to Receiving

Ongoing

Day-to-Day Operations

Once setup is complete, here's how inventory management runs on an ongoing basis.

Activity	How Often
Review low-stock alerts	Daily
Process incoming shipments	As they arrive
Review and approve supply requests	As they come in
Update fulfillment order status	As orders progress
Reconcile stock counts	Monthly or quarterly
Review supplier performance	Quarterly
Audit pricing changes	Monthly

Open the Inventory Dashboard

Quick reference

Setup Checklist

Follow the steps in order — each builds on the previous. The setup readiness page checks your real configuration against this list.

Step	What to Do	Why This Order
1	Set up warehouses	Everything references storage locations
2	Add suppliers	So you can link them to products and orders
3	Organize categories	Groups items for browsing and reporting
4	Add items with SKU, unit, reorder points	The catalog the rest builds on
5	Configure pricing	Sets sell prices and an audit trail
6	Manage supply requests	Lets members request what they need
7	Create purchase orders & receive	Brings stock in and posts to accounting
8	Track fulfillment	Ships outgoing orders and deducts stock

Check your setup readiness

Ready to get started?

Begin with your warehouses, then work through each step. You can return to this guide any time from the Help Center.

Start with Warehouses Back to Help Center

Human Resources

Finance & Payroll

Inventory

Inventory Setup Guide

Inventory Setup Guide

Before You Begin

Who can do what

Set Up Warehouses

Recommended starting warehouses

Add Suppliers

Organize with Categories

Recommended starting categories

Add Inventory Items

Setting stock levels

Configure Pricing

Manage Supply Requests

How a supply request moves

Create Purchase Orders

Purchase order lifecycle

Track Order Fulfillment

Fulfillment lifecycle

Reorder Point vs. Reorder Quantity

Receiving & Accounting

Resolving receiving discrepancies

Day-to-Day Operations

Setup Checklist

Inventory Setup Guide

Inventory Setup Guide

Before You Begin

Who can do what

Set Up Warehouses

Recommended starting warehouses

Add Suppliers

Organize with Categories

Recommended starting categories

Add Inventory Items

Setting stock levels

Configure Pricing

Manage Supply Requests

How a supply request moves

Create Purchase Orders

Purchase order lifecycle

Track Order Fulfillment

Fulfillment lifecycle

Reorder Point vs. Reorder Quantity

Receiving & Accounting

Resolving receiving discrepancies

Day-to-Day Operations

Setup Checklist