Introducing Inventory in Zoho Books: Stock Management made easy.

Yes, it is finally here. We’re excited to announce that inventory management will now be available in Zoho Books. Are you wondering why we’ve brought in inventory management in an accounting software?



For traders and product based companies who have stock constantly moving in and out, stock control can be just as crucial as managing finance. Often, they use two separate systems to manage these functions. Something like inventory control cannot be an app glued to your accounting software or an add-on. It should be a part of your books in real-time and stock movements should update instantly.


Coming to the inventory function itself, today, most businesses feel the heat trying to get a proper control over their stock. If managing inbound goods and billing for them is hard, tracking the outgoing goods and invoicing for them can be much harder. Apart from these, there is also the difficult task of inventory valuation and adjustment.


Zoho Books has addressed all these pain points with the new inventory feature. Here are some of the major issues that we’ve solved:


Tracking Inventory


We have linked up inventory to all the major modules so that you can manage it end-to-end. Right from purchase orders & bills to sales orders & invoices, we’ve got it all covered. Simply enable inventory tracking and everything else is automated.


Inventory Adjustments


The biggest pain for retailers would be making inventory adjustments. Always keep an eye out for damaged goods, difference in stock levels on recount, and a lot of other such situations that demand changing the inventory count in your books. Zoho Books lets you make positive and negative inventory adjustments, anytime. Capture it with all necessary details.


Efficient Reordering


The last thing you would want is stock unavailability when there is so much demand for your products. Set reorder levels and preferred vendors for your products in Zoho Books. If the items touch the reorder point, the system automatically triggers a notification asking you to refill the stock.


Accurate Inventory Valuation


Businesses struggle during tax payment as a result of improper accounting of their stock. Every product in your inventory has an asset value that can make a difference in your books. With Zoho Books, each and every product in your inventory is automatically accounted for as they come in and are being sold.

Zoho Books uses FIFO method of stock evaluation. It is the most accurate and the most recommended method for businesses. It covers all the costs associated with the sale of the goods and improves the accuracy of your profit reporting.


Knowing Your Inventory


At the end of the day, you are not doing good business if you do not know the status and value of your inventory. Zoho Books generates reports based on stock movement, availability and asset value of individual items. A comprehensive report called ‘FIFO cost lot tracking’ is also available, that accurately traces the incoming and outgoing path of goods ordered and sold in the business.


So there you have it, your ideal inventory and accounting combo. From now on, you don’t have to spend on 2 separate software for inventory and accounting. Enable inventory, use it and let us know what you think.


24 Replies to Introducing Inventory in Zoho Books: Stock Management made easy.

  1. Harish I want to know how you recommend dealing with prepaid purchase orders where stock arrives 4-8 weeks later - we do not want to bring the stock in when paid as often some of it is back ordered ...

  2. Just asking how you recommend dealing with prepaid purchase orders where stock arrives 4-6 weeks later......we have just moved from reckon to Zoho.....

  3. We have to pay for stock before it is sent in foreign currency and have set up a transit stock account but am not sure whether you have a shortcut to deal with this - we do not want stock counted when paid for as sometimes it is not supplied and there may be a delay of up to 5 weeks for arrival...

  4. Hello zoho here i want ot ask you for how can i will manage my 2 difrent warehouse's inventory and billing as separately in one book

  5. dear i want to learn this from very basic level.May you provide some sort of documentation for proper guideline. Regards +92 3335464060

  6. Hi Harish, Could you find a way to create the work around and introduce BOM functionality into Zoho books for Marteen? I would be interested by the same so to have an accurate stock valuation as well as the accurate COGS tks Julien

  7. i tried to Track Inventory for this item, but then it shows the "Inventory tracking cannot be enabled or disabled for items having transactions." Could you please help ?

    1. Hi Abigail, Sorry about the late reply. Was a busy week. We enable inventory instantly for new inventory items. But for inventory items with existing transactions, there is a little bit of work to be done on our end. Can you email us at about this, so that one of our experts can get in touch with you to assist you with this issue. Regards, Harish

  8. Harish, Can this be used for manufacturing organisations where they buy raw material and produce goods? For an example - The specific line of business is a Car Maintenance workshop. It has three lines of deals with potentials - 1. Trading of Car Parts - 2. Maintenance Service/ Job for Cars - 3. Manufacturing a specific part with the help of purchased different raw material items. Is it now available for CRM integration? Can it also be used for warehouse management for tracking goods delivery, stock updation, generating report and directly sending delivered goods info to accounts for further actions?

  9. Do you handle rental items - in the way that when the rented item is returned, the inventory increase? If not - anyone know of a add on or something which can be used with Zoho books/invoice? Would it be hard to make? Want to use this in Zoho books/invoice together with the recurring billing/cc charging.

  10. The content that I normally see is nothing like what you have written. This is very well-thought out and well-planned. You are a unique thinker and bring up great individualized points. Please continue your work.

  11. I've been trying to find a way to keep stock on finished products as well as all the components that go into creating the products. If it could be integrated with the list of products in Zoho invoice that would be ideal.

  12. Is it possible to have different inventories, one of input raw materials and one for the final manufactured products to be sold and connects to the Zoho CRM module?

    1. Hi Roberto, Sorry to disappoint you but we do not have the option to handle raw materials in Zoho Books. And yes, we are working on integrating inventory with Zoho CRM. It will be available before the end of the year. I shall keep you posted on that. Regards, Harish

  13. Does it works with Transformation Goods for Production so we can manage and handle the goods inventory purchased for production and the production inventory for selling?

    1. Hi Roberto, Currently the inventory feature is optimized for trading businesses. Hence, you will not be handle raw materials purchased for production. Only the finished goods can be tracked as sales items. Regards, Harish

  14. Can photos be uploaded for the different inventory items? Is there also flexibility to add rental prices (e.g. if an item can be either sold or rented?)

    1. Hi Birgit, Yes, we are working on bringing in the option to upload photos for different items. I cannot commit a time frame as of now, but it will be out soon. We do not have any plans to include an option to add rental prices. We'll keep you posted on any updates in this regard. Best Regards, Harish

  15. Good morning Harish, We are really excited that you have brought Inventory Management in Zoho Books. This is really relevant to our business as it will enable us to perform most of our functions on Zoho. What we are trying to do though is to be able to enter all our information once onZoho CRM and then be able to sync with Zoho Books and vice versa. Can this be done with Inventory Management

    1. Hi Sipho, Thank you. We're currently working on integrating the inventory feature with Zoho CRM. We will be covering all the major modules associated with inventory too. And a good news is, it will be out before the end of the year. I'll keep you posted. Regards, Harish

    1. Hi Maarten, Thank you. Currently, we do not have plans to bring in BOM or MRP into Zoho Books. Can you share with us your exact requirement so that we will try and help you with a workaround in Zoho Books.

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