Inventory Management Parameters
Overview
Inventory Management Parameters is the central configuration page for system-wide inventory behaviour. It is organised into two sections accessible from the left tab strip:
| Tab | Purpose |
|---|---|
| General | Set the default costing method and behaviour flags that apply to any item not assigned to an Item Model Group |
| Number sequences | Assign the auto-incrementing number series used to generate document numbers for inventory transactions, movements, and assembly orders |
To make changes, select Edit in the toolbar, update the settings, then save.
General Tab
Why defaults matter
Every item in the system can be linked to an Item Model Group that defines its costing method and behaviour. However, if an item has no model group assigned, the system falls back to the values configured here.
Think of this page as the safety net: if anything was missed during item setup, the system still knows how to handle it.
Inventory Model Section
| Setting | Current value | What it controls |
|---|---|---|
| Default inventory model | FIFO | The costing method used when an item has no model group. See Item Model Groups for a full explanation of each method. |
| Stocked product by default | On | When enabled, items without a model group are treated as physically tracked in the warehouse. When disabled, they are treated as non-stocked. |
Physical Inventory Section
These flags control how physical inventory movements (quantities on hand) behave for items that fall back to defaults.
| Setting | Current value | What it controls |
|---|---|---|
| Allow negative physical inventory | Off | When off, the system prevents transactions that would take physical stock below zero. When on, quantities can go negative — useful during high-volume operations where receipts arrive slightly after the corresponding shipments. |
| Post physical inventory transactions | On | When on, all physical inventory movements are recorded and visible in transaction history. |
These flags are the system-wide fallback. Per-item overrides will be configurable at the Item Model Group level in a future release.
Financial Inventory Section
These flags control how inventory movements are posted to the General Ledger.
| Setting | Current value | What it controls |
|---|---|---|
| Allow negative financial inventory | Off | Same concept as negative physical, but for the financial valuation layer. When off, the system does not allow the financial inventory value to go below zero. |
| Post financial inventory transactions | On | When on, inventory transactions generate financial entries in the GL (cost of goods sold, inventory asset postings, etc.). |
| Post deferred revenue account on sale | Off | When on, revenue from a sale is initially posted to a deferred revenue holding account instead of recognising it immediately. Used in businesses with specific revenue recognition policies. |
As with Physical inventory flags, per-item overrides for these settings will be available in the Item Model Group page in a future release.
Number Sequences Tab
What is a number sequence?
A number sequence is an auto-incrementing counter that the system uses to generate unique, sequential document numbers — so every transaction, movement, and assembly order gets a consistent, traceable reference number automatically. You never need to type one manually.
Number sequences themselves are defined and managed in Organisation Administration (in the left sidebar), where you configure the format, starting number, increment step, and scope. Here in Inventory Management Parameters, you simply assign which sequence to use for each document type.
Assigned sequences
| Reference | Assigned sequence | Example document number |
|---|---|---|
| Inventory transaction | Inventory-Transaction (INV-TRN-######) | INV-TRN-000001, INV-TRN-000002, … |
| Inventory movement | Inventory-Movement (INV-MOV-######) | INV-MOV-000001, INV-MOV-000002, … |
| Assembly order | Assembly-Order (ASM-ORD-######) | ASM-ORD-000001, ASM-ORD-000002, … |
Each # in the format represents a digit position. A sequence with ###### produces six-digit numbers, padding with leading zeros until the number is large enough to fill all positions.
Changing an assigned sequence
- Select Edit in the toolbar.
- In the Number sequences tab, select the row you want to change.
- Choose a different number sequence from the dropdown.
- Save.
Changing a number sequence mid-operation will cause the next document to start from wherever the new sequence's counter currently stands. This can create numbering gaps or jumps in your records. Only change sequences at the start of a new period or when directed by your system administrator.
To create a new number sequence or adjust an existing one's format and starting value, go to Organisation Administration → Number sequences in the left navigation sidebar.