Inventory management for wholesalers: cartons, godowns and credit

A retailer sells one unit at a time. A wholesaler buys in cartons, sells in dozens, holds stock in more than one godown and lets good customers pay later. Every one of those habits can make the stock count wrong.

Choose one base unit for each product, usually the smallest you sell. Define cartons and dozens as multiples of it. Then purchases in cartons and sales in pieces all reduce one number. Most wholesale stock mistakes are unit mistakes.

Record stock per warehouse, not as one total. When a customer asks for 400 pieces, you want to know which godown can supply them, not just that you own them somewhere.

Stock only makes sense with the money around it.

• Receiving goods should create the supplier bill at the same time.
• Delivering goods should create the customer invoice.
• An aging report should show which customer balances are overdue.
• Returns should put stock back and adjust the balance together.

Count a few products every week rather than everything once a year. Record differences as stock adjustments with a reason, so you can see where loss happens.