How often should I do a physical stock count?

At a minimum, once per financial year. For high-value or fast-moving items, a monthly cycle count (counting a rotating subset rather than everything at once) is better. DEBMEDIA ERP's stock adjustment screen makes it easy to reconcile the physical count with the system balance.

What is the difference between FIFO and Weighted Average?

FIFO (First In, First Out) assumes the oldest stock is sold first — accurate for perishables. Weighted Average cost is simpler and commonly used for trading businesses. DEBMEDIA ERP uses Weighted Average; FIFO will be added in a future version.

7 Inventory Control Practices That Will Reduce Your Stock Losses

Ask most business owners how much their inventory is worth right now, and you will get a hesitant answer, a spreadsheet, or a date from three weeks ago. That uncertainty costs money — in over-ordering, stockouts, and spoilage. Here are seven practices to fix it.

1. Set Minimum Stock Levels for Every Item

Every item in your master should have a minimum stock level. In DEBMEDIA ERP, when stock falls below this level, an alert appears on the Business Intelligence dashboard. This eliminates the scenario where a customer asks for an item and you discover only then that you ran out two days ago.

2. Record Every Movement — No Exceptions

The most common cause of stock discrepancies is unrecorded movements: items given as samples, damaged goods written off in person, stock moved between locations without a transfer note. Every movement must be recorded. Build this discipline early — it is much harder to enforce after records have diverged.

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3. Use Batch and Serial Numbers for High-Value Items

For electronics, pharmaceuticals, or any item where traceability matters, enable batch/serial tracking in the item master. This lets you trace exactly which batch went to which customer — critical for recalls, warranty claims, and regulatory audits.

4. Reconcile Goods Receipts on the Day of Arrival

Do not let purchase invoices sit unposted for days after the goods arrive. Post the goods receipt in DEBMEDIA ERP the same day — this keeps your stock balance accurate and creates the liability entry so your payables are correct too.

5. Process Returns Immediately

Returned goods often sit in a corner while everyone debates what to do with them. They should be entered into the system immediately — either as a stock restoration (goods returned to saleable condition) or as a write-off (damaged). Leaving them unrecorded means your stock count is wrong.

6. Run the Low Stock Report Weekly

Build a habit of reviewing the stock alert list every Monday morning. Raise purchase orders for anything at or below the minimum level before the week's sales make it critical. Proactive reordering costs nothing. Emergency reordering from an alternative supplier at a premium costs significantly more.

7. Do an Annual Physical Count

System stock and physical stock always drift over time — shrinkage, counting errors, unrecorded movements. A full physical count at the end of each financial year, reconciled against the system, brings the books back to reality. In DEBMEDIA ERP, use Inventory → Stock Adjustment to record the differences after counting.