Inventory

​

Overview

Knowlix Inventory is a full warehouse management system that combines stock tracking, routing, replenishment automation, and comprehensive reporting in a single platform. Teams can configure multi-step receiving and shipping flows, set up automatic reordering rules, track products by lot or serial number, manage multiple warehouses, and maintain precise valuation records for all stored goods. Key features:

• Warehouse and location hierarchy management
• Multi-step inbound and outbound flows (1, 2, or 3 steps)
• Reordering rules (automatic and manual) with just-in-time logic
• Replenish on Order (MTO) route
• Stock valuation reporting (standard price, AVCO, FIFO)
• Inventory adjustments and cycle counts
• Removal strategies (FIFO, LIFO, FEFO, Closest Location, Least Packages)
• Reservation methods for delivery orders
• Forecasted stock report with demand visibility
• Inter-warehouse replenishment
• Lead time configuration across sales, purchasing, and manufacturing
• Delivery methods with carrier integration

---

​

Warehouses

A warehouse in Knowlix represents a physical storage facility with its own address, such as a distribution center, manufacturing plant, or retail store. Navigate to Inventory > Configuration > Warehouses to manage warehouse records.

​

Creating a Warehouse

Click New and fill in:

• Warehouse - the full descriptive name (required)
• Short Name - a 2-5 character code used on transfers and documents (required); the default warehouse uses “WH”
• Address - the physical address of the facility (required)
• Company - the company that owns this warehouse (required)
• Intrastat Region - required for EU companies with intrastat reporting obligations

When Multi-Step Routes is enabled (Inventory > Configuration > Settings), additional options appear:

• Incoming Shipments - one, two, or three-step receiving flow
• Outgoing Shipments - one, two, or three-step delivery flow
• Manufacture to Resupply - allow manufacturing orders to replenish this warehouse
• Manufacture - one, two, or three-step manufacturing flow
• Buy to Resupply - allow purchase orders to be delivered to this warehouse
• Resupply From - other warehouses that can transfer stock to this one
• Dropship Subcontractors - purchase components from vendors and drop them to subcontractors
• Resupply Subcontractors - supply subcontractors from this warehouse’s stock

---

​

Locations

Locations are sub-divisions within a warehouse: shelves, aisles, rooms, bins, and any other named storage area. Enable Storage Locations at Inventory > Configuration > Settings > Warehouses to activate them.

​

Location Types

Location hierarchy types:

• Physical Locations - groups off-site or transit internal locations (no valuation impact when goods move here)
• Partner Locations - groups customer and vendor external locations (valuation changes when goods move here)
• Virtual Locations - non-physical tracking areas for items outside normal inventory (losses, scrap, production)

​

Creating a Location

Navigate to Inventory > Configuration > Locations and click New.

• Location Name - a clear, recognizable label
• Parent Location - where this location sits in the warehouse hierarchy (e.g., WH/Stock/Zone A)
• Location Type - categorizes the location’s purpose
• Storage Category - assign capacity or weight restrictions (requires Storage Categories feature)
• Company - restricts the location to a specific company; leave blank for all companies
• Is a Scrap Location - marks this as eligible to receive scrapped goods
• Is a Return Location - marks this as a valid return destination
• Barcode - barcode value for scanning in the Barcode module
• Replenish Location - sets this location as a valid destination for Buy, Manufacture, and other procurement routes

Cyclic Counting section:

• Inventory Frequency (Days) - when set to a value greater than 0, the system automatically schedules the next inventory count at that location after each count is applied

Logistics section:

• Removal Strategy - controls which products are picked first: FIFO, LIFO, FEFO, Closest Location, or Least Packages

​

Viewing Stock at a Location

Open any location and click the Current Stock smart button to see all products stored there with quantities.

---

​

Inbound and Outbound Flows

Receiving and shipping flows define how many transfer steps products go through when entering or leaving the warehouse. Configure them per warehouse at Inventory > Configuration > Warehouses.

​

One-Step Flow

Products move directly: vendor to stock (receiving) or stock to customer (shipping). No intermediate holding areas.

• Minimum handling and documentation overhead
• Suitable for small warehouses, non-perishable items, and fast-moving products

​

Two-Step Flow

An input or output staging area is added between the external location and stock.

• Receiving: Vendor delivers to the Input area. A second transfer moves goods into stock after inspection or unboxing.
• Shipping: Goods are picked to an Output area before final dispatch. Teams can sort and consolidate before shipping.
• Products in the input area are not automatically reserved for downstream operations until transferred into stock.

​

Three-Step Flow

Adds a quality control or packing step between the staging area and final destination.

• Receiving: Input area → Quality Control → Stock
• Shipping: Pick → Pack → Ship
• Provides the highest level of traceability and control
• Best suited for large warehouses with dedicated teams per step

---

​

Inventory Adjustments

When the database quantity for a product does not match the physical count, inventory adjustments correct the discrepancy. Navigate to Inventory > Operations > Physical Inventory.

​

Adjustment Page Columns

• Location - storage location (visible when Storage Locations is enabled)
• Product - the product being counted
• Lot/Serial Number - tracking identifier, if applicable
• Expiration Date - lot or serial number expiry date, if tracked
• Last Count Date - when the quantity was last updated
• Package - any package containing this stock
• On Hand Quantity - current quantity recorded in the system
• Counted Quantity - the actual physical count entered by the user
• Difference - the gap between On Hand and Counted quantities (green for surplus, red for deficit)
• Scheduled Date - planned date for this count (defaults to December 31 of the current year)
• User - the person responsible for the count

​

Creating an Adjustment

Click New to add a blank line. Select the product (and lot/serial number if tracked), then enter the Counted Quantity. The Difference column updates automatically. The adjustment is saved but not yet applied. No inventory move occurs until applied.

​

Applying an Adjustment

Click Apply on the line, or select multiple lines and click the Apply button from the top toolbar. A confirmation dialog prompts for a reference or reason (defaults to today’s date). Click Apply to finalize. A stock move line is recorded in Moves History for full traceability.

​

Relocating Products

Select one or more product lines, click Relocate, and specify the new location and package. Product relocations require Administrator access and only work between internal locations.

​

Setting Quantities to Zero

Select products, open the Actions menu, and choose Set to 0 to clear quantities before a full recount.

​

Planning a Count

Select all or specific product lines and click Request a Count. In the dialog:

• Inventory Date - the planned counting date
• User - the person assigned to count
• Accounting Date - accounting date for the adjustment
• Count - leave blank (Leave Empty) for fresh entry, or pre-fill with current values (Set Current Value)

Click Confirm to schedule the count.

​

Reverting an Adjustment

Navigate to Inventory > Reporting > Moves History, find the adjustment line, and use Actions > Revert Inventory Adjustment. The revert adds a new line with “[reverted]” in the Reference column rather than deleting the original.

---

​

Cycle Counts

Cycle counts schedule inventory checks at individual locations on a recurring basis, keeping critical stock levels accurate without full warehouse shutdowns.

​

Setup

Enable Storage Locations at Inventory > Configuration > Settings. Open any location at Inventory > Configuration > Locations, and in the Cyclic Counting section, set the Inventory Frequency (Days) to the desired interval (e.g., 30 for monthly counts). After each count is applied at that location, the next scheduled count date is automatically set based on this interval.

​

Performing a Cycle Count

Navigate to Inventory > Operations > Physical Inventory. Use the search bar’s Group By option to group by Location. Select the location to count, enter counted quantities for each product line, and apply the adjustment.

​

Adjusting the Annual Count Date

For the global annual count, change the default date at Inventory > Configuration > Settings > Operations > Annual Inventory Day and Month (default: December 31).

---

​

Scrap Inventory

Damaged or defective stock that cannot be repaired or returned to a vendor can be scrapped. Scrapping removes the item from active inventory and places it in a virtual scrap location.

​

Scrap from Stock

Navigate to Inventory > Operations > Scrap and click New.

• Product - the item being scrapped
• Quantity - how many units to scrap
• Source Location - defaults to the current storage location
• Scrap Location - defaults to Virtual Locations/Scrap
• Source Document - link to an existing operation if applicable
• Replenish Quantities - tick to trigger a replenishment rule for the scrapped product

Click Validate to complete the scrap order.

​

Scrap from an Operation

Open any receipt, delivery order, or internal transfer. Click the gear icon and select Scrap to open the scrap dialog within the context of that operation. Lot/serial fields appear automatically if the product is tracked.

​

Viewing All Scrapped Stock

Go to Inventory > Configuration > Locations, remove the Internal filter to show virtual locations, and open Virtual Locations/Scrap. Click Current Stock to see all scrapped products with quantities.

---

​

Product Catalog

The product catalog provides a visual, point-of-sale-style interface for adding products to orders, quotations, bills of materials, and receipts without using line-by-line entry. Access it from the first tab (Order Lines, Components, Parts, etc.) of any order form by clicking the Catalog link. Each product card displays the photo, title, price or cost, reference code, on-hand quantity, and variant attributes. Use the sidebar to filter by product category or attribute. Use the search bar to find products by name or reference. Click a card or the Add button to add one unit. Click the plus/minus buttons to adjust quantities. Click Remove or reduce the quantity to zero to remove a product. Click Back to [Form] when finished to return to the order.

---

​

Stock Reports

​

Stock Report

Navigate to Inventory > Reporting > Stock for a summary of all stored products with unit cost, total value, on-hand quantity, free-to-use quantity, and incoming and outgoing quantities. Click the row buttons to access History (movement log), Replenishment (reordering rules), Locations (breakdown by storage area), or Forecast (projected stock levels). Filter by product type, product category, or POS category. Save custom filter configurations as favorites for quick access.

​

Moves History Report

Navigate to Inventory > Reporting > Moves History for a detailed log of every stock movement, including date, reference document, product, lot/serial number, source and destination locations, quantity, and status. Status values:

• Done - completed transfers
• Available - ready to process
• Partially Available - insufficient quantity to complete the full operation

Use filters for Incoming, Outgoing, Internal, Manufacturing, or date ranges. Group by product, status, date, location, batch, or transfer number.

​

Locations Dashboard

Navigate to Inventory > Reporting > Locations for an overview of all on-hand products by storage location with reserved quantities. Common reports from the Locations dashboard:

• Dead Stock (Expired Items): Apply Filters: Internal Locations + Expiration Alerts
• Stranded Inventory: Search for a transit location name (e.g., WH/Input) to find products sitting in non-storage areas
• Inventory Discrepancy: Apply Filters: Internal Locations + Conflicts to see items changed since the last count

Use the Inventory At Date button in the top-left corner to view stock as it was at any past date and time.

​

Stock Valuation (Aging Report)

Navigate to Inventory > Reporting > Valuation. List View (default): Shows individual stock valuation layers (SVLs), generated when products are received, delivered, dropshipped, or returned. Columns include Date, Reference, Product, Quantity, and Total Value. Additional columns available: Lot/Serial Number, Remaining Quantity, Unit Value, Remaining Value, and Description. SVLs update automatically when a product’s valuation method changes. Revaluation entries (one negative, one positive) are posted to reflect the shift in pricing for goods still in stock. Pivot View (Stock Aging Report): Groups on-hand quantity and value by product category and date. Click the plus icon in columns or rows to drill into product, lot/serial number, company, or date breakdowns. Graph View: Cumulative total inventory value over time in line chart format. Switch to bar or pie chart for alternative visualizations. Valuation at Date: Click the button in the top-left corner to view historical stock quantities and total values at a specific date and time. Note that Remaining Quantity and Remaining Value still reflect current stock levels even when viewing past dates.

---

​

Forecasted Stock Report

Navigate to the Forecasted smart button on any storable product, or click the graph icon next to a product in a sales or purchase order and select View Forecast. The report includes:

• On Hand - current physical stock
• Incoming - quantities from confirmed purchase or manufacturing orders
• Outgoing - quantities reserved for confirmed sales orders or other outgoing operations
• Forecasted - projected stock based on all confirmed operations

The table below the graph shows replenishment details, receipt dates, quantities, which operation each unit is allocated for, scheduled delivery dates, forecasted inventory levels, and forecasted levels including pending movements.

​

Actions from the Forecast Report

• Replenish - open the replenishment dialog to create a purchase or manufacturing order
• Manufacturing Forecast - view component availability for upcoming manufacturing orders
• Update Quantity - open an inventory adjustment to manually correct on-hand stock

​

Interpreting the Forecast

A negative forecasted quantity means projected demand exceeds available and incoming stock. Actions to take: prioritize specific orders, expedite purchases, or adjust delivery commitments with customers. When a receipt date is later than a delivery date for the same product, the receipt is late. Either expedite the incoming shipment or reschedule the delivery.

---

​

Replenishment

Stock can be replenished three ways: reordering rules, Replenish on Order (MTO), or Master Production Schedule. Each approach suits different business contexts.

​

Reordering Rules

Reordering rules maintain stock between a defined minimum and maximum quantity. When forecasted stock falls below the minimum, Knowlix creates or suggests a purchase order (for products using the Buy route) or manufacturing order (for products using the Manufacture route). Setting up a product for reordering rules:

1. Go to Inventory > Products > Products and open the product.
2. In the General Information tab, set Product Type to Goods and check Track Inventory.
3. In the Inventory tab, tick the Buy route (and set a vendor in the Purchase tab) or the Manufacture route (and ensure a Bill of Materials exists).

Creating a reordering rule: Navigate to Inventory > Operations > Replenishment and click New.

• Product - the item to replenish
• Location - where replenished stock should be stored
• Min Quantity - trigger threshold; replenishment creates when forecasted stock drops below this value
• Max Quantity - replenishment target
• Multiple Quantity - round up replenishment quantity to multiples of this number

​

Trigger Types

• Auto - replenishment orders are created automatically when the scheduler runs (daily by default) or when a sales order confirms and drops forecast below minimum
• Manual - a need appears on the replenishment dashboard for user review before ordering

Enable the Trigger column by clicking the settings icon on the replenishment report and checking Trigger.

​

0/0/1 Reordering Rule

The 0/0/1 rule keeps zero stock on hand and creates a replenishment order for one unit each time a sales order drops the forecast below zero. Unlike the MTO route, the replenished stock is not automatically reserved for the triggering order, making it available for any demand. Set Min = 0, Max = 0, and To Order = 1.

​

Preferred Route

To specify which route to use when multiple are available, reveal the Route column on the replenishment report and select the preferred option. If no preference is set, Buy takes priority over Manufacture. Advanced route configurations:

• Set Vendor to pre-populate a specific supplier on generated purchase orders
• Set Bill of Materials to use a specific BOM when multiple exist for a product
• Set Procurement Group to link replenishment orders to a specific sales order or demand group (enables smart button linking, similar to MTO)

​

Just-in-Time Logic

Knowlix minimizes storage costs by timing replenishment to match demand deadlines exactly. The forecasted date is the earliest possible receipt date if replenishment starts today. It equals today’s date plus all applicable lead times. The system only shows a reordering rule as needing action when the demand falls within the forecasted date window. Demands scheduled beyond the forecasted date remain hidden until replenishment is actually needed.

​

Visibility Days

Visibility days allow the system to look ahead a specified number of extra days from the forecasted date and consolidate near-future demands into the current order. This reduces shipping frequency and can unlock supplier volume discounts. Set visibility days in the Visibility Days column on the replenishment report.

​

Horizon Days

Horizon days extend the forecasted date forward, causing manual reordering rules to appear on the replenishment dashboard sooner. This helps plan ahead when lead times make last-minute ordering risky. To set horizon days, navigate to Inventory > Operations > Replenishment, click Manual in the left sidebar, and set the number of horizon days.

​

Order to Max

To replenish a product up to its maximum even when no minimum threshold has been crossed, select the product and click Replenish > Order to Max.

​

Replenish on Order (MTO)

The MTO route creates a purchase or manufacturing order automatically each time a sales order or manufacturing order that requires the product is confirmed. Each replenishment order is directly linked to the originating demand through a smart button. Activating the MTO route: The MTO route is archived by default. Navigate to Inventory > Configuration > Routes, enable the Archived filter, select Replenish on Order (MTO), and use Actions > Unarchive. Configuring a product for MTO: Open the product, go to the Inventory tab, and tick Replenish on Order (MTO) along with Buy or Manufacture in the Routes section. MTO requires a second route to function. Using MTO: Create a sales order containing an MTO product and confirm it. A Purchase (or Manufacturing) smart button appears on the order. The linked purchase order or manufacturing order is created automatically. When the products are received, validate the receipt, then proceed with the delivery. When a sales order is cancelled, the linked delivery is cancelled but the purchase or manufacturing order remains active. Cancel or repurpose it manually.

​

Inter-Warehouse Replenishment

When a business operates multiple warehouse locations, stock can be transferred from a central warehouse to regional stores or sub-locations. Setup:

1. Go to Inventory > Configuration > Settings and enable Storage Locations.
2. Create or open each warehouse at Inventory > Configuration > Warehouses.
3. On the receiving warehouse’s form, tick the central warehouse in the Resupply From field.
4. On each product’s Inventory tab, enable the [Store]: Supply Product from [Central Warehouse] route.

Triggering replenishment: Use either MTO (unarchive and select both routes on the product) or a reordering rule with the warehouse supply route selected. When triggered, Knowlix creates two transfers: a delivery order from the central warehouse and a receipt at the destination location. Products in transit appear at Physical Locations/Inter-warehouse transit.

---

​

Lead Times

Lead times coordinate purchasing, manufacturing, and delivery schedules to ensure products reach customers by their committed dates.

​

Lead Time Types

​

Sales Lead Times in Practice

Set the Customer Lead Time on the product form’s Inventory tab. Enable Sales Security Lead Time in Inventory settings. For orders with multiple products, set the Shipping Policy on the order’s Other Info tab:

• As soon as possible - deliver when the first product is ready (uses shortest lead time)
• When all products are ready - wait until all items are available (uses longest lead time)

​

Purchase Lead Times in Practice

Set the Delivery Lead Time in the vendor pricelist on the product’s Purchase tab. The Expected Arrival date on purchase orders is calculated as Order Deadline + Vendor Lead Time. Enable purchase security lead time and days to purchase globally in Inventory settings to widen the JIT forecast window.

​

Manufacturing Lead Times in Practice

Set Manuf. Lead Time on the BOM’s Miscellaneous tab. The scheduled date of the manufacturing order is the delivery order’s scheduled date minus the manufacturing lead time. Click Compute next to Days to Prepare Manufacturing Order to automatically sum the purchase and manufacturing lead times of all components.

---

​

Removal Strategies

Removal strategies determine which specific stock units are picked first when fulfilling orders. Feature requirements: Configuring strategies: Set on a storage location at Inventory > Configuration > Locations in the Removal Strategy field, or on a product category at Inventory > Configuration > Product Categories using Force Removal Strategy. Product category settings take priority over location settings.

---

​

Reservation Methods

Reservation methods control when stock is reserved for delivery orders, ensuring the right quantities are held for the right orders at the right time. Configure reservation methods per operation type at Inventory > Configuration > Operations Types. Select the operation type and choose the Reservation Method in the General tab. For Before Scheduled Date, set:

• Days before - maximum days before the scheduled date to reserve
• Days before when starred - days before scheduled date for starred (favorited) transfers

Reservation methods apply to delivery orders by default and can be extended to manufacturing orders, subcontractor resupply orders, repairs, and internal transfers by enabling the corresponding applications and settings.

---

​

Delivery Methods

Delivery methods calculate shipping costs on sales orders and e-commerce carts based on carrier pricing. Enable Delivery Methods at Inventory > Configuration > Settings. Once enabled, configure delivery methods and carrier integrations at Inventory > Configuration > Delivery Methods. Delivery methods can be assigned to sales orders directly or offered as options during the checkout flow when Knowlix e-commerce is active. Shipping costs calculated through carrier integrations pull real-time rates based on package weight, dimensions, and destination.

---

​

Best Practices

Enable Storage Locations and Multi-Step Routes early if the business manages multiple product types or complex flows; reconfiguring later is more disruptive. Set cycle count frequencies on high-turnover locations (bin locations, picking aisles) to maintain accurate real-time counts without full annual audits. Use FEFO for perishable goods to automatically prioritize items closest to expiry. Configure reordering rules with manual triggers for high-value products that benefit from human review before ordering. Use visibility days to consolidate ocean freight or long-lead-time purchase orders, reducing per-shipment costs. Set customer lead times and sales security lead times to generate realistic delivery date estimates and prevent overpromising. Run the stranded inventory report monthly to catch products stuck in input, quality control, or packing locations that should have moved to stock. Your Knowlix: “Show me all products with negative forecasted stock in the next 7 days” or “Which products at WH/Stock have not been counted in the last 90 days?” or “List all reordering rules that triggered today” or “What is the current total stock valuation for finished goods?” or “Show me all inventory movements for product X this month” or “Which locations have stranded products that have been there more than 3 days?” or “Create a replenishment order for all items below minimum quantity” or “What is the average vendor lead time for our top 10 purchased products?” or “Show me all expired lots currently in stock”