Products: Set Up Composite Inventory

Introduction

With Composite Inventory, you can bundle products you already have in the inventory together to make a set. It would also be useful for fractional stock tracking, for cases where you buy from your supplier in a set but sell to your customers individually.

Additionally, you can use it for ingredient / component tracking. For example, if you sell a cup of latte, you can set your stock of milk and beans to be deducted automatically.

Here are some instances where you could use the Composite Inventory feature:

• You want to keep track of your ingredients according to your recipe. Each burger sold would reduce the stock of buns, patties, and vegetables.
  
  
• You sell products in sets. A Deluxe Fragrance Set sold would reduce the stock of shampoo, conditioner and perfume.
  
  
• You buy a box of water bottles in boxes of 12, and sell to customers by individual bottles.
  
  
• You buy ingredients (fruits) from your suppliers in kg, and the end product (juice) is sold in ml.

How to add ingredients / components?

Ingredients / components of products need to be created in the BackOffice before they can be tracked under Composite Inventory.

Step 1.
In the BackOffice, go to Products and click Add Product.

Step 2.
Name the product (ingredient), tick Track Stock Level and select Simple Inventory.

Don’t forget to hit Save!

Setting Up Composite Inventory

Each product with multiple ingredients/components will have its own Composite Inventory.

If you are setting composite inventory for products with variances, do take note that you can specify the usage for the variances. Use default usage if usage for the variances are the same. If different, then use the individual variants. Here is an example using Chicken Burger as a product:

Another example would be fragrance gift set which comes in Regular and Deluxe.

Here are the steps:

Step 1.
In the BackOffice, go to Products and click Add Product.

Step 2.
Name the product.

Step 3.
Set the product's price.

Step 4.
Tick Track Stock Level.

Step 5.
Select Composite under Inventory Type.

Step 6.
Click Add Component to add your components and indicate the Default Usage.

Default Usage indicates how much of your components are going to be reduced each time the product is sold (e.g., for every 1 Regular Chicken Burger sold, 1 chicken patty, 1 cheese slice and 2 burger buns will be deducted from the inventory).

Step 7.
Indicate usage for other variances (e.g. Double).

Step 8.
Add more components.

Step 9.
Click Save to apply your changes.

Step 3.
Ensure 'Track Stock Level' is ticked, and Composite Inventory is used for the 'Cup of Coffee'. 
In Component Name, add the components (the beans and milk) because they will be your 'ingredients' for this 'Cup of Coffee'.

Packet of Coffee Beans 1kg: 20g of it = 0.02

Carton of Fresh Milk 1ltr: 10ml of it = 0.01


Feel free to change the decimals to match the amounts you actually use.

Tip:

Your default usage does not necessarily have to be a whole number.

For example, if you purchase your coffee beans in packets, each cup of your coffee can have a default usage of 0.01 of the packet. Do take note that you can only set up to 3 decimal points!