Material Inbound is a record of every product that comes in to warehouse. Ideally this should be created by your warehouse manager or store keeper whenever they are receiving materials in to the warehouse. Receipt of materials could be for various reasons like purchases or sales returns or internal transfers from other locations or stock adjustments. Depending upon the nature of the receipt, inbound type has to be selected.


Important fields while creating Material Inbound:


1. Location: Location is a mandatory field. Select the location where the product is being received. Instead of selecting the location manually every time, if the user location mapping is made, location gets auto populated based on the logged in user. To know more on user location mapping refer User Location Mapping. 


2. MIN Number: This field will appear only if you have disabled auto numbers for material inbounds. To know more on transaction numbers refer.


3. Inward Type: Inward Type has 5 options


    i.   Purchase: This type should be used when the material is being received against a purchase order.

    ii.  Purchase without PO: This type should be used when the material is being received without a purchase order.

    iii. Sales Return: This type should be used when the material is being received from the customer against sales return.

    iv. Stock Receive: This type should be used when the material is being received from another location of your own business. From the other location 

         material must have been outbound as stock transfer.

    v.  Stock Adjustment: This type should be used when you wish to make any adjustment to quantity of material in hand or value of material in hand.


4. Supplier: This field will show up when the inbound type is either 'Purchase' or 'Purchase without PO'.  When you select a supplier,

If the inbound type is 'Purchase', all outstanding purchase orders against the selected supplier is showed. From the list you just have to select the products that are being received. You can change the quantity if the supplied quantity is less than the ordered quantity. 


If the inbound type is 'Purchase without PO', once the supplier is selected, you can add the products and quantities manually. If you have specified the cost book for the product against the selected supplier, system will auto populate the price of the product. To know more on adding cost book to the product refer Cost Book.


5. Customer: This field will show up when the inbound type is 'Sales Return' and Sales Return Order is enabled. When you select a customer, system will show all the outstanding Sales Return Orders from the selected customer. You just have to select the products that are being received. You can reduce the quantity if the quantity being received is less than the quantity in return order.


To know more on Sales Returns refer Sales Return.


6. Sales Order No: This field will show up when the inbound type is 'Sales Return' and Sales Return Order is not enabled. When you select a Sales Order, system will show all the material outbounds made against the selected sales order. You just have to select the products that are being returned. You can reduce the quantity if the quantity being received is less than quantity outbound. 


To know more on Sales Returns refer Sales Return


7. From Location: This field will appear when the inbound type is 'Stock Receive'. When you are receiving materials sent from other locations of your business, you have to select the  from location. Once you select the from location, system will show all the material outbounds made from the other location to this location which is not received. Just select the materials that are being received.


8. Adjustment A/c: This field will be shown only if the inbound type is  'Stock Adjustment'. Here you have to select the general ledger account against which value of materials has to be adjusted in case stock adjustments. To know more on general ledgers refer General Ledger.


Inventory aspects:

Whenever you create material inbound of a product in a location, quantity of that product in that location will increase by the inbound quantity.


Accounting aspects:

Whenever you create a material inbound, Arka Inventory will create following journal entries:


a. If the inbound type is 'Purchase' or 'Purchase without PO'


Inventory A/c (The general ledger selected in the product 'Inventory Asset/Expense A/c' field)                     Dr. 


To AP Clearing A/c 


b. If the inbound type is 'Sales Return'      


Inventory A/c (The general ledger selected in the product 'Inventory Asset/Expense A/c' field)                     Dr. 


To Cost of Goods Sold A/c


c. If the inbound type is 'Stock Adjustment'


Inventory A/c (The general ledger selected in the product 'Inventory Asset/Expense A/c' field)                     Dr. 


To Adjustment A/c (The general ledger selected in the 'Adjustment a/c field in Material Inbound'


For stock transfers no journal entry is created.


If you are using accounting application which has direct integration with Arka Inventory (like QuickBooks Online), the journal entries are auto synced to the accounting application. If you are using other accounting applications, you have to export the journal entries in excel and upload it to the accounting software that you use.