Skip to content

Stock & purchasing · 26

How to track stock in a small shop

Connect opening quantities, purchases, sales, returns and adjustments so you can explain the stock remaining.

The quick answer

Stock tracking is a movement record, not just a number typed into a product list. Start from a counted opening quantity and record every event that changes it. A purchase received, sale, customer return, supplier return and write-off affect stock in different ways.

Use consistent item identities and units. Dukanam connects supported transactions and stock records according to the plan and workflow. A clear movement trail helps investigate differences; it does not replace physical counts or supplier verification.

Before you begin

  • A clean item list with distinct variants and consistent units.
  • A dated physical count and supported opening quantities.
  • Sales, purchase, return and adjustment records from that date onward.

See how the pieces connect

  1. Opening

    Establish the counted starting quantity.

  2. Movements

    Record receipts, sales and returns.

  3. Balance

    Calculate expected stock by item and location.

  4. Count

    Compare the physical quantity and investigate differences.

Work through the steps

  1. Define the sellable item

    Keep pack sizes and variants separate when they represent different sellable products. Use a stable SKU or barcode. Choose the unit before entering quantities so pieces and boxes are not mixed accidentally.

  2. Count and date the opening stock

    Take a physical count at a clear cutoff. Record usable, damaged and restricted stock separately. Enter the verified quantity and supported valuation basis rather than a guessed value.

  3. Record incoming stock from actual receipts

    Match supplier quantities to the goods received and the supporting purchase record. An order placed is not necessarily stock received. Record shortages and purchase returns with their own evidence.

  4. Record sales and customer returns

    Use the supported final transaction workflow so quantities change once. Check returned item identity and condition before restoring saleable stock. A refunded payment alone is not a physical stock receipt.

  5. Review the movement trail

    Check opening plus incoming quantities less outgoing quantities and adjustments. Review the relevant location where warehouse stock applies. Investigate negative or unexpected balances from the underlying events.

  6. Count regularly and resolve differences

    Compare physical quantities with the expected balance. Check missed bills, pack conversions, damaged stock and wrong locations before posting an authorised adjustment. Preserve the reason rather than silently editing the quantity.

Follow one item through the week

Illustrative quantities of the same item in the same unit and location.

Movement Quantity change Expected stock
Opening count 40 units 40
Purchase received +15 units 55
Sales completed −18 units 37
Saleable customer return +2 units 39
Damaged-stock write-off −1 unit 38

The expected balance is 38 units. A different physical count is an investigation trigger, not permission to overwrite the movement history.

Common mistakes to avoid

  • Treating an order as a receipt before goods arrive.
  • Mixing boxes and pieces in one quantity without a controlled conversion.
  • Restoring unusable returns to saleable stock.
  • Changing quantities without preserving an adjustment reason.

Questions you might have

Does accurate stock require physical counting?

Yes. Transaction records calculate expected quantities; physical counts test whether reality matches those records.

Can Dukanam track several stock locations?

Warehouse stock and transfers are available on eligible plans. Check the current plan and location setup before using those workflows.

A smart, low-cost choice for small-business GST billing

Dukanam brings billing, purchases, stock, customer balances, payments and reports together. It is built for Indian small businesses that want clear records without a complicated setup.

Best suited to shops that want connected everyday billing and bookkeeping, web and mobile access, and nine product languages. Choose the plan that includes the features you need.

GST-aware billing and preparation depend on your plan. Review records before filing on the GST portal; Dukanam does not directly submit GST returns, government e-invoices or e-way bills.

Current plans with GST preparation

  • Advanced Plan₹299.00 per month

Check annual prices, limits, applicable taxes and checkout terms. Paid plans do not include a free trial.

Sources and further reading

Official rules and portal screens can change. Use the linked authority for the current requirements; the figures in our worked examples are illustrative.