Multi-Warehouse Inventory & Landed Cost Valuation

For retail, distribution, and manufacturing businesses, inventory is both an operational necessity and a major balance sheet asset. BIZA links physical stock movements directly to accounting valuation, providing real-time visibility across multiple branches, warehouses, and storage locations.

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1. Multi-Warehouse Architecture

Track items across any number of physical or virtual locations:

• Central Warehouses & Distribution Centers: High-volume storage and supplier receiving points.
• Retail Branches & Showrooms: Location-specific inventory levels for point-of-sale and showroom sales.
• Vehicles / Field Vans: Mobile stock locations for technicians or van-sale operations.
• Consignment & Transit Locations: Track goods currently in transit between warehouses or on consignment with partners.

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2. Stock Movements & Traceability

Every inventory movement generates an auditable stock ledger entry:

• Stock Transfers: Two-step transfer workflows (Dispatch from Warehouse A -> In Transit -> Receipt at Warehouse B) to prevent missing goods.
• Batch & Serial Number Tracking: Track perishable batches with expiry dates or high-value serialized equipment for warranty management.
• Stock Adjustments: Physical inventory cycle counts and write-offs with mandatory reason codes and approval gates.
• Reorder Points & Safety Stock: Configure minimum threshold alerts by warehouse; automatically draft purchase orders when available stock falls below safety levels.

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3. Landed Cost Allocation

A product's true cost is rarely just the purchase price on the supplier's invoice. Freight, customs duties, port handling, and insurance must be capitalized into inventory value to maintain true gross margins.

The Landed Cost Voucher

1. Link Purchase Entries: Select the goods receipt or purchase entries associated with an import shipment.
2. Add Additional Costs: Enter freight charges, customs fees, transport, and insurance vouchers.
3. Allocation Methods: Allocate costs proportionally across line items based on:
   • Item Value: Proportional to item purchase cost.
   • Item Quantity: Proportional to unit count.
   • Weight / Volume: Proportional to gross weight or cubic volume (CBM).
4. General Ledger Update:
   • Debits the Inventory Asset account by the allocated additional charges.
   • Credits the Landed Cost Clearing / Accrual account.
   • Updates the moving average cost of each SKU in the stock ledger.

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4. Inventory Valuation Methods

BIZA supports standard inventory accounting principles:

• Moving Weighted Average Cost: Re-evaluates unit cost dynamically upon each purchase entry and landed cost allocation.
• Periodic Stock Valuation Report: Real-time balance breakdown by category, warehouse, and SKU for monthly financial reconciliation.