## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-de/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Zoho Inventory Add-on in Zoho Books

The current Zoho Books inventory management feature lets you keep track of your stock, set preferred vendor, set reorder points and adjust inventory. With the Zoho Inventory add-on, you can do advanced inventory management, using native inventory modules like **Composite Items**, **Item Groups**, **Packages**, **Shipments** and **Bulk Adjustments**. This allows you to access and manage your Zoho inventory modules from Zoho Books.

To enable the Inventory add-on in Zoho Books, you must have a paid Zoho Inventory account. In this page, we’ll look at how you can enable the add-on and its included features.

## Enable Zoho Inventory Add-on

To enable the Zoho Inventory add-on:

*   Click the **Gear** icon and select **Preferences**.
*   Check the _Would you like to enable Zoho Inventory modules in Zoho Books?_ option under Zoho Inventory.
*   Click **Enable**.

![Inventory Preferences](/books/help/images/advanced-inventory/preference-enable-inventory.png)

* * *

## Inventory Modules in Zoho Books

After enabling Inventory modules in Zoho Books, you will be able to access:

*   [Item Groups](/en-de/books/help/items/advanced-inventory.html#item-groups)
*   [Composite Items](/en-de/books/help/items/advanced-inventory.html#composite-items)
*   [Packages](/en-de/books/help/items/advanced-inventory.html#packages)
*   [Shipments](/en-de/books/help/items/advanced-inventory.html#shipments)
*   [Warehouses](/en-de/books/help/items/advanced-inventory.html#warehouses)
*   [Sales Orders](/en-de/books/help/items/advanced-inventory.html#sales-orders)

### Item Groups

**Item Groups** allow you to create several similar items together based on their shared attributes, rather than creating each of them individually.

Let’s take the example of Mark, who sells t-shirts. The t-shirts have 3 different attributes: size, color, and material. With basic inventory management, he would create all of the possible kinds of shirts as individual items, which would be time-consuming. With the **Item Groups** module, he can create all the t-shirts under one item group with 3 different attributes (size, color and material). Now, the individual items are automatically created based on the possible combinations of attributes. If Mark wants to edit the items individually, he can still go to the **Items** module and do so.

*   [Create a new item group](/en-de/books/help/items/advanced-inventory.html#create-item-group)
*   [Configure the items of a group](/en-de/books/help/items/advanced-inventory.html#configure-items)

#### Create a New Item Group

*   Click the **Items** module from the sidebar and select **Item Groups** from the dropdown
*   Click the **+** icon next to the Item Groups tab or click the ![New icon](/books/help/images/advanced-inventory/new-icon.png) button present on the top right corner of the window.
*   Select the **Type** of the item group, whether it is a _Product_ or _Service_.
*   Enter the **Item Group Name**.
*   Add a **Description** of your item.
*   Fill in or select the **Unit** amount from the dropdown.
*   To create multiple items, add attributes. (**Note**: **Create Attributes and Options** is checked by default. Uncheck it if you want to create a single item with no attributes instead.)
    *   Enter a name for your first attribute (for example, “Color”).
    *   Enter the options for this attribute, separated by commas (for example, “red, blue, green”).
    *   Click Add more attributes to enter another attribute. You can add up to 3.
*   Select **Inventory** or **Non-Inventory** product type.
    *   If your product type is **Non-Inventory**, select whether it is a **Sales Only** product, **Purchase Only** product, or **Both** from the right side of the bar.

![Item Group creation page](/books/help/images/advanced-inventory/new-item-group.png)

#### Configure Items of a Group

To configure items in an item group:

1.  The **Item Name** is auto-generated, but you can also manually change it.
2.  Enter an item identifier in the **SKU** (Stock Keeping Unit) field. (**Note**: Storing a barcode in this field will enable you to use a barcode scanner to add items to your orders, invoices and bills.)
3.  Record your item’s **Purchase Price**.
4.  Record your item’s **Selling Price**.
5.  Check **Include Opening Stock** to record the Opening Stock and the Opening Stock Value of the item.

**Note:** The opening stock of an item refers to the stock you have at the moment of creating that item. The opening stock value refers to the purchase price of your opening stock. This will be used for **FIFO Cost Lot Tracking**.

6.  Optional: Add product codes including **UPC** (Universal Product Code), **EAN** (International Article Number), **MPN** (Manufacturer Part Number) and **ISBN** (International Standard Book Number).

**Note:** The UPC and EAN fields are numeric fields. The MPN and ISBN are alphanumeric fields that support letters, numbers, spaces and hyphens.

7.  Optional: Set **Reorder Levels** to be notified when the current stock on hand drops below the reorder point.

![Configure Items Image](/books/help/images/advanced-inventory/configure-items-group.png)

### Composite Items

Composite items allow you to bundle different products together as one item and manage its inventory separately from the individual items. You can create a composite item by boxing individual items together, or unbox composite items to separate them as individual items.

Consider a Scenario: James runs a mobile store. During festive seasons, he wants to sell mobile phones bundled together with specific accessories. Using the Composite Items feature, he boxes the mobile phone and its accessory and sells them as a single item. Also, he manages the stock of the composite items and the individual items separately.

*   [Enable composite items](/en-de/books/help/items/advanced-inventory.html#enable-composite)
*   [Create composite items](/en-de/books/help/items/advanced-inventory.html#create-composite)
*   [Operation of composite items](/en-de/books/help/items/advanced-inventory.html#operation-composite)

#### Enable Composite Items

If you haven’t enabled composite items in Zoho Inventory, you can enable it through Zoho Books. To enable:

1.  Click the **Gear** icon in the top-right corner and select **Preferences** from the dropdown menu.
2.  Choose the **Items** tab from the Preferences list in the left side panel
3.  Check _Would you like to enable Composite Items?_.
4.  Click **Save**.

![Composite Items Preferences](/books/help/images/advanced-inventory/preference-enable-composite.png)

#### Create Composite Items

To create a composite item:

1.  Click the **Items** module and select **Composite Items** from the dropdown menu.
2.  Click the ![New icon](/books/help/images/advanced-inventory/new-icon.png) button present on the top-right corner of the window.
3.  Enter the item **Name**.
4.  Specify a unit of measurement (for instance, kilograms or pieces) for the item. You can also choose one of your previous units of measurement from the dropdown menu, if you have entered any.
5.  Under the _Associate Items_ field, add the items and quantities that constitute the composite item. Click **\+ Add another item** to associate more items.
6.  Enter a sale price, or choose **Copy from total** to use the calculated price from above.
7.  Enter a purchase price, or choose **Copy from total** to use the calculated price from above.
8.  Click **Save**.

![Composite Item Create Page](/books/help/images/advanced-inventory/new-composite-item.png)

**Note:** Creating a composite item only defines the item; it has no effect on the composite item’s stock level. You can increase the stock level of a composite item in one of three ways: box the associated items, enter a stock adjustment for the composite item, or enter a purchase of the composite item.

#### Operations in Composite Items

##### Bundling

Bundling is the act of putting together different components in desired quantities to produce a single commodity. These components could be goods, services and other non-inventory items of your choice.

To bundle the items:

*   Navigate to the **Items** tab on the side bar.
*   Select **Composite Items** from the drop-down.
*   Open the preferred composite item.

![Composite Item Bundling](/books/help/images/advanced-inventory/bundling-1.png)

*   Click the **Create Bundle** button.

![Composite Item Bundling](/books/help/images/advanced-inventory/bundling-2.png)

*   Add the items and services of your choice.
*   Click **Save Bundle** to finish the operation.

![Composite Item Bundling](/books/help/images/advanced-inventory/bundling-3.png)

*   You can view the bundling details by clicking the bundle number under the **Bundling History** section.

> **Note:**

*   The bundling process will increase the stock of the composite item while the stock of the individual items will drop as per the quantity used by this process.
*   You cannot create a bundle with services alone. You have to include at least one inventory item as part of it.

Learn more about [Bundling](https://www.zoho.com/inventory/help/items/composite-items.html#bundling) in Zoho Inventory.

### Packages

When you are fulfilling a Sales Order, you will pack the items in the order and assign package slip numbers to it to track whether it is shipped, not-shipped or delivered. The Packages module allows you to track and record whether it is shipped, not-shipped, or delivered. Also, you can use it during the shipping of the package.

**Prerequisites**

*   The sales order must be confirmed.
*   You need to have the package slip numbers of your physical packages.

##### Package Workflow

![Package overflow image](/books/help/images/advanced-inventory/package-workflow.png)

#### Create Packages

To create a package:

1.  Click the **Sales Orders** module.
2.  Click the sales order which has items to be packed.
3.  Click the **More** button at the top of your sales order and select **Create Package** from the dropdown menu.
4.  Enter the package slip number.
5.  Enter the quantity of each item to be packed.
6.  Optional: Enter internal notes for your reference.
7.  Click **Save**.

![Create Package image](/books/help/images/advanced-inventory/package-new.png)

**Note:** You can create multiple packages for a single sales order.

#### Status of Packages

There are 3 possible statuses for a package:

**Status**

**Description**

**Not Shipped**

This is a package that has been created and is awaiting shipment.

**Shipped**

The package advances to the shipped status as soon as a shipment order is created for it.

**Delivered**

When the package reaches the customer, it becomes delivered. You can also mark a package as delivered for a manual shipment.

### Shipments

You can create a shipment either from the sales order or from the package slip. When you create a shipment from the package slip, you can choose to either ship it manually or ship it via one of your configured carriers.

To create a shipment from a sales order:

*   [Create a package](/en-de/books/help/items/advanced-inventory.html#creating-package) from the sales order.
*   Click the **More** dropdown on top-right corner of the _Sales Orders_’ page.
*   Click **Create Shipment**.

To create a shipment from within a package slip:

*   Open the package slip.
    
*   Click the **Ship** button.
    
*   You can either choose to **Ship Manually** or **Ship via Carrier** from the dropdown menu.
    
    *   _**Shipping manually**_:
        *   **Package Number** and **Shipment Order#** are auto-populated. You can edit them, if needed.
        *   Enter the **Ship Date**, **Carrier**, and **Tracking#** (if applicable).
        *   If shipping is already complete, check **Shipment already delivered**.
        *   To notify the customer about the shipment, check **Send notification to customer** option.
        *   Click **Save**.
    
    ![Shipping manually](/books/help/images/advanced-inventory/new-shipment.png)
    
    *   _**Shipping via Carrier**_:
        *   Select a carrier from the list (these are configured in Zoho Inventory).
        *   Edit the From and To addresses, if needed.
        *   Click **Save & Continue**.
        *   Select the **Parcel Type** that describes your method of packaging.
        *   Enter the **Weight**, **Weight Unit**, and other carrier-required package information.
        *   Click **Get Rates**.
        *   Click **Create Shipment** to confirm.
    
    ![Shipping via Carrier](/books/help/images/advanced-inventory/shipment-carrier.png)
    

### Warehouses

This module allows you to select a warehouse from where the items will be packed and shipped. You can assign warehouses at either the transaction level or the item level.

1.  **Assigning them at the transaction level**: You can select a warehouse in the **Warehouses** dropdown while creating a sales order, invoice, credit note, bills, purchase order or a vendor credit.
    
2.  **Assigning them at the item level**: When you add an item to a transaction, the warehouse is listed along with the quantity. You can click on the warehouse and change it, if needed.
    

**Note:** At the moment, you can add warehouses only in Zoho Inventory and they will be listed in Zoho Books.

![Warehouses image](/books/help/images/advanced-inventory/assign-warehouse.png)

### Sales Orders

Afer you enable the Zoho Inventory Add-on in Zoho Books, a Sales Order will display the package, shipment and warehouse details. This allows you to see the status of the order and shipment easily.

*   [Sales Order Status](/en-de/books/help/items/advanced-inventory.html#salesorder-status)
*   [Invoice Status in Sales Order](/en-de/books/help/items/advanced-inventory.html#invoice-status)
*   [Shipment Status](/en-de/books/help/items/advanced-inventory.html#shipment-status)
*   [Change Warehouse in Marketplace Sales Order](/en-de/books/help/items/advanced-inventory.html#change-warehouse)

#### Sales Order Status

**Status**

**Description**

**Draft**

Sales Orders will be in _Draft_ status before it is sent to a customer.

**Open**

The status will change to _Open_ when you send a sales order to a customer.

**On Hold**

When your backorder is not fulfilled for the items in the Sales Order, the status will be _On Hold_.

**Closed**

Once the sales order is converted as an invoice, then the status changes to _Closed_.

**Void**

When you mark a sales order as void, it will be in _Void_ status.

#### Invoice Status in Sales Order

**Status**

**Description**

**Partially Invoiced**

When a part of the items in the sales order is invoiced, then the status will be shown as _Partially Invoiced_.

**Invoiced**

Once a sales order is converted as an invoice, the status will change to _Invoiced_ status.

#### Shipment Status

**Status**

**Description**

**Partially Shipped**

When a part of the items in the sales order is shipped, the status will be shown as _Partially Shipped_.

**Shipped**

When all the items in the Sales Order is shipped, the status changes to _Shipped_.

**Fulfilled**

When the shipped items are delivered to the customers, the status changes to _Fulfilled_.

![Sales Order Status](/books/help/images/advanced-inventory/sales-order-status.png)

#### Change Warehouse in Marketplace Sales Orders

By default, the primary warehouse is associated with all the sales orders generated from a Marketplace. You can change the warehouse associated with it in a sales order. To change:

1.  Go to the **Sales Orders** module.
2.  Select a marketplace sales order whose warehouse you want to change.
3.  Click **Change Warehouse Location**.

![Change warehouse](/books/help/images/advanced-inventory/change-warehouse.png)

4.  Select an appropriate warehouse from the dropdown menu in the pop-up.
5.  Click **Save**.

![Select Warehouse](/books/help/images/advanced-inventory/select-warehouse.png)

**Note:** In a _Marketplace Sales Order_, you can only change the warehouse location.

Read more about [Sales Orders](https://www.zoho.com/us/books/help/sales-order/)

### Replenishments

Replenishments help your business maintain right stock levels by identifying items that needs to be reordered. When an item reaches it’s reorder level, it is listed under Pending Replenishments. From there, you can create purchase orders or transfer orders and replenish the stocks.

To enable Replenishments in Zoho Books:

*   Go to **Settings**.
    
*   Navigate to the _Module Settings_ section, and select **Items** under _General_.
    
*   In the next page, scroll down and enable the toggle next to _Replenishments_.
    
    *   **Select how you would like to replenish the stock:** Choose the frequency to replenish the stocks in your organization. The available options are **Days**, **Weeks**, and **Months**.
    *   **Schedule at:** Choose the time you want to replenish the stocks.
    *   **Include Yet to Receive and In Transit stock along with available for sale to generate replenishment tasks:** Enable this option if you want to include these stocks for replenishment tasks.
*   Click **Save**.
    
    ![Replenishments](/books/help/images/items/replenishment.png)

Replenishments will now be enabled in your organization. Learn more about [Replenishments](https://www.zoho.com/inventory/help/items/replenishments.html).