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Inventory & Warehouses

A complete breakdown of how Prime Fatoora tracks physical stock, applies weighted-average and FIFO valuation, and enforces strict approval and transfer workflows.

Prime Fatoora's inventory engine tracks physical goods across multiple warehouses per branch. Every stock movement goes through a strict lifecycle — it must be created, optionally submitted, approved, and then physically applied to your inventory balances. The system supports two valuation methods: Weighted Average and FIFO.

Product Configuration

Every product in the system has the following configurable properties:

  • SKU: Auto-generated from the product name if not provided (e.g., APPLE-IPHONE-1A2B3C4D). Must be unique per organization.
  • Type: PRODUCT (physical goods) or SERVICE (non-physical, e.g., consulting hours).
  • Track Inventory: Toggle. If disabled, the product can be sold without any stock movements being required.
  • Reorder Point: When stock falls below this level, the system automatically creates a Reorder Recommendation alert.
  • Reorder Quantity: The suggested quantity to order when the reorder point is triggered.
  • Valuation Method: WEIGHTED_AVERAGE (default) or can be reported as FIFO in valuation reports.
  • Variants: Products can have multiple variants (e.g., different sizes or colors), each with their own SKU, price, and barcode.

Product Lifecycle

New products go through an approval workflow before they are ACTIVE. An approved product can be sold (ACTIVE) and can later be set to DISCONTINUED (can no longer be purchased but still displayed) or ARCHIVED (hidden entirely).

Deletion Rule
Products that have any stock movements on record cannot be deleted. They must be Archived instead. This preserves full financial history.

Stock Movement Types

All inventory changes are driven by Stock Movements. There are five types, each with strict rules about which warehouses are required:

TypeDescriptionRequired Warehouses
OPENINGInitial stock when setting up a product.toWarehouse only
INReceiving stock from a purchase.toWarehouse only
OUTDispatching stock from a sale or write-off.fromWarehouse only
TRANSFERMoving stock between two different warehouses.Both fromWarehouse AND toWarehouse (must be different)
ADJUSTMENTManual stock count correction (shrinkage, damage, etc.).fromWarehouse (negative) or toWarehouse (positive) or both

The Transfer Lifecycle

Warehouse-to-warehouse transfers have their own 4-stage lifecycle to track the physical shipment of goods:

1

PICKED (Approved)

When a transfer movement is approved, it enters PICKED status. The stock is immediately deducted from the source warehouse's balance — the goods are "picked off the shelf."

2

SHIPPED

When the goods leave the source warehouse, you mark the transfer as SHIPPED. The goods are now in transit and not counted in either warehouse's balance.

3

RECEIVED

When the goods arrive at the destination warehouse, you mark the transfer as RECEIVED. The system immediately increments the destination warehouse's balance. The transfer is now complete.


Inventory Valuation: Weighted Average vs FIFO

Prime Fatoora tracks inventory balances using Weighted Average Cost as the real-time method. FIFO is available as a reporting view.

Weighted Average (Default)

Every time you receive new stock (an IN or OPENING movement), the system recalculates the average cost per unit for that product in that warehouse:

newAverageCost = (existingQty × oldAvgCost + incomingQty × unitCost) / (existingQty + incomingQty)

FIFO (Valuation Reports)

The Valuation Report can show FIFO value alongside the weighted average value. It scans inbound movements in reverse chronological order and layers them against the current stock quantity to calculate what the remaining inventory is worth under FIFO assumptions.


Reorder Recommendations

When a product's total stock-on-hand across all warehouses drops below its reorderPoint, the system automatically creates a Reorder Recommendation with the suggested purchase quantity. When stock is replenished above the reorder point, the recommendation is automatically resolved.


Frequently Asked Questions

What happens if I try to sell more stock than I have?

The system throws an Insufficient stock for movement error and blocks the transaction. Your inventory balance can never go below zero for tracked products.

Can I import products in bulk?

Yes. Prime Fatoora supports bulk product import. You can also export your entire product catalog to CSV at any time for review or use in other tools.

Can I transfer stock between branches?

Yes, as long as the warehouses belong to the same organization. A Transfer movement deducts from the source warehouse and (after marking received) adds to the destination warehouse.