Items and inventory

Invoicing for inventory items

When you invoice a tracked inventory item, Wafeq automatically reduces the quantity on hand and the inventory value of the item in the chosen warehouse by the quantity you sold. Wafeq will recognize the expense of the sold items on the Profit and Loss statement using the average cost method.

Step-by-step instructions

To sell an inventory item:

  1. Create an invoice
    • Select the Warehouse that you're selling from.
    • Choose the item you want to sell from the drop-down menu displaying the items you had created in your inventory.
    • Save and send your invoice, or mark it as Sent
  2. Go back to items or the Inventory Movement Report and check the updated quantity on hand of your item in inventory. Wafeq also recalculates your inventory value based on the average weighted cost method.

Inventory costing method

Wafeq’s inventory tracking system recognizes your expense per unit based on the average weighted cost method.

Common issues

When I issue an invoice for an item, the cost of goods are not being recognized

This can happen if:

  • There is no history of the item's cost in Wafeq. For example, you've never purchased the item or entered an initial quantity and value in inventory adjustments.
  • The invoice is still in Draft status