Wafeq Inventory – Full Setup and Workflow

Managing inventory can be overwhelming, especially when you’re juggling product details, stock levels, warehouses, and accounting implications. Wafeq makes this process surprisingly smooth by combining powerful inventory features with an intuitive, sheet-style interface that’s easy to use from day one.
 

From first setup to daily operations, this guide will show you exactly how to manage inventory in Wafeq with clarity and control.

Add a new item

To add a new item, click on “Inventory” from the main menu, then select “Items”, and finally click on the “Add” button.

When adding an item, you’ll find “Basic information” that is required and includes essential details such as:

• Status: Selecting “Active” means the product is available for use in transactions. Choose “Disabled” if the product is no longer sold or offered.
• Product Name: Choose a clear and descriptive name to identify the product or service in your system and documents.
• Inventory Tracking: Enable this option “Tracked” if you need to monitor the quantity of the product in stock. This is crucial for physical goods where you must know current inventory levels to avoid stock outs or overstocking. Choose “Not Tracked” for services or products that don’t require stock management, simplifying your records and reducing unnecessary tracking.
• Costing Method: When you select “Tracked”, choose how Wafeq calculates the cost of the product when it is sold. “Weighted average” is selected by default and costs each sale at the average cost of the units on hand. “FIFO (first in, first out)” costs each sale from the oldest units on hand first, so the stock left is valued at your most recent purchase costs.

The information you specify for any optional field will automatically appear when you select the product in documents like invoices and bills. However, you can still change any field for a specific transaction if the default doesn’t fit your needs.

In this section, you will explore the optional fields, which include

Item details

• Item Code: Enter a unique code or SKU for the product.
• Unit of Measure: Choose the unit that best represents how you sell or stock the product (e.g., kg, piece).
• Description: Add any additional description about the product.

Selling

• Selling Price: Set the default price for this item in sales invoices.
• Revenue Account: Select the correct sales account where revenue from this item will be recorded.
• Revenue Tax Rate: Choose the appropriate tax rate applied on sales of this product.

Purchasing

• Purchase Cost: Enter the typical cost price for this product which reflects on bills.
• Expense Account: Pick the right account to record the cost of goods sold for this product.

• Purchase Tax Rate: Select the tax rate on purchases to ensure your accounting reflects the correct tax amounts.

   

  
  
   

  If the unit of measure you want isn’t listed, just click on the “Unit of Measure” field, then click “Add Unit of Measure”. Enter your desired unit (like boxes or liters) and click “Save”.
  
  The new unit will be automatically selected for this product and saved for future use, so you can easily pick it when adding any new product.

   

If you want to add attachments like a product photo or a PDF file, just click the “+” button next to “Add photos” and select a new file from your device or choose from previous uploads.

Once uploaded, it will be attached to the product details.

Items list overview

When you go to the items page from the main menu or after saving a new item, you will be directed to “Items list” where you can perform several actions such as:

1. View Button Click here to switch to open the full item details in a focused screen for easier review and editing.
2. Search Bar Use this to quickly find specific items by typing the name.
3. Action Buttons
   • Add Filter: Narrow down the list by specific criteria to find what you need faster.
   • Sort: You can sort data by date (for example, from oldest to newest or vice versa), alphabetically, or using various other sorting options based on your needs. You can also apply multiple sorting criteria simultaneously and easily rearrange the selected options by dragging and moving them, helping you present your data in a more organized and user-friendly way.
   • Import: Upload items in bulk from a file to save time (You can find this option by tapping the three dots on the screen).
   • Export: Download your items list for backup or external analysis (You can find this option by tapping the three dots on the screen).

Understanding key item list fields

the inventory-related fields, including:

• Qty on hand:

  This field reflects the current physical quantity of the item in stock and is updated automatically by the system whenever you create a bill, invoice, or other documents involving the item.

• Avg unit cost:

  This represents the weighted average cost of purchasing the item. If you buy the item multiple times at different prices, the system calculates this average to reflect the true cost per unit in your inventory.

• Inventory value +/-:

  This is the total value of the item stock you currently hold. It's calculated by multiplying the “Qty on hand” by the “Avg unit cost”.

  • For example: if you have 50 units on hand and the average unit cost is $20, then the inventory value is 50 × $20 = $1,000.

• Purchase cost:

  This is the price you paid per unit when buying the item. It is directly related to the price you enter when setting up the item in the system, not the price from purchase invoices.

   

How to add warehouses and link them to inventory accounts

To add a new warehouse, click on “Inventory” from the main menu then select “Warehouses” finally click on the “Add” button.

Enter the following warehouse details:

• Code

  Enter a unique code to identify the warehouse.

• Name

  Enter the warehouse name.

• Phone

  Add a contact number to facilitate communication related to the warehouse operations.

• Address

  Enter the detailed location and the postal code to ensure correct geographic identification.

  After entering all the details, click the “Save” button.

Warehouse list overview

When you go to warehouses page from the main menu or after saving a new warehouse, you will be directed to warehouses list where you can perform several actions such as:

• Viewing or editing a warehouse

  Click on the warehouse name to open its details. From there, you can review the information or make updates as needed.

• Deleting a warehouse

  To delete a warehouse, click the delete icon next to it.

   

Warehouse Inventory Accounts

When you create a new warehouse, Wafeq automatically generates a dedicated inventory account for it under the Inventory section in the “Chart of accounts”. This account is used to track the value of items stored in that specific warehouse.

This automatic linking ensures that each warehouse’s inventory is tracked separately in your accounting reports, making it easier to manage and audit stock by location.

How transactions affect inventory and accounting in Wafeq

Once your inventory is set up with linked warehouses and accounts, every purchase or sale involving a tracked item will impact both your stock levels and accounting records. Understanding how these transactions work is essential for accurate inventory management and reliable financial reporting.

Receiving stock through purchase bills

To add quantity for a tracked item using a purchase bill, go to “Purchases” from the main menu, then select “Bills”, and click “Record” to enter the details. Once you select the item, you’ll notice that its default fields—like the purchase price, account, and tax—are automatically filled based on the item information and you can adjust them if needed.

When you're done, click “Save” to record the bill and update your inventory.

When you add a tracked item to a purchase bill, Wafeq requires you to select the warehouse where the item will be stored.

Once the bill is saved, the quantity is automatically added to that warehouse, and the inventory account linked to it is increased accordingly.

To check the quantity added as a result of the bill, go to the “Items list” under the “inventory” in the main menu.

You’ll find that the “Qty on hand” field has been updated automatically to include the quantity you just purchased.

Selling Items through Invoices

To reduce quantity for a tracked item using a sales invoice, go to “Sales” from the main menu, then select “Invoices”, and click “Create” to enter the details.

Once you select the item, you’ll notice that its default fields—like the price, account, and tax—are automatically filled based on the item information, and you can adjust them if needed.

When you're done, click “Save and send” to record the invoice and reduce the item quantity from inventory.

To check the quantity deducted as a result of the invoice, go to the “Items list” under the “Inventory” in the main menu.

You’ll find that the “Qty on hand” field has been automatically reduced by the quantity you just sold.

Cost of Goods Sold is not recorded

You may notice that the Cost of Goods Sold (COGS) does not appear when issuing a sales invoice.
This usually happens in the following cases:

• The product does not have any previously recorded cost, either through purchase invoices or inventory adjustments. In this case, the system has no basis to calculate the cost.

• The invoice is still in Draft status, which means it does not affect inventory quantities or accounting entries.

To ensure COGS is recorded correctly, make sure to:

• Record a cost for the product through a purchase bill or an inventory adjustment before selling it.

• Change the invoice status to "finalized".

Adjusting inventory manually: when and how to use inventory adjustments

Not all inventory changes happen through bills and invoices. Sometimes, you need to update your stock manually to reflect real-world changes.

• Adjustments are used to increase or decrease the quantity of tracked items manually, or to correct their value.
• Typical use cases include correcting stock errors, handling damaged goods, revaluing stock, or entering opening balances, etc.
• Inventory adjustments are often used after physical stocktaking to correct discrepancies between system records and actual inventory. This keeps your data accurate and audit-ready.

Wafeq offers three adjustment types, so you can choose exactly what you want to change:

• Quantity adjustment: Moves stock in or out of a warehouse. You enter the quantity, and Wafeq values it at the item’s current average cost.
• Value adjustment: Restates what your stock is worth without moving it. You enter the new average unit cost, and the quantities stay the same.
• Quantity and value adjustment: Brings stock in at a cost you specify. You enter both the quantity and the unit cost. Use it for opening stock, when there is no average cost to value the item at yet.

Create a new inventory adjustment

To add a manual adjustment, click on “Inventory” from the main menu, then choose “Inventory adjustments”, and click the “New adjustment” button.

A new form page opens. Start by filling in the adjustment details at the top of the page:

• Date: The date on which the adjustment should be recorded.
• Reference: (Optional) Add a reference code or a short note to help you identify this adjustment later, such as “Stock count – damaged items”.
• Currency: The currency in which the adjustment is recorded. It is filled in automatically.
• Adjustment type: Choose “Quantity adjustment”, “Value adjustment”, or “Quantity and value adjustment”. The columns of the “Line items” table change based on the type you select, as explained below.

Next, add the items you want to adjust in the “Line items” table. Click on any cell to fill it in, and select values such as the warehouse, product, and account from the dropdown lists.

Quantity adjustment

Use this type when you need to add stock to or remove stock from a warehouse, for example to record damaged or lost items, or to correct differences found during a stock count. Fill in the following fields:

• Warehouse: Choose the warehouse where the stock change applies.
• Product: Select the tracked item you want to adjust.
• Description: (Optional) Use this field to provide context for the adjustment.
• Qty on hand: Shows the item’s current quantity. It is filled in automatically.
• Quantity +/-: Enter how much to add (a positive number) or subtract (a negative number, such as -5) from inventory.
• Unit cost: Filled in automatically with the item’s current average cost.
• Inventory value +/-: Calculated automatically by multiplying the quantity by the unit cost.
• Account: Pick the account that reflects the reason for this change.

Value adjustment

Use this type to change what your stock is worth without changing its quantity, for example to correct an item’s cost or to revalue it. No warehouse is needed, because the value change is spread over all the warehouses that hold the item. Fill in the following fields:

• Product: Select the tracked item you want to revalue.
• Description: (Optional) Use this field to provide context for the adjustment.
• Current average cost: Shows the item’s current average unit cost. It is filled in automatically.
• New average cost: Enter the average unit cost the item should end up at.
• Inventory value +/-: Calculated automatically based on the difference between the new and current average cost and the quantity on hand.
• Account: Pick the account that reflects the reason for this change.

Quantity and value adjustment

Use this type to bring stock in at a cost you specify. It is the best choice for entering opening balances, especially for new items that don’t have an average cost yet. Fill in the following fields:

• Warehouse: Choose the warehouse where the stock change applies.
• Product: Select the tracked item you want to adjust.
• Description: (Optional) Use this field to provide context for the adjustment.
• Qty on hand: Shows the item’s current quantity. It is filled in automatically.
• Quantity +/-: Enter how much to add (+) or subtract (−) from inventory.
• Unit cost: Enter the cost of one unit.
• Inventory value +/-: Calculated automatically by multiplying the quantity by the unit cost. You can also enter the total value directly, and Wafeq will recalculate the unit cost.
• Account: Pick the account that reflects the reason for this change.

Choosing the right account

In all three types, the “Account” field defines how the inventory change is reflected in your financials. Pick the account that reflects the reason for the change (e.g., Inventory Shrinkage, Inventory Opening Balance, etc.).

Adding multiple items in one adjustment

You can include as many items as you need in the same inventory adjustment. All lines are posted together as one journal entry. There are two ways to add lines:

• Add products: Click “Add products” above the table to open the product list. Search for the items you need, tick the ones you want to adjust, then click “Add” to add them as new lines, or “Replace existing” to replace the lines already in the table. Tick “Include items with zero on-hand” if you also want to see items that are out of stock.
• Add rows: Enter the number of rows you need in the field at the bottom of the table and click “Add” to add empty lines, then fill them in manually.

Each line has its own Inventory value, and these values are summed automatically into the Total adjustment amount, which reflects the full financial impact of the adjustment.

Use this approach when you're updating several items at once, like during physical counts or when setting opening balances.

Save or post the adjustment

When you finish filling in the details, use the buttons at the top of the page:

• Save: Saves the adjustment as a Draft so you can review or complete it later.
• Post: Posts the adjustment, updates your inventory, and creates the corresponding journal entry.

To review an adjustment later, click on it in the inventory adjustments list to open its details, including its adjustment type and line items. From there:

• For a Draft adjustment, click “Edit” to change it, or “Post” to post it. You can also delete it from the “⋯” menu.
• For a Posted adjustment, click “Edit” to change it, or choose “Revert to draft” from the “⋯” menu.

How to Import Inventory Adjustments

If you have many adjustments to record, for example after a full stock count or when entering opening balances, you can import them from an Excel or CSV file instead of entering them one by one.

1. Go to “Inventory” > “Inventory adjustments”, click the arrow next to the “New adjustment” button, then choose “Import”.

2. Choose the adjustment type you want to import: “Quantity adjustment”, “Value adjustment”, or “Quantity and value adjustment”. Each type uses different columns, so Wafeq gives you the matching template.

3. Click “Download Excel Template” or “Download a template in CSV”, and fill in one row per product.

4. Upload the completed file by clicking the upload area or dragging the file into it. The file name should end with .xls, .xlsx, or .csv.

5. Click “Import”.

The template columns depend on the adjustment type:

• Quantity adjustment: Adjustment group, Date, Reference, Warehouse, Product (SKU or name), Description, Quantity, Account (code or name).
• Value adjustment: Adjustment group, Date, Reference, Product (SKU or name), Description, New average unit cost, Account (code or name).
• Quantity and value adjustment: Adjustment group, Date, Reference, Warehouse, Product (SKU or name), Description, Quantity, Unit cost, Account (code or name).

Bulk editing inventory adjustments (Sheet view)

The Sheet view is now available through Bulk edit mode, following the same approach used for Contacts. It lets you review and edit many adjustment lines at once in a spreadsheet-style table.

To open it, click the “Bulk edit” button at the top of the inventory adjustments list.

In Bulk edit mode, each row represents one adjustment line, with columns such as Status, Reference, Date, Warehouse, Product, Line item description, Quantity +/-, Inventory value +/-, Account, and Total adjustment amount. You can:

• Edit cells directly: Click on any cell and change its value. Edited cells are highlighted, and the counter at the top shows how many changes you’ve made.
• Add new lines: Use the empty rows at the bottom of the table to enter new adjustment lines. New lines are created as drafts.
• Delete lines: Click the delete icon at the start of a row to remove it.
• Undo or redo: Click “Undo” or “Redo” (or press Ctrl+Z / Ctrl+Shift+Z) to step through your changes.
• Save or cancel: Click “Save changes” to apply all your changes at once, or “Cancel” to exit Bulk edit mode without saving.

How to Export Inventory Adjustments

To export "Inventory Adjustments" data, click on the three-dot menu at the top right of the list, then choose “Export to Excel”, “Export to CSV”, or “Copy to Clipboard” to copy and paste the data wherever needed.

Inventory reports overview

Wafeq offers three inventory reports to help you track product movement and monitor stock levels:

• Inventory Movement

  For more details, please refer to the guide.

  Inventory Movement Report

   

• Inventory Movement by Warehouse

   

• Inventory Monthly Summary

  For more details, please refer to the guide.

  Inventory Monthly Summary Report

Each report opens with a summary view. Use these reports to understand stock trends, validate adjustments, and review warehouse performance.

To open any report, go to “Reports” in the main menu, then enter the report name.