Inventory Management Best Practices
Set up re-order levels, batch tracking, expiry alerts, and automated purchase orders to keep stock optimal.
Effective inventory management is the difference between a profitable pharmacy and one that bleeds margin through stockouts and write-offs. This guide covers everything from batch setup to automated reordering.
Setting Up Batch Tracking
Every stock entry in PharmNex can carry a batch number and expiry date. This is mandatory for Schedule H/H1 drugs and best practice for all products. Enable batch tracking under Settings → Inventory → Require Batch on Entry.
- 1Go to Settings → Inventory → Enable Batch Tracking
- 2When receiving stock (Purchases → Receive Goods), enter batch number and expiry date
- 3PharmNex applies FEFO (First Expired, First Out) dispensing automatically
Tip: Use barcode labels that encode the batch and expiry — scan them during receiving to eliminate manual entry errors.
Configuring Reorder Levels
For each product, set a Minimum Stock Level (reorder point) and Preferred Stock Level (order-up-to quantity). PharmNex monitors stock continuously and raises an alert — or auto-generates a purchase order — when stock hits the minimum.
- 1Open any product → Inventory tab
- 2Set "Minimum Stock Level" (trigger point)
- 3Set "Preferred Stock Level" (target after reorder)
- 4Choose alert-only or auto-PO in Settings → Reorder Rules
Expiry Date Management
PharmNex's expiry dashboard (Inventory → Expiry Alert) shows all batches expiring within a configurable window (default: 90 days). You can mark items for early liquidation sale, initiate supplier returns, or write them off directly from this screen.
Tip: Set your expiry alert window to 90 days — most suppliers accept returns up to 3 months before expiry.
Stock Adjustments & Audits
Discrepancies between physical and system stock happen. Use Inventory → Stock Adjustment to record write-offs, damage, theft, or counting corrections. Every adjustment requires a reason code and creates an audit trail.
- 1Go to Inventory → Stock Adjustment
- 2Search for the product and batch
- 3Enter the corrected quantity and select a reason (Damage / Theft / Counting Error / etc.)
- 4Save — the adjustment is logged with your user name and timestamp
Interpreting the Inventory Valuation Report
The Inventory Valuation report (Reports → Inventory → Valuation) shows your stock at purchase cost, MRP, and potential margin. Use it monthly to identify dead stock, slow movers, and over-stocked items before they become problems.
Tip: Sort by "Days of Cover" to quickly identify items you have too much of relative to their sales velocity.
Need hands-on help?
Our onboarding team is available to walk you through any part of PharmNex live.