Consumption based inventory

Consumption based inventory

I am currently using Zoho Books for my hospitality business, which includes lodging and restaurant services. We purchase many items in bulk for storage and consumption as needed. I'd like these items to be recorded as inventory when purchased and categorized as expenses under the appropriate ledger accounts upon consumption. Although I understand that Inventory Adjustment can be used for this purpose, we face a challenge: our stores staff lacks the expertise to accurately assign the appropriate expense ledger for each item.

For example, if I purchase 10 rims of paper for ₹100 each, the total of ₹1000 will be added to inventory. If three rims are later consumed, I'd like them to be accounted for as expenses under "Printing & Stationery." However, my staff isn't skilled in assigning the correct ledger, which complicates inventory adjustment.

I am seeking an automated way to assign expenses based on the inventory item type. Ideally, I could set up each item to default to a specific expense ledger upon consumption. If this functionality exists or can be implemented within Zoho Books, it would greatly streamline our accounting process.


Thank you

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