Here we discuss how to manage Inventory in Magento. Magento strongly support to create and manage inventory for product. It helps to maintain the products stock related functions.
Magento manage Inventory on the basis of two level:

  • Store Level
  • Product Level

1. Store Level Inventory:

Step 1. Go to Admin>System>Configuration>Inventory

From here, you can do things related to manage your stocks. Like, you will decide whether you want to allow Backorder, How will display product availability, whether it is Out of Stock or In Stock, will store stock decreases, when order is placed, etc.

2. Click on Stock Options

A. Stock Options:

    • Set item’s status to be In stock when order is canceled:
      • Yes: When Order is canceled, it automatically return to Stock
      • No: It will not return to stock
    • Decrease stock when order is placed:
      • Yes: It decrease quantities of stock, when order is placed, otherwise not
    • Display out of stock products:
      • By default, out of product is not display in catalog, If it is set to Yes, it will display product in frontend after product is Out of stock

    • Only X left threshold:
      • By default it is disabled. You can set threshold number, it will display the message Only X left, when product availability is upto entered number.

  • Display products availability in stock in frontend:
    • If it is set to Yes it will display Product status that is Availability: In Stock in frontend.

B. Complete Product Stock Option

  • Manage Stock: Set Yes to manage stock otherwise you can’t manage stock.
  • Backorders: It includes three options.
      • No Backorders: It will not allow to place order when product is Out of Stock.
      • Allow qty below Zero: It allow to place order when product with negative inventory.
      • Allow qty below Zero & Notify Customer: It allow to place order when product with negative inventory and give notification to customer.

  • Maximum Quantity allowed in Shopping Cart: Set the maximum limit of product that your customer can buy.
  • Qty for item’s status to become Out of Stock: By default it is set to zero.
  • Minimum Quantity allowed in Shopping Cart: You can set minimum limit of qty, that customer must to add in shopping cart.
  • Notify for quantity below: It gives the notification to customer when product is not available of their demanding quantities.
  • Enable qty increment: If it is set to yes, product will be sell only increment of entered value.

C. Save Configuration

2. Product Level Inventory

  • Inventory Setting during Product Creation:Here, we required to set up some fields like,
    • Qty: Enter number of quantities, that you want to manage in your store.
    • Stock Availability: Set Stock Availability to In Stock to display product in frontend otherwise it will not display.

    Then Save Product.