The basic concept
What Is a Multi-Quantity Inventory Lot?
A multi-quantity inventory lot is one inventory record that represents more than one identical item purchased together.
Instead of creating a separate inventory record for every individual item, you record the purchase once and enter the total number of items in Quantity Purchased.
The quantity tells Buy Sell Tracker how many individual items belong to that purchase. Sales can then reduce that quantity over time.
Worked example
Start With a 10-Item Inventory Lot
Suppose you purchase 10 identical items together for a total purchase price of $100.
The $100 purchase price belongs to the entire 10-item inventory lot.
You are not creating 10 separate inventory records or entering the $100 purchase price for each item.
Lot-level expenses
Item Expenses Belong to the Entire Lot
Now suppose you spend an additional $20 on something directly related to this inventory lot.
Record the $20 as an Item Expense associated with the inventory record.
It does not mean that each of the 10 items has a $20 expense. You enter the actual $20 expense once for the inventory lot.
Purchase Price
$100 for the entire 10-item lot.
Item Expenses
$20 associated with the entire 10-item lot.
Buy Sell Tracker handles the applicable portion of these lot-level costs when only part of the quantity is sold.
Partial sales
Sell 4 of the 10 Items
Suppose you sell 4 items from this 10-item lot.
When recording the sale, enter 4 as the Quantity Sold along with the applicable sale date and sale price.
Because only 4 of the original 10 items were sold, 40% of the lot is represented by this portion of the inventory.
The remaining 6 items continue to be available for future sales.
Understanding the numbers
How Buy Sell Tracker Applies Lot Costs
When part of a multi-quantity lot is sold, Buy Sell Tracker applies the corresponding percentage of the lot's purchase cost and item-related expenses to the quantity sold.
In our example, 4 of 10 items represents 40% of the original lot.
Purchase Cost
The entire lot cost $100. The 40% sold portion represents $40 of that purchase cost.
Item Expenses
The entire lot has $20 in item-related expenses. The 40% sold portion represents $8 of those expenses.
The user does not need to manually divide the original purchase price or item expenses into individual per-item records.
This is especially useful when a lot is sold gradually instead of all at once.
After the partial sale
What Happens to the Remaining Inventory?
After 4 items are sold, the original inventory record remains active because 6 items are still available.
The unsold 60% of the lot remains associated with the inventory record until additional sales are recorded.
In this example, that remaining portion represents the rest of the original purchase cost and item-related expenses that have not yet been applied to sold inventory.
Completing the lot
Sell the Remaining 6 Items
Later, suppose you sell the remaining 6 items.
Record another sale against the same inventory record with a Quantity Sold of 6.
The final 6 items represent the remaining 60% of the original inventory lot.
Once the available quantity reaches zero, the inventory status becomes Sold Out.
You do not need to create a new inventory record each time part of the lot sells. Continue recording sales against the original inventory record until its available quantity reaches zero.
Avoid double counting
Do Not Enter the Same Expense Twice
An Item Expense is already an expense. If a cost has been recorded against a specific inventory item or lot, do not record that same cost again as a general Business Expense.
Correct
The $20 cost belongs directly to this inventory lot, so it is entered once as an Item Expense.
Incorrect
Entering the same $20 as an Item Expense and again as a Business Expense records two separate expenses.
Duplicating an Item Expense as a Business Expense would overstate your expenses and understate your reported profit.
Use an Item Expense when a cost belongs directly to a specific inventory record. Use a Business Expense when the cost applies to the business generally rather than to one specific inventory item.
Reports
How Multi-Quantity Lots Appear in Profitability
The Profitability Report includes a separate Multi-Quantity Lot Sales section for sales involving inventory records with multiple quantities.
The report shows:
- Item Name
- Quantity Sold
- Sale Total
- Cost of Items Sold
- Item Expenses
- Item Profit
This lets you see the sales and applicable costs associated with the portion of the lot that was sold during the selected report period.
The Inventory section tracks how much of the lot remains available, while the Profitability Report shows the financial results associated with the portion that has been sold.