This free inventory Excel template is a spreadsheet with two linked sheets: an Items sheet with opening stock, reorder level and unit cost, and a Movements sheet where you log every stock in, stock out, return and transfer. Formulas add up the in and out quantities for each item, so the current stock and its value update after every line you enter.
Current stock = opening stock + in − out, and its value = stock × unit cost. In the sample, stock is worth SAR 3,153.90 and three items have reached their reorder level: the oil, the sugar and the milk.
How to manage inventory in an Excel file
- On the Items sheet, enter each item with its stock on the start date (from your last count), its unit cost and a reorder level: the quantity at which you order more.
- Log every movement on the Movements sheet: date, item from the list, movement type, quantity and the source document number.
- Open the Purchase request tab to see every item marked Reorder gathered into one document.
- At the end of each month, count the shelf, compare it with the Current stock column, and log the difference as a movement referenced "Count adjustment" rather than editing the opening stock.
The file suits a business with one warehouse, one person logging and dozens of items rather than thousands.
What is in the inventory sheet (stock in, stock out, balance)
| Column | What you enter or what is calculated |
|---|---|
| Movement type | Stock in, stock out, customer return (adds to stock), return to supplier (reduces it), or transfer in or out between warehouses. |
| In and Out | Calculated with SUMIF from the Movements sheet, so you never type them by hand. |
| Status | Reorder when stock is at or below the reorder level, and Negative when more has gone out than was recorded coming in. |
| Weighted average cost | Advanced mode: (opening value + purchase value) ÷ (opening quantity + purchased quantity). |
Take the rice: 80 bags opening stock at SAR 21.50, then 40 bags received at SAR 21.00, so the weighted average is (1,720 + 840) ÷ 120 = SAR 21.33. After 72 bags go out, 48 bags remain, worth SAR 1,032.00 at the recorded cost and SAR 1,023.84 at the weighted average.
Once you download the stock in and stock out Excel file, lock the formula columns under Review › Protect Sheet so nobody types over them. The Stock journal tab gives you a dated goods received and goods issued log to print and sign.
Where Excel stops and inventory software starts
The file gets hard to run when several staff type into it at the same time, when goods sit across branches, or when a sale must reduce stock at the moment of sale rather than at the end of the day. Warning signs: stock-in lines logged two days after the goods arrive, repeated negative balances, and figures that need manual matching against sales and purchase invoices. A free Excel sheet serves the early stage; the move makes sense when reconciling takes a full day.
Tips to avoid stock entry errors
- Spelling the item name differently on the Movements sheet, so the line never reaches its stock. Pick the item from the list, and give each item a fixed code and one unit.
- Deleting a wrong movement instead of logging a reversing one, which hides it from review.
- Logging a customer return as a purchase, which mixes it into the average cost.
- Using one reorder level for every item, although rice and an imported part have very different lead times.
When the warehouse outgrows one file
Microtec accounting software is an ERP built for businesses in Saudi Arabia that brings sales, purchasing, inventory and finance into one place, so warehouse stock follows from sales and purchase invoices instead of a file updated by hand.
Frequently asked questions
Is there a free inventory management template in Excel?
Yes. The file on this page is free and runs on ordinary formulas with no macros. We ask for your name, email and mobile once before the first download, and you can also download a blank copy with the same formulas.
Does the inventory template work in Google Sheets?
The formulas are ordinary ones (SUMIF, IF, ROUND) with no macros, so you can upload the file to Google Drive and open it in Google Sheets. After uploading, check that the drop-down lists and formula columns came through as they do in Excel.
How do I add a new item to the inventory sheet?
Type it in the first empty row of the Items sheet with its stock, cost and reorder level, and it appears in the item list on the Movements sheet. The blank file has 60 item rows and 200 movement rows with the formulas in place.
How do I run a stock count with this file?
Count each item on the shelf and compare it with current stock. For example, sugar opened at 50 and 34 went out, so the file shows 16, below its reorder level of 20. If you find 15 bags, log a stock out of one bag referenced "Count adjustment".
Does the template calculate stock cost using FIFO?
No. In advanced mode it works out each item's weighted average cost and the stock value at that cost, next to the value at recorded cost. First in, first out (FIFO) needs every purchase batch tracked separately, which goes beyond a single file.