The new Xero Inventory has very much improved functionality. However, it is still very basic. For some organisations, an add-on inventory solution would still be more suitable. You might consider using an add-on if your organisation:
- Manufactures goods for sale
- Regularly operates with negative inventory, that is, you sell goods before you've purchased them
- Requires purchase order receipting
- Needs to use a different inventory accounting method than average cost, for example, FIFO (first in, first out) or LIFO (last in, first out).
Because Inventory now has full accounting, Inventory is moved out of Settings and into Accounts on the header.
Learn about the new Xero Inventory in the video below.