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How inventory is adjusted in Lightspeed Retail (R-series) when you create a sales order
How inventory is adjusted in Lightspeed Retail (R-series) when you create a sales order

QuoteMachine adjusts inventory in Lightspeed during the order lifecycle by creating $0 sales

Jonathan Muschalle avatar
Written by Jonathan Muschalle
Updated over a week ago

As soon as an order is in progress (not in draft), QuoteMachine reserves the inventory in Lightspeed for that order. Inventory reservation is based on what was in stock and what you decided to reserve from the inventory.

In the above case, QuoteMachine will only reserve 4 Blue velvet sofa and 2 Mulberry. The Violono will be reserved once you update the PO in Lightspeed to receive the item.

In Lightspeed, it will create a $0 sale to temporarily reserve the inventory until your items are invoiced. No tax or revenue will be recorded for this. Tax and revenue will be recorded only when you invoice the items.

To keep it clean in Lightspeed, QuoteMachine created a customer called "Inventory-Adjustment QuoteMachine" under whom $0 sales are recorded. Here is what you can see in Lightspeed:

Once the PO in Lightspeed is marked as received, QuoteMachine will automatically reserve the waiting item:

Following the same behavior as before, QuoteMachine reserve the inventory by recording a $0 sale:

Note: PO status checks happen every 5 minutes, so you will see a slight delay between the time you receive your item in Lightspeed from the PO and the time you see the item reserved in QuoteMachine

Once you invoice items on order, QuoteMachine will revert the temporarily $0 sales made on the Inventory adjustment customer:

And then re-reserve the inventory on the invoice with the actual customer, tax, and revenue to leave a clean slate of the sale:

Lightspeed limitation with the average cost

If you are tracking rigorously your cost and margin, you'll see a variation of your margin during the lifecycle of the order because the Lightspeed API forbids the ability to enter a $0 cost when QuoteMachine creates $0 sales.

Even if it will even out once the order is fully invoiced and your average cost is the same, QuoteMachine marks every $0 sale for inventory adjustment with the tax class "Inventory-Adjustment-QuoteMachine" in order to filter out the sales in your Profit and margin reports.

Access to an accurate and live margin report in Lightspeed

To have a live margin calculation, you can also add a tag "qm" on the "Inventory-Adjustment" customer in order to exclude all $0 sales made with that customer from your sales reports .

  1. Add the tag "qm" to the customer "Inventory-Adjustment QuoteMachine" in Lightspeed

2. In your sales reports, enter "qm" in the exclude tags input to exclude all sales from that customer. You should then see the proper cost, profit, and margin at the bottom of your report

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