How to Set Up Inventory Tracking

If you have one stock location, use the Default Source and Default Stock. If you have multiple locations, you'll need to configure additional sources and stocks.

Single location: Use the Default Source and Default Stock that come preconfigured with Magento.

Multiple locations:

1. 1. Go to Stores › Inventory › Sources to add each location (name, code, contact, pickup, and address)
2. 2. Go to Stores › Inventory › Stocks to create/adjust a Stock that aggregates the sources your website uses
3. 3. Open the Sales Channels tab and assign the appropriate Website(s)
4. 4. Save the Stock to enable sales from that stock on the website

Go to Stores › Configuration › Catalog › Inventory › Stock Options:

• Set Display Out of Stock Products = Yes (recommended for SEO and back-in-stock alerts)
• Set Only X left Threshold = a small number (e.g., 5) to show urgency on product pages

Go to Stores › Configuration › Catalog › Inventory › Product Stock Options and set:

• Manage Stock = Yes
• Backorders = No Backorders (or Allow Qty Below 0 / Allow Qty Below 0 and Notify Customer)
• Out-of-Stock Threshold = 0 (use a negative number like -5 to allow five backorders)
• Minimum Qty Allowed in Shopping Cart / Maximum Qty Allowed in Shopping Cart = per your business rules
• Notify for Quantity Below = your low-stock trigger (e.g., 10)

Click Save Config.

Go to Stores › Configuration › Catalog › Catalog › Product Alerts:

• Set Allow Alert When Product Comes Back in Stock = Yes
• Choose Default Sender and Email Templates
• Ensure cron is running to send alerts

Verification:

1. 1. From the storefront, log in as a customer and click "Notify me when this product is in stock" for SKU HDB-001
2. 2. Set the product to In Stock with Qty › 0
3. 3. Run cron or wait for cron to process product alerts
4. 4. Confirm the back-in-stock email is received

Go to Catalog › Products, edit SKU HDB-001:

1. 1. In the product, open the Sources section
2. 2. Click Assign Sources, select your source(s)
3. 3. Set Status = In Stock
4. 4. Set Qty (e.g., 150)
5. 5. Click Save

On the same product, open Advanced Inventory. If needed, uncheck Use Config Settings to override:

• Backorders (e.g., allow for prelaunch SKUs)
• Notify for Quantity Below (e.g., set 25 for high-velocity items)
• Out-of-Stock Threshold (e.g., -5 if you allow five backorders)

Using either global Notify for Quantity Below or product-level overrides, confirm thresholds reflect your reorder points.

Admin notifications:

To receive low-stock emails, go to Stores › Configuration › Catalog › Inventory and configure the Low Stock Email settings (enable sending, set recipient email, sender, and template). These emails are sent by cron; ensure server cron is enabled.

1. 1. From the storefront, purchase 2 units of HDB-001
2. 2. After placing the order, go to Catalog › Products
3. 3. Click Columns and enable Salable Quantity
4. 4. Find SKU HDB-001 and confirm Salable Quantity decreased by 2

Lower the product qty to cross below the threshold (e.g., set qty from 12 to 9 when Notify for Quantity Below = 10) or place enough test orders to reach it.

1. 1. Go to Reports › Products › Low Stock
2. 2. Verify HDB-001 appears
3. 3. If emails are supported and configured, check the inbox

Set the product qty to 0 while Backorders are allowed globally or on the product.

1. 1. From the storefront, add HDB-001 to the cart and proceed to checkout
2. 2. With backorders enabled, confirm the notice appears on the product page and/or in the cart
3. 3. Example notice: "We don't have as many as you requested, so we'll backorder the remaining items"

• Ensure Display Out of Stock Products remains as intended
• Confirm daily/weekly review cadence for Reports › Low Stock
• Document reorder points per category/SKU
• Train staff to go to Sales › Orders › View Order › Credit Memo, check Return to Stock for each item being refunded, and submit the credit memo