Inventory how-to

How to receive inventory against a purchase order

Receiving inventory means checking the delivered quantity per SKU against the purchase order, updating stock on hand, and flagging any shortfall or overage.

Short answer: Receiving inventory means checking the delivered quantity per SKU against the purchase order, updating stock on hand, and flagging any shortfall or overage. Do it as soon as the shipment arrives, before new sales draw from stock that isn't actually counted yet.

Why receiving matters for forecasting

If you don't record receiving accurately, your on-hand numbers drift from reality. That throws off reorder points and order quantities, because both depend on knowing exactly how much stock you have right now.

Matching the shipment to the order

Open the purchase order and go line by line against the packing slip or box count. Note the quantity received for each SKU separately, since partial shipments and backorders are common and need to be tracked per variant, not just at the order level.

Handling partial and short shipments

If a supplier sends less than ordered, record the actual quantity received and leave the rest as outstanding on the order. Don't mark the whole PO as received if some lines are still pending, otherwise your system will think stock arrived that didn't.

Updating stock on hand

Once quantities are confirmed, add the received amount to on-hand stock for each SKU in your store admin. Do this before you process any sales from that shipment so stock levels and future forecasts stay accurate.

Step by step

  1. Pull up the purchase order next to the physical shipment or packing slip
  2. Count each SKU separately and compare to the ordered quantity
  3. Record the exact quantity received per line, even if it differs from what was ordered
  4. Leave any undelivered quantity marked as outstanding rather than closing the PO
  5. Update stock on hand in your store admin for each received SKU
  6. Note any damaged or wrong items separately so they don't get counted as sellable stock
  7. Close the purchase order only once all lines are fully received or you've decided to stop chasing the remainder

Worked example

A store orders 200 units of a candle SKU. The shipment arrives with 150 units and a note that the remaining 50 are backordered. The owner records 150 as received against that line, leaving 50 outstanding on the purchase order. Stock on hand is updated by adding 150 units, not 200, so the reorder point calculation for that SKU stays accurate.

How SteadyShelf helps

SteadyShelf lets you receive stock against a purchase order, including partial shipments, and updates stock on hand in Shopify automatically once you confirm the quantities. It does not handle lot or batch tracking or expiry dates, so if you need that level of detail you'll have to track it separately outside the app.

$29/month flat, unlimited products and suppliers, 30-day free trial. Run the numbers now with the free reorder point calculator.

SteadyShelf is launching on the Shopify App Store. Join early access to get the install link first.

Related guides

All inventory how-to guides ยท Inventory glossary

FAQ

What if the supplier sends more than I ordered?

Record the actual quantity received, even if it's higher than the order. Your stock on hand should reflect reality, not the original order quantity. Decide separately whether to pay for or return the extra units based on your agreement with the supplier.

Should I receive stock before or after checking for damage?

Check for damage first. Only count undamaged, sellable units as received stock. Keep damaged items out of your on-hand total and handle them through a separate return or credit process with the supplier.

Let SteadyShelf do this math for every SKU

Order-by dates per supplier, seasonal forecasts and draft POs for your Shopify store. $29/month after a 30-day free trial.

Get early access