Ithy - Mastering the Import Stock Order Flow in Zoho One

Key Highlights of the Import Stock Order Process in Zoho One

Multi-currency handling is seamlessly integrated within Zoho Books and CRM for international transactions.
Workflow automation in Zoho Inventory and Billing can streamline repetitive tasks like invoicing and stock updates.
Zoho Inventory centralizes order and stock management, simplifying the entire import and fulfillment process.

Understanding the End-to-End Import Stock Order Process

Processing an import stock order involves several critical stages, from initial vendor engagement to final customer payment. The Zoho One suite offers integrated tools to manage each step efficiently. This guide provides a detailed, step-by-step breakdown of the process, highlighting how various Zoho applications work together to streamline international trade and inventory management.

Initiating the Import: From Quote to Purchase Order

The process begins with identifying the need for specific stock and sourcing a vendor. Once a vendor is selected and terms are agreed upon, a purchase order is generated.

Creating a Purchase Order in Zoho Inventory

In Zoho Inventory, you can easily create a purchase order to formally request goods from your vendor. This document outlines the items, quantities, agreed-upon prices, and terms.

Navigate to the Purchase Orders module in Zoho Inventory.
Click on the "Quick Create" button or "+ New" to initiate a new purchase order.
Select the vendor from your existing contacts. If the vendor is new, you may need to add them first.
Add the items you wish to order, specifying the quantity and agreed-upon price for each.
Ensure all relevant details, such as the purchase order number, date, and expected delivery date, are accurately entered.
Save the purchase order.

When creating the purchase order, the currency associated with the vendor will be automatically applied. You can also manually update the exchange rate for the transaction if needed.

Handling Multi-Currency Payments

International trade necessitates dealing with multiple currencies. Zoho Books and Zoho CRM are equipped to handle multi-currency transactions, simplifying payment processing with foreign vendors.

Enabling Multi-Currency Transactions

To process payments in the vendor's currency, you need to ensure multi-currency transactions are enabled in your Zoho Books settings.

Go to Settings in the top right corner of Zoho Books.
Select "Customers and Vendors" under Preferences.
Toggle the "Multi-currency Transactions for Each Contact" option to enable it.
Click "Save."

Once enabled, you can create transactions, including purchase orders and payments, in the respective currencies of your vendors and customers.

Recording Vendor Payments in Foreign Currency

When you make a payment to your vendor, you can record this in Zoho Books, specifying the currency used.

Navigate to the Payments Made module in Zoho Books.
Click "+ New" to record a new payment.
Select the vendor and the purchase order the payment relates to.
Enter the amount paid and select the currency.
Zoho Books will use the prevailing exchange rate (which can often be adjusted) to reflect the payment in your base currency for reporting purposes.
Save the payment record.

Navigating Customs Clearance

Clearing customs is a critical step in the import process. It requires accurate documentation to ensure smooth passage of goods across borders.

Essential Documents for Customs Clearance

While the exact documents required can vary depending on the countries involved and the nature of the goods, several key documents are typically necessary:

Commercial Invoice: Details the transaction between the exporter and importer, including the description of goods, quantity, price, and terms of sale.
Packing List: Provides details about the contents of each package, including weight, dimensions, and markings.
Bill of Lading or Air Waybill: A contract between the owner of the goods and the carrier, serving as a receipt for the shipment.
Certificate of Origin: Certifies the country in which the goods were manufactured.
Import License: Required for certain types of goods.
Customs Import Declaration: A form declaring the goods being imported to the customs authorities.

Ensuring all documentation is accurate and complete is crucial to avoid delays and potential penalties during customs clearance.

Documents required for customs clearance

Typical documents needed for customs clearance.

Booking Stock and Handling Direct Indents

Once the goods clear customs and arrive, you need to record them in your inventory. Zoho Inventory allows you to receive items against a purchase order.

Receiving Stock in Zoho Inventory

Receiving stock updates your inventory levels, making the items available for sale or use.

Navigate to the Purchase Orders module in Zoho Inventory.
Open the relevant purchase order.
Click on the "Receive" button.
Enter the quantity of items received. If the shipment is partial, you can record the received quantity and update it as more items arrive.
Specify the receiving location (warehouse).
Save the receiving record. This action will automatically update your stock levels in Zoho Inventory.

Managing Direct Indents

A direct indent, or drop shipment, involves the vendor shipping goods directly to the customer without the stock passing through your warehouse. Zoho Inventory supports this process.

When creating a sales order, you can indicate if it's a drop shipment.
From the sales order, you can directly create a purchase order for your vendor, linking it to the customer's sales order.
This allows you to track the process without physically receiving the stock.

Zoho Inventory helps manage both standard stock receiving and drop shipments, providing flexibility in your order fulfillment.

Invoicing the Customer and Collecting Payment

With the stock received or a direct indent processed, the next step is to invoice your customer and manage payment collection.

Creating an Invoice from a Sales Order

In Zoho Inventory, you can generate an invoice directly from the sales order, ensuring accuracy and consistency.

Navigate to the Sales Orders module in Zoho Inventory.
Open the sales order for which you want to create an invoice.
Click on the "Create" button and select "Invoice" from the dropdown.
The invoice will be pre-filled with details from the sales order. Review and make any necessary adjustments.
Save or send the invoice to the customer.

Zoho Books is tightly integrated with Zoho Inventory, allowing for seamless invoice creation and management. You can customize invoice templates to reflect your brand.

A tutorial on processing orders in Zoho Inventory, including creating sales orders and invoices.

Collecting Customer Payments

Zoho Books facilitates collecting payments from customers through various methods.

Once the invoice is sent, your customer can potentially pay online if you have configured online payment gateways in Zoho Books.
You can also manually record payments received via bank transfers, checks, or other offline methods.
Navigate to the Invoices module in Zoho Books.
Open the invoice for which you received payment.
Click on the "Record Payment" button.
Enter the amount received, the payment date, and the payment method.
Save the payment record. The invoice status will update to "Paid."

Managing Multi-Currency Customer Payments

Similar to vendor payments, Zoho Books handles multi-currency payments from customers if you have enabled the feature. The received amount in the foreign currency will be converted to your base currency using the prevailing exchange rate.

Recording Entries in the Zoho Suite

The beauty of the Zoho One suite lies in the integration between its applications. As you perform actions in Zoho Inventory and Zoho Books, relevant entries are automatically created or can be easily synced.

Integrated Data Flow

When you receive stock in Zoho Inventory, the inventory asset account in Zoho Books is updated. When you create an invoice in either Zoho Inventory or Zoho Books (if integrated), a corresponding sales entry is recorded in Zoho Books, impacting accounts receivable and revenue. When you record a customer payment, the cash or bank account in Zoho Books is updated, and accounts receivable is reduced.

Leveraging Workflow Automation

Zoho One allows you to automate various tasks, reducing manual effort and potential errors. Workflow rules can be set up in applications like Zoho Inventory, Zoho Books, and Zoho CRM to trigger actions based on specific criteria.

Automated Invoice Reminders: Set up workflows in Zoho Books to automatically send payment reminders to customers when invoices are due or overdue.
Stock Level Alerts: Configure alerts in Zoho Inventory to be notified when stock levels for specific items fall below a reorder point.
Invoice Creation from Sales Orders: As mentioned earlier, this is a built-in feature, but workflows can add further automation, for example, automatically sending the invoice upon sales order approval.

Workflow automation streamlines repetitive tasks, allowing you to focus on other aspects of your business.

Summary of the Import Stock Order Flow

Here is a simplified overview of the flow, highlighting the key stages and the Zoho applications involved:

Stage	Description	Primary Zoho Application(s)
Quote & Order Placement	Identifying needs, sourcing vendor, agreeing on terms, creating purchase order.	Zoho Inventory, Zoho CRM
Multi-Currency Payment (Vendor)	Making and recording payment to the vendor in their currency.	Zoho Books
Customs Clearance	Preparing and submitting necessary documentation for importing goods.	External Process, Documentation Management (can utilize Zoho Docs/WorkDrive)
Stock Booking / Direct Indent	Receiving and recording stock in inventory or processing a drop shipment.	Zoho Inventory
Invoicing Customer	Creating and sending an invoice to the customer for the goods/services.	Zoho Inventory, Zoho Books
Payment Collection (Customer)	Receiving and recording payment from the customer.	Zoho Books
Financial Recording	Automatic or manual recording of transactions in the accounting system.	Zoho Books

This table provides a high-level view, and the detailed steps within each stage are managed through the functionalities of the respective Zoho applications.

Frequently Asked Questions

Can I track inventory across multiple warehouses in Zoho Inventory?

Yes, Zoho Inventory allows you to manage stock across multiple warehouse locations. You can track inventory levels, transfer items between warehouses, and generate reports specific to each location.

How does Zoho Books handle exchange rate fluctuations for multi-currency transactions?

Zoho Books allows you to set exchange rates for different currencies. When recording transactions in a foreign currency, Zoho Books uses the prevailing exchange rate to convert the amount to your base currency for reporting and accounting purposes. You can often adjust these rates manually if needed.

Can I integrate Zoho Inventory with my e-commerce store?

Yes, Zoho Inventory offers integrations with popular e-commerce platforms like Shopify, Amazon, eBay, and Etsy. This allows you to manage your online orders and synchronize inventory levels across multiple sales channels from a single platform.

Is it possible to automate the creation of purchase orders in Zoho Inventory?

While direct automation of purchase order creation from external triggers might require custom workflows or integrations using tools like Zoho Flow, Zoho Inventory does support setting reorder points for items. When stock drops below the reorder point, you receive alerts, which can prompt you to create a purchase order.

How can I customize invoices in Zoho Books or Zoho Inventory?

Both Zoho Books and Zoho Inventory offer options to customize invoice templates. You can add your company logo, modify the layout, and include specific information to create professional and branded invoices.

Mastering the Import Stock Order Flow in Zoho One

A Comprehensive Guide to Processing International Orders from Quote to Payment