An inventory spreadsheet template is an Excel file for tracking what you have in stock, what it's worth and when to reorder. Download the free template below: enter each item's quantity, unit cost and reorder point, and it calculates inventory value and flags every item that has fallen to its reorder point.
- SKU, item name, description, category, supplier and storage location
- Quantity in stock, unit of measure and unit cost
- Inventory value per item and in total
- Reorder point, reorder quantity and supplier lead time
- Automatic REORDER status, highlighted in red, plus a count of items to reorder
- Last ordered date, and a filled-in example sheet
What Is an Inventory Spreadsheet?
An inventory spreadsheet is a simple list of every product or material you keep in stock, with the quantity on hand and its cost. For small businesses, importers and distributors, it is often the first inventory system, because it is free, flexible and easy to share with your team or accountant.
A good inventory spreadsheet answers three questions: what do we have, what is it worth, and what do we need to reorder now?
What the Inventory Template Tracks
| Column | What to enter |
|---|---|
| SKU and item name | Your unique product code and a clear name |
| Category, supplier, location | For filtering and finding stock quickly |
| Qty in stock | Units on hand at the count date |
| Unit cost | What you paid per unit, including freight and duties if you track landed cost |
| Inventory value | Calculated: quantity × unit cost |
| Reorder point | Stock level that should trigger a new order |
| Reorder qty and lead time | How much to order and how many days the supplier needs |
| Status | Calculated: REORDER when quantity ≤ reorder point |
How to Use the Inventory Spreadsheet
- Do a physical count and enter the count date.
- List each item once with its SKU, supplier and location.
- Enter quantity and unit cost. Use landed cost (product + freight + duties) for imported goods, so the value reflects what you really paid.
- Set a reorder point for each item: average daily usage × lead time in days, plus safety stock.
- Check the status column. Items marked REORDER are at or below their reorder point.
- Update after every receipt and sale, or at least weekly, and recount regularly to catch shrinkage.
Inventory Spreadsheet Example
From the template's Example sheet:
| SKU | Item | Qty | Unit cost | Value | Reorder point | Status |
|---|---|---|---|---|---|---|
| SKU-1001 | Steel hex bolt M10 (box) | 140 | $18.50 | $2,590.00 | 60 | OK |
| SKU-1002 | Brass ball valve 1 in. | 35 | $24.75 | $866.25 | 40 | REORDER |
| SKU-1004 | Copper pipe 3/4 in. x 10 ft | 48 | $32.00 | $1,536.00 | 50 | REORDER |
| SKU-1006 | Pressure gauge 0-160 psi | 12 | $15.40 | $184.80 | 15 | REORDER |
| SKU-1007 | Gate valve 2 in. | 22 | $58.00 | $1,276.00 | 10 | OK |
Across all eight example items, the business holds $8,761.05 of inventory, and three items need to be reordered.
Inventory Formulas Worth Knowing
| Metric | Formula |
|---|---|
| Inventory value | Quantity on hand × unit cost |
| Reorder point | (Average daily usage × lead time in days) + safety stock |
| Inventory turnover | Cost of goods sold ÷ average inventory |
| Days inventory outstanding | (Average inventory ÷ cost of goods sold) × 365 |
Lower days inventory outstanding means stock turns into sales faster, which frees up cash. It is one of the three parts of the cash conversion cycle.
Common Inventory Tracking Mistakes
- Using purchase price instead of landed cost for imported goods, which understates inventory value and overstates margins.
- Setting one reorder point for everything. Fast-moving items and long lead-time items need higher reorder points.
- Forgetting goods in transit. Track stock on the water separately so you don't double-order.
- Counting too rarely. Shrinkage, damage and data-entry errors build up quickly.
Inventory and Cash Flow
Every unit on the shelf is cash you have already spent. When suppliers need payment upfront and goods take weeks to arrive and sell, inventory can tie up most of your working capital. Inventory financing and vendor financing let you pay suppliers now and repay after the goods sell.
Need to restock before your customers pay? Drip Capital offers collateral-free working capital of up to $3M, with funds in 24–48 hours and 30–90 day repayment terms. Check your eligibility
Frequently Asked Questions
What should an inventory spreadsheet include?
At minimum: SKU, item name, quantity in stock, unit cost, total value and a reorder point. Adding supplier, location, lead time and last order date makes it much easier to plan purchases.
How do I calculate inventory value in Excel?
Multiply quantity on hand by unit cost for each item, then add up the results. The template does this in the inventory value column and totals it at the bottom.
What is a reorder point?
The stock level at which you should place a new order so you don't run out before it arrives. A common formula is average daily usage × supplier lead time in days, plus safety stock.
Can I use this inventory template in Google Sheets?
Yes. Upload the Excel file to Google Drive and open it with Google Sheets. The formulas and reorder flags work the same way.
When does a business outgrow an inventory spreadsheet?
When you manage hundreds of SKUs, several warehouses or sales channels that need real-time stock updates. At that point inventory management software that syncs with your sales platforms usually saves time.
