Why Billing and Inventory Must Be in One System
When you use separate tools — billing software here, stock spreadsheet there — the problems compound quickly:
- Every sale requires updating two systems instead of one — staff often forget the stock update
- Stock counts drift from billing records within days
- Invoices get created for items not in stock, leading to delivery failures and customer complaints
- Month-end stock reconciliation takes 4-6 hours minimum
- Your actual stock value never matches your billing records for GSTR purposes
A combined system eliminates every one of these problems at zero extra effort.
Khata Billing Inventory Features — Complete Overview
Automatic Stock Deduction: Create a sales invoice for 5 units of Product A — the stock count for Product A instantly drops by 5. No separate stock entry. No manual update. Automatic and instant.
Purchase Entry Stock Addition: Receive 100 units from your supplier — create a purchase entry in Khata Billing. Stock rises by 100 immediately. Your supplier ledger updates. Input tax credit data is recorded for GSTR.
Opening Stock Setup: When you first set up Khata Billing, enter the current quantity of each product as opening stock. This is your baseline. Every transaction after this is tracked automatically.
Low Stock Alerts: Set a minimum quantity for each product (e.g., "alert me when rice stock falls below 50 kg"). Khata Billing highlights these items in your stock dashboard so you reorder before customers are disappointed.
Multi-Unit Support: Sell rice in kg, soft drinks by carton or bottle, cloth by metre. Khata Billing supports any unit and maintains stock in the unit you define per product.
Stock Reports in Khata Billing
Four key reports available free:
Current Stock Report: A live table showing every product, its current quantity, and current stock value (quantity × purchase cost). This is your inventory balance sheet at any moment.
Low Stock Report: A filtered list of all products currently below their minimum quantity. Your daily reorder checklist — no manual identification needed.
Stock Movement Report: For any date range, shows how much of each product was sold and purchased. Your fastest-moving items are instantly visible — essential for purchase planning.
Stock Valuation Report: Total value of all current inventory at purchase cost. Required for balance sheet preparation and useful for insurance and loan documentation.
Top Billing + Inventory Software Options in India 2026
Khata Billing (Best Overall, Free): Real-time inventory sync with billing, all key stock reports, multi-unit support, free forever for core features. Best for retail, wholesale, and trading businesses with up to a few hundred SKUs.
Vyapar (Best Offline Inventory): Good inventory management with offline support. Paid plan required for advanced inventory features. Best for businesses in low-connectivity areas.
Tally Prime (Best for Complex Inventory): Industry-leading inventory management for large businesses — batch tracking, multi-godown, bill of materials. High cost and learning curve — worth it only at significant scale.
Marg ERP (Best for Pharma/FMCG Inventory): Batch numbers, expiry tracking, distributor pricing — purpose-built for regulated industries. Not necessary for general retail.
Setting Up Inventory in Khata Billing — Quick Start
- Sign up free at khatabilling.com
- For each product: add name, HSN code, GST rate, unit, default price, and opening stock quantity
- Set minimum stock alert level per product
- Start creating invoices — stock auto-tracks from here
- Record supplier deliveries as purchase entries — stock adds automatically
- Check your stock dashboard daily — always accurate, no counting required