What Is Warehouse Management (WMS)?

WMS Stock Management Warehouse Management Location Stock Movement

WMS (Warehouse Management System) is a system that manages the flow of stock — from receiving through storage to shipping — by location. In ReceiptRoller's WMS, you can manage stock across warehouses, store backrooms, and the sales floor in a unified way.

Types of locations

All stock is managed tied to a "location." There are three types of locations:

  • Warehouse — the main warehouse or an external warehouse. A storage location for bulk stock
  • StoreBackroom — the stock storage area within a store. The starting point for sales-floor replenishment
  • StoreFloor — the shelves and displays where items are actually placed

Unit of stock management

Stock is managed as a combination of "location × item." Even for the same item, different locations are recorded as separate stock records, so you can precisely track quantities by location — for example, "50 units in the warehouse, 10 units on the sales floor."

Stock movement history (immutable log)

Every stock increase or decrease (receiving, shipping, movement, or return) is recorded chronologically as a stock movement log. Once recorded, a log entry cannot be changed or deleted, so it can be used as evidence for cycle counts and audits.

Preventing negative stock

WMS does not allow negative stock (a stock count that goes below zero). Shipping and allocation operations can only be executed within the current stock count. This prevents oversell and stock count discrepancies.

Coordinating with OMS

  • Order confirmation → WMS automatically allocates stock (preventing duplicate sales across other channels)
  • Shipment registration → the allocated stock is confirmed as shipped out, reducing the stock count
  • Receiving a return → returned to WMS as a receiving transaction (selecting a sellable or defective location)

Related articles: Receiving and Shelving | Location Management | Stock Replenishment and Movement

Published: 2026-04-15 Updated: 2026-07-02