1. Two tables, not one

The mistake most people make is typing the current stock directly. Instead, keep:

• An Inventory sheet: Code, Item, Category, Unit, Opening stock, Min stock, Unit cost

• A Movements sheet: Date, Code, Type (IN/OUT), Quantity, Note

Every delivery or consumption is a new row in Movements. You never overwrite a number, so you always know why stock changed.

2. Stock IN and OUT with SUMIFS

In the Inventory sheet the columns are: A Code, B Item, C Category, D Unit, E Opening stock, F Stock IN, G Stock OUT, H Current stock, I Min stock, J Unit cost, K Stock value, L Status. For the item in row 2:

Stock IN:  =IF($A2="","",SUMIFS(Movements!$D:$D,Movements!$B:$B,$A2,Movements!$C:$C,"IN"))
Stock OUT: =IF($A2="","",SUMIFS(Movements!$D:$D,Movements!$B:$B,$A2,Movements!$C:$C,"OUT"))

The IF($A2="","",...) part keeps empty rows clean.

3. Current stock and value

Current stock: =IF($A2="","",E2+F2-G2)
Stock value:   =IF($A2="","",H2*J2)

4. The reorder alert

Status: =IF($A2="","",IF(H2<=I2,"Reorder",IF(H2<=I2*1.5,"Low","OK")))

"Reorder" means you are at or below your minimum. "Low" gives you a warning band (up to 1.5× the minimum) so you can order before it's urgent. Add conditional formatting: red for Reorder, amber for Low.

5. Avoid typos with dropdowns

Use data validation for Category, for Code in the Movements sheet (pointing to the Inventory codes) and for Type (IN/OUT). Most stock errors come from a code typed slightly differently.

6. A small dashboard

Items tracked:     =COUNTA(Inventory!A2:A201)
Total stock value: =SUM(Inventory!K2:K201)
Items to reorder:  =COUNTIF(Inventory!L2:L201,"Reorder")
Items low:         =COUNTIF(Inventory!L2:L201,"Low")

7. Optional: a daily low-stock email (Google Sheets)

With Apps Script (Extensions → Apps Script), you can read the Status column, collect the Reorder and Low items and send them with MailApp.sendEmail. Then a time-driven trigger runs it every morning. The key part:

const items = values.filter(r => r[11] === 'Reorder' || r[11] === 'Low');
MailApp.sendEmail({ to: Session.getEffectiveUser().getEmail(),
  subject: 'Low stock alert: ' + items.length + ' item(s)', htmlBody: html });
ScriptApp.newTrigger('sendLowStockReport').timeBased().everyDays(1).atHour(8).create();

Free template

If you'd rather not build it from scratch, the complete file (Excel + Google Sheets, with dashboard, dropdowns and the email script) is free, pay what you want: https://gileson2.gumroad.com/l/inventory-tracker?utm_source=hashnode

The code is also on GitHub: https://github.com/JuanGiles260/inventory-tracker-sheets

I'm Juan, an industrial engineering student from Bolivia. I build spreadsheet templates for small businesses at Lean Grid Co. Questions about the formulas? Ask in the comments.