Free Excel Inventory Template for Small Manufacturers (With Working Formulas)

Aleksander Nowak · 2026-02-04 · Inventory Management

Download a free Excel template with raw materials, finished goods, reorder list, and cost calculator. 242 formulas, works in Excel and Google Sheets.

Free Excel Inventory Template for Small Manufacturers (With Working Formulas)

Most inventory systems start in Excel. Before the fancy software, before the cloud platforms, there's a spreadsheet someone built to track what's in the warehouse.

And honestly? For many small businesses, basic inventory templates work fine — until they don't.

This guide gives you a free, ready-to-use inventory template designed specifically for small manufacturers. Not generic retail inventory, but a template that tracks both raw materials and finished goods, the way a real production business needs.

Download it, customize it for your products, and you'll have a working inventory system in 30 minutes. I'll also show you exactly how to set it up, best practices for keeping it accurate, and how to recognize when you've outgrown spreadsheet-based tracking.

Download: Free Excel Inventory Template

This template is built for small manufacturers, craft producers, and anyone who transforms raw materials into finished products.

What's inside:

• Raw Materials sheet — track ingredients, components, packaging with expiry dates

• Finished Goods sheet — track your products with cost, sell price, and margins

• Stock Movements log — record purchases, production, and sales

• Dashboard — total inventory value, low stock alerts, expiry warnings

• Reorder List — auto-generated list of what needs ordering

• Cost Calculator — calculate material cost per batch and per unit

Features:

• 242 formulas calculate everything automatically

• Red highlighting when stock drops below minimum

• Yellow highlighting for items expiring within 30 days

• Automatic reorder quantities with 20% safety buffer

• Production cost calculator for batch manufacturing

• Works in Excel and Google Sheets

The template includes sample data from a paint manufacturing business so you can see how everything connects. Replace it with your own products and you're ready to go.

What's Inside the Template

Sheet 1: Raw Materials

This sheet tracks everything you buy to make your products: ingredients, components, packaging, labels.

Columns:

• SKU — unique code for each material (RM-001, RM-002...)

• Name — what you call it

• Category — group similar items (Pigments, Packaging, Oils...)

• Unit — how you measure it (kg, L, pcs)

• Qty in Stock — current quantity on hand

• Min Stock — minimum level before reordering

• Unit Cost — price per unit from supplier

• Total Value — calculated automatically (Qty × Cost)

• Supplier — where you buy it

• Expiry Date — for perishable materials (optional)

When quantity drops below minimum stock, the cell turns red. Items expiring within 30 days turn yellow. You'll see at a glance what needs attention.

Sheet 2: Finished Goods

This sheet tracks your products — what you sell to customers.

Columns:

• SKU — product code (FG-001, FG-002...)

• Name — product name

• Category — product line or type

• Unit — typically "pcs" for finished items

• Qty in Stock — current inventory

• Min Stock — reorder point

• Unit Cost — your production cost per unit

• Sell Price — what customers pay

• Total Value — calculated (Qty × Cost)

• Margin % — calculated ((Sell - Cost) / Sell)

The margin column helps you see which products are most profitable. Red highlighting works the same way — anything below minimum stock level gets flagged.

Sheet 3: Stock Movements (Inventory Tracking Spreadsheet)

This inventory tracking spreadsheet is your log. Every time materials come in or go out, record it here.

Columns:

• Date — when it happened

• SKU — which item

• Item Name — for easy reading

• Type — Raw or Finished

• Direction — IN or OUT

• Qty — how many

• Notes — purchase order number, customer name, batch reference

IN movements (green) include:

• Purchasing raw materials

• Receiving finished goods from production

OUT movements (yellow) include:

• Using raw materials in production

• Selling finished goods

• Write-offs and adjustments

This log creates a paper trail. When numbers don't match, you can trace back through the movements to find where things went wrong.

Sheet 4: Dashboard

The dashboard pulls data from the other sheets to give you a quick overview:

Raw Materials:

• Total value of raw materials in stock

• Number of items being tracked

• Items currently below minimum level

Finished Goods:

• Total value of finished goods

• Number of products being tracked

• Products below minimum level

Total Inventory Value:

• Combined value of all inventory

Check this dashboard weekly. If "Items Below Minimum" shows anything other than zero, you have reordering to do.

Sheet 5: Reorder List

This sheet automatically shows which items need attention. No manual filtering required.

For each raw material and finished good, it shows:

• Current quantity vs. minimum stock

• "YES" flag if reorder is needed

• Recommended order quantity (includes 20% safety buffer)

• Estimated order cost

Rows needing action are highlighted in red. The bottom shows total value of orders needed.

Sheet 6: Cost Calculator

Calculate the material cost for any production batch.

How to use:

1. Enter batch name and date

2. Enter what product you're making and quantity

3. Enter the SKU for each material used

4. Enter quantity used for each material

5. Cost per unit calculates automatically

The calculator pulls prices directly from your Raw Materials sheet. If you change a supplier price there, your cost calculations update automatically.

Example output:

• Making 50 units of Artist Red paint

• Materials used: pigment, base, oil, jars, labels

• Total material cost: €232.75

• Cost per unit: €4.66

This is material cost only. For full production cost, add your labor and overhead separately.

How to Set Up Your Inventory Management Excel System

Step 1: Add Your Raw Materials

Start with the Raw Materials sheet. Delete the sample data and add your own:

1. Create a simple SKU system: RM-001, RM-002, etc.

2. Enter each material you purchase

3. Set realistic minimum stock levels

4. Add your actual unit costs

Tip for minimum stock: Think about how long it takes to get a reorder delivered (lead time), and how much you typically use per week. Minimum stock = weekly usage × lead time in weeks. If you use 10kg of pigment per week and delivery takes 2 weeks, set minimum to 20kg.

Step 2: Add Your Finished Products

Switch to Finished Goods and do the same:

1. Use a different SKU prefix: FG-001, FG-002, etc.

2. Enter your cost to produce each item (materials + labor, roughly)

3. Enter your selling price

4. Set minimum stock based on typical sales

Don't overcomplicate the cost calculation. A rough estimate is fine for now. The point is knowing approximately how much money is sitting in your inventory.

Step 3: Set Your Starting Quantities

Do a physical count of everything. Yes, everything. Write down exactly what you have:

• Count all raw materials

• Count all finished products

• Enter these numbers in the Qty columns

This is your baseline. Everything from here forward gets tracked through movements.

Step 4: Start Recording Movements

From now on, every inventory change goes through the Stock Movements sheet:

When you receive a purchase:

• Add a row with Direction = IN

• Note the purchase order or invoice number

When you use materials in production:

• Add a row for each material with Direction = OUT

• Add a row for the finished product with Direction = IN

• Note the batch or production reference

When you sell products:

• Add a row with Direction = OUT

• Note the customer or order number

Important: After recording movements, manually update the quantities in Raw Materials and Finished Goods sheets. The movements log is your record; the inventory sheets show current state.

How to Keep Track of Inventory in Excel: Best Practices

Excel inventory tracking works when you follow these rules:

Update daily, not weekly. The longer you wait between updates, the more likely you'll forget something. Make it part of your end-of-day routine.

One person owns the spreadsheet. When multiple people edit the same file, you get version conflicts and overwritten data. Designate one person responsible for inventory updates.

Save versions regularly. Before making major changes, save a copy with the date in the filename: "inventory-2024-01-15.xlsx". When something goes wrong, you can go back.

Do physical counts monthly. At least once a month, count your actual inventory and compare it to the spreadsheet. Discrepancies happen — catching them early prevents bigger problems.

Keep the movements log complete. Every IN and OUT should be recorded. When the numbers don't match reality, the movements log helps you find where things went sideways.

Use consistent units. If you track pigment in kilograms, always use kilograms. Mixing kg and grams creates confusion and errors.

When Excel Inventory Tracking Stops Working

Excel is a great starting point. It's free, familiar, and flexible. But it has real limitations that become painful as your business grows.

Signs You've Outgrown Your Spreadsheet

You're spending more than 30 minutes daily on inventory updates. What started as a quick end-of-day task now eats into productive time.

Multiple people need to update inventory simultaneously. You're emailing spreadsheet versions back and forth, or worse, working from outdated copies.

You can't answer "where did this material go?" A customer asks about a specific batch, and you have no way to trace which raw materials went into it.

Mistakes slip through unnoticed. Formula errors, typos, forgotten updates — and nobody catches them until the physical count reveals the mess.

Your accountant keeps asking for data you can't easily provide. Inventory valuation, cost of goods sold, write-off reports — all require manual work to extract.

What Excel Can't Do

Some things are genuinely impossible or impractical in a spreadsheet:

Real-time multi-user access. Excel wasn't designed for simultaneous editing by multiple people in different locations.

Automatic stock updates. When you record a sale, someone still has to manually subtract from inventory. Forget once, and your numbers are wrong.

Batch and lot traceability. Tracking which specific batch of raw materials went into which production run requires more than a flat spreadsheet can handle.

Recipes and BOMs. The Cost Calculator helps, but you still enter materials manually each time. Real manufacturing software stores recipes and calculates automatically.

Production planning integration. Knowing you need to make 100 units doesn't automatically tell you which materials to reserve or order.

Expiration date management. FIFO tracking (first in, first out) and expiry alerts require logic beyond basic formulas.

Alerts and notifications. Excel won't email you when stock drops below minimum. You have to remember to check.

Free Inventory Template vs. Dedicated Software

This template essentially gives you free inventory software in Excel — a working system at zero cost. But how does it compare to paid alternatives?

Feature Excel Template Inventory Software Price Free €7-200/month Setup time 30 minutes Hours to days Multi-user Difficult Built-in Auto-calculations Basic formulas Full automation Traceability Manual notes Full audit trail Production integration None Automatic Mobile access Clunky Native apps Learning curve Low Medium

Excel makes sense when:

• You're just starting out

• Inventory is simple (under 50 SKUs)

• One person handles all inventory tasks

• You don't need batch traceability

• Budget is extremely tight

Software makes sense when:

• Multiple team members need access

• You're tracking 100+ SKUs

• Traceability matters (food, cosmetics, regulated products)

• Production and inventory need to connect

• Time spent on spreadsheets exceeds the cost of software

Frequently Asked Questions

How do I make an inventory list in Excel?

Create columns for SKU, Name, Quantity, and Unit Cost. Add a formula column for Total Value (Qty × Cost). Use conditional formatting to highlight low stock. Or download our template which has all this already set up.

What formulas do I need for inventory tracking?

The essentials: SUM for totals, multiplication for value calculations (Qty × Cost), and COUNTIF to count items meeting criteria. Conditional formatting handles the visual alerts. Our template includes all necessary formulas.

Can I use Google Sheets instead of Excel?

Yes. The template works in Google Sheets with no modifications. Just upload it to Google Drive and open with Sheets. All formulas and formatting transfer correctly.

How often should I update the inventory spreadsheet?

Daily at minimum. End of each business day, record all movements and verify quantities. Weekly updates lead to forgotten transactions and inaccurate numbers.

Is Excel enough for my manufacturing business?

It depends on complexity. Under 50 SKUs with one person managing inventory? Excel can work. Multiple production lines, regulatory traceability requirements, or a growing team? You'll likely need dedicated software within a year.

How do I track raw materials and finished goods together?

Use separate sheets with a consistent SKU system (RM- prefix for raw materials, FG- prefix for finished goods). The Stock Movements sheet logs all changes across both. This is exactly how our template is structured.

Wrapping Up

This Excel inventory template gives you a solid foundation for tracking raw materials and finished goods. It's simple enough to set up in 30 minutes, powerful enough to run a small manufacturing operation, and free.

Start here. Learn what inventory management actually requires for your business. Pay attention to what becomes painful — that tells you exactly what features you'll need when you eventually upgrade.

Most businesses outgrow Excel within 1-2 years of serious growth. That's not a failure; it's a sign you're doing something right.

This template brought to you by Krafte — manufacturing software built by a small production team who started exactly where you are now. When spreadsheets stop working, we're here. Production planning, inventory management, batch traceability, and order management. From €7/month. Start free for 30 days — no credit card required.

Tags: Inventory Management, Templates, Free Tools, Small Business