Let's see how we can track the inventory.
The first step is to create products. To create , go to "Products-Taxes", 4 tabs appear.
1.Create New Product
2.Create New Tax Category
3.All Tax Categories
4.All Product Tax Categories
Click on "Create New Product". The following screen appears.
In the above screen we need to check the box "Stock Item" to track the inventory.
Whenever we make a purchase or sales, the inventory gets updated automatically. Therefore we will be able to generate inventory reports at any point of time.