# Stage III: Inventory

Set up storage devices and count starting stock.

Source: https://support.toolingmetrics.com/en/start-here/quickstart/inventory/
Updated: 2026-10-29

**Role:** Warehouse Manager / Inventory Controller   
**Prerequisites:** Stage II complete — project approved, items synced  
**Hands off to:** Purchaser ([Stage IV](https://support.toolingmetrics.com/en/start-here/quickstart/purchasing/))

The Inventory Controller builds the physical storage infrastructure, then counts what's already on hand.

## Set up storage

The Warehouse and its Warehouse Access Point already exist from the [organization tutorial](https://support.toolingmetrics.com/en/admin/tutorials/), so start the [Inventory Get started series](https://support.toolingmetrics.com/en/inventory/tutorials/) at [Set up a storage device](https://support.toolingmetrics.com/en/inventory/tutorials/set-up-storage-device/) — it walks through both devices this demo needs, with their full module and location tables. Save **Create stock rules**, the series' last tutorial, for [Stage IV](https://support.toolingmetrics.com/en/start-here/quickstart/purchasing/). You can skip **Sync Products to Items**: Stage II's project approval already synced every item this demo needs.

## Categorize items and configure usage cost methods

[Internal categories](https://support.toolingmetrics.com/en/inventory/reference/internal-categories/) organize items into a tree and are how usage cost method gets set — every category needs its own method and rate, even a child of one you already configured. Create a root category and three children, all under **Admin → Internal Categories**:

| Category | Items | Usage Method | Usage Rate | Parent |
|---|---|---|---|---|
| Cutting Tools | | Fixed Rate | 0.0 | - |
| Tool Holders | AA3B14-40 16 067<br>AA3B14-40 20 105<br>393.14-16 0600<br>C4-A390.455-40 040<br>C4-391.19-10 075<br>C4SEM22X40C<br>R390-0097A10-07L<br>TRRQ12M050B22.0R06<br>ER16 SEAL 8 AA<br>ER20 SEAL 12 AA | Unit Cost x Usage Rate | 0.02 | Cutting Tools | 
| Solid Tools | SCD 035-014-060 ACP3N<br>SCD 045-017-060 ACP3N<br>SCD 060-020-060 ACP3N<br>SCD 080-029-080 ACP3N<br>SCD 090-035-100 ACP3N<br>SCD 100-035-100 ACP3N<br>SCD 110-040-120 ACP3N<br>ECF D-2/45-4C06<br>1U000-0400-050-XA 1620 | Unit Cost x Usage Rate | 0.02 | Cutting Tools |
| Inserts |RQMT1204ENC8-MM AH3135<br>390R-070204M-PM 4330 | Unit Cost x Usage Rate | 0.02 | Cutting Tools |

See [Configure usage costs](https://support.toolingmetrics.com/en/inventory/guides/configure-usage-costs/) for the field-by-field steps.

## Categorize the synced items

Assign each of the 21 items Stage II synced to one of the categories above:

| Category | Items |
|---|---|
| Tool Holders | AA3B14-40 16 067<br>AA3B14-40 20 105<br>393.14-16 0600<br>C4-A390.455-40 040<br>C4-391.19-10 075<br>C4SEM22X40C<br>R390-0097A10-07L<br>TRRQ12M050B22.0R06<br>ER16 SEAL 8 AA<br>ER20 SEAL 12 AA |
| Inserts | RQMT1204ENC8-MM AH3135<br>390R-070204M-PM 4330 |
| Solid Tools | SCD 035-014-060 ACP3N<br>SCD 045-017-060 ACP3N<br>SCD 060-020-060 ACP3N<br>SCD 080-029-080 ACP3N<br>SCD 090-035-100 ACP3N<br>SCD 100-035-100 ACP3N<br>SCD 110-040-120 ACP3N<br>ECF D-2/45-4C06<br>1U000-0400-050-XA 1620 |

Open each item, set its **Internal Category**, and save — this is what makes the usage cost method above take effect the moment the item is picked or transferred to a machine.

With items categorized, record the starting quantities for those already on hand: [Perform an inventory adjustment](https://support.toolingmetrics.com/en/inventory/guides/perform-inventory-adjustment/) — since these storage locations are brand new, the adjustment starts empty and every line is opening stock.

## Outcome

Storage configured, items categorized for cost allocation, and starting inventory counted at correct storage locations. The Purchaser can start [Stage IV](https://support.toolingmetrics.com/en/start-here/quickstart/purchasing/).