About
Applies to: Finaloop Accounting, InventoryIQ
The Finaloop MCP (Model Context Protocol, a secure connection between Finaloop and AI tools such as Claude and ChatGPT) can make inventory changes for you from Claude, ChatGPT or Cursor: create products, record shipments and receipts, move stock between warehouses, build recipes and assemblies, and adjust quantities. Each change updates your stock, landed cost (the full cost of getting a product to your warehouse, including shipping, duties and fees) and Cost of Goods Sold (COGS) the same way it would if you made it in Finaloop.
Most of these actions belong to InventoryIQ, Finaloop's inventory management system, which follows every unit from purchase to sale at its landed cost. This article lists every inventory action the MCP can take, what each does to your books, and how to undo it.
Who is this for? Anyone connected to the Finaloop MCP with the role Admin, CFO, Tax CPA / Accountant, Operator / VA - Full access, Operator / VA - Basic access or Inventory IQ Operator. What you can do through the MCP matches your app role.
Shipments, receipts, transfers and Purchase Orders need InventoryIQ. See "Which actions work on your COGS method" for the other actions.
1. Which actions work on your COGS method
Finaloop tracks inventory in one of three ways, and the MCP follows the same rules as the app.
COGS method | What the MCP can change |
InventoryIQ | All InventoryIQ actions |
Sales-based | Products, product adjustments, physical counts, manual COGS entries and the accounting treatment of inventory purchases |
Purchase-based | Categorizing inventory transactions only |
Purchase Orders, shipments, receipts and warehouse transfers only exist in InventoryIQ. Ask for one on a sales-based company and the MCP tells you it isn't available on your plan, with a link to the InventoryIQ page.
Three things are true for every inventory action the MCP takes:
Your AI tool asks for your approval first, as long as your write tools are set to Needs approval.
Nothing dated in a closed (locked) period can be changed, the same as in the app.
Stock and COGS recalculate from the date of the change.
2. Products
Action | What it does | How to undo it |
Create a product | Adds a manual product with a name, SKU and optional image | Hide it |
Rename a product or change its image | Updates how the product shows across Finaloop | Rename it again |
Set tags | Replaces the product's tags, creating any new tag names | Set the tags again |
Hide or unhide products | Removes products from default lists. Doesn't change stock or COGS | Unhide them |
Allow fractional quantities | Lets a product be counted in part-units, for recipe components like fabric or liquid | Turn it off |
Add or edit a vendor cost | Records what a vendor charges per unit from a date, which new POs to that vendor prefill | Edit the cost again |
Set a vendor SKU | Stores the vendor's own SKU for the product, printed on POs to that vendor | Clear it |
Add a selling price | Sets a default price, or a price for one customer, from a date | Add a new price |
A new product's SKU has to be unique across your manual products and every connected sales channel. Renaming, image changes and fractional quantities only work on products created manually or from invoicing and wholesale sources.
Products synced from Shopify, Amazon and other stores keep the name the store gives them.
Example prompt: "Create a product called Gift Box Large with SKU GB-L."
3. Purchase Orders, shipments and receipts
InventoryIQ tracks a purchase in three steps: the Purchase Order (what you ordered), the shipment (goods on their way, with freight and duties), and the receipt (what actually arrived).
Action | What it does | How to undo it |
Create or update a Purchase Order | Records the vendor, products, quantities and costs. Saved as a draft unless you ask to publish it | Delete the PO |
Create or update a shipment | Records goods in transit to a warehouse and spreads its freight, duties and insurance across the POs it carries, which raises their landed cost | Delete the shipment |
Create or update a receipt | Records what arrived and when. Received units enter the warehouse's stock on the received date at their landed cost | Delete the receipt |
Shipment costs are spread across the linked PO lines in proportion to each line's value (cost per unit × quantity). Deleting a shipment also deletes its receipts and removes its costs from the POs, so their landed cost drops. Deleting a receipt puts the goods back to "not yet received."
Updating a shipment, receipt or transfer replaces it in full. Anything left out of the update, like a cost line or an attachment, is removed, so ask the MCP to read the record first and change only what you mean to.
Example prompt: "Shipment SH-104 arrived at the LA warehouse yesterday. Receive everything except 12 units of SKU TEE-BLK-M, which were damaged."
4. Warehouse transfers
Action | What it does | How to undo it |
Create or update a transfer | Moves units and their landed cost from one warehouse to another on the dates you give, with optional transfer costs like shipping or duties | Delete the transfer |
Each transfer cost needs a vendor, and its full amount has to be split across the products being moved. Deleting a transfer returns the units and their cost to the origin warehouse straight away.
Example prompt: "Move 300 units of SKU MUG-WHT from the NJ warehouse to ShipBob Dallas, shipping March 4 and arriving March 9, with $420 freight from UPS."
5. Recipes and assemblies
A recipe lists the components that make one unit of a finished product, like a bundle or a kit. An assembly is a build of a number of units from that recipe.
Action | What it does | How to undo it |
Create or update a recipe | Sets the components, quantities and waste per unit, optional extra costs per unit, and the dates it applies | Delete the recipe, or set an end date |
Upload recipes or manual assemblies from a CSV | Creates or updates many recipes or assemblies at once, matched by SKU | Edit or delete each recipe or assembly |
Create or update a manual assembly | Builds a number of units in one warehouse on one date, using up the components and adding the finished units to stock | Delete the assembly |
A recipe is either assembled on demand, where Finaloop builds units automatically when the finished product sells, or used as a template for manual assemblies. A manual assembly can build from 1 to 999,999,999 units. If a recipe has already assembled units, setting an end date stops it from that day without changing past builds.
Example prompt: "Create a recipe for SKU KIT-STARTER: 1 × MUG-WHT, 1 × TEE-BLK-M and 1 × BOX-SM, assembled on demand."
6. Product adjustments
Adjustments correct the quantities Finaloop uses for stock and COGS when the sales data doesn't tell the whole story.
Action | What it does | How to undo it |
Adjust a product | Changes one product's units for sales data, dead inventory, giveaways, donations, lost or found units, other FBA adjustments, or supplier returns | Add an opposite adjustment, or delete it |
Stage adjustments for review | Holds sales-data corrections, giveaways or dead-inventory write-offs as pending until you apply them | Discard the pending rows |
Apply staged adjustments | Turns pending rows into recorded adjustments that change stock and COGS | Adjust again |
Add a manual COGS entry (sales-based) | Records a COGS amount for a period and sales channel | Delete the entry |
Each adjustment is the change from what the app shows, so it can be negative. Adjustments dated before your closed books are refused.
Example prompt: "Write off 40 units of SKU CANDLE-LAV in the NJ warehouse as dead inventory on June 30."
7. Warehouses, opening balances and counts
Action | What it does | How to undo it |
Create or update a warehouse | Adds a manual warehouse or edits its name, address and status | Edit it again |
Set default warehouses | Sets which warehouse each sales channel's orders ship from, and from when | Set the defaults again |
Merge or split warehouses | Rolls several warehouses' stock up under one from the merge date, or splits them apart | Split them or merge them again |
Set an opening balance | Sets a product's starting quantity and cost per warehouse at your InventoryIQ start date | Set it again |
Record a physical count | Records counted quantities for a warehouse on a date. A saved count adjusts stock to match | Delete the count |
Manual warehouses are fully editable, Shopify warehouses can be marked as dropshipping, and warehouses synced from Amazon, TikTok Shop, Walmart or a 3PL can't be edited. Default-warehouse rules are saved as a full set, so ask for the complete list you want, not just the change.
Opening balances and counts can be staged first and applied when you're ready. Applying an opening balance recalculates stock and COGS from your InventoryIQ start date onward.
8. Vendor payments
Action | What it does | How to undo it |
Link vendor payments to inventory | Records which POs, shipments, transfers, assemblies or opening balance a vendor's payments paid for | Edit or delete the link |
Change a purchase's accounting treatment (sales-based) | Moves an inventory purchase between Inventory, COGS and Dropshipping A/P | Change it back |
Each link needs at least one payment and one item, up to 100 per list, and everything in it has to belong to the same vendor.
FAQs
Do inventory changes from the MCP show up in Finaloop straight away?
Yes. Each change is saved the same way as in the app, and stock, landed cost and COGS recalculate from the change date. Large recalculations can take a few minutes to show in reports.
Can the MCP change inventory in a closed month?
No. Anything dated in a closed (locked) period is refused and nothing is saved, the same as in the app.
Why did an update remove a cost or attachment I didn't mention?
Updating a shipment, receipt, transfer or PO replaces the whole record. Anything not included in the update is removed. Ask the MCP to read the record first, then change only what you need.
Can I use the MCP for inventory if I'm on sales-based COGS method?
Partly. You can manage products, adjustments, physical counts and manual COGS entries. Purchase Orders, shipments, receipts and transfers need InventoryIQ.