How does one use variants?

I have been looking into how to use variants, and to be honest I am confused. The product I am trying to create is for a fashion house with multiple outlets in Nepal, and we need to keep track of the inventory according to style/colour/size, how would one go about doing this using variants of inventory with the material receipt stock option? Thanks :slight_smile:

To learn about creation of variants, check

And all the stock transactions will take place against variant item, not against template item.