How to Maintain Inventory Item...

                                   How to maintain Inventory Item Account

Inventory item is used for the information of stock of the company. This information enables the company when, how, and from whom the company purchase the inventory.

To maintain the inventory item click on “Maintain” Menu and then click on “Inventory Item….”  As treated below picture.

When you click “Inventory item” the following picture will shows.

Here are the two main things to known Header field and Tabs fields.

                                     Header Fields

Item ID: here you are enable to give Id to your inventory up to 20 numeric or alphabetically or both.

Look up: this is a search button which enables user of this software to see Inventory ID that already exist in the software with the help of Left & Right Arrows.

Description:  Here you can give description about inventory usually same as General ledger account for inventory is written in this section.

Inactive: This option is used when company no longer wants to use particular inventory in future and if company use that inventory software will give warning.

 Subject to Commission: This option is useful when inventory is sold and included commission in account Receivable.

                           Tabs Fields.

This section includes General Tab, Custom Fields Tab. History Tab, Bill of Material Tab, Item Available Tab.

General Tab: 

In this section you can give the class of inventory that you use.

Description only: Here you can add any type of information its just like a comment about inventory.
Price level 1: Here you can set a price level for inventory.

Item Tag Type:  this option is used when company marked inventory with specific type. you can see item type by using look-up button.

Last Unit Cost: Here you can enter the cost of last unit you sold or purchase.

Cost Method: there are three methods to use inventory LIFO, FIFO , And Weighted Average Method.

• LIFO: In this method inventory is sale out or transfer to production(in manufacturing business) at the rate in which last inventory purchased.
• FIFO: In this method inventory is sale out or transfer to production at the rate in which first inventory is purchased.
• Weighted Average Method: In this method inventory is sale out or transfer to production at the Average rate of first purchase to last purchase. It means we calculate Average of inventory purchase price to charge the price further. Formula Total purchase price divided by total units purchased.

GL. Sales Account: Here you have to give sale account that you maintain in General ledger accounts(Income).

GL. Inventory Account: Here you have to give Inventory account that you maintain in General ledger accounts(Inventory Account).

GL. Cost of sale Account: Here you have to give account for cost of inventory that you maintain in general ledger accounts(Cost of Sale).UPC/SOU: this option is useful only for USA.

Item Type: here you can write type of item, it may be perishable , nonperishable etc..

Location: Here you can write the location where the inventory exist or place.

Unit/measures: Here you can write about units measures tools it may in feet, miter, squares, or only in units etc...

Weight: Here you can write about the weight of your inventory that you have in stock.

Minimum Stock: Here you can write about Quantity of Minimum Stock, it means when your stock reach this limit the software will warn you.

Reorder Quantity: Here you can write the limit for reorder purpose. it means when your stock reach this limit the software warn you about reorder for inventory.
Preferred Vendor ID: Here you can select your vendor that you prefer at the time of purchase.
Buyer ID: Here you can add Id of employee that buy your inventory.
Beginning balances: It includes Inventory's quantity, Unit cost, total cost.

Custom Tab:

in this section you can add any type of information that you want to show in your software only for information purpose only.

 History Tab:

Here you can see information of past history about inventory or your dealing with inventory in past.