Inventory Setup


Go to Systems Management | Inventory Setup. 

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This section has the following options:

  • Inventory Cost Method - Costing method used for inventory transactions.
    • Average Cost - System calculates average cost of inventory based purchase or production costs.
    • Standard Cost - System uses costs you set for each item.
    • Last Cost - System values all items at the last purchase or production cost for that item.
  • Default Location: - Default stocking and shipping location.
  • Use Serial Lot: - Check if you use serialized or lot numbered items.
  • Next Item No: - Enter the next sequential item number.  As new items are added, this is sequentially incremented.

Enter these general ledger accounts:

  • Inventory Asset - Default general ledger inventory asset account.
  • Receiving Accrual - Default liability account for items received but no invoice from vendor has been posted.
  • Receiving -
  • Inventory Issue - Default general ledger account, usually expense, for recording debit entry for inventory issue transactions.
  • Inventory Receipt - Default general ledger account, usually carries a credit balance, for recording credit entry for inventory receiving transactions.
  • Qty Adjustment - Default general ledger account, usually expense, for recording the offsetting entry for inventory quantity adjustment transactions.

Enter these general ledger accounts

  • Work In Process
  • Purchase Price Variance Cost - General ledger account to record purchase price variance.  Difference between inventory cost and actual purchase price.
  • Purchase Price Variance Qty - General ledger account to record the purchase price variance caused by a difference in quantity received and invoiced.
  • Transfer Cost - General ledger account to record differences in costs on inventory transferred between locations.
  • Cycle/Physical Count Variance - General ledger account used to record differences discovered during cycle or physical counts..