Go to Systems Management | Inventory Setup.
The following page will display.
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..