The Inventory Items tab functions as a module for creating, monitoring, and managing an inventory list.
Click the New Inventory Item button to create a new inventory item.
For more information, see: Inventory Item — Edit
If you have created inventory items with existing quantities, you can set starting balances under Settings, then Starting Balances.
For more information, see: Starting Balances — Inventory Items
By default, when you use the Inventory Items tab, all inventory purchases will debit your Inventory on Hand asset account and all inventory sales will credit your Inventory Sales income account.
The Inventory Items tab features several columns:
Displays the code assigned to an inventory item.
Displays the name of the item as defined in the inventory item entry.
Displays the valuation method for the inventory item. This is used when using the Recalculate button.
Displays the control account associated with an inventory item. By default, inventory items are assigned to the Inventory on Hand control account. However, you have the option to set up custom control accounts as well.
Indicates the division associated with an inventory item. This column is pertinent for those utilizing divisional accounting.
Displays the description that has been set for the inventory item.
Displays the default selling price for the inventory item. This price is automatically used when creating sales transactions unless overridden.
Displays the default purchase price for the inventory item. This price is automatically used when creating purchase transactions unless overridden.
Displays the unit of measurement for the inventory item, such as pieces, kilograms, or liters.
Displays the total quantity that has been acquired but not yet sold or written off.
All general ledger transactions are included.
Delivery Notes and Goods Receipts have no effect here because they are not general ledger transactions.
When you click on the Qty Owned figure, you will see a list of transactions that contribute to the Qty Owned balance.
For more information, see: Inventory Items — Qty owned
Tracks inventory items that have been sold but not yet delivered to customers.
Transactions that increase Qty to Deliver:
- Sales Invoices
Transactions that decrease Qty to Deliver:
- Delivery Notes
- Credit Notes
Tracks inventory items that have been purchased but not yet received from suppliers.
Transactions that increase Qty to Receive:
- Purchase Invoices
Transactions that decrease Qty to Receive:
- Goods Receipts
- Debit Notes
Shows the physical quantity of inventory items currently in your possession.
Transactions that increase Qty on Hand:
- Goods Receipts
- All other general ledger transactions (except those listed below)
Transactions that decrease Qty on Hand:
- Delivery Notes
The following transactions affect Qty Owned but NOT Qty on Hand:
- Sales Invoices (unless they are also acting as delivery notes)
- Purchase Invoices (unless they are also acting as goods receipts)
- Credit Notes (unless they are also acting as delivery notes)
- Debit Notes (unless they are also acting as goods receipts)
Delivery Notes and Goods Receipts affect Qty on Hand but not Qty Owned, while Sales Invoices, Purchase Invoices, Debit Notes and Credit Notes affect Qty Owned but not Qty on Hand.
Tracks inventory items that have been reserved for sales orders but not yet delivered.
Transactions that increase Qty Reserved:
- Sales Orders
Transactions that decrease Qty Reserved:
- Delivery Notes linked to Sales Orders
Shows the quantity available for immediate sale and delivery.
Calculated as: Qty on Hand minus Qty to Deliver minus Qty Reserved
Tracks inventory items that have been ordered from suppliers but not yet received or invoiced.
Each purchase order maintains its own Qty on Order balance.
Calculated as: Qty Ordered minus the higher of Qty Invoiced or Qty Received
Shows projected future stock levels after all pending transactions are completed.
Calculated as: Qty Available plus Qty to Receive (if positive) plus Qty on Order
Shows the reorder point for each inventory item.
This value is set when editing the inventory item and represents the minimum quantity you want to maintain in stock.
Shows the quantity that needs to be ordered to maintain your desired stock levels.
This is the difference between Qty Desired and Qty to Be Available when the desired quantity is higher.
As you order and receive stock, this value will decrease until your stock levels meet the desired quantity.
Shows the average cost per unit for each inventory item.
Calculated as: Total Cost divided by Qty Owned
Shows the total value of inventory items currently in stock.
Click on any figure to view the transactions that make up the total cost.
The Recalculate button above this column allows you to recalculate inventory unit costs based on your selected valuation method.
For more information, see: Inventory Cost Correction
To customize visible columns, use the Edit Columns button.
For more information, see: Edit columns
Utilize the Advanced Queries feature to organize inventory items by filtering, sorting, and grouping them within the Inventory Items screen.
For instance, if you want to display a list of inventory items that shows only the Qty on Hand, your advanced query might look like this:
You can swap Qty on Hand for Qty to Deliver to see a list of inventory items that are awaiting delivery to customers. Alternatively, use Qty to Receive for items still to be received from suppliers, or Qty to Order to identify inventory items that need to be ordered from suppliers to restock.