Lesson 47-- Inventory Tracking

Goldenseal is inventory management software that keeps an inventory count for any Cost Items that you want to track. You can also track inventory for Assemblies that you manufacture.

Inventory counts increase automatically when you enter material purchases with an item breakdown. Inventory decreases when you make sales with an item breakdown, or use inventory in projects.

You can also adjust inventory counts and value with Inventory Transfers.

Setting up for Inventory

To use Goldenseal for inventory tracking, create one or more Inventory accounts.

To track inventory quantities of a Cost Item, follow these steps:

Choose Cost Items from the Costs menu.
Find the item you want to track in inventory.
Turn on the Inventory checkbox.

HINT: If you want to inventory many items, use the Replace All command to change them all at once (see Lesson 16).

If you manufacture items and then sell them, you can also track inventory quantities for Assemblies (see Lesson 14).

Inventory Valuation

Every Cost Item and Assembly includes a separate calculation for the inventory value of that item. You'll set the calculation method for it in the Markup System for each item (see Lesson 13).

Use the Valuation field in each Inventory Account to set the value that you'll use to value inventory for accounting purposes. The inventory value makes the most sense, but you can also use the purchase price, resale price, or project price.

Inventory Aging

Use the Price Aging field in each Inventory Account to set the way you'll handle the replacement of inventory. First In First Out (FIFO) means that you will 'rotate' prices and sell old stock first. First In Last Out (FILO) means that you'll sell new stock first. Average All means that you'll average the price of new and old items each time you add new stock.

Purchases

To purchase items for inventory, follow these steps:

Choose Material Purchases from the Costs menu.
Click the New button.
Enter Items into the Breakdown popup field.
Enter supplier information.
Enter the items you are purchasing into the breakdown table.
Enter Inventory into the Job Class popup field.
Enter an Inventory account into the Job field.

Goldenseal will automatically increase the inventory count of each item you've purchased.

Sales

To sell items from inventory, follow these steps:

Choose Sales from the Income menu.
Click the New button.
Enter Items into the Breakdown popup field.
Enter customer information.
5Enter the items you are selling into the breakdown table.
Enter an Inventory account into the Inventory Account field.

The Goldenseal software will automatically decrease the inventory count of each item you are selling.

Inventory Use

To use inventory items on a project or as part of your overhead costs, follow these steps:

Choose Inventory Used from the Costs menu.
Click the New button.
Enter Items into the Breakdown popup field.
Enter an inventory account into the Account field.
Enter the items you are using into the breakdown table.
Enter job cost information.

The Goldenseal software will automatically decrease the inventory count of each item you've used. It also includes the items in job costs for the project.

Inventory Transfers

Use Inventory transfers to make any kind of adjustment to inventory quantity or value.

To enter a transfer, follow these steps:

Choose Special Transfers from the Bank menu, and choose Inventory Transfers from the submenu.
Click the New button.
Enter the type of transfer (see next page).
Enter information about a single item you are transferring, or enter Items into the Breakdown popup field, and enter multiple items into the table.
If the transfer reduces inventory in an account, enter a Take From account.
If the transfer adds inventory to an account, enter an Add To account.

Transfer Types

You can make any of the following types of inventory transfers:

Transfer-- move inventory from one account to another.
Manufacture-- create an assembly from its components. Goldenseal will add to the quantity of the assembly, and reduce the quantity of its components.
Revalue-- change the value of inventory.
Shrinkage-- reduce inventory quantities due to losses of any kind. You can allocate the value of the loss to any overhead account.
Startup Stock-- for inventory that exists when you first start using Goldenseal. Its value is considered as starting equity.

HINT: If you don't have time to enter all your startup stock when you first use Goldenseal, that's OK. Just run your business as usual, and enter the original startup stock whenever you have time.

Reconciling Inventory

To match computer inventory to actual inventory, follow these steps:

Choose Inventory from the Reports menu, and choose Item Count Blank from the submenu.
Click the Update button, then click the Print button.
Take physical inventory, and fill in the actual quantity for each item.
If you need to make adjustments, enter Inventory Transfers.

Finding Shortages

To see a list of items that need to be ordered, choose Inventory from the Reports menu, and choose Shortages Report from the submenu. Click the Update button, and you'll see a list of all material items that have inventory counts that are smaller than the 'reorder at' amount.

Price Requests

To request current prices from suppliers, follow these steps:

Choose Cost Items from the Costs menu.
Use the Find commands to find the items for which you want prices.
Choose Inventory from the Reports menu, and choose Price Request Blank from the submenu.
Click the Update button, then click the Print button.

Finishing Up

This lesson has covered inventory management with the Goldenseal inventory tracking software.

Before you move on, you may want to take a break and brush up on your juggling skills. Sure, you can already do three chain saws, but how about three chain saws and a porcupine? Blindfolded?

Yes, we know it's hard to put a blindfold on a porcupine..