Inventory Accounts

Use Inventory Accounts to track the value of inventory items. You can use just one inventory account for your whole company, or you can use multiple accounts if you have inventory in more than one location.

HINT-- Inventory accounts store asset values and local inventory quantities for the Goldenseal inventory management software.

ENTERING INVENTORY ACCOUNT DATA
Creating Inventory Accounts | Data Fields | Calculated Fields | Status Field

WEBSITE INFO LINKS
Inventory Software | Inventory Accounting Software | Inventory Control Software
Inventory Management Software | Inventory Tracking Software

RELATED TOPICS
Inventory Transfers | Inventory Used | Material Purchases | Sales

When to Use Inventory Accounts

Use Inventory accounts to manage items that you keep for resale.

You can also use Inventory accounts to track the quantity of items that you use in projects.

Create an Inventory account for each location where you store items.

What you Can Inventory

Within each Inventory account, you can track quantities for any of the following items:

Goods purchased or created for resale.
Parts or components used in manufacturing or for repairs.
Materials or supplies used in construction or services.
General office supplies.
Fuel or other materials used for maintenance or deliveries.
Equipment whose usage is not tracked on a time basis.
Any other tangible assets that you keep in stock temporarily.

Creating Inventory Accounts

To create a new Inventory account, follow these steps:

Choose Inventory from the Accounts menu.
Choose New Record from the Edit menu, or click the New button.
Fill out information about the account.

QUICK SETUP HINT -- You only need to enter an Account Name.

Data Fields

Enter the following information for each Inventory account:
Account Name-- Enter a short name for the account. This is the text that will appear in the Chart of Accounts and in pop-up menus.
Comments-- Enter any comments you'd like to make about this account. You may want to enter key words to make it easier to locate or group particular accounts.
Include in Starter File-- Turn on the checkmark if you'd like to include this account when you export a Starter file

Record Number-- An internal account number will automatically be assigned.
Creation Date-- When you create an account, today's date will be entered automatically. You can change this date if desired.
Company Division-- Enter the company division to which this account belongs.
Valuation-- Use the pop-up menu to enter a method for valuing inventory.
Price Aging-- Use the popup menu to determine how inventory is aged when some is removed from the account.

Calculated Fields

The Goldenseal software shows the following calculated values for this account:
Current Balance-- The current value of all inventory in this account.
Start Balance-- The starting value of inventory in this account. To adjust the starting inventory, use Inventory Transfers.
Last Changed-- Goldenseal shows the date of the most recent change in this account.

Status Field

Enter the current status of this account:
Active-- You currently use this account.
Inactive-- You don't currently use this account, but you may in the future.
Closed-- You definitely don't use this account any more.

Valuing Inventory

You can use any of several methods to value the inventory in an Inventory Account. Choose any of the following:

Inventory Price-- Use the Inventory price from the Cost Item or Assembly.
Purchase Price-- Use the original Purchase price from the Cost Item or Assembly.
Resale Price-- Use the Resale price from the Cost Item or Assembly.
Discount Price-- Use the Discount price from the Cost Item or Assembly.
Project Price-- Use the Project price from the Cost Item or Assembly.
Component Price-- Use the Component price from the Cost Item or Assembly

HINT-- You can set the way inventory price is calculated in the Markup System that you use for each Cost Item or Assembly.

Aging Inventory

Choose any of the following methods to age your inventory as it's added and removed:

First In, First Out (FIFO)-- Each stock item is valued at its original cost, with older items removed from stock first.
First In, Last Out (FILO)-- Each stock item is valued at its original cost, with newer items removed from stock first.
Average All-- All stock is valued based on the average value of all purchase costs.

Purchasing Inventory

To purchase materials for inventory, follow these steps:

Choose Material Purchases from the Costs menu.
Click the New button, or choose New Record from the Edit menu.
Enter details for the purchase.
In the Job Class field, enter Inventory.
In the Job field, enter a specific Inventory account.

If you make a purchase with a category breakdown or no breakdown, Goldenseal will add the value of the purchase to the inventory account, but it won't track any specific items.

If you make a purchase with an item breakdown, Goldenseal will increase the quantities for each of the Cost Items that are listed in the breakdown.

Selling Inventory

To sell inventory stock, follow these steps:

Choose Sales from the Income menu.
Click the New button, or choose New Record from the Edit menu.
Enter Items into the breakdown popup.
Enter the specific items that you are selling into the breakdown table.
Goldenseal will decrease the inventory quantities for each of the Cost Items that are listed in the breakdown.

Using Inventory in Projects

To use inventory in a project, follow these steps:

Choose Inventory Used from the Costs menu.
Click the New button, or choose New Record from the Edit menu.
Enter Items into the breakdown popup.
Enter the specific items that you are using into the breakdown table.
Goldenseal will decrease the inventory quantities for each of the Cost Items that are listed in the breakdown.

When you use inventory in a project, Goldenseal automatically includes it in job costs and time and materials billing, the same as if you had purchased the items directly for the project.

Adjusting Inventory

To perform other changes in inventory, follow these steps:

Choose Special Transfers from the Bank menu, and choose Inventory Transfers from the submenu.
Enter details for the adjustment.