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Inventory Item — Edit

The Inventory Item Edit form in Manager.io allows you to create a new inventory item or modify an existing one. This form is essential for managing your inventory effectively, ensuring all necessary details are accurately recorded. Below are the fields included in the form and how to use them:

Item Code

Optional

Input the inventory item code if you have one. This code helps to uniquely identify inventory items within your system. If you do not use item codes, you may leave this field blank.

Item Name

Type in the name of the inventory item. This name will appear on quotes, orders, and invoices, making it essential for clear communication with customers and suppliers.

Unit Name

Enter the unit name for the inventory item. The unit name appears on quotes, orders, and invoices. For example, instead of displaying a quantity as "5", it can show "5 kg" if "kg" is entered as the unit name.

Valuation Method

Select the valuation method for the inventory item. This determines how the cost of the inventory is calculated for accounting purposes.

Division

If you're utilizing divisional accounting, choose the Division that will be responsible for this inventory item. This helps in tracking inventory and financials across different segments of your organization.

Control Account

If you're using custom control accounts for inventory items, select your specific custom inventory control account here. The default control account for inventory is called Inventory on hand.

Reorder Point

The Inventory Items tab features a Qty to Order column. Manager calculates the Qty to Order using the Reorder Point value you enter in this field. This feature helps you identify which inventory items need to be reordered to meet their designated reorder point.

Custom Fields

You can add more details about this inventory item to meet your specific business needs by creating custom fields. See Custom Fields for more information.

Establishing Starting Balances

Before setting up your inventory items, it is typically recommended to set up your customers and suppliers first. This is because customers and suppliers can have starting balances based on their unpaid invoices.

Here is the extended procedure to establish starting balances for your inventory items:

Suppliers

  • Enter any unpaid purchase invoices for your suppliers. This will automatically adjust the Qty Owned for the inventory items purchased on these invoices.

Customers

  • Enter any unpaid sales invoices for your customers. This will automatically adjust the Qty Owned for the inventory items sold on these invoices.

After entering unpaid invoices, use a journal entry to further adjust the Qty Owned for inventory items to account for historical purchases that won't be entered (typically because they are already paid invoices or other transaction types).

If you are tracking Qty to Deliver and Qty to Receive columns, you can also establish starting balances for these columns.

Qty to Deliver

This represents the quantity that has been ordered by customers but has not yet been delivered. To establish this starting balance:

  • Create sales orders under the Sales Orders tab that haven't been fully delivered yet.

Qty to Receive

This represents the quantity that has been ordered from a supplier but has not yet been received. To establish this starting balance:

  • Create purchase orders under the Purchase Orders tab that haven't been fully received yet.

By following these steps, you ensure that your inventory balances are accurately reflected, including adjustments for unpaid invoices and historical purchases.