Inventory Items

The Inventory Items tab in Manager is a comprehensive module designed for creating, monitoring, and managing your inventory list. It allows you to keep track of every item you purchase, sell, and hold in stock, providing a clear overview of your inventory status at any given time.

Creating a New Inventory Item

To add a new item to your inventory:

1. Navigate to the Inventory Items tab.
2. Click the New Inventory Item button at the top of the screen.

Fill out the necessary details for the new item in the form provided. For more information on how to complete this form, see the Inventory Item Form Guide.

If you're setting up an inventory item with an existing quantity, you can input starting balances:

1. Go to Settings.
2. Select Starting Balances.
3. Enter the starting quantities for your inventory items.

Refer to the Inventory Item Starting Balance Guide for detailed instructions.

Understanding Inventory Accounting

By default, when you use the Inventory Items tab:

• Purchases of inventory items will debit your Inventory on hand asset account.
• Sales of inventory items will credit your Inventory - sales income account.

When you sell an inventory item:

• The Inventory on hand account balance decreases by the item's Standard Cost multiplied by the quantity sold.
• The cost of goods sold is reflected in a debit to the Inventory - purchases expense account.

To ensure accurate cost calculations, you can recalculate the Standard Cost of your inventory items using the Recalculate button. For more details, see the Recalculate Standard Cost Guide.

Inventory Items Tab Columns

The Inventory Items tab displays several important columns that provide key information about each item:

Item Code

Shows the unique code assigned to each inventory item, helping you identify items quickly.

Item Name

Displays the name of the item as defined in its inventory entry.

Control Account

Indicates the control account associated with the inventory item. By default, items are assigned to the Inventory on hand control account. You can create custom control accounts if needed.

Division

Specifies the division linked to the inventory item, relevant for businesses utilizing divisional accounting.

Description

Provides a detailed description of the inventory item.

Qty Owned

Displays the total quantity of the item that has been purchased but not yet sold or written off. This figure includes all general ledger transactions. To view the transactions contributing to the Qty Owned balance, click on the figure in this column. For more information, refer to the Inventory Item Qty Owned Guide.

Qty to Deliver

If you're using Delivery Notes, this column tracks the quantity of sold items that are yet to be delivered to customers.

• Increases with Sales Invoices.
• Decreases with Delivery Notes and Credit Notes.

Qty to Receive

If you're utilizing Goods Receipts, this column tracks the quantity of purchased items that are yet to be received from suppliers.

• Increases with Purchase Invoices.
• Decreases with Goods Receipts and Debit Notes.

Qty on Hand

Represents the physical quantity of the item you currently have in stock. This is calculated considering:

• Increases with Goods Receipts.
• Decreases with Delivery Notes.
• Excludes Sales Invoices, Purchase Invoices, Debit Notes, and Credit Notes unless they're acting as delivery notes or goods receipts.
• Includes all other general ledger transactions.

In summary:

• Sales Invoices, Purchase Invoices, Debit Notes, and Credit Notes affect Qty Owned but not Qty on Hand.
• Delivery Notes and Goods Receipts affect Qty on Hand but not Qty Owned.

Qty Reserved

When using Sales Orders, this column shows the quantity of items reserved for customers:

• Increases with Sales Orders.
• Decreases with Delivery Notes linked to Sales Orders.

Qty Available

Indicates how much inventory is physically available for immediate sale and delivery. Calculated as:

Qty Available = Qty on Hand - Qty to Deliver - Qty Reserved

Qty on Order

If you're using Purchase Orders, this column tracks inventory items that have been ordered but not yet received or invoiced. It is calculated as:

Qty on Order = Qty Ordered - Max(Qty Invoiced, Qty Received)

Qty to be Available

Provides a forecast of future stock levels, helping you plan ahead. Calculated as:

Qty to be Available = Qty Available + Positive Qty to Receive + Qty on Order

Qty Desired

Reflects the Reorder Point you have set for the inventory item. To adjust this figure:

1. Click the Edit button next to the inventory item.
2. Enter the desired reorder point in the appropriate field.

Qty to Order

Indicates if additional stock needs to be ordered to meet the Qty Desired. It is calculated as:

Qty to Order = Qty Desired - Qty to be Available

Order new stock to increase the Qty to be Available, reducing the Qty to Order to zero.

Standard Cost

Shows the average cost of the inventory item, aiding in pricing and cost of goods sold calculations.

Customizing Columns

You can customize which columns are visible in the Inventory Items tab to suit your needs:

1. Click the Edit Columns button at the top of the screen.
2. Select or deselect the columns you wish to display.
3. Save your changes.

For more details, see the Edit Columns Guide.

Using Advanced Queries

The Advanced Query feature allows you to filter, sort, and group inventory items, making it easier to manage large inventories.

For example, to display only the Qty on Hand for each item:

1. Click on the Advanced button.
2. Input the query to show the Qty on Hand.

You can adjust the query to display other quantities:

• Swap Qty on Hand for Qty to Deliver to see items awaiting delivery.
• Use Qty to Receive for items pending receipt from suppliers.
• Select Qty to Order to identify items that need restocking.

For more information on using advanced queries, refer to the Advanced Queries Guide.

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By understanding and utilizing these features within the Inventory Items tab, you can efficiently manage your inventory, ensuring you have optimal stock levels and complete visibility over your inventory movements.