The Inventory Revaluations section, found within the Settings tab in Manager.io, enables users to update the average costs for their inventory items.
By default, when you use the Inventory Items tab, all inventory purchases will debit your InventoryCost expense account, and all inventory sales will credit your InventorySales income account. This means that even if you own inventory, your InventoryOnHand asset account will always be zero.
This approach is suitable for businesses that do not hold significant amounts of inventory and are not interested in capitalizing inventory costs on the balance sheet. However, if your business maintains significant inventory balances, it is often desirable to capitalize inventory on hand as an asset.
The Inventory Revaluations tab allows you to easily establish your InventoryOnHand balances. Once average costs for your inventory items are specified, Manager.io will calculate your InventoryOnHand balance by multiplying your QtyOwned figure by the specified average costs. The result will appear on your Balance Sheet under the InventoryOnHand asset account.
To create a new inventory revaluation, click the New Inventory Revaluation button.