Index

Inventory > Creating items
Before you begin to track your inventory, you need to create a record for each item of inventory. An item can be:
a service that your company wants to include on item invoices, for example, ‘Shipping’, ’Handling’, and so on.
When you create an item record, you can choose to buy, sell, or inventory the item. These selections determine what functions you can use the item with. For example, if you want to include a service item on an invoice (such as installation), you need to specify that you sell the item.
An item that you inventory is an item whose quantities and values you want to track. Maintaining an accurate record of on hand levels of these items requires you to do regular maintenance tasks. For example, you may need to record an inventory adjustment to write-off damaged stock.
This includes items that are not for resale, and you don’t need to track their quantities and values. For example, items for office use only.
It can also include raw materials you use as components to build other inventory items.
It can also include intermediate goods used in the productions process, such as parts used to manufacture finished goods.
If you have existing on-hand quantities of inventory items, you need to record the opening inventory level for each item. For more information, see Enter your inventory opening balances.
To create an item
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Go to the Inventory command center and click Items List. The Items List window appears.
2
Click New. The Item Information window appears.
3
In the Item Number field, type a unique identifier and press Tab.
The backslash character (\) serves a special purpose: any item number that begins with a backslash won’t appear on printed forms. This is useful for service-type items (such as labor) for which you don’t want to print an item number on the invoice.
4
In the Name field, type the name of the new item.
Click Copy From to copy another item’s information to this item record. From the displayed list, choose the item whose information you want to copy. All information for that item will be copied to the current item record except the item number, item name, vendor number, auto-build information and history information.
5
Specify whether you buy, sell, and inventory this item by selecting the relevant options.
As you select the options, fields appear next to them. These fields change according to the combination of selections you make.
Type or select the account you want to use to track the costs associated with producing this item.
Income Account for Tracking Sales
Type or select the account you want to use to record the income you receive from the sale of this item.
Asset Account for Item Inventory
Type or select the account you want to use to record the total value of this item.
Expense Account for Tracking Costs
Type or select the account you want to use to record costs associated with purchasing this item.
7
Click the Buying Details tab. The Buying Details view of the Item Information window appears. Complete the fields as explained below.
You can use the standard cost instead of the last purchase price as the default price on purchases. To use the standard cost price as the default price, select Use Standard Cost as the Default Price on Purchase Orders and Bills preference in the Preferences window (Inventory tab).
Type the unit of measure (such as each or case) by which you purchase the item. The buying unit is printed on the purchase order. For example, if you buy eggs by the carton, when you order five units in a purchase you are ordering five cartons.
Type the number of items that comprise a single buying unit. This is the number that is added to your on-hand inventory for every buying unit. For example, if you buy eggs by the carton unit but want to track their purchase individually, enter 12 as the number of items per buying unit. When you order one carton unit, your item inventory is updated by twelve items. If you leave this field blank, the value defaults to one.
Type the minimum level of this item you want to keep in inventory. When the number of items drops below this level, a reorder reminder appears in the To Do List.
Type a reorder level quantity for the item. If you set a minimum level for restocking alert, you can create an order for the items using the Stock tab in the To Do List. The default order quantity is taken from this field.
8
Click the Selling Details tab. The Selling Details view of the Item Information window appears. Complete the fields on this tab as explained below.
Type the selling unit of the item (such as each or case). You can type up to five characters. The selling unit is printed on the item invoice. If, for example, you sell by the six-pack, when you sell five units, you will be selling five six-packs
Type the number of items that comprise a single unit in this field. This is the number that is subtracted from your on-hand inventory for every selling unit. For example, if you sell by the six-pack, enter 6 as the number of items per selling unit. When you sell one six-pack, your inventory is reduced by six items.
9
Click the Items Details tab and enter additional information about the item.
10
If this item is stored in multiple locations, click the Locations tab and select the default location for buying and selling the item. For information about locations, see Inventory locations.
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