Ensure sufficient inventory to meet demand without excess stock, which can be costly and affect cash flow. Manage your inventory levels to maintain the right quantities.  NOTE: You can manage stock for only one warehouse.
Create Stock type product records. When you buy and sell these items, the system increases or reduces the number in stock and records the value. About stock items When entering a stock item, provide details in these sections: | Item Information | Assign a code or enter a short name for the item and provide a description. Optionally, you can set up categories. | | I Sell This Item | Enter the selling price and any additional prices such as Wholesale or Trade. Set up pricing for your products and services to change default price types or add more. Select the general ledger account for sales and, if applicable, the tax rate. | | I Buy This Item | Enter purchase details for the item. Select the vendor, enter a short name or code for the vendor, a description, and the cost price. Select the general ledger account for purchases and enter a reorder level and quantity. | | Opening Balance | Enter the quantity of this item you currently have on-hand and the cost price at which you purchased it. | | Additional Information | Enter optional information such as storage location, bar code, weight, customer group, or notes. See Add and edit products (stock and non-stock) and services. | Stock movements Update stock item levels and values when you add stock items to invoices and credit notes. Record stock movements each time you buy and sell stock to track inventory. Each stock movement has a transaction type, indicating whether you added or removed stock. Go to Products & Services. Click a stock item to see its stock movement transactions on the Activity tab. | Transaction Type | Movement Type | Details | | Sales invoice | Goods Out | The system decreases the stock level. You can’t add a stock item to an invoice if you don’t have enough in stock. | | Sales credit note | Negative Goods Out | The system increases the stock level with returned goods. To credit a price change, reverse the original invoice with a credit note, then issue a new invoice with the correct price. | | Vendor bill | Goods In | The system increases the stock level and updates the last cost price and average cost price. | | Vendor Credit Note | Negative Goods In | The system decreases the stock level upon the return of goods to the vendor and updates the last cost price and average cost. To credit a price change, reverse the original invoice with a credit note and issue a new invoice with the correct price. | | Add stock via an adjustment | Adjustments In | The system increases the stock level. Use the cost price entered on the adjustment to calculate the value of the stock movement. Your general ledger accounts don’t post this transaction. | | Remove stock via an adjustment | Adjustments Out | The system decreases the stock level. Multiply the stock record's cost price by the adjustment quantity to calculate the adjustment cost. You don’t post this transaction to your general ledger accounts. | What are stock adjustments? Stock adjustments occur when you manually adjust your stock levels to change the number of items in stock. Use this to write-off damaged stock or adjust quantities after a stock audit. This doesn’t update the general ledger accounts. Stock value Track the number of items in stock and record their value. Show stock value as an asset on the Balance Sheet. When you sell stock, it becomes a cost and appears on your Profit and Loss as a cost of sale. This ensures the Balance Sheet reflects only the value of stock you still have. Recording Stock Value Record the purchase of stock items against an Asset general ledger account. Set a default ledger account for each stock item to ensure accurate posting. Create a journal entry to transfer sold stock value from the Balance Sheet to the Profit and Loss report. Contact your accountant for advice on which accounts to use. How to enter existing stock When you start using stock, enter the quantity and totals for any stock on-hand to ensure inventory and report accuracy. Enter existing quantities for: New Stock Items Select I have existing stock on-hand and enter details in the Opening Balance section of the Create Item window. Existing Stock Items Click the item on the Products & Services list and click Adjust Stock Level to create a stock level adjustment. Create a journal to show stock value as an Asset (debit) and balance with a credit to a holding account. This increases your stock assets. At year-end, ask your accountant where to move the amount in the holding account to prevent double-accounting of stock value. |