Inventory Card
Purpose
From here you can maintain item information. You can also edit, add, or delete items. These cards allow you to store information that is specific to each item. You can set defaults for posting accounts, tax IDs, etc, as well as more specific information like item type and category.
Usage
1. Choose an Item ID
Either type a new Item ID, or select from the existing set using the lookup.
We suggest that all Item ID's be the same length, to make for easy sorting and searching. Item ID's can be no longer than 20 alphanumeric characters.
2. Edit Item information
Description - Enter a succinct description of the item and its significant characteristics. The description is limited to 255 characters.
Item Type - There are four different basic item types:
Sales -- this is the most common item type. It represents a typical item that can be purchased, that has quantities, and that can be adjusted and sold. A Sales item can also serve as a component of an Assembly.
Service -- these represent services to be performed. They can not have quantities on hand and their quantities can not be adjusted. Service items also do not have costs and, therefore, should not be entered as part of an assembly.
Miscellaneous -- this classification acts as an additional Sales type to provide more flexibility in assemblies.
Assembly -- this is composed of Sales and Miscellaneous items serving as components of an aggregate grouping. For example, a computer is an assembly of a CPU and various peripherals.
Once an item has been saved, its Item Type cannot be changed.
Category - These are user-defined groupings. They can be set up in the Inventory Preferences. For example, you might want to group all the items of a computer company into hardware and software.
Commissionable - If an item is subject to salesperson commissions, check this option.
Taxable - If an item is subject to sales taxes, check this option.
3. Edit Vendor Information
Select the primary vendor from whom this item is most often purchased.
4. Edit Reorder information
Enter a reorder quantity. When the inventory stocking level falls below this quantity, Integral Accounting will warn you to reorder.
5. Edit GL Posting Accounts
Enter the default General Ledger account number to which transactions involving this item will post (depending on how Default Sales Account is set in the Sales Preferences).
For example, consider a computer that we sell for $1000 that costs us $500. In this case, the general ledger transaction that will result is as follows:
Debit Cash Account 1,000.00
Debit Cost Of Goods 500.00
Credit Sales Account 1,000.00
Credit Inventory Account 500.00
6. Edit Cost Information
Standard Cost - This is the user-defined cost you want Integral Accounting to use when figuring the cost of inventory. This is not used unless the appropriate option is set in the Accounting Preferences.
Last Cost - This is the cost of the last instance of the item purchased. This is also the default cost on purchase orders and the cost used when returning items sold to customers.
Average Cost - This cost is calculated by a weighted average of all costs currently in inventory.
Quantity on Hand - This is the amount of the item that you currently have in stock.
Quantity on Order - This is the amount of the inventory item that is currently on order from all sources.
7. Edit Beginning Balances
The Beginning Balances form for items is a bit different than the one for customers, vendors, etc. When you click this button, a form will open showing fields for Quantity, Unit Cost, and Total Cost. These are the quantity and costs of the item that you may already have had before creating the item card. Enter the correct amounts in these fields and close the form.