The Default Stock item type is used for Trading stock items. The Cost of sales settings for these are important as these may have an impact on your gross profit.  

To create a Default Stock item for trading stock: 

1.Click on the Stock items button (Sidebar) or click on the Edit → Stock items (F12) menu. 

2.Click on the New button. A blank Stock screen, "Default" stock type is displayed: 
TurboCASH4 - Stock item - Default type

3.Enter and select the following:

a)Stock code - Enter any code for your purchase stock item. You may enter a stock code of up to 15 characters. 

You need to plan the Stock item codes to optimise this feature in TurboCASH4. 

b)Description - Enter a description for the trading stock item.

c)Barcode - Enter the barcode, if applicable. 

The EAN13 Barcode validates for 13 numbers (the last number is a checksum number). If the Barcode is incorrect, the labels will not be printed. 

d)Manufacturer - You may enter any additional information or description of the manufacturer (e.g. the name of the manufacturer). This is optional.

e)Extra description - You may enter any additional information or description (up to 255 characters) for the stock item, as necessary. This is optional.

f)Type - "Default" is the default stock type. 

The default stock type is recommended for trading stock. If it is not trading stock, you may select one of the following stock types: 

Financial entry 

Sales 

Sales No Stock 

Purchases 

Purchases (no stock) 

In addition to the above-mentioned stock types, you may also select the following stock types: 

Options 

oOption item 

oOption item (no stock) 

Bill of Materials (BOM) 

oBOM 

oBOM (Production) 

Linked items

Once a transaction has been processed for a stock item, this field will be disabled. 

g)Units - Leave blank or select any unit e.g. each, hours, boxes, etc. which you wish to be displayed on your documents. These Units of your Stock items such as: each, hours, boxes, etc. are setup in the Setup → System parameters → Stock information menu. 

If you wish to combine services you sell with your Stock items, you need to specify the Units of stock as Hours or any other suitable description for your services. 

h)Disabled - By default, all Stock items are active (enabled) when Stock items are created or edited. Select this field if you (or any of your salespersons) do not want to process any documents for a stock item. Select this field to hide the Stock item from the Stock item lookup when processing new documents. This will speed up document processing.

You will still be able to update (post) any unposted documents, which include transactions for the disabled Stock item, to the ledger. 

You may select the disabled Stock items on the Stock item lookup when generating Stock, Sales analysis and Purchase analysis reports and view the transactions of disabled Stock items. 

You may de-select this field at any stage, when necessary to continue processing documents for the Stock item. 

i)Apply invoice discount - Do not select. This is applicable to Debtor (customer / client) accounts, as the percentage customer discount is specified on the Edit → Debtors (Accounting information tab).

j)Reports - Stock group 1 / 2 - The reporting group to which you wish this service Stock item to be allocated. 

The description of Stock group 1 or 2 you have entered on the "Reporting group name" field on the Stock groups tab on the Setup → System parameters → Groups menu may be reflected in this list.

k)Preferred supplier 1 - Optional - Select a creditor (supplier / vendor) account and enter a supplier stock code, if applicable.

l)Preferred supplier 2 - Optional - Select a creditor (supplier / vendor) account and enter a supplier stock code, if applicable.

4.Click on the Ledger tab, if not already displayed. 
TurboCASH4 - Stock item - Default type - Ledger tab

5.Enter or select the following options: options: 

a)Accounts - Tax and Ledger -  

Tax - Select the Input tax and Output tax account.  If this is a Zero Rated Stock item which is exempted from VAT/GST/Sales tax, select the Input Zero-rated Tax code. 

If you are not registered for VAT/GST/Sales tax, or if VAT/GST/Sales tax is not applicable to this stock item, select the No tax code and this field will be blank. 

You may activate the Use default tax - Stock file override settings on the Edit → Creditors menu (Accounting information tab) for a Creditor (supplier / vendor) account, and select a different VAT/GST/Sales tax account or code on the Tax lookup facility for that creditor (supplier / vendor). 

When purchase documents or supplier returns documents for the creditor (supplier / vendor) is updated (posted) to the ledger, the selected Input tax account for this Stock item will be ignored and the purchase transaction will be updated (posted) to the specified Input tax account for the creditor (supplier / vendor). 

Ledger - Select the Sales account, Cost of sales and Stock control accounts. 

If you have more than one Sales account, or use Sub-accounts, you may select the applicable Account or Sub-account for each of your Stock items. 

If you have more than one Purchase account, or use Sub-accounts, you need to select the applicable Account or Sub-account for the Purchase item. 

You may activate the Use default account - Stock file override settings on the Edit → Creditors (Accounting information tab) for a creditor (supplier / vendor) account, and select a different account on the Tax lookup facility for that creditor (supplier / vendor). 

When purchase documents or supplier returns documents for the creditor (supplier / vendor) is updated (posted) to the ledger, the selected Stock control and Cost of sales account for this Stock item will be ignored and the purchase transaction will be updated (posted) to the specified Input tax account for the creditor (supplier / vendor). 

TurboCASH Tip

If you have added Tax classes in the Setup → System parameters → Stock information menu, you may select the Tax class applicable to this stock item. This will auto-fill  the Output tax, Input tax, Sales account, Cost of sales and Stock control accounts. 

b)Last invoice - The date of the last purchase or other document processed on which the Stock item was selected. This field will not display any date if it is a new item, or if no Stock items have been selected on any documents.

c)Default costgroup - This field is inactive. 

It will only be activated if Cost centre 1 and / or Cost centre 2 is added in the Setup System parameters Groups menu and Cost centres is activated. 

d)Weight - Optional - Enter Net weight and / or Gross weight, if applicable.

e)Selling prices - Enter the Selling price 1/2/3 exclusive or inclusive of Tax. The inclusive of VAT/GST/Sales tax will be calculated based on the percentage entered in your Output tax account. (if you selected that account in advance).

This description should reflect your selling price descriptions as you have entered in the Setup → System parameters → Stock information menu. 

If you have for example entered: "Retail", "Wholesale" and "Cash" for these Selling prices, the Selling price 1 / 2 / 3 will be respectively displayed as such.

The amounts as entered in these fields will be displayed on Invoices, Credit notes and Quotes. When the cursor is displayed on the "Amount" fields, you may select any of the available selling prices you wish to charge your debtors (customers / clients). 

f)Value

i)Average cost - The average cost price of your Stock item cannot be entered at this stage. When you process purchases, the Average cost price will be automatically updated.

ii)Total cost - The total cost price of your Stock item cannot be entered at this stage. When you process purchases, the Total cost price will be automatically updated.

iii)Quantity on hand - The quantity, or number of Stock items on hand, cannot be entered at this stage. When you process purchases, the quantities will be automatically updated.

iv)Latest cost - The latest cost price of your Stock item can now be entered. When you process purchases, the Latest cost price will be automatically updated. 

Once you have created your new Stock items, you may enter the cost prices and quantities in the Stock Take-on option of the EditAdjust stock menu, if you have any Stock item records on a previous accounting system. 

v)Reorder level - The minimum level of stock that you wish to keep on hand for this Stock item. 

vi)Reorder at - Specify the quantity of stock to be available when you need to reorder stock.

vii)Minimum - Specify the minimum quantity of stock (stock level) to be available before you need to reorder stock.

6.Click on the Save button to save this stock item. The Stock item list screen will be displayed.