The Ledger tab contains the Tax and account settings, Selling prices and values (quantities and cost and levels) for a stock item. If the weight is applicable to a stock item, the net and gross weight may be entered. 

stock-edit-ledger-tab

The options, is as follows:

1.Accounts 

If you have added Tax classes in Stock information (Setup ribbon), 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. 

a)Tax

i)Output Tax - Select the Output Tax (VAT/GST/Sales tax) account which you will use for your Sales.

ii)Input Tax - Select the Input Tax (VAT/GST/Sales tax) account which you will use for your Purchases. 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 Tax (VAT/GST/Sales tax), or if VAT/GST/Sales tax is not applicable to this purchase 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 Creditors - Accounting information tab (Action ribbon) for a Creditor (supplier / vendor) account, and select a different Tax (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).

b)Ledger

i)Sales - Select the applicable Purchase account from the lookup.

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.

ii)Cost of sales - Select the applicable Purchase account from the lookup.

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

iii)Stock control - Select the Stock control account from the lookup. This may be an Expense account, for example, stationery, if stationery is purchased.

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 Creditors (Accounting information tab (Action ribbon)) 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).

c)Last invoice - Field inactive. The date of the last invoice or other document generated 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.

2.Cost centre - This is by default inactive. If you have created and activated cost centres, you may select a default cost centre. 

3.Weight

a)Gross weight - Enter, if applicable.

b)Net weight - Enter, if applicable.

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

This description should reflect your selling price descriptions as you have entered in Stock information on the Setup ribbon.

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). 

5.Values

a)Average cost - Field inactive. 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.

b)Total cost - Field inactive. 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.

c)Quantity on hand - The quantity, or number of Stock items on hand, can be entered at this stage. When do the stock take-on (for trading stock - default stock item type), or process purchases, the quantities will be automatically updated.

d)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 Stock items (Action ribbon) (or the Adjust stock tab of the Stock item list), if you have any Stock item records on a previous accounting system.

e)Reorder level - Enter the quantity level on which you need to reorder this stock item.

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

g)Minimum - Specify the minimum quantity of stock to be on hand. 

6.Click on the Save button to save this stock item.