Create / Edit Inventory items - Purchases

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The disabled and inactive options for the Purchase and the Purchase (no inventory) inventory item type are the same. If you select this Purchase or the Purchase (no inventory) inventory item type on a purchase document or a supplier return document, no Cost of sales transactions would be generated. You will also not be allowed to select the Sales and Output Tax accounts.

Should you need to generate purchase documents or supplier returns documents to suppliers (vendors) for services, fees, charges or other purchases which is not trading inventory, you may create a Purchase or the Purchase (no inventory) inventory item type. You may generate purchase documents or supplier returns documents for these non trading Inventory items only or add these item codes to an purchase document or a supplier return document containing physical Inventory items.

Some examples where you would create a Purchase or the Purchase (no inventory) inventory item type, is the following:

Purchasing services such as labour, consulting fees, etc.

Purchasing goods on which delivery charges (fees), other charges, etc. is applicable.

Purchasing goods (not for resale) such as stationery, etc.

To create a inventory item - Purchases:

1.On the Action ribbon, select Inventory items (F12). TheInventory  item - List view default screen will be displayed.

2.Click on the New button. A blank Inventory screen will be displayed.

3.Select the Purchases inventory item type. The Inventory entry screen is displayed as follows:

4.Enter theInventory  code, Description, Barcode, Manufacturer and Extra description as required.

5.Select the Unit size.  

6.Apply invoice discount - This is applicable to customer accounts, as the percentage customer discount is specified on the Accounting information tab - Action → Customer.

7.Reports - Inventory group 1 / 2 - The reporting group to which you wish this service Inventory item to be allocated.

8.Preferred supplier 1 - Optional - Select a vendor account and enter a supplier inventory code if applicable.

9.Preferred supplier 2 - Optional - Select a vendor account and enter a supplier inventory code if applicable.

10.Click on the Ledger tab, if not already displayed.

11.Enter or select the following options:

a)Tax class - If you have created tax classes, select the tax class. The Tax class will automatically add the Input Tax and Output Tax accounts in the Tax section, the Sales account, Cost of sales andInventory  control accounts in the Ledger section.

The Output Tax account field is disabled. The Sales account field is disabled.

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

c)Default cost group - This is by default inactive. If you have created and activated cost centers, these may be selected.

d)Weight

i)Gross weight - Enter, if applicable.

ii)Net weight - Enter, if applicable.

e)Values

i)Average cost - Field inactive. The average cost price of your Inventory item cannot be entered at this stage.

ii)Total cost - Field inactive. The total cost price of your Inventory item cannot be entered at this stage.

iii)Quantity on hand - Field inactive. The quantity, or number of Inventory items on hand, cannot be entered at this stage.

iv)Latest cost - The latest cost price of your Inventory item can now be entered.

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

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

vii)Minimum - Specify the minimum quantity of inventory to be on hand.

12.Click on the Save button to save this inventory item. TheInventory  item - List view - Default screen will be displayed.

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