Create / Edit Inventory items - Sales

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The disabled and inactive options for the Sales and the Sales (no inventory) inventory item type are the same. If you select this Sales or the Sales (no inventory) inventory item type on an invoice or a credit note, no Cost of sales transactions would be generated. You will also not be allowed to specify the re-order level and select the Cost of sales, Inventory control and Input Tax accounts.

Should you need to generate invoices and credit notes to customers (customers) for services, fees, charges or other sales which is not trading inventory, you may create a Sales or Sales (no inventory) inventory item type. You may generate invoices and credit notes for these non trading inventory items only or add these item codes to an invoice or credit note containing physical Inventory items.

Some examples where you would create a Sales or Sales inventory item type, is the following:

Invoicing services such as labour, consulting fees, etc.

Invoicing carting fees, delivery fees, other charges, etc.

To create a Inventory item - Sales:

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

9.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 Input Tax account field is disabled. The Cost of sales andInventory  control account fields are 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)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 Setup →Inventory Information.

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 Estimates. When the cursor is displayed on the Amount fields, you may select any of the available selling prices you wish to charge your customers.

f)Values

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

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

iii)Quantity on hand - Field inactive. The quantity, or number of Inventory 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 Inventory item can now be entered. When you process purchases, the Latest cost Price will be automatically updated.

v)Reorder level - The minimum level of inventory that you wish to keep on hand for this Inventory item. In the case of Inventory item codes for the purchase of services, this field should be left blank.

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.

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

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