Create / Edit Inventory items - Trading Inventory - Default

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

To create a Default inventory item:

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, Default inventory item type is displayed:

3.Enter and select the following:

a)Inventory code - Enter any code for trading inventory item. You may enter a inventory code of up to 15 characters.

b)Description - Enter a description for this inventory 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)Type - Default is the default inventory item type.

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

Financial entry


Sales (no inventory)


Purchases (no inventory)

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


oOption item

oOption item (no inventory)

Bill of Materials (BOM)


oBOM (Production)

Linked Sale

Once a document has been processed for a inventory item, this field will be disabled.

f)Units - Select the 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 Setup → Inventory information.

g)Disabled - By default, all Inventory items are active (enabled) when Inventory items are created.

h)Apply invoice discount - This field is by default selected. This field is only applicable to customer accounts.

The percentage discount is specified in the "Customer discount" field on the Accounting information tab (Action → Customers).

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

j)Reports - Inventory group 1 / 2 - Select the Inventory group 1 and or 2.

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

k)Preferred supplier 1 - The main vendor you purchase inventory items from, may be selected. You may enter the supplier's inventory code, if applicable.

l)Preferred supplier 2 - If you have a backup or alternative supplier, you may select the vendor and enter the supplier's inventory code, if applicable.

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

5.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.

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.


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.


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.

Once you have created your new Inventory items, you may enter the cost prices and quantities in theInventory  take-on option in Action → Inventory  items, if you have any Inventory item records on a previous accounting system.

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.

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

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