ADDING INVENTORY ITEMS
After entering the inventory item default information, the next step is to enter each item. As items are added, you can use the default information that was entered or you can assign different information. To add or edit inventory items, select Maintain, Inventory Items.
Maintain Inventory Items Window
The Maintain Inventory Items window is used to enter, change, and store information on the products and services you purchase and sell. Each tab is described below:
• Item ID: Identifies the inventory item in lookup lists, transactions, and reports. Once an ID is saved, you can click Change ID to make changes.
• Description: Enter a brief description of the item. This description appears in the Item lookup list on transaction windows.
• Item Class: Select an item class from the drop-down list. Every inventory item will fall under one of the classes defined earlier in the chapter.
Information specific to each inventory item is entered on the General tab. Depending on the item class of the inventory item, some fields may not be available on the General tab. Beginning balances are also entered and maintained on the General tab. Fields of interest are described below:
• Description for Sales/for Purchases: Enter two descriptions per item, one for sales and another for purchases. The sales description for this item will appear when you enter quotes, sales orders and invoices. The purchase description for an item appears when purchase orders and purchases are entered.
• Price: Enter the sales price for the inventory item. To enter additional price levels, click the arrow button to open the Multiple Price Levels window. These price levels will correspond with those assigned to your customers.
• Last Unit Cost: For stock and assembly items, enter the last purchase price paid for the item. Once a beginning balance or transaction is entered using this item, this field is updated by Peachtree. For non-stock, service, and labor items, enter the Cost of Sales amount that should be posted when the item is sold.
• Cost Method: Select one of the three available costing methods from this drop-down list. Choices include FIFO, LIFO, and Average. The cost method cannot be changed after the inventory item has been saved. This field will show only for stock and assembly inventory items.
– Average Cost: When an item using Average Costing is sold, Peachtree uses the average cost of the item to calculate the cost of goods sold. The cost of goods sold amount is the average cost multiplied by the quantity of the item sold.
– FIFO: Using the First In First Out method, inventory is valued with the assumption that items are sold in the order in which they are received. The oldest cost of an item is the first cost to be used to calculate the value of the item.
– LIFO: Using the Last In First Out method, inventory is valued with the assumption that items are sold in the reverse order in which they are received. The newest cost of an item is the first cost to be used to calculate the value of the item.
Item Type: This case-sensitive field can be used to filter records for reporting purposes.
CUSTOM FIELDS TAB
The Custom Fields tab contains the custom field labels entered through default information. Enter information specific to each inventory item in these fields.
If a field label is dimmed, then the field is not available, and you cannot enter information in the field. To make the field available, return to the Custom Fields tab in Inventory Item Defaults and select the Enabled check box for that field label.
Select the History tab to view the inventory item history information. Changes cannot be made on this window. This window displays the period history date and for that date the number of units sold, dollar sales, number of units received, and total costs for the selected item.
Click the Beginning Balances arrow on the General tab to enter beginning balances for inventory. The total beginning balances amount should equal the amount entered as the beginning balance in the General Ledger inventory account. Inventory beginning balances can be updated until the fiscal year is closed.
Inventory Beginning Balances Window
Enter information regarding the current quantity on hand and cost of each inventory item in the Inventory Beginning Balances window.