Guide Categories

Inventory Items

Manage your inventory items, track stock levels, and monitor item costs.

Overview

Inventory items represent the physical products your business sells or uses. The inventory management system tracks quantities on hand, costs, and movements to help you maintain optimal stock levels and accurate financial records.

Note

Proper inventory management is crucial for accurate cost of goods sold calculations and maintaining optimal stock levels.

Adding Inventory Items

To add a new inventory item:

  1. Navigate to the Inventory Items tab
  2. Click New Inventory Item
  3. Enter item details (name, description, category)
  4. Set unit of measure and pricing information
  5. Configure reorder points and maximum stock levels
  6. Add supplier information if applicable
  7. Save the inventory item

Key Information Fields

FieldDescription
Item CodeUnique identifier for the inventory item
DescriptionItem name and description
Unit of MeasureHow the item is counted (each, kg, liters, etc.)
Quantity on HandCurrent stock level
Unit CostAverage cost per unit
Sales PriceDefault selling price
Reorder PointStock level that triggers reorder alerts

Best Practices

  • Use consistent item codes and naming conventions
  • Keep item descriptions clear and detailed
  • Set realistic reorder points based on usage patterns
  • Review and update pricing regularly
  • Categorize items for better organization and reporting
  • Monitor inventory turnover ratios
  • Implement proper storage and handling procedures

Warning

Inaccurate inventory records can significantly impact your cost of goods sold and profitability calculations.
Goods ReceiptsInventory Transfers