The form includes the following fields:
You can add more details about this inventory item to meet your specific business needs by creating custom fields.
For more information, see: Custom Fields
Setting Up Starting Balances
Before setting up your inventory items, it is typically recommended to set up your customers and suppliers first.
This is because customers and suppliers can also have starting balances based on their unpaid invoices.
Here is the extended procedure to establish starting balances for your inventory items:
Step 1: Enter Unpaid Invoices
Suppliers: Enter any unpaid purchase invoices for your suppliers. This will automatically adjust the Qty Owned for the inventory items purchased on these invoices.
Customers: Enter any unpaid sales invoices for your customers. This will automatically adjust the Qty Owned for the inventory items sold on these invoices.
Step 2: Adjust for Historical Transactions
After entering unpaid invoices, use a journal entry to further adjust the Qty Owned for inventory items to account for historical purchases that won't be entered (typically because they are already paid invoices or other transaction types).
Tracking Pending Deliveries and Receipts
If you are tracking Qty to Deliver and Qty to Receive columns, you can also establish starting balances for these columns:
Qty to Deliver: This represents the quantity that has been ordered by customers but has not yet been delivered. To establish this starting balance, create sales orders under the Sales Orders tab which haven't been fully delivered yet.
Qty to Receive: This represents the quantity that has been ordered from a supplier but has not yet been received. To establish this starting balance, create purchase orders under the Purchase Orders tab which haven't been fully delivered yet.
By following these steps, you ensure that your inventory balances are accurately reflected, including adjustments for unpaid invoices and historical purchases.