User guide
25
Getting Started
Reckon Accounts for tracking inventory
When setting up inventory items on the Item list in Reckon Accounts, associate each item with three dierent
accounts.
Reckon Accounts automatically sets up the rst two accounts. You can indicate that you want to track inventory,
either in the Setup Interview or in the Items & Inventory preferences.
Inventory Asset account: Reckon Accounts uses this Other Current Asset type account to track the current value of
your inventory.
Cost of Goods Sold account: Reckon Accounts uses the Cost of Goods Sold account to track the cost to you of the
items you have sold. On your chart of accounts, this account is below your income accounts but above your expense
accounts. On a prot and loss statement, Reckon Accounts subtracts the total cost of goods sold from your total
income to provide a gross prot before expenses.
One or more sales income accounts: You need one or more income accounts to track the income from the resale
of inventory. Associate all or most of your inventory items with the same income account. The number of income
accounts you have depends on how much detail you need on prot and loss statements.
Working with inventory items
Setting up inventory part items
If inventory part is not available on this list, do the following:
1. Go to Reckon Accounts.
2. Go to the Edit menu and then click Preferences.
3. Click the Items and Inventory and then click the Company Preferences tab.