User guide

25
Getting Started
Accounts for tracking inventory
When setting up inventory items on the Item list in Accounts, associate each item with three di erent accounts.
Accounts automatically sets up the  rst two accounts. You can indicate that you want to track inventory, either in
the EasyStep Interview or in the Items & Inventory preferences.
Inventory Asset account: Accounts uses this Other Current Asset type account to track the current value of your
inventory.
Cost of Goods Sold account: 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 pro t and loss statement, Accounts subtracts the total cost of goods sold from your total income to
provide a gross pro t 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 pro t and loss statements.
Working with inventory items
Setting up inventory part items
If inventory part is not available on this list, do the following:
Go to Accounts.1.
Go to the 2. Edit menu and then click Preferences.
Click the 3. Items and Inventory and then click the Company Preferences tab.
Click to select the 4. Inventory and Purchase orders are active check box.