Inventory

If you store items in your inventory and you want to track the comings and goings of those items, you need to use the Inventory Command Centre. Before you can use Inventory, however, you need to set it up. This section will walk you through the setup of inventory

What you will need

Background Information

When you set up General Ledger, you set up one or more asset account(s) that carry the value of your total inventory. If you've followed these setup instructions in order, you've entered all your opening balances except for your Inventory asset account(s). You now need to record the opening value of your stock so your accounts can balance properly.

After you set up inventory, you'll use item purchase orders to record the purchase of items you entered in the Items List window. M.Y.O.B. will know the value of those items at that time.

There are three steps to setting up inventory items for use in M.Y.O.B.:

Note: If you don't want to set up all your items at one time, that's okay. However, in that case you will need to enter the proper opening balance of your Inventory asset accounts in the Account Opening Balances window now, before you begin to enter your opening stock levels.

Use the following instructions to complete each step.

What you need to do

1. Enter information about your items

Use the Item Information window to enter information about your items. The Item Information window is located in the Inventory Command Centre.

Be sure your entry in the Asset Account for Item Inventory is the proper account you wish to use to track the value of your items.

If your Inventory asset account(s) do not have a balance of zero, this window will not appear. M.YO.B. will assume you have already entered the correct opening balance for the account and will debit and credit the same account, so no balances will be affected.

2. Count the actual quantities of your items

To ensure M.YO.B. has an accurate count of your items, count how many of each item you have in stock. If you're working with many items, print an Inventory Count Sheet report, which will help speed your counting.

When you're finished counting your in-stock items, use the Count Inventory window to enter the quantities. The Count Inventory window is also located in the Inventory Command Centre.

In this window, all the items you entered in the Items List window are displayed, with zeros appearing in all columns. Zeros appear in the On Hand column at this time because M.YO.B. has no record of any of your items yet. For each item, enter its quantity in the Counted column. The Difference column will change to reflect the difference between the On Hand column and the Counted column.

When you've finished entering quantities, click the Adjust Inventory button. The Default Expense Account window appears. In this window, all you must do at this point is click Continue. This indicates to M.YO.B. that you're making an opening adjustment to your inventory asset account.

Next, the Opening Balance Check window appears, informing you that M.YO.B. has noticed that some of your on-hand inventory quantities are zero.

Click Opening Balances. Another Opening Balance Check window appears, informing you that M.YO.B. has noticed the balance of your inventory asset account is zero. Click Adjust Balances; the Inventory Adjustments window appears.

Record the opening values of your items

The Inventory Adjustments window shows an adjusting entry in the scrolling list for each item you entered a quantity in the Counted column of the Count Inventory window.

If you wish, you can change the default entries in the Inventory journal Date and Memo fields.

For each item that appears in the list, entries already exist for the Item #, Name, Quantity and Account fields. All you have to do is make an entry in the Unit Cost field or Amount field for each item. (if you make an entry in one field, the other field will change to reflect the first field's entry.)

Remember to enter how much these items cost you, not how much you're selling them for.

Do NOT change the account number that appears in the Account column.

After you've entered amounts for each item, click Record. The value of each item in the scrolling list will be updated by M.Y.O.B., and you're done!

At this stage, you should check that the balance of your inventory asset Of account is what you expected, and make sure your accounts are in balance. If everything is correct, the balance of the Historical Balancing equity account should be zero.

Exercise

Complete the Inventory setup using the information in your data sheet.

Click on the Inventory command center. Select the Items List function. Click on New . Enter the information from your data sheet. Click on OK . Repeat for all items on the data sheet. Click on Close .

Click on the Count Inventory function. Enter the information on the number of items counted from the data sheet in the Counted column.

Do this for all items.

Click the Adjust Inventory button.

Click the Continue button.

Click the Opening Balances button.

Click the Adjust Balances button.

Enter the unit cost of each item from the data sheet. Click Record.

Check that your Inventory Asset account balance matches that in the Trial Balance on the Data Sheet.

Select the General Ledger command center. Select the Chart of Accounts function. Scroll to the Inventory Asset account and check it's balance. Click on Close .

 

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