Setup: Inventory Setup: Inventory
This screen can be accessed by selecting Setup > Accounting Options > Inventory. It can also be accessed by right-clicking the Inventory menu icon.
Enter the General Ledger account numbers for Inventory Control and Cost of Goods Sold. The Inventory Control account is the asset account where the value of the inventory (inventory on hand) is stored. The Cost of Goods Sold account is the account to which the cost of the inventory goes when sold.
The system will keep track of the prices paid for items in inventory. The following five options determine the value at which the program will reduce inventory:
First In First Out (FIFO)
This method picks the first item purchased by the system and charges the price assigned to it. For example: one hundred bricks were purchased for $1.00/brick. Then one hundred more bricks were purchased for $1.25/brick. One hundred and twenty bricks are required for a job. With the FIFO method, the system picks 100 bricks at $1.00/brick and twenty bricks at $1.25/brick.
Last In First Out (LIFO)
This method picks the last item purchased by the system and charges the price assigned to it. For example: one hundred bricks were purchased for $1.00/brick. Then one hundred more bricks were purchased for $1.25/brick. One hundred and twenty bricks are required for a job. With the LIFO method, the system picks 100 bricks at $1.25/brick and twenty bricks at $1.00/brick.
Average Cost
All prices paid for a particular item will be averaged to produce an average cost. Inventory will be reduced by that average cost, not the original price paid.
Last Cost
The program will reduce inventory by the last cost paid. For example: if 20 doors were purchased at 20 different prices, the program will use the last cost, regardless of the other 19 prices paid.
Standard Cost
Standard Cost is a user defined cost. It may be desirable to put in a standard cost if a particular item is always sold at the same price.
Miscellaneous
Modify Cost of Goods Sold during Pick Ticket and AR Invoice Entry (check box)
If this box is checked, an extra entry field will appear on the Pick Ticket and AR Invoice Entry windows. This field will allow the operator to specify how much will be charged to the Cost of Goods Sold account as a result of removing this item from inventory.
Inventory Pick Ticket Numbering
The system can automatically number pick tickets entered through the Inventory > Pick Tickets menu.
Automaically Assign Pick Ticket Number (check box)
If this box is checked, the system will always create new pick tickets using the next available pick ticket number entered below.
Next Pick Ticket Number
Enter the number of the next available pick ticket. Each time a new pick ticket is entered, it will receive the next available number and this number will be increased by one.