Maintain inventory items/Assembly

Maintain inventory items

It is used to record the information of selling and purchasing of inventory items. It also allows you to store items you do not stock but that you enter on invoices. This makes entering invoices faster for you.

The easiest and simplest process of recording the inventory items in Peachtree is following:

Select the maintain menu and choose the inventory items...

The following window will be appearing in your screen.

In this window you have to fill the necessary information regarding your item purchases or selling. The necessary or important information are:

·        Item I.D

·        Description

·        GL Sales Acct.          

·        GL Inventory Acct.

·        GL Cost of sales Acct.

In item I.D we enter the code of inventory items like for purchase of financial accounting books we enter the 1000 I.D we can enter up to 20 alphanumeric characters in this field. Similarly in the description we write the name of item purchase or sell like we write “financial accounting”. In GL sales Acct. Enter or select the income account you want Peachtree to credit when you sell the item like we select the sales account for all classes of inventory items. In GL inventory acct for stock items only, enter the account that the inventory for this item is charged to. This account is used as the default account for entering purchases. Generally, the account gets debited when you purchase more of the item and credited when you sell the item. As we select “inventory account” from the existing chart of accounts. In GL cost of sales acct we enter the cost of sales account for the items sold. Fill the other tabs for the required information if necessary. When you are entering the items information click the save button.

There is also one more important option which is Class item for the general inventory items we select the Stock item option. But for the manufacturing concern we choose Assembly option which will be discussed later.

Set Up an Assembly Item

An assembly is made up of other items in your inventory so when you build an assembly item, you can only build as many as you have components.

Let’s take an example of manufacturing of computers, in this the important components needed are mother board, processor, casing, ram, DVD, hard disk, key board, mouse, L.C.D, labor and at the end we will be able to form our finished product which is computer.

As computer is an assembly item so for this the important steps of recording items are:

1^st we select the Inventory items... from Maintain menu the page will be open…

In this above page we will enter the inventory items information. From mother board to L.C.D we follow the simple process as we did in making of simple inventory items accounts. In Item class we select the Stock item and in GL inventory account we choose the Raw material account from chart of accounts because these items are raw material of manufacturing of computer.

When we enter the Labor account we must select Labor item in Item class as we select then automatically the GL inventory acct changed to GL Salary/wages acct so we choose the wages or salary acct from our existing chart of accounts if it is not in chart of accounts we may form the account in chart of accounts and save it as shown in the following page..

Now we are going to enter the computer account in inventory items which is our finished goods so in GL inventory acct we enter the finished goods account from chart of accounts. And as it is an assembly item so we chose Assembly item in Item class. As we select the assembly option the Bill of material tab is activated shown in the below window...

We can’t save it unless we fill the required information in bill of materials tab.

In this we enter all the components necessary in making of computer and their quantity as we mention above, after entering all the information in bill of materials we now can save it.