Maintenance of Inventory

Maintenance of Inventory

As we maintain our other records such as, the customers, the vendors and the chart of accounts etc, we maintain our inventories in the Peachtree. We make all types of inventories in our software. To maintain the inventories of the company Peachtree software has the availability to keeps the track of your inventories that you sell and purchase. It also updates the quantities of the inventory after every transaction is posted in the soft ware. In this system you can also calculate the cist of your raw material inventory, as you enter the unit price for each single inventory. There are three kinds of inventories required:

• Raw material inventory
• Work in process inventory
• Finished goods

In raw material inventory such kind of inventory is include in which to maintain the inventory accounts in Peachtree click on the maintain drop down menu. Select the inventory items option as shown in the below figure:

When you will click on the inventory items option a new window will open. From this window you can enter the information about your inventory items and also can compute the cost of the inventories. You can also make adjustments in your inventories. In addition, the program will track the cost of each item on a daily basis, based on the transaction date and item class. In addition to tracking costs and quantities, using inventory items makes entering transactions easier. Through Maintain Inventory Items, you set up the goods and/or services you sell. You can set a unit price and the account to be adjusted by the sale of this commodity. Then, when you enter the sale, you need only select an inventory item and enter a quantity ordered; Peachtree computes the total. This displays the Maintain Inventory Items window where you can enter the details of the inventory item into Peachtree. The following screenshot and reference table show step-by-step instructions on how to enter an inventory item into the Maintain Inventory Items window in Peachtree. Now enter the information which is required in window for every inventory item.  Item ID, this is required for every inventory item. So enter a short identification code for the item of inventory. Description, enter a short description of the item of inventory. Item class; select the class of the item from the drop down list provided. For items of inventory to be resold you should select 'Stock item'. From the General tab, enter the relevant information about that item. Note that for stock items you do not need to enter information into the Last Unit Cost field. Enter the required information in the other tabs. Note that if the Item Class selected is Stock item, you are unable to enter any information into the Bill of Materials tab or the Item Attributes tab. This is because the Bill of Materials tab is used only if the Item Class selected is Assembly, while the Item Attributes tab is only used if the Item Class selected is Master Stock item.

Note that we selected the item class as “Stock Item” so the tabs of Bills of material and Item attributes are inactivated. As the above mentioned picture shows.

Custom Fields:

To enter custom field information for the selected item record, select the Custom Fields tab in the Maintain Inventory Items window. Custom field names are set up in Inventory Item Defaults.

History:

To display the period history of stock and assembly inventory items, select the History tab in the Maintain Inventory Items window. Non-stock items do not retain history. You cannot edit any of these fields. This tab is for display purposes only.

Period History: This is a summary of inventory transactions for stock and assembly items for past periods.

# Units Sold: This is the total number of units sold for the period.

Sales ($): This is the total sales amount for the period.

# Units Received: This is the total number of units purchased for the period.

Costs ($): This is the total purchase amount for the period.

Bills of Material:

To tell Peachtree what items you want to use in an assembly, select the Bill of Materials tab in the Maintain Inventory Items window. (This tab is only available if an assembly item ID is selected.) Once you have transactions that use an assembly, such as purchases or sales invoices, you cannot change the components in the assembly. However, you can copy an assembly and modify the copy as a new assembly. Once you enter the components on the Bill of Materials tab and select Save, you need to "build" the assembly.

The cost of building the assembly is posted when you actually create quantities of an assembly item, using Build/Un-Build Assemblies from the Tasks menu.

Components of the Assembly:

Item ID: You can enter a “?” or click the right mouse button to select an existing inventory item from the look-up list.

Description: This is the short description of the inventory item. You cannot change this description once the assembly item is saved for the first time.

Quantity Needed: This is the amount of this item needed to build one assembly item.

Print Components on Invoice: Select this check box if you want all of the components of an assembly to print on quotes, sales orders, invoices, and credit memos. If this box is not selected, then only the assembly prints on invoices and on quotes, sales orders, invoices, and credit memos.

Add: Select this button to add an inventory item to the assembly. Note: You cannot modify the components of an assembly once you have purchased or sold the assembly.

Remove: Select this button to remove an inventory item from the assembly.

If you no longer want to use this specific assembly, you can un-build it so there are no quantities of the assembly in stock. Then you can copy the assembly to a new one and modify the new assembly. You could then make the old assembly inactive (by selecting the inactive check box on General tab of Maintain Inventory Items) so you will be warned when selecting it for a transaction.

Once you have entered the information in the Maintain Inventory Items window, remember to review your entries and save the item of inventory by clicking the Save icon.