Opening Inventory Balances

Entering Initial Inventory

Starting from the Items List in the Inventory Command Center

  • You can enter items into Inventory, either one at a time by clicking the New button in the Items List window, or by importing a list of items from a tab-delimited or comma-separated file.1
  • After you have entered or imported all of your items into AccountEdge, select Count Inventory from your Inventory Command Center. You will see a list of the Inventory items, and each item will show zero on hand quantity and zero value.
  • Enter the actual quantities on hand for each item. Click Adjust Inventory.
  • You'll be prompted to enter an adjustment account. Enter the inventory account referenced in the item profile. If you have different asset accounts for inventory items, you should leave this field blank. Click Continue
  • If you receive the following message, click Continue
    One more thing. AccountEdge Pro also noticed that the balance of at least one of the inventory asset accounts linked to the new items is set to zero. Do you want AccountEdge Pro to adjust them?
    Click Adjust Balances if you want AccountEdge Pro to adjust the asset account balances to match your inventory values. Otherwise click Continue.
    NOTE: ONCE IN THE INVENTORY ADJUSTMENTS WINDOW BE SURE TO ENTER THE PER-UNIT COST OF EACH ITEM
  • In the next window, the Adjust Inventory window, enter the appropriate inventory account(s) in the Account column, and the cost(s) in the Cost column.2 AccountEdge will multiply the quantity by the cost to determine the amount (value). When complete, click Record.
The Inventory subsystem is now set. The last step in this process is to update the accounts with inventory values.

Run the Items List Summary report (Reports > Index to Reports > Inventory > Items List Summary). This report will show quantities and values for your items. You now need to enter the opening balances in the inventory account(s) associated with the items. With the report displayed or printed

  • Open the Accounts List (Lists > Accounts)
  • Click the arrow to the left of the appropriate inventory account(s) (typically in the Assets classification)
  • Enter the value displayed in the report into the Opening Balance field
  • Click OK when finished
  • Perform the same operation for the appropriate (Owner) Equity account (see below)
Your account(s) now reflect the value of your inventory, as assets. Depending on the advice you receive from your accounting professional, you may need to enter an opening balance in one of your equity accounts that corresponds to the value in your asset account(s). If you do not enter an equity value, AccountEdge will adjust the Historical Balancing account with a value corresponding to the value in your asset account(s). You are otherwise ready to sell and purchase inventory.

Notes:

  1. You can import items from a tab-delimited or comma-separated list (File > Import Data > Items). (Inventory counts and values are imported separately; see Note 2.) The list must have lines with at least the following fields; each line will be the entry for 1 item:
    Field Name Field Characteristics
    Item Number 30 characters, alphanumeric
    Item Name 30 character, alphanumeric
    Buy 1 character. Any non-blank character signifies that the item is bought
    Sell 1 character. Any non-blank character signifies that the item is sold
    Inventory 1 character. Any non-blank character signifies that the item is inventoried
    Asset Acct Linked asset account. Must be a valid, pre-existing AccountEdge account number. 5 characters, numeric. May have an optional non-numeric separator between the first digit and the last 4 digits, for example, 1-1234
    Income Acct Linked income account. Must be a valid, pre-existing AccountEdge account number. 5 characters, numeric. May have an optional non-numeric separator between the first digit and the last 4 digits, for example, 1-1234
    Expense/COS Acct Linked expense or cost of sales account. Must be valid, pre-existing account number. 5 characters, numeric. May have an optional non-numeric separator between the first digit and the last 4 digits, for example, 1-1234
  2. You import quantities on hand and value using the Inventory Adjustments import (File > Import Data > Inventory Adjustments). Each line of a tab-delimited or comma-separated file, will contain the quantity and value for 1 item. Each line must have at least the following fields:
    Field Name Field Characteristics
    Item Number 30 characters, alphanumeric. Must be a valid, pre-existing item number that is marked I Inventory
    Location 10 characters, alphanumeric (this field is optional; required if you use Locations)
    Quantity 11 characters plus 3 decimal places. If more than 3 decimal places, it is rounded to 3 decimal places
    Unit Cost 11 characters plus 4 decimal places. If more than 4 decimal places, it is rounded to 4 decimal places
    Amount 13 characters plus 2 decimal places. If more than 2 decimal places, it is rounded to 2 decimal places
    Account # 5 characters, numeric. Must be valid, pre-existing AccountEdge account number. May have an optional non-numeric separator between the first digit and the last 4 digits, for example, 1-1234
  3. Inventory Adjustments imports cannot import adjustments with zero quantities.