Stock on Hand and Link to Sales Income

I have started creating new inventory items and inventory assembly items but have left out entering the stock on hand figure at the time of creating these items. I now want to enter the on hand amount but it is not allowing me to record this through the edit item function. What should I do? Is the only way to record the opening stock through the 'Stock Adjustment' function?

My second question is whether an inventory part or inventory assembly item can be linked to two separate Sales income accounts. I can't see this function being available in Reckon Accounts Hosted but hope someone can suggest a workaround.

Comments

Acctd4

@Ll01 Unfortunately, that needs to be entered when initially creating the Item otherwise yes, you need to record a stock adjustment - via Adjust Qty/Value on Hand - instead 😬

I'm curious why you would need an Item to link to more than one sales income accounts 🤔 Can you provide a bit more detail on that ?

Ll01

For management reporting, the chart of account comprise of several sales income accounts that make up total income. For instance, some inventory part items like bars are used in common but when invoicing, management would like to see these split into e.g. Sales - A, Sales - B, etc.

Acctd4

On face value, that sounds more like a Classes scenario but either way, you would need to apportion the Item across 2 lines.

TIP: Many people basically just duplicate their Item List in the Accounts List which is of no benefit & just increases the file size, report size & file instability 😩.

Items should be uniquely separated/broken down, however your accounts should be in summary categories.

eg If this was an example of a hardware store's items for sale:

BLUE SPANNER
RED SPANNER
GREEN SPANNER
HAND SAW
WRENCH
9" NAILS
10" NAILS
12" NAILS
1/4" SCREWS
1/2" SCREWS
3/4" SCREWS

I would advise setting up each one as individual ITEMS … but not also linked to separate accounts. Some people are quite happy to lump all "Sales" in one account, but I can also see the advantage of separating this into subaccounts - for say "Tools" v "Consumables" as above, for example - but there's nothing to be gained in just repeating that same breakdown in the Accounts List

For anyone who's ever done bookkeeping manually, each account represents a separate column in the ledger. I advise clients to consider whether they would be actually creating a new column (Account) or would just be adding a new Payee (Customer) / Description (Memo) 😊

Ll01

@Acctd4 thank you so much for your detailed responses. It is much appreciated.

I agree that it is too cumbersome to duplicate the item list in the accounts list. I will have to have a chat with management and find a compromise.

Back to my first question on having to record a stock adjustment via Adjust Qty/Value on Hand as opposed to entering the on hand amount at the time of creating the item, does either action lead to the same outcome? If not, I have to start again by duplicating each item, enter the on hand figure, save it. And then delete the original item. I would rather not do that!

Acctd4

No problem @Ll01 👌🏻

Definitely don't need to do that as yes, both initial qty entry on Item setup & the Adj Qty … feature, will result in the same outcome 😊

Ll01

Thank you for your help, Shaz 😅

Datarec

Hi @Ll01

Items in the Item List can only be deleted if they are not 'in-use' or referenced by any transactions.

If you go the route of creating duplicate item (giving it a slightly different name) in order to enter an opening quantity on hand, then you could merge the original item with the new one by renaming the original item to have the identical name as the newly created duplicate item.

Once merged, you could then rename that duplicate item back to the original item name.

Ll01

Thank you @Datarec. I am not going to the route of creating duplicate item in this case but find the suggestion helpful. I will keep this in mind as it may come in handy some day.

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