Track Your Inventoryadmin
You can track your items in Clickentry to records the quantity and value of goods you have with you. When an item is sold then related expenses are matched up with revenue.
About Tracked Inventory
In Clickentry, when you use the track inventory then it starts tracking the quantity of inventory items you have available to sell. The stock levels increased and decreased depending on the purchase and sale of these items. It will also get changed If you have made some adjustments to the item’s balance.
Clickentry counts the value of the items you have on hand and also reflect this on the balance sheet report. The inventory balance gets updated as you buy and sell these items. In the case of the item sold then the value is recorded as a cost of goods sold.
Tracked Inventory is not Suitable for Your Organisation if you:
- Are operating with a negative inventory. For example, you are recording the sale of goods before recording the purchase in Clickentry.
- Manufacture or assemble goods for sale and want to track the components that make up the finished product.
- Are regularly buying and selling items in different currencies. Because the Item prices do not automatically converted in foreign currency transactions thus need to be manually calculated.
- Require purchase order receipting.
There is no restriction in Clickentry, you can track any number of inventory items. Clickentry also allows you to update your inventory record at any point of time and using any number of adjustments
How Tracked Inventory Works
|Inventory Asset Account||It is an asset account that records the value of the inventory items you currently have with you.|
|Cost of Goods Sold Account||It is an expense account that keeps track of the cost of an inventory item you have sold.|
|Quantity on Hand||It keeps tracking the number of units you have available to sell. If the quantity is nil then you will not be able to sell the item.|
|Average Cost||It keeps a record of the current average cost for the item.|
|Total Value||It keeps a record of the current average cost for the item.|
When you Buy a Tracked Inventory Item
- In a purchase transaction, it selects an inventory asset accounts in the Account field that you can not change the account.
- It will automatically update the item’s Quantity on Hand, Average Cost, and Total Value based on the quantity and unit price values you’ve entered in the purchase transaction.
- The balance of the inventory asset accounts will increase the cost of purchase on the balance sheet
When you Sell a Tracked Inventory Item
- It will automatically update the item’s Quantity on Hand based on the quantity you’ve entered in the sale transaction.
- It will reduce the item’s Total Cost based on the quantity sold and average cost. The reason for such reduction is recorded as a transfer from the inventory asset account to the cost of goods sold account.
When you Enter an Inventory Adjustment
- When you create an adjustment (Link), it updates the item’s Quantity on Hand, Average Cost and Total Value based on the adjustment you have made.
- The adjustment value is made to the inventory asset account. A balancing posting is also made in the adjustment account you selected during the import process.