16.1 Features of Inventory Control

The Inventory Control System keeps track of inventory stock items and their prices. Inventory control is a requirement of retail and wholesale organizations which are selling a wide range of products with complex pricing structures. The Inventory Control System is fully integrated with the rest of the accounting system.

Each product is assigned a product code which is used to uniquely identify the product throughout the accounting system. Each product is also assigned a category for ease of reporting

Three general ledger accounts are assigned to each product: a cost of goods sold account, a general ledger controlling account, and a sales account. These accounts are automatically posted to at the appropriate times. Because they are assigned to each product individually, multiple controlling, cost and sales accounts are permitted.

The selling price, can be entered manually or can be automatically calculated using the margin percentage. This price appears as a default value when entering an invoice.

The reorder point and order quantity are used in creating the reorder report.

The quantity on hand and value fields are automatically updated whenever inventory is increased or decreased (a voucher is paid or an invoice is entered).

Inventory can be moved to and from any account in the system through the inventory adjustment screen. This feature can be used to record the transfer of inventory to a job or to reconcile the book count with the physical count.

A history file is maintained. This file contains product balances by year and period. This information can be accessed on the screen or listed on a report.

The accounting system is accessed through a series of menus. Often, the main accounting menu is automatically displayed after starting the system.