You can track your inventory expenses with omniLedger. Specifically inventory is tracked in omniLedger records with the quantity and value of stock you have on hand.
Learn more on how create accounts in omniLedger.
When to use tracked inventory
Use tracked inventory in omniLedger to count stock and account for the cost of goods sold. You can also report on the quantity and value of stock you have on hand.
When you track inventory, omniLedger records the quantity of inventory items you have available to sell and includes the value of the items you have on hand on the Balance Sheet report. As you sell items, the inventory balance updates.
Inventory accounts in omniLedger
omniLedger tracks the quantity of items you have available to sell using two specific chart of accounts:
- Inventory Asset Account – omniLedger uses the account type Inventory to manage tracked inventory. You can only select accounts with asset account type when creating tracked inventory items.
- Costs of Goods Sold Account – omniLedger uses this account to track the cost of goods sold (COGS) for the tracked inventory items. You could use an expense account type for your COGS account and need to configure it on products pricing. Learn more about tracking COGS.
Manage Inventory Levels
In Edit Inventory, navigate to Ledger Transaction section to connect the purchase of the product inventory with a specific omniLedger Account that will track your inventory assets. Your product inventory assets can be configured here and associated with a specific ledger account, like Inventory Assets.
- When you add new inventory, your inventory assets account will increase in value.
- When Inventory is changed due to sales, omniLedger corresponding Ledger Account will have a transaction with information about this inventory change and an account will decrease in value .