Inventory Management

Overview

The AIAccount Inventory module uses a perpetual method with moving average cost calculation. When stock is purchased, the amount is recorded as an asset (Inventory) on the Balance Sheet. When items are sold, the system automatically transfers inventory to Cost of Goods Sold (COGS) without manual adjustments.

Key Features

  • Add Inventory Items — Click "Add New Inventory" to set up product names, units, selling prices, and cost accounts
  • Inventory Purchase Recording — Automatic posting: Dr Inventory / Cr Accounts Payable, increasing inventory assets
  • Inventory Sales Recording — Dual automatic posting: Dr Accounts Receivable / Cr Sales Revenue, plus Dr COGS / Cr Inventory
  • Moving Average Cost — The system calculates average cost automatically based on transaction dates (e.g., 10 units @ $5 + 10 units @ $6 = average $5.50)
  • Inventory Reports — View real-time stock quantities, costs, and valuations
  • Bulk Import — Download import templates to add inventory items via Excel

Step-by-Step Guide

  1. Navigate to the "Inventory" module and click "Add New Inventory"
  2. Enter product name, SKU, unit, sales account, and cost account
  3. Record inventory purchases: enter supplier, quantity, and unit cost
  4. Record inventory sales: enter customer, quantity, and selling price
  5. The system automatically calculates moving average cost and generates all journal entries

Important Notes

  • Inventory entries must be recorded in chronological order — purchases first, then sales — otherwise cost calculations will be inaccurate
  • Do not mix perpetual and periodic methods for the same items to avoid double counting
  • If using the periodic method, use manual accounts (e.g., 1-30001 Inventories Manual) instead of system inventory accounts
  • The P&L only shows COGS; opening/closing inventory balances appear on the Balance Sheet