Inventory changes are often captured in Ambrook through:
Bills for the purchasing of inventory
Invoices for the sales of inventory
Once you have your inventory set up in Ambrook, it will appear in the line item drop downs for either your bills and/or invoices, depending on what settings you chose.
From this line item screen you will be able to see both the available quantity for your inventory items, as well as the projected impact on quantity from the line item you are entering.
Additionally, you can manage your item catalog from this screen:
In the Add Item dialog there is a button to “Create New Catalog Item”
If you have an item already selected, you can edit it using the three-dot menu for the line
If you have an item already selected, you can edit it using the three-dot menu for the line
Accounting Overview
This section provides an overview of how the accounting journal entries related to inventory and bills or invoices work.
For inventory purchased via bills:
When are billed for an inventory item, on an accrual basis only:
The balance sheet account associated with your inventory item will be debited (increased) on the bill date
The amount of the increase to the account will based on the amount of bill line item
Accounts Payable is increased by the bill amount.
When you match a payment to your bill:
The amount of the inventory line item is booked as a cash basis expense according to the expense category you configured on the item.
The expense appears on your cash basis P&L on the posted date of the matched payment.
Accounts Payable is decreased by the matched payment amount.
For inventory sold via invoices:
When you create an invoice that uses an inventory item, on an accrual basis only:
The balance sheet account associated with your inventory item will be credited (decreased) on the invoice date.
The amount of the decrease to the account will be based on the quantity of inventory you sold and costing method (hyperlink) for the inventory item.
Cost of goods sold are booked based on the amount of the decrease in the inventory account, using the expense category configured on the inventory item
Income is booked based on the amount of the inventory line item on the invoice
Accounts Receivable is increased by the invoice amount.
When you match a payment to your invoices
The amount of the inventory line item is booked as cash basis income.
The income appears on your cash basis P&L based on the posted date of the matched payment.
Accounts Receivable is decreased by the matched payment amount.