If you stockpile materials and products to use on future jobs, record them as inventory. Abio will track your inventory on hand, and ensure your accounting entries are accurate.
The end goal for inventory is to move it out of stock at the same price it was moved into stock, as per this accounting example.
To achieve this, we’ll first set up the G/L accounts we need. Then we’ll show you how to bring in inventory, either manually or by purchasing new inventory. This gives us the dollar amounts to add to the inventory G/L.
Next, we’ll record the sale of inventory on A/R invoices. The price we sell the inventory at is our Cost of Goods sold.
When we transact the A/R, Abio will record G/L transactions to reflect the above sample.