General Ledger Accounts/Costing (Inventory Item Defaults)

Stock items are traditional inventory items, which are tracked for quantities, average costs, vendors, low stock points, and so on. Once an item is assigned a stock class, it cannot be changed.

G/L Sales/Inc: Enter the default income account that will be credited when you sell stock items.

G/L Invtry/Wage: Enter the default inventory account that will be debited when you purchase stock items and credited when you sell stock items.

G/L Cost Sales: Enter the default cost of sales account that will be debited when you sell stock items.

Costing: Enter the default costing method used for all stock items. To ensure accurate costing, we highly recommend that you use the same costing method for each stock item and assembly item.

Serialized stock items are special stock items that will have a serial number associated with them. Serial numbers are typically used for expensive items, items that are under warranty, and items that by law require you to record serial numbers.

GL Sales/Inc: Enter the default income account that will be credited when you sell stock items.

GL Invtry/Wage: Enter the default inventory account that will be debited when you purchase stock items and credited when you sell stock items.

GL Cost Sales: Enter the default cost of sales account that will be debited when you sell stock items.

Costing: Specific is the only costing method used for all serialized inventory items.

Non-stock items are used for such items as service contracts, which you sell but do not put into your inventory. Quantities, descriptions, and unit prices are printed on invoices, but quantities on hand are not tracked. You can assign a cost of goods general ledger account to non-stock items, but it is not affected by a costing method.

G/L Sales/Inc: Enter the default income account that will be credited when you sell non-stock items.

G/L Invtry/Wage: Enter the default inventory account that will be debited when you purchase non-stock items and credited when you sell non-stock items.

G/L Cost Sales: Enter the default cost of sales account that will be debited when you sell non-stock items.

Service: Use this for services you can apply to your general ledger salary and wages account. This is useful for services provided by your employees. You can enter a cost for the service.

G/L Sales/Inc: Enter the default income account that will be credited when you sell service items.

G/L Salary/Wages: Enter the default salary and wages account that will be debited when you purchase service items and credited when you sell service items.

G/L Cost Sales: Enter the default cost of sales account that will be debited when you sell service items.

Labor is used for outside labor that you use for projects; you can enter a cost for the service and apply it to cost of sales when selling the labor item. Use this for labor that you can apply to your general ledger salary and wages account.

G/L Sales/Inc: Enter the default income account that will be credited when you sell labor.

G/L Invtry/Wage: Enter the default salary and wages account that will be debited when you purchase labor and credited when you sell the labor.

G/L Cost Sales: Enter the default cost of sales account that will be debited when you sell labor.

An assembly item is a group of items that you have assembled using the Bill of Materials tab of the Maintain Inventory Items window.

G/L Sales/Inc: Enter the default income account that will be credited when you sell assembly items.

G/L Invtry/Wage: Enter the default inventory account that will be debited when you purchase assembly items and credited when you sell assembly items.

G/L Cost Sales: Enter the default cost of sales account that will be debited when you sell assembly items.

Costing: Enter the costing method used for all assembly items. To ensure accurate costing, Sage 50 highly recommends that you stick to one costing method for all stock items and assembly items.

Serialized Assembly items are special assembly items that will have a serial number associated with them. Serial numbers are typically used for expensive items, items that are under warranty, and items that by law require you to record serial numbers.

GL Sales/Inc: Enter the default income account that will be credited when you sell assembly items.

GL Invtry/Wage: Enter the default inventory account that will be debited when you purchase assembly items and credited when you sell assembly items.

GL Cost Sales: Enter the default cost of sales account that will be debited when you sell assembly items.

Costing: Specific is the only costing method used for all serialized inventory items.

Activity items are used on employee or vendor time tickets when recording time spent performing services for a customer or job. Use activity items when you plan on billing customers for reimbursable expenses in sales/invoicing.

GL Sales/Inc: Enter the default service income account that will be credited when you bill your customers for activity items.

Charge items are expenses recorded by an employee or vendor on expense tickets when various services are performed for a customer or job. Use charge items when you plan on billing customers for reimbursable expenses recorded on expense tickets in sales/invoicing.

GL Sales/Inc: Enter the default service income account that will be credited when you bill your customers for charge (expense) items.

You need to specify an account to be the general ledger freight account for recording freight charges entered in the Quotes, Sales Orders, and Sales/Invoicing windows. Select an account from the chart of accounts listed in the lookup box to be the general ledger freight account. The description of the account you selected will appear beside the account number. If you do not specify a G/L freight account or if your account description says <Undefined Account>, then you will receive an error message when you try to leave this tab. Be sure to click OK at the bottom of the lookup window to save your selection.