To set up the default or most common General Ledger accounts for each item class in inventory, select the GL Accounts/Costing tab in the Inventory Item Defaults window. When entering a new inventory item, the default accounts are automatically filled in for you. This speeds up the process of entering new items.
You can change any of these defaults when entering each item (in Maintain Inventory Items), if necessary.
Note that some items are gray and inaccessible. For example, you cannot enter general ledger accounts for Description Only items because no accounting is entered or tracked for this item class. You can enter costing methods only for stock, assembly, and master stock items since Sage 50 tracks costing for only these item classes.
Inventory G/L Account 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.
Master Stock 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.
Description only
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.
Note: If you are using Time & Billing (possible only in Sage 50 Premium Accounting) and you do not want the service to directly affect cost of sales, use charge (expense) items in place of 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.
Note: If you are using Time & Billing(Sage 50 Premium Accounting and higher) and you do not want the labor to directly affect cost of sales, use activity items in place of labor items.
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 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.