Item Accounting (Linking GL Accounts Tutorial) - Setup Tutorials

Overview

Organisations can choose to integrate their items/inventory system with their general ledger. This integration automatically updates the relevant General Ledger (GL) accounts whenever items are purchased, used, or sold, ensuring seamless and accurate financial tracking.

Items can be linked to GL Accounts for either periodic or perpetual inventory systems. This guide shows you how to link Items to GL Accounts to enable automatic updates within the general ledger.

 Navigation: Main Menu > Items > Items.

How to Link Items to General Ledger Accounts

1. Click View to display all Items in the database.

   • Tip: Use Filters to refine the list if needed.

2. Double-click on the Items you want to link to a GL account.

3. Navigate to Accounting (tab) > Click Edit (button) > Click Add Accounting (button).

4. Select the relevant accounts

   • • Sales Account: This account will be credited when the item is sold.

     • Cost of Sales Account: This account will be debited when the item is sold (if using perpetual accounting, the Inventory Account will be credited).

     • Inventory Account: This account will be debited when the item is purchased.

5. Click Save (button) to apply changes.

How to Change Linked Accounts for an Item

1. Click View to see the list of Items.

   • Tip: Use Filters to locate the specific Item if needed.

2. Double-click to open the Item.

3. Navigate to Accounting (tab) > Click Edit (button).

4. Update the necessary accounts (Sales, Cost of Sales, or Inventory).

5. Click Save (button) to apply the changes.

How to Delete a Linked General Ledger Account from an Item

1. Click View (button) to view all Items in the database. 

   • Note: To refine your list, use the Filters.

2. Double-click to open an Item.

3. Navigate to Accounting (tab) > Click Edit (button).

4. Click on the GL Accounts > Click on the Menu field in the last column to display the  X > Click the X > Click Yes (button).

5. Click Save (button).