Overview
In ACCUR8 TMS, all products and services are classified into three categories:
- Service
- Non-Inventory
- Inventory
The first two categories are primarily used for categorizing services or use as templates when entering transactions. From an accounting perspective, they are treated the same as any manually entered line item.
The third category, Inventory, applies to countable items and follows different accounting rules.
Creating a Product #
Via “Products & Services” #
This screen allows users to create and update both products and services. You can also define categories. When creating an item here, you can designate it as either inventory or non-inventory and assign the appropriate Chart of Accounts.
- Non-Inventory Items: Require an Income and Expense
- Inventory Items: In addition to income and expense accounts, an Inventory Account must be set up.
These accounts will be used automatically when the product is selected during purchase or sale.
Via “Parts” #
🔗 Parts
This path is designed for users who are less familiar with accounting. It focuses more on descriptive data and does not include the Chart of Accounts selection.
Default accounts are automatically applied as follows:
- Income Account – uses Parts Income from work order settings, or falls back to the general default.
- Expense Account – uses Cost of Goods Sold from work order settings, or the general expense default account.
- Inventory Account – uses the default inventory account from general accounting settings.
Items created here are always treated as inventory items and will only display inventory-tracked products.
Purchasing and Selling Inventory Items #
Purchase via A/P Expense #
You can purchase parts through a Bill or Expense, which increases inventory stock. Select the part from the dropdown at the top of the item entry dialog (searchable by ProductService, SKU, OEMNumber, CrossRefNumber, or Tag).
When selected, an info icon will appear confirming a linked product. Clicking the icon reveals product details, such as current stock and purchase or sale history.
Accounting impact of purchase:
- Debit the inventory account.
- Credit either Accounts Payable (if entered as Bill) or the bank account (if entered as Expense).
Sale via A/R Invoice #
Selling inventory items through an Invoice or Receipt decreases inventory. The system will not allow the sale if it would result in negative stock; this applies during both creation and editing of invoices.
Select the part using the dropdown when adding invoice line items. An info icon indicates product linkage; click for more details.
Accounting impact of the sale:
- Credit the inventory account (based on average cost).
- Debit the expense account (usually Cost of Goods Sold).
- Debit receivables or the bank account (depending on payment type).
- Credit the income account.
Inventory valuation is based on weighted average cost, calculated as:
Inventory Value ÷ Quantity on Hand
Sale Including “Dirty Core” #
If the sale includes a “dirty core,” it is treated like a purchase in journal entries but is recorded within the invoice.
Updating Purchases or Sales (Bills/Invoices) #
Modifying an existing bill or invoice follows the same rules as original entries. The system will still enforce stock limits and reject transactions that would drop inventory below zero.
Return via A/P Vendor Credit #
Use a Vendor Credit to return a product. This can result in a refund or a credit applied to a future invoice.
Select the product from the dropdown; an info icon confirms correct selection. Returns are only permitted if the product is currently in stock.
Inventory Adjustments #
You can manually adjust the inventory by changing the stock quantity. The system will apply the selected account and the product’s inventory account.
Work Orders and Inventory #
Inventory integration with work orders includes:
- Part Reservation: You can reserve parts on a work order. If parts are out of stock or insufficient, the system displays a red warning with the list of affected items.
- Parts and Labor can be modified until the work order is invoiced.
Invoicing a Work Order #
When a work order reaches “Ready to Invoice” status, you can generate an invoice from it. The system will include all items, including parts, and ensure inventory doesn’t go negative.
Once the invoice is created:
- The work order is locked, and parts/labor can no longer be edited.
- The invoice remains editable and can be modified independently from the work order.
Reports #
Inventory overview report(s) #
These reports provide insight into:
- Current stock
- Inventory value
- Average purchase/sale prices
- Net profit
Stock is calculated from all related transactions, including invoice lines, expense lines, vendor credits, credit memos, inventory adjustments, and any imported opening balances (which are currently hardcoded and can be modified only via database access).
Inventory value is derived directly from journal entries.
Net profit is calculated using sales values from invoices and purchase costs from expenses. Adjustments and credit lines are excluded from average cost calculations.
Product Details Report #
Clicking the info icon reveals the Product Details Report, which lists all transactions affecting the item:
- Purchases
- Sales
- Vendor Credits
- Credit Memos
- Inventory Adjustments
This report is also accessible from:
- Work Orders
- Invoices
- Expenses
- Vendor Credit (create/edit dialogs)
Inventory Integrity & Deletion Handling #
When deleting any record that impacts inventory, such as a purchase, sale, return, or adjustment, the system does not recalculate past inventory valuations. Instead, it simply removes the associated journal entry, which directly affects:
- The Inventory Account balance on the balance sheet
- The Quantity on Hand for the related product
All inventory-related reports, including inventory value, stock on hand, and net profit, are calculated dynamically at the time of viewing. Similarly, the weighted average cost is recalculated at the time of each sale using the current state of the inventory and its value. This ensures data consistency, even in the event of deletions, and aligns with real-time inventory valuation principles.
Although this method maintains accurate costs, it is recommended to reverse transactions in most cases rather than delete them to preserve the audit trail and ensure cost integrity.