The inventory feature allows you to manage owned and consigned Inventory.
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Inventory vs. My Products
There is a common confusion between Inventory and Products. Inventory is used when you have a physical piece in stock and available for sale. My Products is used for products that you frequently purchase and want to save the details to quickly create an item in Studio Designer.
How to Enter New Inventory
Details about new inventory items are entered on the Inventory page. Creating an inventory Item on this page sets up a slot for your inventory in Studio Designer. After the inventory item is entered, inventory can be purchased and sold by creating a project Item.
- Head to Projects > Inventory; this is a list of all inventory items that you have a record of. Click the pencil icon (edit) in the Actions column to view the details for the selected Inventory.
- Click + New Inventory to create a new Inventory Item. Here you will enter all of the details about the item that you will purchase and later resell.
Each Inventory ID has four tabs:
Inventory Tab
Below is a breakdown of all the fields on the Inventory tab
Active Checkbox (Upper Right): Most inventory items that are sold by designers are unique. After they are sold, they can be made inactive so they no longer appear in the list of inventory items available for sale. To make an item inactive, simply uncheck the Active indicator.
Items with any quantity available, committed, or associated values should be left Active until quantities or values have been removed. Making inventory items inactive while they have associated values may cause unpredictable results within inventory reports.
Description: A short description of the item; this is what is seen in the inventory list
Inventory ID: The Inventory ID is a unique name used to identify this inventory record
My Vendor: The Vendor the Inventory is purchased from
Sales Code: The sales code defaults to new items entered with this Inventory ID. The sales code also defines the Cost of Sales Account to expense the merchandise cost to; when inventory is sold, the Cost of Sales Account will be debited for the merchandise cost
Other Sales Code: Defines the cost of sales account to expense all other costs to. When inventory is sold, this is the Cost of Sales account that will be debited for the Other Costs.
Note: Although you can assign multiple Other Costs to inventory items when purchased, these costs do not use the income and expense accounts associated with the other costs the way that normal items do. As stated above, they will be lumped together based on the sales code used for Other Sales Code.
Category: Click a category from the list
Sub Category: Optional; click a subcategory if one is available and applicable
Item Code 1: The item code 1 defaults to new items entered for this Inventory ID
Item Code 2: The item code 2 defaults to new items entered for this Inventory ID
Purchase Cost: The cost to purchase a new inventory item
Selling Price: The price the inventory item is sold for
Note: This price will come into the Selling Unit on the amounts tab at the time of sale. Mark up will automatically be applied mark up is set for the client's address record. If you want your standard markup applied, the selling price entered on the inventory item should match the purchase price on the inventory item.
Retail Price: The retail price the inventory item is sold for. This is not inserted anywhere into the item when sold.
Actual Cost: Place holder for the actual cost. This is not inserted anywhere into the item when sold.
Received: The date the inventory item was received. There is also a received date recorded for each individual purchase. This space may be left blank.
Location: The location defines the address where the inventory item is located. You may have an address record created for a warehouse or storage unit. The location where the inventory is stored would be related to this address record.
Unit: The unit of measure for the inventory item.
Additional Input Fields:
Copy Description: Check this box to automatically copy the client description to the vendor description.
Client Description: This is the client description that will be copied to new items.
Vendor Description: This is the vendor description that will be copied to new items.
Note: The Following 7 fields are displayed in the inventory item but will not be brought into a project's item.
COM: Customer's own material details and requirements
Finish: Finish details and options for this item
Dimensions: Dimensions for this item
Content: Content of this item
Primary Color:The primary color for this item
Secondary Color: The secondary color for this item
Bar Code: The barcode for this item to be used if you have external scanning capabilities to handle barcoded items
Quantity Totals
Ordered: The quantity ordere.
Received: The quantity received. The quantity received cannot be entered unless the vendor invoice is entered. Inventory cannot be committed or sold unless it is received.
Sold: The quantity sold. Only items invoiced to clients will be included in Sold.
On Hand: Received - Sold = On Hand amount
Committed: The quantity currently Proposed for all clients that have not yet been invoiced.
Available: On Hand - Committed = Available
Consignment: The quantity currently on consignment
Merchandise Cost: The sum of purchase cost associated with this Inventory ID for items that have had a vendor invoice assigned to them
Other Cost: The sum of the other costs associated with this Inventory ID for items that have had a vendor invoice assigned to them.
Total Cost: Merchandise Cost + Other Cost = Total Cost
Studio Designer uses Average Cost to value inventory. If you purchase one item at $20.00 and one at $30.00, you will have two items with a total cost of $50.00. When you sell one (assuming that you had purchased both items prior to selling either), the purchase cost on the one item sold would be valued at $25.00 and the new inventory on hand value would also be $25.00.
Costs added to any of the original items after it has been sold will NOT increase the cost of the sold item. The costs will remain with the Inventory on hand. Due to this, it is possible to have a quantity of 0 and a cost of > 0. If you increase the purchase cost of an item after it has been sold, you will need to "Adjust" the cost to remove it from the inventory item using the adjust tab.
Receive tab
After an item has been ordered or moved to inventory from an existing item, it must be Received in order to update quantities and values.
To Receive an item, enter a vendor invoice # and the quantity received into the Received field and click Save. You must enter a vendor invoice # to receive an item. If you do not have an actual vendor invoice, you can enter a date or another number that may have significance to you.
Vendor Invoice #: The vendor invoice # for ordering the inventory; the following General Ledger entries are created when the vendor invoice is entered:
- Debit Inventory
- Credit Accounts Payable
If a Vendor Deposit already exists on this item, an entry will also be posted to relieve both Vendor Deposit and Accounts Payable of the amount of the deposit.
Received: The quantity received. The quantity received cannot be entered unless the vendor invoice is entered. The quantity received cannot be greater than the quantity ordered. Inventory cannot be committed or sold unless it is received.
If the inventory ordered will be received in multiple shipments, the quantity received should be cumulative at the point of each shipment.
Adjust Tab
To adjust the quantity and values of inventory items without ordering or selling inventory, you can use the Adjust tab. This is the most common method for entering quantity and values for beginning inventory balances.
Quantity to Adjust: You can adjust the inventory on hand by entering a quantity in the quantity field to adjust. Enter a positive amount to increase the quantity on hand. Enter a negative amount to decrease the quantity on hand.
Merchandise Cost to Adjust: Merchandise cost is the total for the quantity being adjusted.
Example: 2 Lamps at $50.00 each would be a merchandise cost of $100.00.
You can adjust the inventory merchandise cost by entering an amount in the merchandise field to adjust. Enter a positive amount to increase merchandise cost. Enter a negative amount to decrease the merchandise cost.
General Ledger entries are created when you post the entries:
- Debit Inventory
- Credit Inventory Adjustments
Other Cost to Adjust: You can adjust the inventory of other costs by entering an amount in the field Other Cost. Enter a positive amount to increase other costs. Enter a negative amount to decrease the other cost.
General Ledger entries are created when you post the entries:
- Debit Inventory
- Credit Inventory Adjustments
Note: Quantity, merchandise cost, and other costs are all independent of each other. You are not required to update one just because you update another.
Note: The Inventory Adjustment account cannot be changed.
Consigned inventory cannot be adjusted and must be entered by creating an order to purchase it.
History Tab
Inventory History displays a history of inventory transactions.
