You should use this option if you need to create sales documents such as quotes, invoices, and credit notes, as well as purchase documents such as purchases, supplier returns, and orders. 

The "Stock information" screen is divided into three tabs: Default, Units, and Tax classes. 

The Default tab has three groups: Selling price descriptions, Cost of sales, and Documents setup. 

  1. Selling price descriptions group allows you to change the name for up to three (3) selling prices and select the default selling price for stock items. 
  2. Cost of sales group lets you activate cost of sales and select the method such as average cost or latest cost and the batch (journal) to which the cost of sales will be posted. 
  3. Documents setup group allows you to configure settings related to document processing and stock items.

To set the Stock information and Cost of sales parameters:

  1. On the Setup ribbon, select Setup → Stock information. 

 

  1. Selling price descriptions –
    1. Selling price descriptions – The Default (Selling price 1, Selling price 2, Selling price 3) is displayed. You may over-type these with your own.
    2. Default – The default selling price as the global setting. You may select any of the 3 Selling prices.

You may set a different selling price for specific debtor (customer / client) accounts on the Accounting information tab - Debtors (Default ribbon).
  1. Cost of sales settings – This is applicable to the "Default" (trading stock) and some other stock item types only. Select the following:
    1. Create cost of sales – To activate cost of sales, select (tick) the "Create cost of sales" tick box.
    2. Cost of sales batch – Select the Cost of sales batch (journal) in which the cost of sales transactions will be posted. 
    3. Use “Average cost” or “Latest cost” option. 

The method you use to calculate the value of your stock is crucial for determining its impact on your profit and loss figures. It is important to consider whether to use the “use average cost” or the“latest cost” method. 

If you are unsure which method to use, it is recommended that you seek guidance from your accountant.
  1. Production contra account - If you use Bill of Materials (BOM Production) stock item type, you need to select a contra account. 
  2. Documents setup – The rest of the options (tick boxes) are used to set and configure document processing. Select (tick) these options; if necessary.

The Options setup button only need to be used to create options for the Option item and Option item (no stock) stock types.
  1. Click on the Units tab - to add or edit the unit descriptions for stock items. These are selected when you create or edit stock items and will display on reports and layout files.
    1. Add – Enter these and click on the Add button. 
    2. Delete - Select a description from the list and click on the Delete button.
  1. Click on the Tax classes tab to set the default Tax accounts and ledger accounts. You may then select a Tax class when you create or edit stock items. 
  2. Click on the OK button to save your changes and close or exit this screen.