What is Inventory Tracking?

Overview

Inventory Tracking tracks all your stock transactions in Simpro Premium and posts them to your accounting package.

This feature is compatible with all accounting packages supported by Simpro Premium.

US only: If you use Simpro Premium in the United States, the terms 'inventory' and 'inventory count' are used instead of 'stock', 'stock take', and 'in stock'.

If you purchase inventory in a different currency, make sure that you refresh the exchange rate regularly, as there may be inconsistencies between the exchange rate when purchasing, when receipting, and when paying the supplier. Learn more in How to Use Currencies.

Inventory Tracking impacts how the following transactions post to your accounting package:

  • Catalogue or description order receipted to a storage device
  • Stock allocated to a job from a storage device
  • Catalogue or description order receipted to a job
  • Stocktake / stock adjustment. Learn more in Stocktakes and Stock Adjustments.

Please note, transactions post differently depending on whether:

  • The Inventory check box is selected in the item card file.
  • The Inventory Item check box is selected in the purchase order. Learn more in How to Create a Description Order.

View the table below for more information on which accounts are affected by each transaction.

Transaction Accounts affected in accounting package

Catalogue or description order receipted to stock, item is marked as Inventory in card file or purchase order.
  • The item's value is added to the nominated inventory asset account.
  • No journal entry created.
Purchase order receipted to stock, item is not marked as Inventory in card file or purchase order.
  • The items value is added to the nominated expense account.
  • No journal entry created.

You have the option to select a different default cost centre for each item on the order. Learn more in Select an item's cost centre.
Stock allocated to job from storage device, item is marked as Inventory in card file or purchase order.
  • The items value is added to the nominated cost centre expense account.
  • The items value is deducted from the nominated inventory asset account.
  • Journal entry created.

This process is reversed if the item is removed from the job.
Catalogue or description order receipted to a job, item is marked as Inventory in card file or purchase order.
  • The items value is added to the nominated cost centre expense account.
  • No journal entry created.

When the purchase order has been receipted to stock:

  • The items value is added to the nominated inventory asset account.
  • No journal entry created.

When ordered items have been assigned from stock to the job:

  • The items value is deducted from the inventory asset account.
  • The items value is added to the nominated cost centre expense account.
  • Journal entry created.

You have the option to select a different default cost centre for each item on the order. Learn more in Select an item's cost centre.
Stocktake / stock adjustment, item is marked as Inventory in card file or purchase order.
  • The items value is added to or deducted from the inventory account as applicable
  • The items value is added to or deducted from the inventory adjustment account as applicable
  • Journal entry created.

You need to Prepare to enable Inventory Tracking before you Enable Inventory Tracking.

The following processes require assistance from Simpro Premium Support.

How you manage and track stock depends on your business's current accounting practices. You may wish to either zero out the value to the account and perform a stocktake, or make an adjustment to the account once you have completed the stocktake. Learn more in Stocktakes and Stock Adjustments. Please consult your accountant to identify the best practice for your business.

To prepare to enable Inventory Tracking in Simpro Premium:

  1. Ensure your current stock levels and stock value in Simpro Premium is the same as in your accounting package before enabling Inventory Tracking.
  2. Go to Materials A screenshot of a schedule icon with a grey calendar icon and an arrow. > Catalogue and ensure all non-inventory items have the Inventory check box cleared in their card file.
    • If you have a significant number of non-inventory items that need updating, you can perform a generic import to update your catalogue more efficiently. To mark a non-inventory item in your import list accordingly, enter FALSE in the Inventory Item column. Learn more in How to Import Generic Supplier Catalogues.
  3. Check your In Stock levels in Simpro Premium and print current stock sheets where required.

When you have finished the above tasks, you can then begin enabling Inventory Tracking in Simpro Premium.

Please ensure no one is purchasing or assigning stock to jobs in Simpro Premium when you perform the following steps.

To enable Inventory Tracking in Simpro Premium:

  1. If you already manage your stock values with journal entries and / or they are up to date, ensure your stock values in Simpro Premium and in your accounting package are the same value.
  2. In Simpro Premium, go to System A screenshot of a schedule icon with a grey calendar icon and an arrow. > Setup > System Setup > Materials > Inventory Tracking and enter an Inventory Account and Inventory Adjustment Account.
  3. Click Save.
  4. Enter your new stock levels in Simpro Premium through a stocktake, or if you already manage inventory in your accounting package, perform a stock adjustment. Learn more in Stocktakes and Stock Adjustments.
    • Check the two Inventory accounts in your accounting package. You may need to use Journal Entries to zero out inventory values depending on how your business previously managed stock transactions. Please consult your accountant for further information.
  5. If you use a desktop accounting link, you need to check Inventory Journals on for posting under the Settings tab.
  6. Perform a post to your accounting package to create Journal Entries. This debits the Inventory account and credits the Inventory Adjustment account.

The post now automatically sends all Inventory Journals to your accounts package. Inventory journals do not need to be loaded, so check the History tab in your accounting link to see if Inventory Journals were transferred or not found.

You may need to check these two accounts to ensure balances are in sync with Simpro Premium and the transactions are visible.

Different accounting packages handle inventory journals differently.

In Xero, inventory journals generated in Simpro Premium are called Manual Journals. Xero also has a functionality called Tracked Inventory, which is unrelated to inventory tracking in Simpro Premium.

In QuickBooks Online, inventory journals are called Journal Entries. Learn more in Export Inventory Journals to QuickBooks Online.

In MYOB, inventory journals are called Journals. Learn more in Export inventory journals to MYOB AccountRight Live and How to Track Inventory with MYOB AccountRight.

You may not wish to use Inventory Tracking for the following reasons:

  • Inventory Tracking is not suitable for your business if your internal processes for managing inventory are not carefully controlled with the appropriate checks and balances. Remember that these transactions post directly to your accounting package, meaning any incorrect transactions impact your accounts.
  • Your preferred method for handling the timing of these costs to your accounts may negate the need for Inventory Tracking.

If you do not use Inventory Tracking, a stock purchase transaction is recorded in Simpro Premium as normal, and appears in your accounting package as a debit (increase) to your default or nominated Cost of Goods Sold (Expense) account, and as a credit (increase) to your Trade Creditors (Accounts Payable – Liability) account. This process mirrors how the majority of Simpro Premium clients recorded stock transactions when entering purchases directly into their accounting software prior to implementing Simpro Premium.

If you and your accountant are satisfied with this method, there is no need for you to enable Inventory Tracking, as you can still monitor and manage your stock levels in Simpro Premium, as well as set the Expense account for individual line items when you create a receipt for a supplier invoice. Learn more in Select an item's cost centre.

If you use this method, your accountant may have advised you to perform periodic inventory accounting, a common approach in the absence of full Inventory Tracking. This involves running a Stock Value Report each month and making a manual Journal Entry in the accounts package to adjust the values of inventory held (Asset) and Cost of Goods Sold (or other Expense Account).

US only: If you use Simpro Premium in the United States, the term 'vendor' is used instead of 'supplier'.

For additional training, complete an interactive material in the Simpro's Learning Toolbox. Learn more in About Simpro's Learning Toolbox.