Item

The Item master is the record every stock document, invoice and report refers back to, so its fields decide how money moves later. Valuation Method (Moving Average or FIFO) sets the cost each Delivery Note charges to Cost of Goods Sold, Default Warehouse sets where a receipt lands, the Item Tax Template sets whether 13%, 5% or 0% VAT applies, and the Customs Tariff Number (HS code) is what the IRD and customs expect on import and export papers. Tick Maintain Stock for physical goods so inventory postings run, and Is Fixed Asset for chairs or laptops so a Purchase Invoice creates an Asset instead. A wrong valuation method or missing tax template misstates both profit and the VAT return.

Moving average rate = (opening value + incoming value) / (opening qty + incoming qty); FIFO issues the oldest lot first

1. 01Go to Stock > Item > New and type the item code and name.
2. 02Pick the Item Group and the stock UOM, such as Nos.
3. 03Tick Maintain Stock for goods you count; tick Is Fixed Asset for equipment instead.
4. 04On the Inventory tab set Valuation Method, Default Warehouse and reorder levels.
5. 05On the Tax tab add the Item Tax Template, such as VAT 13% - YFF.
6. 06Set the Customs Tariff Number if the item is imported or exported.
7. 07Save. The item is now available on receipts, invoices and stock entries.

Create under Stock > Item before any transaction; tick Maintain Stock for physical goods and Is Fixed Asset for assets.

The demo has 100 stock items across 5 warehouses, with opening stock worth Rs 4,50,000.