If you track inventory for your company, you can set global inventory options on the Inventory Preferences screen.
Before you set preferences, you must enable the Use Inventory option on the Preferences tab of the Company Setup screen.
Note: The Inventory module is only available if you have subscribed to the Client Accounting Services module add-on.
To set global inventory preferences:
1. Select Setup from the Company menu to open the Company Setup screen, and select the Preferences tab.
2. Ensure that you have selected the Use Inventory option on the Preferences tab.
3. Select Preferences from the Inventory menu.
Note: If you have just enabled the Use Inventory option, you may have to refresh the page to view the Inventory menu.
The Inventory Preferences screen appears.
4. Specify the tracking method for selling inventory items in the Inventory Method field:
§ FIFO: First In, First Out, indicating that the oldest stock is recorded as sold first so that the cost associated with the oldest inventory is the first expensed.
§ LIFO: Last In, First Out, indicating that the most recently-produced inventory items are recorded as sold first.
5. Select the accounts to use to properly track inventory in your trial balance from the drop-down lists in the Balance Sheet Inventory Account and Ending Inventory Account fields.
6. Click Save to save your settings.