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If you are using Simplified Accounting Solutions (SAS) you are not required to enter your initial inventory in Aspire. If you choose to, follow the steps listed below. You will manage your inventory in Aspire but there will be no Inventory on the Balance Sheet. Inventory will be expensed when you purchase.
It is best practice to take an inventory count at the end of each month but no less than quarterly or annually. Then update the on-hand quantities in Aspire before closing the month.
The Inventory Holding Accounts will $0 out at the end of each month after entering the EOM expense tab journal entry. You will not enter the Inventory tab journal entry.
Setting Up Inventory Items
Make sure that all inventory items have the box checked to make that item available for inventory.
Click on your Profile Icon in the blue side menu and select Administration.
Select the Estimating tab and then the Item Catalog tab.
Find the item that you will be using for Inventory or enter the item if it has not already been entered.
Make sure that the Inventory Item box is checked on the item.
Adding Existing Inventory into Aspire
You can now attach inventory items to purchase receipts!
Navigate to the Purchasing module.
Create a new purchase receipt using your company name as the vendor. If your company is not already set up as a vendor in your accounting system, please add it to your accounting system and allow the vendor to sync over to Aspire.
Enter the items to the purchase receipt that you want recorded into Aspires’ inventory. Enter the quantity and use the item cost from the item catalog in Aspire. The cost should automatically populate on the item line of the purchase receipt.
The received date should be the 1st day of your Go Live month in Aspire.
Once the purchase receipt is received and approved in Aspire, send it to your accounting system.
📑To learn more about Purchase Receipts for Inventory, please read this article.
Managing Initial Inventory in your Accounting System
Once you approve the Purchase Receipt in Aspire, it will sync to your accounting system.
The automatic entry in your accounting system will be a debit to the appropriate inventory holding account and a credit to the accounts payable for the vendor.
There are two ways that you can handle clearing the vendor bill from accounts payable and for the Inventory Holding account. In either option, you will need to apply the vendor bill to the vendor credit.
Create a journal entry which will be debiting accounts payable with your company’s name in the name portion of the journal entry. Credit the cost of goods sold to the division/account that the original inventory was coded to when purchased.
If you are using QuickBooks, you can open the vendor bill in QuickBooks, create a copy, change the copy of the bill to a credit and then delete the inventory holding accounts line from the credit and add the appropriate COGS accounts. The credit would be where the initial inventory was coded or expensed.