Inventory - How To

How do I seperate Raw Material Inventory from Finished Goods Inventory and have them posts to different asset accounts?

Read the Guide:

Thank you for your quick reply. I have added a custom drop down list field to Inventory Items, but my first tests seem to indicate that a custom field is not searchable. I have 1000 raw material items and 488 finished goods and was hoping there is some way to seperate out or flag it some way when choosing items in Production Orders

I did not suggest a custom field. You asked how to have raw materials and finished goods post to different asset accounts. The Guide I linked to includes instructions for assigning inventory items to custom control accounts (unrelated to custom fields). So either rename the existing Inventory on hand default account for one category and create another, or create two custom control accounts for raw materials and finished goods and continue using the Inventory on hand account for other types of inventory.

But now you are asking how to flag items when choosing them in production orders, a totally separate thing. In the future, please limit topics to a single subject. That helps you get answers faster.

The way to flag items in the dropdown list is to use codes. For example, 1000 series inventory items could be raw materials and 2000 series items finished goods. The codes will show when selecting items, in numerical order.

Thanks Tut for your suggestions, when I setup my chart of accounts there was no Inventory on hand account so there was no control account available for selection or if there was I overlooked it due to my lack of understanding of your account setup.

Inventory on hand appears automatically when the Inventory Items tab is enabled. Read this Guide for more information about building your chart of accounts:

And “one” inventory item is created. Just enabling the tab doesn’t create the account.

You are correct. The Guide I linked to includes the information:

Several tabs and some settings activate accounts necessary to their functionality when they are enabled (or as soon as the first entry is made using them).

To illustrate how to activate automatic accounts, the example that runs through that Guide says:

We enable the Bank Accounts, Customers, Fixed Assets, and Inventory Items tabs for Brilliant Industries and make at least one entry in each tab.