Thanks for the info, and can you help me understand, is this the ‘correct’ way? If i purchase a large number of inventory in advance, shouldn’t they be valued as assets instead of cost? Especially since they are not purchased yet, and they are to be produced to another products.
Thanks in advance!
Go to settings-Inventory Revaluations and define cost for each Item at a specific date. Your inventory on hand will be valued on balance sheet according to this cost*qty you have.
You can also go to Reports-InventoryRevaluationWorksheet and then create new inventory revaluation from there to automate the process of entering cost prices for each item.
You can do this daily, weekly, monthly, yearly depends on how updated you want costs for each item, usually at the end of month or quarter would be fine if price fluctuations arent that much.