When setting up either product or service based companies, creating items in inventory allow you to put them on Sales and Purchases Orders, Sales Invoices and Bills, and Time-tracking records. Wait! Time-tracking records? Why would you want to put an item on a time tracking record? Think about every thing you sell as an item – even time. In this case, the item might be consulting and the unit of measure might be hours.
There are several things to think about before uploading items. You may have already thought about these when you completed the settings set-up, but it doesn’t hurt to think about these again to ensure everything gets set-up right in the beginning.
★ Does your company buy or sell things in fractional amounts? If so, ensure you have set the number of decimals in the Quantity Field Decimals setting.
★ Does your company buy or sell items in one unit of measure and sell in another? If yes, ensure that you have enabled Advanced Units of Measure and that a unit of measure set has been created that is applicable for all of your items.
★ When pricing items, do always set prices using two decimal points or are there more? If yes set the Pricing Precision feature.
★ Do you have logical groups of items that are priced similarly or grouped together for other reasons? If so, consider creating Item Categories.