About Accounts Receivable Items

Adding item records in Accounts Receivable lets you set up a price list of the items you sell to customers or the fees you charge clients. Item numbers also make invoice entry faster: when you enter an item number on an invoice, information from the item record (such as the unit of measure and unit price) is automatically displayed.

You may want to add item records to Accounts Receivable even if you use other Sage 300 programs to print invoices and track inventory. For example, you might use Accounts Receivable to invoice service charges or other non-inventory items that are not included in your Inventory Control price list. You also need an item list if you want to produce job-related item invoices for certain types of projects in Project and Job Costing.

Before adding item records to Accounts Receivable, develop a logical scheme for assigning item numbers. Consider the order in which you want to group items, such as to list them on reports. Each item number can contain up to 16 characters, including numbers, letters, dashes, and other keyboard characters.

General Ledger Accounts for Items

You can assign revenue, inventory, and cost of goods sold accounts to an item in the following ways:

• Assign the item a distribution code that includes the accounts.

  Note: If you change the accounts used in a distribution code, item records that use the distribution code are immediately updated with the changes.

• Specify the accounts directly in the item record.

  Tip: If you want to reuse some of the accounts and the discount status from a distribution code, assign the distribution code to the item record. Then clear the code, and change the information.

When you post a transaction that uses an item number, general ledger transactions are created for the revenue, inventory, and cost of goods sold accounts assigned to the item record.

Setting Up Non-Inventory Items

For non-inventory items, such as service charges and fees, enter zero as the cost, so that no general ledger transactions are created for the inventory and cost of goods sold accounts when you invoice these items.

You can enter a commodity number for each item, for your own reference.

For each item, you enter pricing information, including:

• Unit of measure.
• Item cost.
• Item price.
• Tax base (the amount on which you calculate tax, usually the item price).

If you use the option to keep item statistics, figures in the item record are automatically updated for:

• Sales.
• Returns.
• Cost of goods sold.
• Gross margin.
• Total quantities sold.
• Last date on which an invoice was posted with the item number.

Entering Item History

You can enter item statistics when setting up Accounts Receivable.

Before you can enter statistics, you must select the Allow Edit Of Statistics option for items on the A/R Options screen.

Using the A/R Items screen, you can then enter totals of:

• Sales
• Returns
• Cost of goods sold
• Margin
• Total quantity sold
• Date of last invoice

You can enter the figures for each of the periods in the current year to date and in the previous years for which you keep transaction details.

Because item statistics are updated automatically when you post transactions, you may want to turn off the Allow Edit Of Statistics option or assign security to the A/R Options screen to prevent accidental changes.

Multicurrency Ledgers

If you use multicurrency accounting, you can enter pricing information for each currency in which you sell an item.

You also enter tax information, including the authorities that tax the item, its tax class, and whether tax amounts are included in the item price.