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Item Category

Item Category is used to manage inventory item categories. Cost and Expense accounts can be differentiated for each sub department. If a sub department does not have its own cost and expense accounts, it will use those defined in the Item Category.

What is an Item Category?​

An Item Category groups inventory items for accounting and reporting purposes. It allows you to set default accounts for inventory, cost of goods sold (COGS), expenses, sales, adjustments, and spoilage. You can also assign specific COGS and Expense accounts for different sub departments if needed.

How to Add a New Item Category​

  1. Go to Tools > Configurations > Inventory & Assets > Item Category.
  2. Click the Insert button to add a new item category.
  3. Fill in the Item Category Information:
    • Code: Enter the item category code.
    • Name: Enter the item category name.
    • Group: Select the item group.
    • Inventory Account: Select the inventory journal account for inventory recording.
    • COGS Account: Select the cost/HPP journal account for inventory costing or sales.
    • Expense Account: Select the expense journal account for usage or supporting expenses.
    • Sell Account: Select the sales journal account for direct inventory sales.
    • Adjustment Account: Select the inventory account for corrections.
    • Spoil Account: Select the spoilage/loss journal account for inventory loss or damage.
  4. Click Save to save, or Close to cancel.

How to Update an Item Category​

  1. Go to Tools > Configurations > Inventory & Assets > Item Category.
  2. Select the item category to update and click the Update icon.
  3. Edit the fields as needed.
  4. Click Save to save changes, or Close to cancel.

How to Delete an Item Category​

  1. Go to Tools > Configurations > Inventory & Assets > Item Category.
  2. Select the item category to delete and click the Delete icon.
  3. Confirm the deletion when prompted.
  4. Click Yes to delete, or No to cancel.

How to Add COGS Account for Another Sub Department​

  1. In the Item Category window, select the item category and click the Insert (+) icon in the Other COGS Account group.
  2. In the editor window, fill in the details:
    • Sub Department: Select the sub department.
    • COGS Account: Select the cost account for the sub department.
  3. Click Save to save, or Close to cancel.

How to Add Expense Account for Another Sub Department​

  1. In the Item Category window, select the item category and click the Insert (+) icon in the Other Expense Account group.
  2. In the editor window, fill in the details:
    • Sub Department: Select the sub department.
    • Expense Account: Select the expense account for the sub department.
  3. Click Save to save, or Close to cancel.