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After completing the required step of the Company Setup Wizard and saving your company file, you can begin using Office Accounting 2007. However, it is recommended that you first complete the setup of all accounts, customers, vendors and items. This article will teach you how to set up your items.
The company setup checklist shows you the sections of the Company Setup Wizard that you have completed, in addition to the sections you still have to complete. At any point in time, you can exit the wizard by pressing Close. If you return to it later (by selecting Company Setup in the File menu) Office Accounting will keep track on your progress.
Company setup checklist in Microsoft Office Accounting 2007
This screen can be used to launch wizards to help you complete the setup of accounts, customers, vendors, employees, items, integration with Outlook with Business Contact Manager as well as business services.
Items
Office Accounting 2007 uses items to keep track of goods and services that your company sells. The Items section of the company setup wizard enables you to set up your Items with details and quantity on hand.
Setting up Items
Note: Office Accounting Express 2007 does not include inventory functionality and inventory items. The inventory module is only available in the Office Accounting Professional 2007.
Service Items are typically set up work performed (either by a vendor or work performed for customers), but it could also be non-physical items such as shipping or insurance.
Service items are expensed when they are purchased and have no direct cost associated when sold.
Add service items
Select Yes if your company buys or sells service items and click Next. This will display a list of service items. This list will normally be empty.
List of service items
To set up a new service item press New. To edit an existing service item, select the item on the list and press Edit. To delete an item, select the item on the list and press Delete. You cannot delete items that have already been referenced on documents.
The Service Item form looks as follows:
Service Item form
When setting up a new service item you have to provide the following:
- Item Name The name of the item.
- Sales price (if sold) The price for which the item is sold to customers (can be $0).
- Income account (if sold) The financial account where the income is recognized when the service item is sold.
- Item Tax group (if sold) If the item is taxable or not.
- Purchase price (if purchased) The price at which the item is normally purchased from vendors (can be $0).
- Expense account (if purchased) The financial account that incurs the expense when the item is purchased.
Notice the two checkboxes labeled "I sell this item" and "I purchase this item". These boxes define if the service item is available in sales- and purchase flows.
The standard cost is used for item and job profitability purposes.
When you have completed editing the list of service items click Next to proceed to non-inventory items.
Non-inventory items are typically used for physical items that are sold or purchased but where the business does not want to track the individual items in inventory. These could be items purchased in bulk, but consumed in smaller scale such as piping or wiring.
Non-inventory items are expensed when they are purchased and have no direct cost associated when sold (similar to service items).
Add non-inventory items
Select Yes if your company buys or sells non-inventory items and click Next. This will display a list of non-inventory items. This list will normally be empty.
The non-inventory item list and form are identical to the corresponding service item list and service item form described above.
Inventory items are physical items that are purchased for resale and kept in stock.
Unlike service items and non-inventory items, the cost of the purchase is not incurred until the item is sold.
Add inventory items
Select Yes if your company buys or sells inventory items and click Next. This will display a list of inventory items. This list will normally be empty.
List of inventory items
To set up a new inventory item press New. To edit an existing inventory item, select the item on the list and press Edit. To delete an item, select the item on the list and press Delete. You cannot delete items that have a quantity or value on hand nor can you delete inventory items that have already been referenced on documents.
Once you have added the inventory items, you can specify the quantity and value at hand as of a specific date (as default your company start date).
The inventory item form looks as follows:
Inventory Item form
When setting up a new inventory item you have to provide the following:
- Item Name The name of the item.
- Sales price The price for which the item is sold to customers (can be $0).
- Income account The financial account where the income is recognized when the inventory item is sold.
- Item Tax group If the item is taxable or not.
- Purchase price The price at which the item is normally purchased from vendors (can be $0).
- Asset account The financial account that holds the inventory as an asset on the balance sheet when the item is purchased.
- COGS account The financial account that bears the Cost Of Goods Sold, when the inventory item is sold.
If you specify a reorder point, the item will appear with a triangle icon on the item list and add a reminder to the dashboard when the quantity on hand falls below the reorder point.
When you have completed editing the list of inventory items click Next.
Items completed
Click Finish to close the Items section.
Company setup checklist with accounts, customers, vendors and items completed
Related articles
Below you can find links to related articles on setting up your company in Office Accounting 2007:
The accounts section of the startup wizard enables you to add or edit new financial accounts as well as setting their balance as of the start date of the company.
The Customers section of the startup wizard enables you to set up your customers with details and opening balances.
The Vendors section of the startup wizard enables you to set up your vendors with details and opening balances. Vendors are sometimes known as suppliers.
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