MAINTAINING OF ASSEMBLIES ITEM

HOW TO MAINTAIN INVENTORY (INGREDIENTS) OF A CAKE

As we already studied about the maintenance of inventory account, so in the same way now we are going to maintain the inventory of a cake which we want to make. The ingredients which we use in the preparation of this cake are as follows:

·         Flour

·         Baking powder

·         Eggs

·         Sugar

·         Coca powder

·         Vanilla essence

·         Cream

·         Chocolate sauce

·         Chocolate chips

·         Nuts

·         Oil

Now the first step is to maintain the inventory account of these ingredients, and for this purpose you will first open your company in Peachtree.

From the above window you will choose “maintain” from the toolbar and in this option you will find the “inventory items” which is basically the place where you have to do all the process or making of your cake, by maintaining each of the account of your ingredients. In this way you are able to maintain your inventory account by which you will be aware of your inventory that which inventory is using in how much amount in which in every product and how much the quantity lefts behind. It will be easier for you to maintain check and balance of your inventory.

A below window will be open in front of you when you will click on “inventory items” now what you have to do is to maintain your ingredients accounts here from whom you are going to make a cake. As we already know that how to enter all of the information so go ahead and maintain all the accounts, like if we want to maintain the account of flour first then we will give a unique Id to this account suppose we gave 002 then in the next column we write the name of our account which is “flour”. As we are going to make cake for sale purpose so we select “for sales” in description, next we have on our right side is the item class in which we select “stock item” after this you will enter all three accounts which are sales, inventory and cost of sales account. You will also mention the unit of this ingredient like for flour we have KG or we can also write “pack”. In this way your one ingredient account will be maintained.

As you already made your first ingredient account so now you will move ahead to make all other ingredients account which you are using in the making of cake. Now the second account which you have to maintain is the baking powder and for this you will again give this account a unique id then write its unit in which we enter “pack” in this way you will maintain all other ingredients like vanilla essence, chocolate sauce, eggs, coca powder, nuts, cream, chocolate chips, oil etc. All ingredients are maintained with a unique id, you can see in the below window that all accounts are maintained with the same process which we used for making the flour account.

After completing this we will move on towards “Assembly”. From “Item class” we will select “Assembly”. On selecting this following screen will appear on the desktop screen.

Now we will enter all the information or all the products which is required for making a assembly item which is in this case is CAKE. Assembly refers to a complete finished product. As we are making cake so our finished products will be CAKE. We will enter the ID, Description for that account, GL sales Account, GL Inventory Account and GL Cost of sales account. After entering the ID and description we will associate the GL sales Account, GL Inventory Account and GL Cost of sales account with the accounts created in chart of accounts with its ID. We can also use “unit/Measure” option where we can enter the unit in which we measure that certain raw material or assembly. Here after completing this information we will click on “Bill of materials” and the below window will be open in front of you.

In the above window we have to mention the ID, Description and Quantity needed to make one finished product which is a CAKE in this case. We will enter the ID in “Item ID” and automatically “Description” will be entered by the software. We will add the quantity needed as per our production requirements. After completing this all process we will press on “Save” button to save the assembly.

ENTERING THE BALANCES OF INVENTORY

In Peachtree we can mention the beginning balances of our inventor or products easily. We can do this by clicking on “Maintain”. By clicking on “Maintain” following window will appear on the desktop screen. From here we click on “Inventory items” in order to enter our beginning balances of the inventory items in the software. Now from here this window we will click on “Beginning Balances” option and on doing such following window appears on the desktop screen.

Here we will enter the balances of the inventory items one by one by selecting them. We will enter a specific inventory item to enter the balance and enter the number of units in hand in “Quantity”, Per unit cost in “Unit Cost” and remaining “Total Cost “will be automatically calculated by the software. After entering the beginning balances for the inventory items as per our requirements, we press on “OK” in order to save the data entered in the software.

                                       

Now click on “ok” to save the balances which you entered in Peachtree.