Items (goods and services)
Keep your catalogue of goods and services with their prices, VAT and accounts. For goods, Verasol keeps the stock in each warehouse and values it at cost.
Every product and service you buy or sell is an item. An item carries its prices, its VAT rate and the accounts it books to, so a line on an invoice or a bill fills itself in when you choose the item. Goods can also be kept in stock: Verasol then follows the quantity in each warehouse and values it at cost, and that value always equals the Inventory account in your books.
The Inventory menu appears when the Inventory module is switched on for your company (see Modules).
Find your items#
Open Inventory › Items. The cards at the top count your goods by stock status; click a card to show only those items. Below them you can search by name, item code, HS code or SKU, and filter by type, category and brand.
- 1 New Item opens an empty item.
- 2 Reorder list shows the goods that are running low. See The reorder list.
- 3 Out of Stock counts the goods with nothing left, Low Stock the goods at or below their Reorder Level.
- 4 Each row has an Actions menu: View, Edit, Stock Movements (goods only: the stock movements of that item) and Delete.
Add an item#
- Click New Item.
- Choose the Item Type: Goods (Physical Product) or Service.
- Enter the Item Name. Leave the Item Code empty and Verasol numbers the item for you.
- Choose the Unit (pieces, boxes, hours, days...). Category and Brand are optional and help you filter the list.
- Choose the VAT Rate (%): 5% - Standard Rate, 0% - Zero Rated or Exempt. For an exempt item, also choose the VAT exemption reason: e-invoices state it.
- Enter the Purchase Price (AED) and the Selling Price (AED). They fill in the rate when you choose the item on a bill or an invoice; you can still change it on the line.
- For goods, complete the Inventory Details (see below).
- Under Accounting Details, choose the Sales Account and the Purchase Account, or keep the defaults.
- Click Save Item.
1 Item Type, 2 VAT Rate (%), 3 Opening Stock, 4 Costing Method, 5 Save Item. The Accounting Details are further down the form.
- HS Code (goods) and Service code (SAC) (services) are the codes that e-invoices need. Type the HS code from the customs tariff. For goods, once the item name is filled in, AI Suggest next to the field proposes codes from that name: check a suggestion against the tariff before you use it.
- For a new product with a barcode, use Quick Add with Barcode at the top: scan the barcode with the camera button next to the field (Scan Barcode) or type it, then click Lookup Product. When the product is found, Apply Details fills in the form; Use Barcode Only keeps just the barcode.
The accounts of an item#
- The Sales Account receives the revenue of the item's invoice lines. With the default, goods go to your sales revenue account and services to your service revenue account.
- The Purchase Account receives the item's bill lines when the item is not kept in stock (services, for example), unless you choose another account on the bill line. Goods kept in stock are booked to Inventory when you buy them, and to Cost of Goods Sold when you sell them.
Inventory details of goods#
- Opening Stock is the quantity you hold when your books in Verasol start. When you enter a quantity, choose the Warehouse it is in, the Opening unit cost (AED) (the purchase price if you leave it empty) and the Opening date (leave it empty for the company's opening date, the day before its books start). Stock you buy or find later comes in with a bill or a stock adjustment, not here.
- Costing Method: Weighted average or FIFO (first in, first out). You can change it on the edit screen only while the item has no stock movements.
- Reorder Level and Reorder Quantity drive the low-stock status and the reorder list.
- SKU, Barcode and the Physical Dimensions (Optional) are for your own reference.
What Verasol books for opening stock#
When you save an item with opening stock, Verasol posts the stock on the opening date. For example, 30 Dell Latitude 5450 laptops at AED 3,650.00 in the Al Quoz warehouse:
| Account | Debit | Credit |
|---|---|---|
| 1150 Inventory | 109,500.00 | |
| 3900 Opening Balance Equity | 109,500.00 |
To correct it later, open the item with Edit and tick Correct the opening stock. The current opening stock and its journal entry are reversed on their own date and the corrected one is booked on its opening date. An opening stock in a closed period cannot be corrected this way: use a stock adjustment on an open date.
How Verasol values your stock#
Verasol keeps the cost of each item per warehouse, from the stock movements themselves:
- Weighted average (the default): the stock in a warehouse is valued at its average cost. Every unit that leaves takes that average.
- FIFO (first in, first out): the units that arrived first leave first, at the cost they came in at.
Goods bought on a bill come in at what the bill line cost you: its net amount after discount, plus any VAT you cannot recover, in AED at the bill's exchange rate. Goods received with a goods receipt come in at the order's net price; a difference on the supplier's bill later goes to Cost of Goods Sold. Opening stock comes in at its opening unit cost. The Purchase Price (AED) on the item never values stock: it only fills in new bills.
When you sell goods, Verasol takes them out at the cost of the sale's own date and books it to Cost of Goods Sold (see What Verasol books for an invoice). If you later enter something dated before sales that are already recorded, such as a late bill, Verasol re-costs those sales and shows each change as a Cost correction among the stock movements. That is how the stock value and the Inventory account stay equal on every date.
The item page#
Click an item code in the list, or View in its Actions menu.
- 1 Inventory Details shows the Current Stock, its Stock value (at cost) and the average cost per unit.
- 2 Stock by Warehouse splits the stock over your warehouses.
- 3 Stock Movement History lists the latest movements of the item. Stock After is the stock in that warehouse after the movement; the icon next to a reference opens the invoice or bill.
The reorder list#
Click Reorder list on the item list. It shows the goods with a Reorder Level whose stock is at or below it, out-of-stock items first.
1 Click an entry to open the item. 2 Suggested order is the item's Reorder Quantity, or what brings the stock back up to the reorder level when that is more. Set a reorder quantity on the item to get a suggestion.
Change or delete an item#
- Edit changes the item's details. The Current Stock cannot be typed in: stock changes through the documents that move goods (bills, invoices, goods receipts, delivery notes, credit and debit notes) and through stock adjustments and transfers.
- Delete removes an item. Verasol refuses while the item still holds stock: bring it to zero first. It also refuses while invoices, delivery notes or debit notes that took the item's goods out still stand, because cancelling one would bring the goods back. An item already used on invoices, bills or stock movements leaves your item lists but stays on those documents.
- To keep an item you no longer use, switch off Active on the edit screen. The item list marks it Inactive, it keeps its history, and new invoices and bills no longer offer it. You can switch it back on at any time.
- Goods that hold stock cannot be changed into a service. Bring the stock to zero first.