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Adding value to inventory

If you buy an inventory item and spend money improving or reconditioning it, you'll probably want to include those additional costs in the item's value.

To do this, you'll create an inventory item for the goods being purchased and set up a new job to track the expenses associated with improving the item. Each expense gets recorded against the job so you can keep track of those expenses. Then, you simply transfer the value of the expenses to be included as part of the item's value.

Before you begin

Before you can add value to an item, you first need to create the inventory item and set up a new job to track the expenses.

In our example, we're buying a second hand car and getting it ready for re-sale.

Adding value to an item

OK, you're now ready to add value to your inventory. First, you're going to record the purchase of the item and its additional costs. Then you'll adjust the item's value using the Adjust Inventory function.

Let's take you through the details.