The Items module is the beating heart of Sevenledger. Whether you sell physical goods, offer professional services, or track raw materials for manufacturing, every single transaction starts with an Item profile.
Here’s how to create comprehensive item records, define how they’re measured, and control how their financial value is tracked.
Creating a New Item
A well-defined item profile means accurate reporting, smooth Point of Sale checkouts, and clean accounting ledgers.
Navigate to Items
Go to Accounting > Inventory (or just Inventory) and click New Item.
Select the Item Type
Your first choice determines how the system treats this item:
- Goods: A physical product you manufacture or buy to resell. The system will track stock quantities and calculate Cost of Goods Sold (COGS) automatically.
- Service: Intangible offerings like “Consulting Hour” or “Installation Fee.” Services never trigger stock warnings — perfect for non-physical revenue.
Basic Details
Fill in the core identifiers:
- Name: The descriptive title (e.g., “Premium Cotton T-Shirt”).
- SKU: (Stock Keeping Unit) Your internal alphanumeric code for quick reference.
- Barcode/UPC: Essential for rapid scanning at a POS Terminal.
- Category: Group similar items together (e.g., “Apparel”) for cleaner reporting.
Units of Measure (UOM)
How do you count this item?
- Select a Base Unit (e.g., “Pieces”, “Kilograms”, “Hours”).
- (Advanced) If you buy an item in “Kilograms” but sell it in “Grams”, define a UOM conversion ratio in your system configurations first.
Accounting Ledgers: By default, revenue from this item routes to your generic “Sales” account and costs go to “Cost of Goods Sold.” Want hyper-specific tracking? Override these defaults in the Accounting tab (e.g., route revenue to a dedicated “Merchandise Sales” account).
Set Pricing
Define your standard Sales Price and Purchase Price (Cost). These act as defaults — depending on which customer or vendor is selected during a transaction, the system can auto-apply the relevant Price List instead.
Save
Review everything and click Save. Your item is now ready to be bought, sold, or manufactured.
Tracking Stock & Costs
If you selected “Goods,” the system actively monitors two things that matter most: Quantity and Value.
Quantity Tracking
The system tracks quantities across all active warehouse locations:
- Stock on Hand: Physical items currently sitting in your warehouse.
- Committed Stock: Items promised to customers via open Sales Orders but not yet shipped.
- Available Stock: (Hand − Committed). This is the number you can actually sell right now without risking a backorder.
- Incoming Stock: Items expected from suppliers via open Purchase Orders.
Costing Methods (COGS)
When you sell an inventory item, the system calculates profit by deducting the item’s cost (COGS) from your sales revenue. Sevenledger supports standard accounting costing methods (typically configured globally during initial setup):
- FIFO (First-In, First-Out): Assumes the oldest items in your warehouse are sold first. This is the most common approach and generally recommended.
- Moving Average: The cost is constantly recalculated as a weighted average of all batches currently in stock.