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Inventory Methods

Saasu uses the Perpetual Inventory system like most popular accounting software systems.

Because inventory methodologies have tax implications, you will need a clear understanding from your advisors regarding what method is best for you before proceeding. The following list will give you some examples of which checkboxes to use when setting up inventory items:

Services Billing

Tick: Sell

You can set up inventory items for services you provide for customers so they can be billed easily.

  1. Select Items > Items and click the Add icon to create a new inventory item.
  2. Enter an item code and an item description.
  3. Tick Sell this item.
  4. Enter the selling price – This is the amount you charge per hour/day.
  5. Select the appropriate income account.
  6. Select the appropriate tax code.
  7. Click Save and Close.

When you are entering an invoice for a customer, select the Item Invoice layout. This enables you to select the above inventory item you saved from the Inventory Items list. Simply enter the number of hours you spent as the Quantity and the total amount your customer owes will be calculated automatically. For each line item you add in the invoice you could have a description (eg the tasks you completed during those hours).

Time Billing

Tick: Sell

Use this when charging hourly rates but not treating these as inventory.

Retailers

Tick: Inventory, Buy, Sell

Subscriptions and Memberships

Tick: Sell

Use for ONE of these scenarios:

Manufacturers/Assemblers

Tick: Inventory, Buy, Sell

Workflow Example for Items

These are some simple diagrammatic workflow explanations for how things work in Saasu when trading inventory items.

P = Purchase, S = Sale, O = Order and » = change transaction type.

Buy stock and hold on balance sheet until customers order it:

  1. PO – Order stock from your supplier.
  2. PO » P – Stock arrives.
  3. SO – Order arrives from customer.
  4. SO » S – Stock shipped to customer.

Customer orders first and then you purchase stock from suppliers:

  1. SO – Order arrives from customer.
  2. PO – Order stock from your supplier.
  3. PO » P – Stock arrives.
  4. SO » S – Stock shipped to customer.