You can maintain inventory in Xero by following these general steps:
1. Set up your inventory items
In Xero, you can set up your inventory items by going to the “Inventory” menu and selecting “Inventory Items.” Here, you can create new inventory items and set their details, such as the item code, description, unit of measure, purchase and sales prices, and more.
2. Record inventory purchases
When you purchase inventory, you can record it in Xero by creating a purchase order or bill. In the purchase order or bill, you can select the inventory item, enter the quantity and cost, and specify the account to be debited for the purchase cost.
3. Track inventory levels
Xero automatically updates your inventory levels as you purchase and sell inventory. You can view your current inventory levels and value by going to the “Inventory” menu and selecting “Inventory Items.” Notifications that warn you when inventory levels are low can also be set up.
4. Sell inventory
When you sell inventory, you can create an invoice in Xero and select the inventory item from your inventory list. Xero automatically reduces your inventory levels and updates the cost of goods sold.
5. Reconcile inventory accounts
You should reconcile your inventory accounts regularly to ensure that the values recorded in Xero match your physical inventory levels. You can reconcile your inventory accounts by going to the “Accounting” menu and selecting “Reconcile Items.”
It’s important to note that maintaining inventory in Xero may involve additional steps depending on your business’s inventory needs and the complexity of your inventory management.