How To: Create and Assign Inventory Accounts (GL Codes)
Inventory Accounts in Yellow Dog Inventory allow you to categorize, organize, and track transactions related to your stock. Creating inventory accounts ensures accurate reporting, streamlined cost allocation, and better visibility across your organization.
If you’re syncing Yellow Dog Inventory with accounting software, inventory accounts also act as the mapping bridge. This ensures that what happens operationally in Yellow Dog (receiving, invoicing, usage) translates correctly into accounting entries.
It is recommended that all client types create and assign inventory types for more detailed reporting.
With these steps, you’ll be able to create, edit, and manage Inventory Accounts in Yellow Dog Inventory confidently and ensure they are correctly tied to your GL structure:
Step 1: Create Inventory Accounts
- Go to System Setup > Accounts.
- Click Create New Accounting Code.
- Enter details.
Required information is in red. - Description – This is the name of Accounting Group that you assign to the inventory items. This is also the name that appears throughout the Standard Reports.
- Document Type – Typically used to describe the GL classification such as Depreciating Expense, Operational Expense, etc.
- Distribution Type – Typically used to describe the GL distribution method such as Direct or Indirect and typically pertain to marketing expenses.
- Notes – A free-text field for comments or clarifications about the account or its setup.
- Cost Of Goods Sold – GL account number
- Inventory Asset – GL account number
- Physical Inventory Adjustment – GL account number
- Revenue – GL account number
- Goods in Transit – GL account number
- Shortage – GL account number
- Transfer Receivable – GL account number
- Transfer Payable – GL account number
- Click Save and Close.
Figure 1. Example Inventory Account configuration.
Step 2: Assign Inventory Accounts
- Go to Common Setup > Levels.
- Click to highlight the level you would like to assign an inventory account and click Edit Level.
- Select the Interfaces Tab.
- Use the Stores field to select the store(s).
- Use the Inventory Account dropdown to assign the inventory account.
- Click Save and Close.
You can also use the arrows at the bottom left to navigate to the next level. Moving to the next level will automatically save any changes.
Figure 2. Use the Inventory Account dropdown to assign the inventory account to the level. All items under this level will be assigned to the selected inventory account and it's associated GL codes.
- Use clear, descriptive names for each account group so they are easily recognized in reports.
- Align your setup with your organization’s Chart of Accounts to simplify reconciliation.
- Periodically review your list of inventory accounts to remove or update as your reporting needs change.
Did you know? After setting up inventory accounts, GL posting information will be present on invoice print outs.
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