Transcript

Every business has something to sell, it is either products or services or both. Clever Accounting can handle both types. The main difference between a product and a service is that products have an inventory input while services do not. It is important to keep this in mind as services registered as products create stock inventory which as a service does not exist.

Before being able to sell an item (i.e. product or a service), the description of the item must be registered in Clever Accounting. After logging in to the application, click on the Items and Inventory tab and then click on Items.

Fill in the details as requested information starting at the Item Code. The Item Code may not contain any spaces and it has to be unique. The Name entry can be a short description of the item.

There are a number of drop-down entries that depend on entries from other screens. These are the Category entry; the Tax Type; the Units of Measurement and the Dimensions entry.

Make sure that the Item Tax Type is properly chosen as this entry decides on how much tax, if any, is charged when the item is sold.
Again, the importance of selecting the proper Item Type is highlighted. A service does not carry and stock and therefore, when selected the entries for

Inventory Account and Inventory Adjustment Account are removed.
In the section GL Accounts, select the default general ledger accounts the item entered is to be registered in when sales are affected. These entries are usually already set.

An image of the item can be added as well. Click on the Choose File button to select an image file. Images are used when creating a price list.

Finally the Item Status makes the item Active or Inactive.

By clicking on the Insert New Item button, the new item will be added to the database. There are more tabs within the Items section which allow the user to add other information about the item. These will be discussed in separate videos.

Thank you for watching this Clever Accounting Tutorial.