Products & services

Products & Services (menu: Accounting → Products & Services) are reusable items you can drop onto invoice, bill, quote, purchase order, and credit-note lines. Instead of typing the same description, price, account, and tax every time, define an item once and let selecting it auto-fill the line.

An item isn’t a single “type” — it’s defined by three independent toggles that you switch on or off:

• I sell this item — appears on sales documents.
• I purchase this item — appears on purchase documents.
• Track inventory (stock on hand) — keeps a perpetual stock ledger.

An item must be sold, purchased, or both. Common combinations: a service you sell (sold only), a raw material you buy (purchased only), or a product you buy and resell (sold + purchased + tracked).

Create an item

Products & Services → Add Item.

Section	Fields
Item Details	Code (unique, letters/numbers/dashes), Name
I sell this item	Sale Price, Sales Account (revenue/sales/other income), optional Tax Rate + Description
I purchase this item	Cost Price, Purchase Account (expense/direct-costs), optional Tax Rate + Description
Track inventory	Unit of measure, optional Inventory Asset + COGS account overrides (default to system accounts)

The Sales Account and Purchase Account lists offer only accounts that an invoice or bill line can use. Bank accounts, Accounts Receivable, Accounts Payable, the tax account and accounts AccountFUN fills in by itself (such as unrealised currency gains or accumulated depreciation) aren’t offered, and an item can’t be saved with one of them.

Tracked vs untracked inventory

• Untracked — no stock ledger. Use for services or goods you don’t stock-control. Quantity and cost stay at zero.
• Tracked — perpetual inventory at Weighted Average Cost (WAC). The stock ledger is the source of truth; quantity-on-hand and average cost are kept exact on every write.

When a tracked item appears on a document, AccountFUN posts inventory journals automatically:

Event	Stock effect	Journal
Bill (purchase)	Stock in; recomputes WAC	Bill line already debits Inventory
Invoice (sale)	Stock out; relieved at WAC	Dr COGS / Cr Inventory Asset
Sales return (credit note)	Restores stock at original cost	Dr Inventory / Cr COGS
Purchase return (payable credit note)	Relieves at WAC	Cr Inventory
Manual adjustment	Increase / Decrease / Revaluation	see below

Selling stock you don’t have yet (backorders)

You can sell a tracked item even when you don’t have enough on hand — the quantity on hand just goes negative, and the sale is still costed at the current average cost. When you later buy more stock, the average cost is recalculated as usual. There’s one catch: the item needs a known cost to work from, so it must have been purchased at least once, or have a Cost price set on the item record. Without either, AccountFUN can’t work out the cost and will ask you for one before the sale can go through.

Adjust inventory

On a tracked item, Adjust inventory opens a form with three adjustment types. Each posts its own journal entry and one stock-movement row, with the lock date respected.

Type	Use it for	What you enter	Effect on the average cost
Increase quantity	Adding stock that didn’t come from a bill — an opening balance, a counted surplus, a free sample	Quantity, cost-per-unit, offsetting account	Yes — blends in the new units at their stated cost
Decrease quantity	Removing stock that didn’t go out on an invoice — theft, damage, a count shortfall	Quantity, offsetting account	No — stock leaves at the current average cost
Revaluation	Changing the value of the stock on the shelf without changing the quantity	A signed value delta (positive to write up, negative to write down), offsetting account	Yes — recalculated from the new total value

Why the average cost doesn’t change when stock leaves

The average cost (shown as Avg. cost (WAC) on the item) only changes when new cost information arrives — that is, when stock comes in at a different per-unit price (a bill, or an Increase quantity adjustment), or when you deliberately change the value of what’s on the shelf (a Revaluation).

Selling, returning, or removing units takes them out of your stock on hand at the average that was already calculated. That tells you nothing new about what the remaining units cost — so the average stays where it was. This keeps the recorded value of the stock you still own honest, and stops a sale from silently rewriting it.

Stock on hand and value

A tracked item’s detail page shows three live figures:

• Quantity on hand (red if negative)
• Avg. cost (WAC)
• Inventory value = quantity × WAC

A Latest movements table lists the recent stock in/out events, each linked back to the journal entry that caused it.

Worked example: buying and reselling a tracked product

You sell coffee beans, purchased at ~$12/jar and resold at $20.

1. Add Item: code BEANS-500, sold + purchased + tracked. Sale price $20, Sales Account Sales Revenue. Cost price $12, Purchase Account Cost of Goods Sold. Track inventory, unit jar.
2. Buy 100 jars from the roaster on BILL-0001, line item BEANS-500 qty 100. On approval: Inventory Asset debited $1,200, AP credited $1,200. Quantity on hand = 100, WAC = $12.00.
3. Sell 40 jars on INV-0010, line item BEANS-500 qty 40 at $20. On approval: Revenue $800 + tax / AR $880; and Dr COGS $480 / Cr Inventory $480. Quantity on hand = 60, Inventory value = $720.
4. End-of-month stocktake finds 58 jars (2 short). Adjust inventory → Decrease, qty 2, account Shrinkage. Posts Dr Shrinkage $24 / Cr Inventory $24. Quantity on hand = 58.

You never posted a stock journal by hand — the bills, invoices, and one adjustment did it all, and your Inventory Asset account always equals quantity × WAC.

Recorded costs are permanent once posted

When you sell a tracked item, AccountFUN records the cost of the units sold at the average cost in effect at that moment. That cost entry is then permanent — it is frozen in the period the sale happened and is never rewritten automatically.

This is intentional: each period’s profit reflects the costs as they were known at the time, rather than being rewritten every time a source document changes later.

When a source document changes after units are already sold

Suppose you buy 100 units at $1 each (average cost $1), then sell 40 on an invoice. The sale records $40 of cost of goods sold. Later you discover the bill should have been $2 per unit.

• Editing the bill corrects the average cost for the 60 units still on the shelf and for all future sales.
• It does not go back and change the $40 already recorded on the 40 units you sold. That cost entry stays in the period the sale happened.

The same applies in reverse: editing an earlier invoice does not rewrite the cost entries of sales that have already been posted.

How to align the numbers when a past cost was wrong

If the average cost was materially wrong and some units were already sold at it, you have three tools — usable alone or together:

1. Correct it going forward. Revert and re-approve the bill (or invoice) at the right price. The average cost is recalculated for any stock still on hand and for every future sale. Past cost entries are left as they are.

2. True up the stock still on the shelf. Use a Revaluation adjustment to add or remove value from the stock on hand so the balance sheet shows the correct total. This corrects the average cost for future sales but does not touch past sales.

3. Correct past profit by hand. The cost already recorded on past sales stays put by design. If the error is material enough to warrant correcting prior-period profit, post a manual journal entry to your cost-of-sales account for the difference, dated in whichever period you want the correction to land. This is the only way to change a cost that was already recorded on a past sale.