Item Categories
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The Default Expense Category applies to Item purchases for non-inventoried Items. It is automatically inserted into the Expense Category when you create new Item Cards. You can change this category for individual Items. Postings are created for this category when you generate Bills containing this item. This default will usually be Supplies Expense or a related expense category. Its Account Type should be Expense.
The Default Asset Category applies when an item is added to inventory. Default Asset is an Automatic Category. It is automatically inserted into the Asset Category when you create new Item Cards. You can change this category for individual Items. Postings are created for this Category when you generate Invoices and Bills which contain the item. Its Account Type should be Current Asset.
The Default Cost of Goods Category is applied when an inventoried item is sold. You can change this category for individual Items. Postings are created for this Category when you generate Invoices which contain the Item. Its Account Type should be Cost of Goods Sold.
The Default Item Adjustment Category applies to Inventory Adjustments. You can override the default value for individual adjustments. This default will usually be Inventory Adjustment Expense. Its Account Type should be Expense.
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