When you buy inventory items, you add a purchase transaction to a purchase invoices journal to credit a vendor account, debit one or more inventory accounts, and debit any applicable tax accounts. You can add inventory purchases to the Purchase Invoices journal that is supplied with NV2, or you can create a separate journal just for inventory purchases (see Adding Journals).
For detailed information on entering purchase transactions, see Adding Purchase Invoices.
When you sell inventory items, you add a sales transaction to a sales invoices journal to debit a customer account, credit one or more sales accounts, and credit any applicable tax accounts. At the time the transaction is added, the inventory account(s) associated with the sales account(s) are automatically credited, and the cost of goods sold account(s) associated with the sales account(s) are automatically debited (average cost method). NOTE: In order for NV2 to automatically credit inventory and debit cost of goods sold accounts, these accounts must be specified in the Trade Information window for the sales accounts, or in the Inventory and CGS Links window.
For detailed information on entering sales transactions, see Adding Sales Invoices.