Inventory
Track product quantities and cost, adjust stock, and understand advanced warehouses, lots, serials, and assemblies.
- Plans
- Basic inventory: Core and above. Warehouses, lots/serials, and assemblies: Advanced and above
- Availability
- Available
- For
- Owners, Bookkeepers
- In KontoCore
Sales → Products & Services (Inventory items) · Inventory
In plain English
Products on your shelf are an asset. When you sell one, its cost moves from inventory to cost of goods sold, so your profit reflects what the sale really cost you.
What this does
Inventory items track quantity on hand and cost. Purchases increase quantity; sales reduce it and record cost of goods sold.
Quantity adjustments correct counts for shrinkage, damage, or a physical count and post to an adjustment account.
Inventory items: set up tracked productsCreate quantity-tracked inventory items with income, expense, and asset accounts, a costing basis, reorder points, and optional lot or serial tracking.Stock on hand and inventory valuationRead quantity on hand, committed and available stock, average cost, and inventory value, and reconcile the valuation report to the Inventory Asset account.Warehouses, locations, and stock transfersSet up multiple warehouses or stocking locations, see quantity by location, and transfer stock between locations without changing total inventory value.Inventory adjustments and physical countsCorrect quantities after a physical count, shrinkage, damage, or write-off, with a required reason and adjustment account so every change is auditable.Lot and serial number trackingTrack batches by lot (with optional expiry) or individual units by serial number through receiving, transfers, adjustments, and sales for traceability.Assemblies and buildsDefine an assembly’s bill of materials, build finished goods that consume component stock, and see how component cost rolls into the finished item.
How to
Adjust quantity
- 1Inventory → Adjust quantity.
- 2Choose the item, date, and new quantity or change.
- 3Select the reason and adjustment account, then save.
Advanced inventory
- Multiple warehouses/locations with transfers between them.
- Lot and serial number tracking.
- Assemblies that consume component items when built.
- These require the Advanced plan or above.
What happens in your books
Selling one item that cost $40 for $100:
| Account | Debit | Credit |
|---|---|---|
| Accounts Receivable | 100.00 | |
| Product Sales (revenue) | 100.00 | |
| Cost of Goods Sold (expense) | 40.00 | |
| Inventory Asset | 40.00 |
Common mistakes
- Selling below zero quantity, which distorts cost.
- Recording inventory purchases as an expense rather than to the inventory item.
Related articles
Items: products and servicesSet up the services and products you sell, with default prices, income accounts, and tax settings.Expenses and purchase ordersRecord immediate expenses with receipts and use purchase orders to commit spending before a bill arrives.ReportsWhat the profit and loss, balance sheet, cash flow, and aging reports tell you — and how to drill into source records.
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Last reviewed September 25, 2026