Inventory items: set up tracked products

Create quantity-tracked inventory items with income, expense, and asset accounts, a costing basis, reorder points, and optional lot or serial tracking.

Plans: Core and above. Lot/serial settings: Advanced and above
Availability: Available
For: Owners, Bookkeepers
In KontoCore: Inventory → Items (also Sales → Products & Services)

In plain English

An inventory item is something you buy and resell (or build) and want to count. KontoCore tracks how many you have and what they cost.

What this does

An inventory item differs from a service or non-inventory item: it carries a quantity on hand and a cost held in an Inventory Asset account until sold.

Each item links to three accounts — income (sales), cost of goods sold, and inventory asset — so every sale and purchase posts correctly without manual entries.

Before you start

Decide your item names/SKUs and confirm the Inventory Asset and Cost of Goods Sold accounts exist in your chart of accounts.
Know your starting quantity and cost per unit as of your start date.

How to

Create an item

1Open Inventory → Items → New item and choose Inventory.
2Enter name, SKU, unit of measure, and description.
3Select income, COGS, and inventory asset accounts.
4Enter starting quantity, as-of date, and unit cost.
5Optionally set a reorder point and preferred vendor.
6On Advanced, choose lot or serial tracking if needed (this cannot be changed after stock moves).
7Save.

Statuses and lifecycle

Status	Meaning
Active	Available on sales, purchases, and adjustments.
Inactive	Hidden from new transactions; history and valuation retained. Only allowed at zero quantity.

Corrections, voids, and reversals

Name, SKU, description, price, and reorder point can change at any time.
Starting quantity is corrected with an inventory adjustment, not by editing the item.
Changing linked accounts affects future transactions only; prior postings stay where they were.

Provider and availability notes

Inventory work happens in the browser workspace. Dedicated mobile warehouse apps and handheld barcode-scanner integrations are not offered.

Permissions

Owners, administrators, and users with bookkeeping or inventory permission can create and post. View-only users can read but not change records.

What happens in your books

The starting quantity posts once to Inventory Asset against Opening balance equity.

Opening 50 units at $8.00 · illustrative

Account	Debit	Credit
Inventory Asset	400.00
Opening Balance Equity		400.00

Common mistakes

Setting up resold goods as non-inventory items, so cost never reaches COGS.
Entering a starting quantity and also recording the same stock as a purchase.

Troubleshooting

I can’t make an item inactive

Its quantity isn’t zero. Adjust or sell out the remaining stock first.

Tracking option is greyed out

Lot/serial tracking needs Advanced, and can’t be changed once the item has stock movement.

Terms used:Inventory Cost of goods sold (COGS)

InventoryTrack product quantities and cost, adjust stock, and understand advanced warehouses, lots, serials, and assemblies.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.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.Items: products and servicesSet up the services and products you sell, with default prices, income accounts, and tax settings.

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Last reviewed October 6, 2026