Purchasing inventory-1st time help needed!

[Loonsong]

A new client never keeps inventory on hand. They design and sell customized systems and order from multiple suppliers the components of the systems, as needed. The boss got a great closeout deal and decided to order a dozen widgets, intending to keep them in inventory until they are needed for a customer job. He wants me to put them into inventory and track them. I have never done this before and need step-by-step assistance. It's important to note that they are not currently using any type of job costing, so I will be posting a message for step-by-step assistance with that. For now, please help with inventory.

- Do I change the set up of the item? The widget is already set up as an item, just like all the other components they purchase.

-One item is already being used as a demo. I don't know if it will be sold, and for how much.

-I'll want a monthly report of what's left in inventory for this item.

Your help is appreciated on those and any other issues you can think of. Thanks.

[Joe Williams]

Create a new ite. Use the Inventory type and set the Income account to the same income account used on the current item for widget. but use the name "Widget-i" (for inventory). Enter the amount they paid for the Widgets at the bottom and the total quanity currently on hand. This will ignore the Widget for demo purposes and it can later be scraped or sold using the Widget item, not hte Widget-i" item. When the quanity of Widget-i reacheck zero, make it inactive unless they decide to stock them.

[Loonsong]

Thank you for your help! I'll give this all a shot and see how it all goes.
L