Add a tracked inventory item

Add a tracked inventory item for a product you use regularly in transactions, where you want to track its quantity and value. Enter the information you want to display whenever you use the inventory item in bills, invoices, or other transactions.

Before you start

If you're adding a tracked item for the first time, make sure you've done the following:

Go to Inventory and add an item

  1. In the Accounts menu, select Inventory.
  2. Click New Item.
  3. Enter an Item Code, and Item Name (recommended).
  4. Select the checkbox I track this item.
  5. Select the Inventory Asset Account to use for this item.
  6. Select and enter other information you want to display whenever you use the inventory item in transactions.

    Tips to help you enter information into inventory item fields

  7. Save.

    Image showing entry details for tracked inventory item.

Tips to help you enter information in the inventory item fields

FieldTips
Item Code

Add an item code, up to 30 characters long.

Consider using codes to help you find and organize your items. For example, if sorting by color, white golf balls could be WGB-01, or twelve white golf balls could be WGB-12.

Xero sorts item codes alphanumerically. For example, if you use numbers 1 to 10 as your codes, Xero will list them 1, 10, 2, 3 ... You may wish to add one or more leading zeros, for example, 01, 02, 03 ...

If you use SKU, ASIN, ISBN, MPN, UPC, EAN, GTIN or another standard reference code for your items, consider using this as your item code.

The item code doesn't display on PDF invoices, credit notes, quotes or purchase orders. However, if you want the item code to display, you can do one of the following:

Item Name

Add an item name, up to 50 characters long.

The item name doesn't display on PDF invoices, credit notes, quotes or purchase orders. However, if you want the item name to display, you can do one of the following:

Unit PriceAdd the price of the item in your base currency, enter up to 4 decimal places. Don't add any currency symbols.

Tax Rate

Select a default tax rate, or one you've set up. For items you sell, you can select the Auto Look Up tax rate to look up tax each time you use the inventory item.

Sales tax lookup

Description

Enter a description that has enough information for your customers or suppliers. The description displays on invoices, quotes and purchase orders for your customers and suppliers.

After you've finished

After you've finished adding tracked inventory items, you might need to enter opening balances.