Inventory Items

NetSuite inventory item records let you track the quantity and value of your inventory. Your balance sheet automatically reflects the value of your inventory on hand, and your income statement automatically reflects the markup you charge for these items.

To track inventory, first set up your inventory items. Fields that appear depend on the features you have enabled.

As you buy and sell inventory, your Cost of Goods Sold (COGS), income, and asset accounts are updated. Item profits are reflected on your income statement.

If you use the Multi-Location Inventory feature, you can specify locations for each item. For more information, see Multi-Location Inventory.


If you run a custom saved search that includes the fields below, they function as follows:

Lastmodifieddate updates only when you update the item record.

Lastquantityavailablechange updates when you enter or edit an inventory-affecting transaction.

Vendor Bill Variances

When you use the Advanced Receiving feature, you can enter vendor bill variances and generate journal postings to variance accounts. These variances can be based on quantity, price, or exchange rate discrepancies.

When you check the Generate Accruals box on the Preferences subtab, Vendor Bill variances generate and post an accrual to the general ledger. For more information, see Vendor Bill Variances.

When the Generate Accruals preference is set, inventory item records include three variance accounts on the Accounting subtab:

  • Price Variance Account – resolve variances between the unit cost of items on bills and receipts.

  • Quantity Variance Account – resolve variances between quantities on bills and receipts.

  • Exchange Rate Variance Account – resolve variances between exchange rates on bills and receipts.

Related Topics

Item Records for Data Tracking
Groups, Assemblies, and Kit/Packages
Item Groups
Kit/Package Items
Matrix Items
Serial Numbered Items
Lot Numbered Items
Customizing Lot or Serial Numbered Item Records
Drop Ship Items
Special Order Items
Gift Certificates
Service Items
Download Items
Discount Items
Subtotal Items
Description Items
Markup Items
Expense Items
Non-Inventory Items
Other Charge Items
Payment Items
Item Types

General Notices