Tracking inventory changes in Money benefits you in two ways:

• You always know how much inventory of a particular product you have on hand, and when you need to order more.
• Money can generate accurate business reports that take into account your beginning and ending inventories. You can use this information to see sales patterns and to anticipate periods of heavy and slow sales.

In order to manage your inventory in Money, you must record sales and purchases of inventory items, enter inventory increases, and record changes in inventory value.

When you record sales of inventory items, Money automatically reduces your inventory by the appropriate amount. However, when you record an inventory purchase, your inventory quantity is not automatically increased. To maintain accurate inventory records, you must record the transaction in the register of the account from which you paid for the purchase, and then enter the increase in inventory. You can also record changes in the value of your inventory to reflect the current market value, and record decreases in inventory if you use products for marketing or personal use, or if you lose products as a result of theft, casualty, or fire.