Inventory Class

If your company uses classes, the Inventory Class will allow you to further segregate the inventory values for the item. Inventory Class will automatically be assigned to the inventory cost transactions when the item is used in an a detail line in Create Invoices & Credit Memos.

If Validate Classes By Account in Company Setup is checked, the list of valid classes will be limited by the entries defined for the Item Inventory Account in the Account Class Validation screen OR to all active classes, depending upon the Account Class Validation Type in Company Setup. 

NOTE:  When you enter an invoice or credit memo in Create Invoices & Credit Memos or create an invoice from a sales order or estimate, entries to record an increase/decrease in Cost of Goods Sold and a reduction/increase in Inventory are automatically generated.  If a COGS or Inventory Class is not setup for the Item, ObjAcct will attempt to use the Class entered in the document detail line.  This Class must also be valid for the Item Inventory and COGS accounts.