How to Add a Track Inventory Item in Xero

Quick summary

This tutorial shows how to add a tracked inventory item in Xero by navigating to Products and Services and configuring item details, inventory settings, and purchase or sell information. Tracked inventory items in Xero let businesses monitor stock levels automatically and link items to the correct inventory asset account for accurate financial reporting.

Steps

1. From the Xero dashboard, click Business in the top menu bar.
2. Select Products and Services from the dropdown list.
3. Click New Item in the top-right corner of the Products and Services page.
4. Enter a unique item code and item name into their respective input fields.
5. Tick the checkbox next to the Track Inventory Item option to enable inventory tracking.
6. Open the Inventory Asset Account dropdown and select the appropriate account (e.g., 630 – Inventory).
7. Fill in the relevant purchase and sell information for the new item.
8. Review all entries and click Save to create the item.
9. The new tracked inventory item is now added and visible in your Xero account.