How is Inventory Updated?

You can update inventory levels by receiving new items through Expenses -> Purchase Orders -> Receive Items on PO or Receive Without PO. You can use Receive Without PO if you just want to add items to inventory and don't need to create a purchase order.

You can also modify inventory levels by making item adjustments.

Be sure to set default inventory GL accounts before receiving items or making item adjustments. You can set default GL accounts by going to Admin -> Inventory -> General Setup -> General Ledger. Each item can also have its own default GL account that you can set on the item edit page (Inventory -> Items).