I am taking over the Simply Accounting tasks at my small business.  I am trying to set up my inventory system.  Just wondering what accounts I should be linking to my inventory as well how do i modify inventory levels.  Do i need to create an inventory item and then create a purchase order in order for my inventory levels to be inputted?  How will that effect past account balances.  This company has been useing Simply Accounting for many years so there is lots of data, however this is the first time we are using it for inventory.

Thanks

CW