Hi Rick:

The choice is up to you on how you would like to set up your inventory. Usually the asset chosen for inventory A or B etc. will be determined possibly by the value of the items going into inventory. Some companies want to track their high cost items separately. Others may want to separate their inventory depending upon their manufacturing concern (raw materials/finished goods) as opposed to wholesale/retail operations. The same scenario goes for the cost of goods and sales/revenue accounts. If you want to track costs against sales for certain categories for margins or gross profits it would be wise to create separate cost of sales accounts and revenue accounts to correspond to your needs. Breaking it down by supplier can be helpful if your supplier has demands/contractual obligations with your company or vice-versa.

You can be as creative as you want, however, remember simple is better than overly complex. The software is limited to it's capability.

Good luck!