Hi, I started working in a distributor company. and we use Sage 50. We have only one inventory account in our chart of accounts  for our products to sale and for supplies (warehouse supplies-packaging, catalogs).  Is it correct to have only one account (inventory) for sale items and supplies? I think we must create another account of inventory such as "Prepaid Supply Inventory" account specifically for supplies.If this is correct, when I am going to create a new warehouse supply, is it correct the G/L accounts entered below?

G/L Sales account: Warehouse Supplies (Expense)

G/L Inventory : Prepaid Supply Inventory

G/L Cost of sales : Warehouse Supplies (Expense)

Cost: X

Price: Zero

Item Class: Stock item or non-stock item?? Which one is it correct?

If somebody knows how can I get more information about how to handle well the inventory in Sage 50, please let me know since I have many questions. I will appreciate this information.

Thank you!