Basically we store every itemized transaction for sales, purchases and adjustments by sku and category. If this is done at the item level then we store both the affect on the item and the category so you can see totals by sku or category. When inventory is taken either by category or sku that will create a pending list in the take inventory section of S2k. This pending list or Take Inventory list is stored by station id and date and then a calculation is done to check that your numbers are what you expect. If they are then a TI Vendor invoice is created to adjust the category and/or itemized sku. This invoice can then be sent to QuickBooks to adjust your inventory or create an expense for lost/gained inventory. This lost/gained inventory can be mapped to either an expense or cost of goods in QuickBooks.