By default, NetSuite is configured with an account named "Inventory Asset", of type "Other Current Asset". If you use only one inventory account, you should be fine with it. But if you would want to use more than one account to manage your inventory, you may create other accounts in your chart of accounts. In this process, it is really important to not miss a step while creating the new accounts, in order to have their balances calculated in the Inventory standard KPI: you must check the option “Inventory”.
This option can only be applied when an account is created. If you edit an account, you will remark that the Inventory field is read-only.
If you have an account that you were using for your inventory and you forgot to check the Inventory field, there is a workaround. Using the “Merge” feature, here are the 2 steps to apply the correct setting to an existing account:
1) Create a new account, with the Inventory option checked.
2) Edit the original account and merge it to the new account. Be very careful during this step, as it cannot be reversed once completed.