"Currently have inventory loaded of medical wristbands eg: 10 bands @ R50 ea"
You should not enter the qty and cost in the new P/S item set-up screen, unless you are starting a new set of books for an existing co. The offset goes to Opening Balance Equity, which should have a zero balance, when you are done entering all the balances from the opening Balance Sheet (if you are starting a new set of books for an existing co.), and should never be used again.
Once the books are set up, use an Expense or Check (if you paid from a bank account) or Bill (if you will pay later - offset goes to Accounts Payable) when you purchase stock. If it's a new P/S item, you can create the P/S item on-the-fly, from within the purchase screen, But enter 0 as the starting qty in the P/S item set-up screen. You can enter a cost here (optional) but it is just for populating future purchases. It does not ever change
