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Quick Entries is the way to go.

The function add_item is in inventory/includes/db/items_db.inc and the sql statement for the insert referred above is at line 49 onwards:

    $sql = "INSERT INTO ".TB_PREF."stock_master (stock_id, description, long_description, category_id,
        tax_type_id, units, mb_flag, sales_account, inventory_account, cogs_account,
        adjustment_account, assembly_account, dimension_id, dimension2_id, no_sale, editable)
..
..

From a design sustenance point of view, it might be better to have a separate table and link the primary keys on a 1-to-1 basis and use another insert statement in a new function that gets executed after this function's success. Then such scripts can be bundled into a separate Extension and installed into any FA instance. It will then possibly be compatible with future FA versions or be considered redundant if the functionality gets incorporated into the FA core.

1. Manually enter one item directly from the FA GUI
2. From the Import Items Extension, choose to export the Items
3. Prepare the rest of your Items as per the exported file
4. Now import this prepared file into FA from within the Import Items Extension

Unfortunately, the Sourceforge Mercurial Download Snapshot for the stable branch only provides a 442Kb subset of the files needed, but for the unstable branch, the full complement of 1.8Mb is downloadable.

The Git Mirror however has the full complement of files for snapshot download of the stable branch.

Both versions of Textcart (Git and PKG) files have been extracted and zipped for comparison. All files in both are same (checked with WinMerge)  except the config file where version numbers are different and the PKG version alone has the hooks.php file. If the Git version without the hooks.php is the later version, then please clarify on whether it is needed at all.

Wiki-ed it.

Setup Tax Types first as TaxFree and VAT in Setup -> Item Tax Types

Then set it for each item in:
Items and Purchases -> Items -> Item Tax Type -> (TaxFree or VAT)

Thanks Janusz.

The updates on 30th and 31st August 2013 did not make it to the Git Repo in time and some time ago in May 2013 the HG repo was lagging and hence assumed it was discarded but found it uptodate now and further wrongly assumed it to be a reverse mirror.

Corrected the links on the main page of the Wiki on the Mirror status and in my repo as well.

Thanks Janusz. The patch set has been updated as well.

All Chart of Accounts have the same db schema (with possible collation difference but basically UTF-8). Country specific language used will be available in the Language Extensions. Country and business specific COAs will have to be customized but Country generic COAs are available from within the GUI (on linux, locale for the specific country may have to be installed / activated as well). The sql file for each COA is available in the webroot's sql folder where others may be uploaded manually as well.

Create your own COA starting from one of the existing ones like the default sql/en_US-new.sql.

FA is made to be as simple as possible with quick support from the community here in the forum and distilled in the Wiki - even so, it might be intimidating to the uninitiated whence commercial support is available as well.

Would Banking and General Ledger ->  Quick Entries suffice?