Master Records > Inventory > Create Inventory Record

The Settings Page allows you to set up important parameters used when creating and recording transactions for this inventory item. If you have set up an inventory type template for this inventory item record, AccountMate will automatically provide default values in various fields in this page that you may amend if necessary. Refer to the Set Up Inventory Type Record section for the detailed lists and discussion of these fields.

To set up the important settings for this inventory item, perform the following steps in this tab:

1.Set up general parameters for this inventory item when creating the applicable module transactions by choosing and entering values on the following fields:

oStatus

Click the List box button in this field to specify a default status for this inventory item that can either be Active or Inactive. The option selected in this field will be displayed in the Status field in the Information tab of this function for reference.

oCommission

Enter in this field the applicable commission code if you want to grant commission to sales people on sale of this inventory item. Sales of this inventory item sorted by its corresponding commission code are generated through the Commissionable Sales Report in the Accounts Receivable module. The system uses commission codes to summarize commissionable sales, not to calculate actual commissions. You calculate the commissions earned by applying your current commission rates to a salespersons total commissionable sales for each commission code.

oWeight

Enter in this field the per unit weight of this item. The inventory items shipping weight can be used by the system in conjunction with freight codes that apply freight charges by weight. Leave this field blank if you want to apply freight charges based on something other than shipping weight.

oQuantity Decimal

Click the Spinner button beside this field to choose the default decimal places (0-4) that the system will use in quantity values for inventory items of this type. The default value comes from the General tab of the IC Module Setup function. If you enter a number of decimal places other than zero, the decimal point and the decimal places will decrease the space for the whole number portion of the quantity.

You can increase but you cannot decrease the inventory item's quantity decimal place setting once the inventory record is saved.

2.Set up the cost method for this inventory item by clicking the List box button of the Cost Method field that will be used in inventory valuation. You can choose between the Average, FIFO, LIFO, Lot Costing, Specific ID, and Standard methods; however, the LIFO method is unavailable when the Activate IFRS Features checkbox is marked in Company Setup. If the item is serialized, you should choose the Specific ID cost method. The cost method specified in the Inventory Control Module Setup function is the default for new inventory item records. Change the cost method, if necessary.

The item cost method assigned can not be changed once the inventory record is saved.

3.Set up the default applicable cost values of this inventory item by entering values in the following fields:

oCost Base

Enter in this field the item's actual purchase cost.

oCurrent Cost

This read-only field shows the item's unit cost as recorded in the system.

oStandard Cost

Enter in this field the estimated standard cost to sell this item. This standard cost will be used as basis in updating other costs and prices for this item using the Inventory Cost Update function of the Inventory Control module.

You can update this value on a regular basis to reflect current costs. If changes were made to this field and you click the Save button in the function toolbar, AccountMate will verify if the standard cost is greater than zero. If the value in this field is zero when the changes are saved, a message will be displayed asking you to confirm the standard cost; click Yes to save the changes or No to return to the function window and change the standard cost.

oReturn Cost

Enter in the field the estimated default cost of one returned unit from customers that will be added back to inventory. The default per unit cost can be overwritten at the time of the specific return if you determine a more appropriate or accurate cost. This is often hard to do, especially if much time has elapsed, if the original cost was set using LIFO, FIFO or Specific ID, or if the returned units are to be devalued due to their used condition. However, if their condition approximates that of new units, you may want to use the current (weighted) Average Cost per unit as the return cost. You can update the Return Cost on a regular basis to reflect current costs.

4.You may mark or unmark the Use checkbox if you want to configure AccountMate to use the specific cost as follows:

•Average Cost

•Last Received Cost

5.In the Serialized Item area, perform the following:

You can no longer change the setting in the Use Serial # checkbox once you have saved this record.

oUse Serial #

Mark this checkbox if you want to assign a serial number for each unit of this inventory item. This checkbox is automatically marked and disabled if the item cost method selected is Specific ID.

oSerial # Template

You may click the field label to show the Serial # Template for Item [xxx] window where you can define the setting for the serial numbers that will be created for the serialized item. The settings in this template will be used to generate the serial numbers of the completed items using the Post Finished Jobs function in the Manufacturing module.

oPre-assign Serial #

Mark this checkbox if you want to assign serial numbers during receipt of units of this inventory item.

oPrint Serial # on Invoice

This checkbox is enabled if the Use Serial # checkbox is marked. Mark this checkbox to print serial numbers on invoices when units of this item are being billed to your customers.

6.If the Lot Control module is activated, define in the Lot Control area the lot control related settings for this inventory item by marking the following applicable checkbox(es):

You can no longer change the setting in the Use Lot # checkbox once you have saved this record.

oUse Lot #

Mark this checkbox to require lot-production numbers for the units of this inventory item for tracking purposes. A lot number represents the specific lot from which each item comes. For example, lot numbers can be assigned to each batch of processed milk, medicine or computer chips. Lot numbers are very useful in tracking units of a production batch that need to be modified, upgraded or recalled.

oLot # Template

You may click the field label to show the Lot # Template for Item [xxx] window where you can define the setting for the lot numbers that will be created for the lot-controlled item. The settings in this template will be used to generate the lot numbers of the completed items using the Post Finished Jobs function in the Manufacturing module.

oPrint Lot # on Invoice

This field is enabled after marking the Use Lot Control checkbox. This checkbox is marked by default. Leave this checkbox mark if you want to print lot numbers on invoices when units of this item are being billed to your customers.

oCheck Minimum Shelf Life

Marked by default, this checkbox allows you want to define the lot item's shelf life. If this checkbox is marked, be sure to specify the lot item's shelf life in the fields below.

oMinimum Days to Sell

Enter in this field the length of time (in days) the lot-controlled item can be sold. This refers to the number of days the item can be available for sale before it expires. This field is enabled after marking the Check Minimum Shelf Life checkbox.

oMinimum Days to Use

Enter in this field the recommended time (in days) for the lot-controlled item's optimum quality or freshness. This refers to the number of days the manufacturer recommends that the consumer use their product for peak quality. This field is enabled after marking the Check Minimum Shelf Life checkbox.

7.If the Kitting module is activated, define in the Kitting area the kit settings for this inventory item by marking the following applicable checkbox(es):

The settings in this area are grayed out and inaccessible if the Purchase Order checkbox is marked in the Use In area in the Information page. The reason for this is that kit items are not supported in the Purchase Order module.

oKit Item

Mark this checkbox to specify this inventory item as a kit item. Kit items are made up of component items that are stocked and sold separately under their own inventory item numbers. For example, computers, monitors and printers may be stocked and sold separately under their own inventory numbers, but it may be packaged together under another inventory number and sold as a unit.

oRequire Prebuild

This field is enabled after marking the Kit Item checkbox. Mark this checkbox to require building of kit items before shipment to customers; otherwise, you can simultaneously build and ship units of kit items based on the defined kit formula using the Ship Sales Order and Create Invoice functions.

oUse Kit #

This field is enabled after marking the Kit Item checkbox. Mark this checkbox to require assignment of kit numbers when shipping kit items to customers for tracking purposes during creation of transactions.

oNext Kit #

This field is enabled after marking the Use Kit # checkbox. Enter in this field the next number to be assigned to newly built kit items.

oPrint Kit # on Invoice

This field is enabled after marking the Kit Item checkbox. Mark this checkbox to print kit numbers on invoices when units of this item are being billed to your customers.

oCustomizable

Mark this checkbox if you want to customize the kit formulae for kit items when creating sales orders. This checkbox is enabled if the Kit Item checkbox is marked.

oCalculate Price from Components

Mark this checkbox if you want that the price of the kit item is calculated based on the prices of each kit component.

Note: You cannot assign a drop ship warehouse for a kit inventory item (i.e., when the Kit Item checkbox is marked).

8.If you have activated the Inventory Specification module, define in the Inventory Specification area the specification settings for this inventory item by marking the following applicable checkbox(es):

You can no longer change the setting in the Use Specification checkbox once you have saved this record.

oUse Specification

Mark this checkbox to assign specifications for this inventory item. AccountMate only allows you to specify an item specification when setting up a new inventory item record.

oUpsell by Specification

Mark this checkbox if you want to have various sets of upsell items for each specification. This checkbox is enabled only if the Use Specification checkbox is marked.

oSpecification Type 1/2/3/4/5

These fields are enabled after marking the Use Specification checkbox. You can select up to a maximum of five (5) desired specification type(s) for this inventory item. Before you can enter the specification in this field, you must first define the various specifications using the Specification Maintenance function. Refer to the Set Up Specification Types section for a detailed discussion on how to create specifications for inventory items.

Note: You can no longer change the setting and values in the Inventory Specification area once you have saved this record. Thus, you need to completely set up the specification types for this item before you save the inventory item record.

9.Set up in the General area the default general settings for this inventory item in its applicable module transactions by marking the following applicable checkbox(es):

oUpdate On-hand Quantity

Mark this checkbox to automatically update the on-hand quantity of this inventory item when you create a transaction that increases or decreases its on-hand quantity. This option is inaccessible and unmarked if you created a kit item not requiring prebuild. This option is recommended for physical inventory items for automatic updating of on-hand quantities. For a serialized item (i.e., the Specific ID cost method is assigned), it is required to update the on-hand quantity; thus, this checkbox is automatically marked and inaccessible.

Note: It is recommended that you leave the Update On-hand Quantity checkbox unmarked for non-physical items such as charges for services since repeated application to invoices and sales orders will result in a negative quantity.

oCheck on-hand Quantity

Mark this checkbox to verify whether the Available Quantity (On-hand Quantity less the Booked Quantity and Allocated Quantity) sufficiently covers the quantity ordered by or invoiced to customers for this inventory item. If the available quantity is less than the ordered quantity, the system will display a warning message informing you that the inventory item has insufficient quantity. You may suppress this feature if the inventory item is not carried in stock and is obtained only as needed. This option is unmarked and inaccessible if you unmarked the Update On-hand checkbox or created a kit item not requiring prebuild. For a serialized item (i.e., the Specific ID cost method is assigned), it is required to check the on-hand quantity; thus, this checkbox is automatically marked and disabled.

Note: It is recommended that no shipments be made for inventory items with zero on-hand quantities. If the on-hand quantity reaches zero, the cost of additional units shipped will be recorded at the last average per unit cost. When the inventory item quantity increases later due to receipts, replacements or adjustments, the negative quantity and amount resulting from the over shipment will offset against the additions to inventory. The difference between the cost of the items shipped and the subsequent increase in the inventory item quantity is automatically posted to the GL account ID entered in the Cost Variances field in the GL Account Selection Maintenance function. You can generate the Inventory Adjustment Report to view these adjustments.

oAllow Negative On-hand Quantity

Mark this checkbox to allow transactions that result in negative on-hand quantity of this inventory item.

oAllow Negative Price

Mark this checkbox to allow entry of negative prices for this item when entering sales order and other sales transactions for the item. Marking this option allows you to enter line item adjustments to the price of the item on sales orders and other documents (e.g. when the item is on sale at an extra 20% discount to all customers).

oAllow Negative Quantity on Invoice

Mark this checkbox to enter a negative quantity of this item on sales invoices and sales returns. The system will not allow you to enter a negative quantity on a sales order, sales quote or purchase order. Some organizations use this feature to record allowances, exchanges or adjustments. Though you cannot enter a negative price, a negative number of units multiplied by a positive price will equal a negative sales value. This option is inaccessible if you select the Average with SN cost method and/or if you activate the Lot Control and/or Kit Item options in this tab.

Note: The net sales invoice amount should never be negative. On the other hand, the net amount on a sales return is always negative.

oAllow Discard

This option is enabled if the Return Authorization module is installed and activated. Mark this checkbox to allows discarding for returns of this inventory item. If you deactivate this option, you cannot select a return code that includes a Discard Action for this item in the RMA or RTV transaction.

oAllow Repair

This option is enabled if the Return Authorization module is installed and activated. Mark this checkbox to allow repairs for returns of this inventory item. If you do not use this option, you cannot select a return code that includes a Repair Action for this item in the RMA or RTV transaction.

oTaxable

Mark this checkbox to specify the tax status of this inventory item when sold. If you activate this option, the tax rate applied to this item will depend on the tax code assigned to the customers ship to address.

If you do not activate this option or do not mark the Taxable checkbox, the item will not be taxable even if the shipping address has a tax code assigned to it..

oGST Taxable

For companies with Canada country tax, mark this checkbox if you want to apply goods and services tax (GST) to the inventory item; otherwise, leave this unmarked. The default setting comes from the inventory type code entered in the Inventory Type field. You may mark or unmark this checkbox anytime.

oPST Taxable

For companies with Canada country tax, mark this checkbox if you want to apply provincial sales tax (PST) to the inventory item; otherwise, leave this checkbox unmarked. The default setting comes from the inventory type code entered in the Inventory Type field. You may mark or unmark this checkbox anytime.

10.Specify in the Allow Overwrite area whether to allow authorized users in overwriting certain applicable field values when creating sales invoices, sales quotes, sales orders, purchase orders and purchase quotes by marking the appropriate checkbox(es):

oDescription

Mark this checkbox to allow customization of item description when creating sales invoices, sales orders/quotes and purchase orders/quotes.

oPrice

Mark this checkbox to allow changing of inventory items price when creating sales invoices, quotes and orders.

oDiscount %

Mark this checkbox to amend the discount percentage rate of an item when creating sales invoices, sales order/quotes.

Note: When recording purchase order transactions, you can overwrite the purchase discount regardless of whether this option is marked.

oTax Status

Mark this checkbox to amend an inventory items tax status when creating sales invoices, quotes and orders to meet certain conditions of specific customers.

oWeight

Mark this checkbox to amend the shipping weight of this inventory item when creating sales invoices, sales orders/quotes to correct the weight when packaging combinations of items or using different packaging materials creates an unusual weight. Changing the items weight on transaction records will not affect this record. This weight value is used by the system in calculating freight charges when shipping to customers, in conjunction with the freight codes that apply freight charges by shipping weight.

oRevenue Code

Mark this checkbox to amend the revenue code of this inventory item when creating sales invoices, sales orders/quotes.

oCommission

Mark this checkbox to amend the commission code for this inventory item when creating sales order or sales invoice for this item.

Note: You can set up password authorizations to control the users in overwriting the setup in this area by marking the View Only option in the Inventory Settings in the Group Access Rights Setup function of the System Administrator module.

Q. Why does the system show the quantities of some inventory items in whole numbers and others in decimal places?

A. The number of decimal places for each inventory item's quantities depends upon the decimal place settings defined in the Quantity Decimals field in the Settings Page of the Inventory Maintenance function.

Q. I want to create a record for a lot-controlled item but the Lot Control area in the Settings tab of the Inventory Maintenance function is disabled. How can I resolve this?

A. Verify that the "Activate Lot Control" checkbox is marked in the IC Module Setup function.

Q. I'm adding a new item in Inventory Maintenance but I don't seem to be able to change the Cost Method while I'm in the Information Tab. How can I change it and also have it default to Average Cost method when I'm adding a new inventory item in the future?

A. You can change the Cost Method of a new inventory item in the Settings Tab. You can set the default Cost Method to Average in the General Information page of the IC Module Setup; however, you must exit AccountMate after setting the default in order for it to take effect.