MV Software Knowledge Bas…  Modules»Inventory Control»Task 01 - Add New Items
  
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Last modified on 10/8/2015 10:08 AM by User.

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Task 01 - Add New Items

For the first time creating new items see document Inventory Setup - Basic Information.

Note: The number given in parentheses is the number of characters allowed on the line.

FIRST SCREEN: 

01. Item # : (18) The pattern of the item numbers should have already been decided. The computer will automatically insert a dash after the first three digits. (Note the asterisk preceding the 01 at the start of this line. This indicates that it is a"key" field, which is used for searching for and sorting this record. It also means that once this record has been entered, you cannot come back to this field and change it. The only way to make a correction to this field is to delete the record and re-enter it.

02. Description: (30) The description should be in all capital letters. The pattern of the descriptions should already have been decided.

03. Item G/L # : (5) Item General ledger number.

  • Press the TAB key to search for the inventory G/L # by description.
  • The inventory G/L #'s start with a 1.
  • Type in the first 5 digits of the G/L #.
  • There are Inventory Value reports that can be printed by G/L #.
  • When an item is bought through the Purchase Order module it will pick up the G/L # and the cost from the Item Master file.
  • When the A/P to G/L Interface is brought over to the GL Module from the AP Module, there will be an automatic debit to the inventory G/L #, and a credit to the A/P G/L #.
    • Example: Item #: ALV-106C is bought. The GL# assigned to the item is 143-00 (INV - DRAFTING) and the cost is $6.75. The GL entry is: Debit INV - DRAFTING #143-00-01 for $6.75 and Credit A/P #343-00 for $6.75
  • When the A/R to G/L Interface is brought over to the G/L Module from the AR module, a couple of debit and credit entries are made.
    • Example: Item #ALV-106C is sold to the customer for #12.00. When sold in OE, the item will pick up a G/L #, the price charged to the customer, and the cost from the Item Master File. The GL entry is: Debit A/R #143-00-01 for $12.00; Credit SALES - DRAFTING #543-00-01 for $12.00; Debit COST - DRAFTING #643-00-01 for $6.75 and Credit INV - DRAFTING #143-00-01 for $6.75
      • The first number of the G/L # will automatically be changed from a 1 to a 5, therefore, GL 543-00 will be used, not 143-00.
      • When the A/R to G/L Interface is brought over to the G/L module it also changes the first # of the item G/L # from a 1 to a 6, therefore, GL 643-00 is also used, not 143-00.
  • An I/C parameter ASK’OTH’ACT=Y/N determines if the system will ask for Other G/L #.

04. Sell by : (2) At this field, a box will appear on the right displaying the table that has been set up for sell by units (each, sheet, pack, set, pint, etc.). Type in the number corresponding to the proper label.

05. Stock by : (2) At this field, a box will appear on the right displaying the table that has been set up for stock by units (case, box, roll, ream, etc.). Type in the number corresponding to the proper label.

06. Master units: (8) How many "sell by" units are in a "stock by" unit.  See document     Sell-by, Stock-by and Buy-by.

07. Avg. cost : (8) True weighted average.

  • A highlighted prompt appears at the bottom of the screen, press the F2 key to set the number of decimal places for all dollar amounts on the screen for this item. The decimal accuracy may be set from 2 to 6.
  • Type in an average cost.
  • Cost and prices are based on “stock-by” units.
    • If field 4 Sell by is sold by the “Each”, field 5 Stock by is the “Box” & field 6 Master units is24 “master units” in a box, the cost is for the box not the “Each”.  See document Sell-by, Stock-by and Buy-by.
  • The field is automatically calculated and updated when a voucher is processed in the P/O module.  See document Average Cost Calculation.
  • The computer takes the Total Value of the item and divides it by the quantity on hand.
    • When vouchered in the P/O module, the total $ of what was just bought is added to the old total value, to produce a new Total Value.
    • The quantity just bought is added to the old quantity on hand, to get the new quantity on hand.
    • Then the new total value is divided by the new quantity on hand to get new the average cost.

08. Last Cost : (8) A parameter in the P/O module determines if this is automatically updated when vouchered in the P/O module. 

09. Other Cost : (8) Tire dealers use this for federal excise tax. The Other Cost is passed through to the customer when selling the item in O/E. EXAMPLE: The selling price of the item is $10.00, and there is an Other Cost of $1.00. The customer will get charged $11.00. An O/P parameter DFLT’CST’FLG=A/L/a determines how the other cost is handled in order entry.

10. Freight : (8) This is not updated automatically. If a bill is vouchered and it has a freight charge on it, this does not update the freight in the item master file. That must be updated manually.

  • NOTE: The calculation for setting retail prices for any of your price levels may be done using one of three methods: (1) using last cost added to freight first, with the sum then multiplied by markup; (2) by using cost times markup, with freight then added to the product; or (3) by using cost times markup without freight being included at all--depending on whether the I/C - General parameter MARKUP'METHOD is set = to 1, 2, or 0, respectively.

11. through 19. Price 1 - 9 : (8) The prices entered are based on what was entered in line 05: Stock by.

  • When this item is sold through O/E, the price will automatically default to "Sell by", using the Master units in line 06 to determine how to calculate Sell by from Stock by. If an item is to be sold by the "Stock by" price in O/E, then to press the TAB key in O/E to toggle the pricing method from Sell by to Stock by.
  • Price 1 should be the most expensive selling price for this item.
  • At lines 11-19, use the F1 key to calculate a price based on what was entered for a percentage of profit margin that should be built into the selling price. Do not use decimals. Example: Enter 1025 for 10.25%.
  • At lines 11-19, use the F3 key to calculate a price based on what was entered for a percentage of markup over the average cost. Do not use decimals. Example: Enter 1025 for 10.25%
  • At lines 12-19, use the F2 key to calculate a price based on what was entered for a percentage of discount from Price 1. Do not use decimals. Exanple: Enter 1025 for 10.25%.
  • You do not have to use all of the price levels. The last unused price levels may be left at 0. Just press ENTER and 0 will be entered automatically.

EXAMPLE:

Price level 1 Suggested retail - $100.00

Price level 2 Dealer 5% disc off retail - 95.00

Price level 3 Fleet 8% disc off retail - 92.00

Price level 4 Wholesale 10% disc off retail - 90.00

Price level 5 Manufacturer 30% profit - 71.42

Price level 6 Special 30% markup - 65.00

Price level 7 Cost 0% profit - 50.00

Price level 8 unused 0

Price level 9 unused 0

  • Next to each price level the computer will show the following:
    • The actual percentage of profit right now. Shows the actual percentage of profit currently compared to the profit required when price was last changed.
    • The percentage of profit that was required when the item prices were last changed. This way when the cost changes, the profit margin originally wanted shows. The prices may be changed back to the original profit margin manually here, or reset them automatically for a number of items selected by various ranges in I/C Task #4.
    • The percentage of discount off of Price 1.
    • The percentage of markup over Last cost.
    • The dollar amount of profit margin in the selling price.

 

SECOND SCREEN

20. Taxable : (1) When the cursor is on this line, the Tax table appears. The only code on the table that is taxable is "T". The other codes are used to indicate the reason for tax exemption.

  • Select a valid code from this table. Invalid entries will not be accepted.
  • Most material items are taxable. It is the customers in A/R that might have a tax status of R for Resale, or G for Government, etc.
  • The item itself may normally be taxable, but if the customer is tax exempt, then tax will not be charged on an order for that customer.

21. Item Type : (1) Material/Labor/Rent/Hold/Discontinued

  • M-Material: when material items are posted, they are posted to the Item Master, the Supplier Master, and the Warehouse Master files.
  • L-Labor: this posts only to the Item Master file.
  • R-Rent: not normally used.
  • H-Hold: cannot sell.
  • D-Discontinued: cannot sell or order

22. Input format: (1) Number of decimals places in input. 0=even units. 1=x.x. 2=x.xx.

  • Most material items are input in even units, but labor items might be expressed in hours and decimal parts of an hour. Example: For work that takes 1 hour and 15 minutes, to allow an input of 1.25 on the line items of sales orders, enter a 2 on line 22.

23. Product Code: (1) This table should already be built and should appear on the screen when the cursor comes to this field - see document Product Code and Report Class Setup and Reports on this topic.

24. Report Class: (2) This table should already be build and should appear on the screen when the cursor comes to this field - see document Product Code and Report Class Setup and Reports on this topic.

25. Serialized ?: (1) Y=Yes, N=No. Putting a Y here will cause entry of a serial number to be required when selling this item

  • Terminals, computers, plotters, and other equipment may have serial numbers that need to be kept track of.
  • When a serialized item is bought, there MUST be a receiver in the P/O module. This is the only place in the P/O module that asks for a serial number (if the item is serialized.) 

Serialized Items have status codes that are automatically used by the system when a serialized items are used throughout the system. There are standard/required codes that can not be changed, but other codes may be added as optional codes. See Serialized Item Status Code setup in Inventory (Module 5), System Management Functions (Task 32), Modify Application Tables (Sub-task 17) and Serialized Item Status Code (Option 1). The required codes are:

  • "A" , "Available for sale"
  • "R" , "Reserved"
  • "S" , "Sold"
  • "C" , "Credit - sent back"

When received the serialized item automatically is assigned a status code of A.

When placed on an open order the serialized item status changes from A to R.

When sold the serial # item status is changed to S.

If a customer returns a serial # item the status is changed back to A.

If a serial # item is sent back to the vendor the status is changed to a C.

Note: The system will not allow the sale of a serial # item that doesn't have a status of A.

In O/E, press the TAB key for a list of Available serial numbers.

 If necessary, changes to the status of a serialized number item can be done in:

  • Inventory (Module 5)
    • Serialized Item Master (Task 20)
      • Change Existing Serial Record ( Sub-task 2)

26. Dimensional?: (1) A table will display when the cursor comes to this field. Note: The descriptions can be customized in this table, but the meaning of the codes must not be altered. See document Dimensional Types for complete explanation of each dimensional type and discounting of each type. A typical table setup might be:

N : Non-dimensional

R : Repro-no quantity

C : Color copy pricing

D : Sets/Orig/Width/Ht

E: Print size$, PP disc

F : Sets/Orig/Sq. ft.

L : Linear / UI (Width + Height)

M: Meter billing/LCU

O : Copies/Originals

P : Perimeter (Width + Height)x2

Q: Copy/Orig 2-dim disc

S : Square (Width x Height)

T : Plot(S/O/W/H/X-disc)

X : Bond copies

Y: Copy disc (S/O/W/H)

Z: Print size$, TS disc

d: ½ Sets/Org/Width/Ht

f: ½ Sets/Orig/Size

e: ½ Print sz$, PPdsc

z: ½ Print sz$, TSdsc

t: ½ Plot (SOWH), X dsc

y: ½ Copy disc (SOWH)

 

  • If an item is dimensional, then certain questions will be asked in order entry that otherwise would not be asked.
  • Example: S for Square - the system will prompt for length and width (or width and height) when entering a line item in O/E.
  • In the item master file it must be specified how the item is sold, i.e. each, box, case. For something like flat glass, the "sell by" might be Square inch.
  • Also, it must be specified in the item master file how each item is stocked. For something like flat glass, the "stock by" might be Square foot, therefore in this case the Master Units would be 144 - the number of sq. inches in a sq. foot.
  • Set the O/E - General parameter DIM'HALF to allow rounding to the nearest half square foot, rather than the normal whole square foot.
  • Also, set the O/E - General parameter DIM'FRACT so the calculation will either round up (standard), or round to the nearest number.
  • If the dimensions are not entered in as an even number, they are rounded up to the next even inch.

O for Copies/Originals. This is used primarily in the reprographic and photographic industries.

  • In O/E the system will ask for the number of copies and then the number of originals. These will be multiplied together.(There is a parameter setting available to ask for number of original first, then copies)
  • This product will then be multiplied by the price to come up with an extended line item price.
  • Example:
    • A customer comes in with a 20-page catalog and wants 50 copies. So that is 20 originals and 50 sets.
    • The computer multiplies 20 x 50 = 1000 copies.
    • The price is $.15 each x 1000 = $150.00 extended total.

D for Sets/Orig/Width/Ht. This is used primarily by the reprographic industry for Bluelining.

  • In O/E the computer will ask for the input the number of sets, then the number of originals, then the width in inches, then the height in inches.
  • This is very similar to the previous code F, except the system prompts for width and height instead of size.
  • The computer will multiply sets by originals.
  • The computer will also multiply the width by the height, and then will divide that product by 144 to get the square feet.
  • Then the product of the sets times originals is multiplied by the square footage.
  • Example:
    • A customer comes in with 5 originals and wants 10 sets made.
    • The computer will multiply 5 x 10 = 50 copies.
    • The size of the originals are width 36 inches and height 48 inches.
    • The computer will multiply 36 x 48 = 1728, then divide 1728 by 144 to get a dividend of 12 square feet.
    • Next, the 50 copies are multiplied by 12 square feet, for a product of 600.
    • Now the 600 will be multiplied by the price per square foot. If the price is $0.018 per square foot, then the extended price for that line item is $10.80.
    • Note: If the width or the height has any decimal places, then this decimal accuracy will be used throughout the calculation.
    • Final rounding off will occur when figuring out the square feet, to the number of decimal accuracy of the input for width and height.
      • If 12.25 inches by 14 inches are used, that would be:  12.45 x 12.00 = 149.40 / 144 = 1.0375. The last value would be rounded to 1.04.
      • Square feet Total Copies Total 1.04 x 500 = 520.00
      • Total Price Extended price for line item 520.00 x $ .018 = $9.36

 

27. Net Priced ?: (1) Y=Yes, N=No, or C=Calculate cost. A net priced item is priced so that it already has a discount built into the selling price.

  • If Y for yes is answered, then you will not be allowed to type in a line item discount when selling the item in O/E. Also the Quantity Discount Tables cannot be used.
  • C for Calculate cost is used if there are many small items of a similar type, and you do not want to create item #'s for each one of them.
    • If C is entered here, then the item # itself is used to calculate the cost of the item. The first three digits after the first hyphen are used for this. They are taken as a number and divided by 100, to get a percentage. The selling price will be multiplied by this percentage to calculate the cost.
    • If C is used, then the 9 price levels would all have to be zero. This way when the item is sold in O/E, a selling price must be entered.
    • Example: If the item # is 100-070, then the selling price entered for the line item in O/E will be multiplied by 70% to come up with a cost. Therefore, if the item is sold for $10.00, then the cost would be $7.00.
    • Note that with three digits, the cost can be greater than the selling price (meaning the item is sold at a loss, perhaps as a promotional "loss-leader").

28. Quan Table: (9) The quantity discount table should have already been built for this item.  See document Price Based on Quantity Discount Tables.

  • There are 9 digits to type in. Each digit stands for a different price level.
  • If there is an A in the first position, any customer that has price level 1 (for the same product code as this item), will get quantity discount table A.
  • If there is a C in the second position, any customer that has price level 2 (for the same product code as this item), will get quantity discount table C.

 

29. Ship weight: (6) Ship weight per item “stock” unit (to 1 decimal, ie for 12.5 enter 125)

30. Item weight: (6) Product weight per item "stock by" unit (w/o packaging). Enter decimal as needed.

31. Print labels: (1) N for None, O (letter O) for One per shipment, and E for Each.

  • Labels may be printed for this item when the purchase order is entered or the item is received in the P/O module. The labels may have the item #, description and standard price printed. (You may discuss what you want printed on the labels with M V Software.)
  • 10 of this item is received, but only ONE label is needed to put on the box. Enter the letter O.
  • 10 of this item is received, and a separate label is needed for EACH of the 10 items. Enter the letter E. 

32. Price code: (5) User defined heading by inventory control parameter SPC’CAT’TTL=xxxx. Used for special pricing categories for customer contract pricing. Special categories application table used in this field.

33. XXX code: (2) User defined heading by inventory control parameter PROMPT’ABC=XX. Inventory classification application table used in this field.  Used for reporting.  Used in supplier file also. 

34. Barcode #: (18) May be unused. Check with MV Software if barcode printing is needed. This can be either UPC code or an alternate item number.

  • NOTE: Barcodes can only be used if the flag "A" is included in the Program code inclusion table (see Software Maintenance module, Task 32, Sub-task 17, Option 2), and the "Add Item" to inventory program has been compiled with this flag in the table.
  • Some wholesale clients have their own item #'s. and some of their customers use an industry catalog for their item #'s.
    • The catalog item # is entered in the Bar Code field. 
    • In O/E, when the catalog item # is entered, the computer will translate it to the clients item #.

 

THIRD SCREEN:

 

35. Warehouse #: (6) This field defaults to an Inventory control parameter DFLT'WHS'NUM=03.  Will create wareshouses 1-3 if the parameter is set to =3. Will create warehouse numbers 1-9 if the parameter is set to =9.

36. Qty on hand : (6) Numeric. The quantity on hand may be entered or this field may be left blank and when a physical inventory is done at a later date, the quantity entered.  See document Physical Inventory for complete instructions.

32. Pick Seq : (6) Alphanumeric. Picking sequence is user-defined, this field can be used to indicate the location of this item in the warehouse.

  • Examples: 22A13 for row 22, shelf A, column 13; S1R3C1 for Section 1, Row 3, Column 1
  • Items selected for a physical inventory count can be by picking sequence.
    • In O/E, the action of "Pick Ticket" can be selected, and the items on the order will print in picking sequence order. 

 

Note: fields 38 through 43 are used in the P/O module, in Task 8: Stock reordering.

38. Season start: (2) The # of the month that the busy season starts for this item. Enter by month. If non-seasonal, put in 1.

39. Season ends : (2) The # of the month that the busy season ends for this item. If non-seasonal, put in 12.

40. On sea max : (10) The maximum quantity wanted on hand during the busy season. This is used in P/O to calculate order quantity.

41. On sea min : (10) The minimum quantity wanted on hand during the busy season. This triggers reorders in P/O.

42. Off sea max : (10) The maximum quantity wanted on hand during the slow season. This is used in P/O to calculate order quantity.

43. Off sea min : (10) The minimum quantity wanted on hand during the slow season. This triggers reorders in P/O.

**Information about re-ordering using fields 38 - 43:

See documents:

Task 08 – Purchase order for restocking – Sub-Task 1 BLDRSO

 

 Task 08 – Purchase order for restocking – Sub-Task 2 RSOENT

 

 Task 08 – Purchase order for restocking – Sub-Task 3 RSOLST

 

 Task 08 – Purchase order for restocking – Sub-Task 4 RSORPT

 

 Task 08 – Purchase order for restocking – Sub-Task 5 GENPOR

  • If the quantity available of an item falls below the minimum, then this will be noted on the Stock Reorder Report.
  • The Stock Reorder Report subtracts the quantity committed and backordered to customers from the quantity on hand, to determine the quantity available.
  • The Stock Reorder Report shows the minimum quantity level.
  • It also uses the quantity available and calculates a suggested reorder level to bring inventory up to the maximum on hand quantity specified for this item and season.
  • Example:
    • Boxes of Christmas scenes stationery is the item.
    • The season start month is 10, for October.
    • The season end month is 12, for December.
    • The on season maximum is 20, and minimum is 5.
    • The off season maximum is 5, and minimum is 1.
    • During the month of November the manager prints a Stock Reorder Report.
    • At the time that the report is printed, the quantity on hand is 4, committed is 4 and back ordered is 2. This makes the availability -2.
      • The stock reorder report will have a suggested reorder quantity of 22, (2 to fill the backorder, and 20 to bring the on-hand up to the maximum desired quantity of 20).

 

NOTE: If fields 44 through 54 are not used, press enter key to pass all of them.  Fields 44 through 54 may be used in Inventory control (Module 5), Inventory tracking (Task 7).

 44. Stock area: (1) Inventory Stock area attribute. User defined. An inventory control parameter is used in this field for the header PROMPT’STK’ATR=Stock area.  This may be used to say the item is, i.e. F-Freezer, R-Refrigerated, P-Produce, C-Canned, D-Dried, S-Supplies.

45. Prod expires: (1) Y/N Ask the expiration date when receiving for use in inventory/warehouse tracking.

46. Stock length: (8) Length of one stock unit in inches

47. Stock width: (8) Width of one stock unit in inches

48. Stock height: (8) Height of one stock unit in inches

49. Cubes: (8) Per item “stock” unit (to 4 decimals, ie for .1250 enter 1250). An inventory control parameter is used for this heading PROMPT’CUBES=Cubes.  

50. Qty / layer: (4) Number of “stock” units per layer

51. Qty / pallet: (7) Number of “stock” units per pallet

52. Sell / length: (4) Number of “Sell-by” units per length of one stock unit

53. Sell / width: (2) Number of “sell-by” units per width of one stock unit

54. Sell / height: (4) Number of “sell-by” unites per height of one stock unit

NOTE: Fields 46 through 54 are used in moving inventory.

 

FOURTH SCREEN:

Note: This information on this screen is posted to the Supplier Master File. You will be able to post other Vendors for this item at a later time, in Task #2: Add New Item Suppliers.

Note: If this is a labor item, then this screen will be skipped.

55. Vendor # : (5) This is the A/P vendor #. This should be the vendor from which this item is purchased most of the time. Press the TAB key to search by vendor name.

56. Ven Stock # : (18) This vendor's stock # for this item. The #'s after the prefix in the item # will default.

 

  • In the P/O module if a period (.) is typed in followed by the suppliers stock # it will transfer it to your item #.

  • The printout of the P/O prints the suppliers stock # and the description of the item #. The "Receiver Work Sheet" prints your item #.

 

57. Vendor class: (1) Inventory classification codes.  This field uses an application table.

58. Vendor ABC: (2) Inventory classification codes. This field uses an application table.

59. Lead time : (4) The # of days it takes to receive this item from this vendor.

60. Min ord qty : (5) Minimum quantity vendor will ship.

 

  • The number should be stated in "Sell by" units.

  • This will appear on the bottom of the screen when adding this item on a P/O.

  • The computer will also use this to calculate the suggested order quantity on the stock reorder report

 

61. Purchase agt: (4) Use Tab key for name search. The purchase agents are setup in the order processing module (6), Salesperson/Technician file (Task 20). Only if different from the purchase agent in the A/P, Vendor master.

62. Buy by : (2) How the vendor wants this item purchased. The units table will appear on the screen, select a unit from the table. 

63. Buy Factor : (9) This is the # of "Stock By" units in a "Buy by" unit.

NOTE: An item can have three different units: the "Sell by", "Stock by" and "Buy by".   

·       See the document Sell-by, Stock-by and Buy-by.

  • An item can be sold by the "each", stocked by the "dozen", and bought by the "case".
  • Example:
    • The "Master units" for a dozen is 12.
    • If there are 2 dozen in a case, the "Buy factor" is 2. 
    • An item can be bought by the "Sell by" unit, the "Stock by" unit, or the "Buy by" unit.
  • In P/O entry, press the TAB key when the cursor is at the quantity field and the units will change.
  • In P/O entry, when the cursor is at the quantity field, the units show at the bottom of the screen, and there is an asterisk next to the unit that is being bought. 

64. Quoted Price: (8) This is a special price quoted by the vendor.

  • There is a parameter in the I/C - General initialization parameter file that determines if the quoted supplier prices are going to be used. See I/C Module, System Management Functions (Task 32), Modify Parameter Files (Sub-task 22), I/C General (Option 1), "USE'QUOTE" (Set =Y or =N).
  • When entering a P/O, if the quoted price is being used, the quoted price will automatically be taken from the supplier file.
  • The quotes prices are not automatically updated.
  • Example:
    • An item may be stocked by the each and price is $.10 a piece. The supplier may have quoted a special price of $85.00 per thousand.

65. Quoted by : (2) The units table will appear on the screen. Select one of the units from the table.

  • The quoted price may be for a special quantity (such as 1000 - see example above).

66. Quote Factor: (9) This is the number of "Quote by" units in a "Stock by" unit.

  • An item may be stocked by the each. The quoted price may be for 1000. The quoted factor in this case would be .001. (There is .001 in an each.)

 

 AFTER ITEMS HAVE BEEN ENTERED, THEY NEED TO BE "POSTED". FOLLOW THE INSTRUCTIONS BELOW:

  • Inventory (Module 5)
    • Add New Items (Task 1)
      • Post Items to I/C Files (Sub-task 5)

When items are posted through sub-task 5, the following occurs:

  1. Information on the first screen of Add new items (Task 1), Enter (ADD) New Items (Sub-task 1), is posted to: Item Master (Task 17).
  2. Information on the second screen of Add new items (Task 1), Enter (ADD) New items (Sub-task 1), is posted to: Item Master (Task 17). 
  3. Information on the third screen, fields 35 through 43 are all posted to the warehouse master (Task 19).  Fields 44 through 54 are all posted to the Item Master (Task 17).  
  4. Information on the fourth screen, is posted to: Supplier Master (Task 18).