8.2 Field Descriptions

Product

This is a unique code which identifies the product. Since this is the primary key for inventory records, pressing the QUERY button <F2>, entering the product code in this field, and then pressing the FIND button <F3> is a fast way to locate the desired record. Input to this field is required.

Product Description

This is the descriptive name of the product. It appears on orders, invoices, statements, and reports. Input to this field is required.

Category

This field is used to organize the inventory items into groups. The category is useful when searching for a product code. QUERY by category and then press the FIND NEXT <F3> button until the item is located. Input to this field is required.

Cost of Goods Sold Account

This is the general ledger account: Cost of Goods Sold. The cost of the inventory item is posted to this account when it is sold. Input to this field is required.

If you cannot remember the general ledger account for the Cost of Goods Sold account, a second screen is provided for searching the general ledger account file. The screen is displayed by pressing the validate key sequence GOLD <F1> and then the V key. This allows you to QUERY and FIND the desired general ledger account. After the general ledger account has been found, press GOLD <F1> and the E key to redisplay the Inventory screen with the Cost of Goods Sold account filled in.

GL Controlling Account

This is a general ledger account. The inventory controlling account holds the total cost of all inventory items. Multiple controlling inventory accounts are allowed. Each product is assigned a controlling account, allowing you group products by account and category. Input to this field is required.

If you cannot remember the general ledger account, a second screen is provided for searching the general ledger account file. The screen is displayed by pressing the validate key sequence GOLD <F1> and then the letter V. This allows you to QUERY and FIND the desired general ledger account number. After the general ledger account has been found, press GOLD <F1> and then the letter E to redisplay the Inventory screen with GL Controlling Account filled in.

Sales Account

This is the revenue account to which the sale of this item is credited. Input to this field is required.

If you cannot remember the general ledger account for sales, a second screen is provided for searching the general ledger account file. The screen is displayed by pressing the validate key sequence GOLD <F1> and then the letter V. This allows you to QUERY and FIND the desired general ledger account number. After the general ledger account has been found, press GOLD <F1> and then the letter E to redisplay the Inventory screen with the Sales Account filled in.

Unit Cost

This is the average unit cost of the product. This is a display only field. The amount in this field is calculated when the reprice process in the Inventory Control System is run.

Qty on Hand

This field is automatically adjusted every time the quantity of the product is increased or decreased. For example, if a voucher for 100 units of the inventory product is entered, 100 units are added to this field. This is a display only field.

Outstanding Orders

This field represents the number of units ordered by customers but not yet shipped. This includes orders entered for future shipment. This field is increased when an order for the product is entered. It is decreased when a packing slip is created for the product.

Qty Committed

Product is considered committed once a packing slip has been created for it. This field is decreased when the order for the product has been shipped and billed.

Value

The amount here reflects the current value of the units on hand. This field is updated each time the quantity on hand is changed. This is a display only field.

Reorder Point

This field is used in creating the Reorder Report. The report shows that the product should be reordered if one or more of the following situations is true:

The amount in Qty on Hand field is less than or equal to the quantity in the Reorder Point field.

The amount in the Qty on Hand field is less than or equal to the amount in the Outstanding Orders field.

The amount in Qty on Hand field is less than or equal to the sum of the amounts in the Outstanding Orders and the Qty Committed fields. The default value for this field is zero. Input to this field is optional.

Order Quantity

This is the quantity of the item that should be ordered when the reorder point is reached. Input to this field is optional.

Pricing Structure

This field describes how this product is priced. There are three different categories of price structures that can be displayed here: none, customer, or quantity. Input to this field is required.

None means that there is just one price for the product. When the price structure is none, the price for the product is displayed in the Price field on this screen. The margin for this product is displayed on this screen in the Margin field.

A customer price structure means, the price is based on the type of customer who is purchasing the product. Examples of types of customers are "retail" and "wholesale". The customers type is stored in the Customer master file. It is entered in the Codes field on the customer screen. The customer screen can be accessed through either the Order Entry System or the Accounts Receivable System. If a product has a customer price structure, the prices and margins for the product are displayed on the next screen: the Price Structure Screen. The Price and Margin fields on this screen should be zero.

A quantity price structure means that the price depends on the number of units purchased. If a product has a quantity price structure, the prices and margins for the product are displayed on the next screen: the Price Structure Screen. The Price and Margin fields on this screen should be zero.

Margin

This is the percentage of the selling price that becomes gross profit. For example, if the selling price of an item is $2.00 and the margin is 50%, the gross profit is $1.00. This field should be zero if the pricing structure is either customer or quantity. The margin for either of these pricing structures is displayed on the next screen. Input to this field is optional.

Price

The price entered here appears as the default price for this product when an order is entered. This field should be zero if the pricing structure is either customer or quantity. The price for either of these pricing structures is displayed on the next screen. Input to this field is optional.

The reprice process in the Inventory Control System automatically calculates the price using both the percentage entered into the Margin field and the unit cost.

Discount?

Enter a y or Y for yes if a customer can get a trade discount on this product. The trade discount rate for a customer is stored in the Customer master file. The default value for this field is no. Input to this field is optional.

Taxable?

Enter a y or Y for yes if the product is taxable. The default value for this field is no. Input to this field is optional.

Commission?

Enter y or Y for yes if the sales reps can earn commission on this product. The default value for this field is no. Input to this field is optional.

Location Code

This field is used with the Purchase Order System. The Purchase Order System allows multiple receiving points for a company. Often inventory products are received at only one of these multiple points. When this is the case, the receiving location can be entered in this field. Input to this field is optional.

If you are in the ADD mode, press the STORE <F5> button after you have entered the data. If the price structure is either customer or quantity, the pricing screen is displayed. If you are examining or updating a product with a pricing structure of either customer or quantity press the NEXT <F7> button to display the Price Structure Screen.