Product
This is a unique product code. It can be up to fifteen characters long. Once this code has been assigned to a particular inventory product, it cannot be used for any other inventory product. This code is used whenever a transaction involving an inventory product is entered. Input to this field is required.
Product Description
This is the descriptive name of the product. It can be up to 35 characters long and 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. When a report is printed, the inventory items are listed by category. A partial inventory listing can be obtained by selecting the category of the items to be printed. The category name or code can be up to ten characters long.
Cost of Goods Sold Account
This is the general ledger account to be used for cost of goods sold. The cost of the inventory item is posted to this account when it is sold. If a valid general ledger account is entered, the descriptive name is displayed in the field to the right after pressing a key that moves the cursor out of the field (RETURN, Down Arrow, etc.).
Input to this field is required.
If you cannot remember the general ledger account for cost of goods sold, 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 then the E key to redisplay the inventory screen with the Cost of Goods Sold account filled in.
GL Controlling Account
This is the general ledger inventory account used to create the inventory subsidiary ledger. Because this account is specified for each inventory item, multiple controlling accounts are permitted. If a valid general ledger account is entered, the descriptive name of the account is displayed in the field to the right after pressing a key that moves the cursor out of the field (RETURN, Down Arrow, etc.). Input to this field is required.
If you cannot remember the general ledger account for inventory, 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 GL Controlling account filled in.
Sales Account
This is the general ledger account used to accrue sales revenue. Since this account is specified for each inventory item, multiple sales accounts are permitted. If a valid general ledger account is entered, the descriptive name of the account is displayed in the field to the right after pressing a key that moves the cursor out of the field (RETURN, Down Arrow, etc.). 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 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 then the E key to redisplay the inventory screen with the Sales account filled in.
Unit Cost
This field represents the average unit cost of the item. The amount in this field is calculated when the process Reprice Inventory Using Margins is run. The reprice process rounds any amount over nine cents to the nearest penny. This is a display only field.
Qty on Hand
This field is automatically updated every time the quantity of the inventory product is increased or decreased. For example, if a voucher for 100 units of the inventory product is entered, 100 units are added to to this field. When an invoice for 50 units of product is entered, this field is decreased by 50. This is a display only field.
Outstanding Orders
This field represents the number of units ordered 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 or, when an order is cancelled.
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
This field is automatically updated each time the quantity of the inventory product is increased or decreased. The value reflects the current value of the inventory of this product. It will not always equal the Unit Cost field times the Quantity on Hand field. This is a display only field.
Reorder Point
This field is used in printing 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 the Qty on Hand field is less than or equal to the amount in the Reorder Point field.
The amount in the Qty on Hand is less than or equal to sum of the amounts in the Outstanding Orders and Qty Committed fields.
Order Quantity
Enter the quantity of the item to order. This quantity also appears on the Reorder Report.
Pricing Structure
This field describes how this product is priced. There are three different categories of price structures that can be entered 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 entered into the Price field on this screen. The margin for this product is entered on this screen in the Margin field.
A customer price structure means the price is based on the type of customer pur-chasing the product. Examples of types of customers are: retail, wholesale, and discount. The customers type is stored in the Customer Master file. It is entered into 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 entered on the next screen, the price screen. The Price and Margin fields on this screen should be zero or left blank.
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 entered on the next screen, the price screen. The Price and Margin fields on this screen should be either zero or left blank.
Margin
This is the percentage of the price that becomes gross profit. For example, if the price of an item is $2.00 and the margin is 50%, the gross profit is $1.00. This Margin field should only be filled in if the price structure is none. The margin percentages for customer and quantity price structures are entered on the next screen. Input to this field is optional.
This field is used to recalculate the price during the repricing process: Reprice Inventory Using Margins.
Price
The price entered here appears as the default price for this product when an order or invoice is entered. This field should be zero or left blank if the price structure is either customer or quantity. The price for either of these price structures is entered on the next screen. Input to this field is optional.
The reprice process, Reprice Inventory using Margins, automatically calculates the price using the percentage entered into the Margin field.
Discount?
Enter a y or Y for yes if a customer can get a customer discount on this product. The default 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. What is entered here is used as the default value for the Tax field on the Order and Invoice screens. 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.
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 price structure of either customer or quantity, press the NEXT <F7> button to display the price screen.
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. All reordered products with the same vendor and receiving location code are combined into one purchase order. If all products are received at a central receiving station, this field can be left blank.
The location code entered is validated against entries in the Company Receiving Addresses master file. This file is maintained through the Company Receiving Address and the Alternate Receiving Addresses selections on the Select, Purchase Order menu.