81204-01 Manage Products and Services

Item Groups

Each Product is configured with various options and parameters we will look in details with Q & A session type.

Grouping of similar items financially with ledger transaction related to cycles of purchase Order, Sales Order, Production Order and Inventory transactions

Path: Inventory Management->Setup->Inventory->Item Groups

Adding new category is defaults some accounts based on default postings (Path: Inventory Management->Setup->Posting->Posting)

Without this setup transaction is not possible.

Where to assign: Released Products -> Edit any Product -> Manage Cost (Fast Tab) ->Posting -> Item Group

Visualize: Organization do keep inventory in specific category in generic or as per standard BOQ (workbreak down structure (WBS)). One sample set

  1. Initial setup
  2. Design
  3. test
  4. delivery

or another set:

  1. Raw materials
  2. Steel
  3. Assets
  4. Finished Goods
  5. Transport.

Let me cover some very important posting profiles under each category

Path: Inventory Management->Setup->Posting->Posting

Purchase Order Tab:

  • Product Receipt: After PO when product receipt is made stock is increased physically however in ledger the financial value is stored under transition account which will get reversed when invoice is made (Invoice is the booking of amount to pay to customer at certain date or period. Purchase Invoice is the matching value from PO and related product receipts confirmed)
  • Purchase Inventory Receipt: Purchase Invoice booking actually adds value to Inventory  account. Note: The increase stock is shown immediately when Product receipt is done
  • Discount: Map the account for discount by vendor
  • Prepayment: Advance payment to vendors are mapped here

Sales Order Tab:

  • Packing Slip and offset: The SO is packed and shipped then accounts no are required this feature can disabled also if not required
  • Issue: The reduction of inventory main account when SO delivered is invoiced
  • Consumption: Usually cost of goods sold which can be same, less or more than Purchased price
  • Revenue: Sales amount for revenue

Inventory Tab:

  • Issue: Any consumption or reduction of financial value from inventory main account
  • Receipt: Usually same as above for increasing of inventory financial value

 

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