Configuring Inventory and Order ManagementLesson 8

Creating Stock Items

Back to D100: Inventory Order Management Basics

Lesson 8: Creating Stock Items

Part 1: Configuring Inventory and Order Management

If the Inventory feature is enabled on the Enable/Disable Features (CS100000) form of Acumatica ERP, you can create stock items on the Stock Items (IN202500) form. Stock items are physical goods that you purchase or manufacture and then sell to your customers. Examples of stock items include computers, cell phones, cables, and auto parts. The system automatically tracks stock items and maintains availability data. Also, stock item costs can be tracked. This lesson explains how to create stock items.

Stock Items: General Information

Stock items are goods that you either purchase from vendors or manufacture, and then sell to customers. In Acumatica ERP, you create stock items by using the Stock Items (IN202500) form, which is available if the Inventory feature is enabled on the Enable/Disable Features (CS100000) form.

Learning Objectives

In this lesson, you will do the following:

  • Prepare the system for the creation of stock items
  • Create stock items

Applicable Scenarios

You may need to create a stock item in the following cases:

  • You are initially configuring inventory entities and settings.
  • You are going to sell or purchase new goods that have not been defined in the system.

Item Classes for Stock Items

Before you start creating stock items in the system, you need to create item classes that group items with similar settings by using the Item Classes (IN201000) form. The system copies the following settings from an item class to a stock item when you create a stock item and select this item class:

  • Item type
  • Valuation method
  • Tax category
  • Posting class
  • Lot/Serial class
  • Default warehouse
  • Units of measure
  • Attributes
  • Replenishment settings You can change any of these settings for a particular stock item. For more information about item classes, see Item Classes for Stock Items: General Information.

Types of Stock Items

When you are creating a stock item on the Stock Items (IN202500) form, you specify an item type, which is used for informational purposes only. The type can be one of the following:

  • Finished Good: You use this type for finished goods that you sell to customers.
  • Component Part: You use this type for component items from which intermediate assemblies and finished goods are produced during kit assembly processes.
  • Subassembly: You use this type for intermediate assemblies from which finished goods are produced during kit assembly processes.

Transactions with Stock Items

Aer you have created stock items in the system and configured their settings, you can start processing transactions. As you process documents, the system generates the proper inventory transactions and the corresponding AP and AR documents. You cannot manually select stock items in AR invoices. In AP bills, you can select stock items; however, you can release the AP documents only aer all lines with stock items have been linked to the corresponding lines of the purchase receipts that you have released. You cannot delete a stock item in the system if there are any completed transactions with the item, any unreleased documents that include this item, or any nonzero quantity of the item at any warehouse location.

Tracking of Stock Item Availability

The system automatically tracks stock items and maintains availability data: how many base units (that is, units
in the base unit of measure selected for the particular stock item) are on hand, how many are ordered from
vendors, and how many are booked to sales orders and shipments. To configure how exactly this availability data is
computed you create an availability calculation rule and specify the rule in the settings of an item class. Availability
of all items of the same class is calculated by using the same rule. (That is, you cannot change an availability
calculation rule for a particular item.) For details, see Availability Calculation Rules: General Information.
Stock items are also tracked by their cost. Various valuation methods are available for tracking item costs (for
details, see Item Costs and Valuation Methods: General Information). Typically, a stock item is an asset until it is sold;
its cost then becomes an expense.
Also, the system can automatically monitor when the stock level of the item falls below the defined minimum and
automatically calculates the quantities required to replenish the stock, based on the demand for the item and the
inventory information you have defined for the stock item. For details, see Replenishment for Stock Items.

Stock Items: Implementation Activity

In this implementation activity, you will learn how to create stock items.

Story

Suppose that you are an implementation manager. You are configuring inventory for the SweetLife Fruits & Jams
company, which produces and sells bottled juice. The company sells orange juice in bottles of 0.5 liter and 1 liter.
You will create two stock items for these bottles of orange juice.

System Preparation

Before you start creating stock items, you should do the following:
  1. On the Enable/Disable Features (CS100000) form, make sure that the Inventory and Order Management and Inventory features are enabled.
  2. On the Reason Codes (CS211000) form, create and save the reason codes that are required for configuring inventory and order management, as described in Reason Codes: Implementation Activity.
  3. On the Order Types (SO201000) form, configure and activate at least the SO order type, as described in Sales Order Types: Implementation Activity.
  4. Specify the appropriate inventory settings, as described in Configuration of Order Management: Implementation Activity.
  5. Create the JUICE posting class, as described in Posting Classes: Implementation Activity.
  6. Create the BTL05 and BTL1L UOMs, as described in Units of Measure: Implementation Activity.
  7. Create the BOTJUICE item class, as described in Item Classes for Stock Items: Implementation Activity.

Step: Creating Stock Items To create the stock items for both bottles of orange juice, do the following:

  1. On the Stock Items (IN202500) form, add a new record.
  2. Do the following to create a stock item for the 0.5 liter bottle of orange juice: a. In the Summary area, specify the following settings:
  • Inventory ID: ORJUICE05
  • Item Status: Active
  • Description: Orange juice in bottles of 0.5L b. On the General tab, do the following: a. In the Item Class box, select BOTJUICE. b. In the Base Unit box, select BTL05. c. Make sure that the Divisible Unit check box right of the Base Unit box is selected. d. Make sure that the following settings have been copied from the item class: Type, Valuation Method, Tax Category, and Posting Class. c. On the GL Accounts tab, make sure that the accounts have been copied from the Posting Classes (IN206000) form for the JUICE posting class (GL Accounts tab). d. On the form toolbar, click Save.
  1. Do the following to create a stock item for the 1 liter bottle of juice: a. On the form toolbar, click Add New Record. b. In the Summary area, specify the following settings:
  • Inventory ID: ORJUICE1L
  • Item Status: Active
  • Description: Orange juice in bottles of 1L c. On the General tab, do the following: a. In the Item Class box, select BOTJUICE. b. In the Base Unit box, select BTL1L. c. Make sure that the Divisible Unit check box right of the Base Unit box is selected. d. Make sure that the following settings have been copied from the item class: Type, Valuation Method, Tax Category, and Posting Class. d. On the GL Accounts tab, make sure that the accounts have been copied from the JUICE posting class. e. On the form toolbar, click Save.

Now that you have created the stock items for orange juice, you can include the juice bottles in documents. Part 2: Basic Sales and Purchase Processes | 44