Basic Order Management ConfigurationLesson 6

Creating Non-Stock Items

Back to D300: Order Management Basics

Lesson 6: Creating Non-Stock Items

Part 1: Basic Order Management Configuration

The topics of this lesson explain what a non-stock item in Acumatica ERP is, which settings of non-stock items you need to specify in order to sell and purchase non-stock items, and how the settings of non-stock items affect sales orders and purchase orders. Non-Stock Items: General Information

Non-stock items may be products that consist of no physical entity and thus cannot be stocked in warehouses (as with services) or they may be physical entities for which you do not need to track quantities in a warehouse. In Acumatica ERP, you create non-stock items by using the Non-Stock Items (IN202000) form. Acumatica ERP supports the following types of non-stock items:

  • Non-Stock Item: A general type of non-stock item that is usually bought for internal needs or to be sold with other products (but not on its own)
  • Service: A non-stock item to designate service fees
  • Labor: A non-stock item mostly used as a source of general ledger accounts for recording sales of labor
  • Charge: A non-stock item that represents a specific type of charges
  • Expense: A non-stock item that represents a specific type of expense

Learning Objectives

In this lesson, you will create non-stock items.

Applicable Scenarios

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

  • You are initially configuring order management and you are going to sell or purchase non-stock items.
  • You are going to sell or purchase new non-stock items that have not been defined in the system.

Units of Measure for Non-Stock Items If the Multiple Units of Measure feature is enabled on the Enable/Disable Features (CS100000) form, for each non- stock item, you can select the units of measure (UOMs) used as base, sales, and purchase units for the item and specify conversion rules for them and for other UOMs used for the item. If the feature is disabled, only base units can be specified. You can select global UOMs or enter new UOMs on the fly. Every conversion rule is specified with respect to the UOM selected as the item’s base unit. Because the process of configuring UOMs for stock and non- stock item is similar, for details on UOMs, see Stock Items: Units of Measure.

Non-Stock Items: Implementation Activity

In the following implementation activity, you will create non-stock items that represent services.

Story

Suppose that the SweetLife Fruits & Jams company sells a training course on home canning for the employees of its customer, Prime Cafe. The course is conducted online, and no shipping needs to occur. SweetLife also needs to create a landing page that will promote its products and services on the internet. The website must be visible in the search results of all popular search engines so that the customers can find it easily. To achieve these goals, the company signs a contract with the SEO World agency. You, as the implementation manager of SweetLife, need to create non-stock items for the services that you will sell to the Prime Cafe customer, as well as the services you will buy from the SEO World vendor.

Process Overview

In this activity, you will create non-stock items on the Non-Stock Items (IN202000) form, specify the needed settings and save the non-stock items.

System Preparation

To create a non-stock item, make sure that you have completed the following prerequisite activities:

  1. Order Management Basic Configuration: Implementation Activity
  2. Units of Measure: Implementation Activity

Step 1: Creating the TRAINING Item To create the non-stock item for training SEO World, do the following:

  1. On the Non-Stock Items (IN202000) form, add a new record.
  2. In the Summary area, specify the following settings:
  • Inventory ID: TRAINING
  • Description: Canning Trainings
  1. On the General tab, specify the following settings for the item:
  • Type: Service
  • Tax Category: EXEMPT
  • Close PO Line: By Amount With this option selected, a purchase order line for this item is completed and closed based on the line amount when the bill is released. You select this option because you do not track the quantity of the items in receipts.
  1. In the Unit of Measure section of the General tab, specify the following settings:
  • Base Unit: HOUR
  • Sales Unit: HOUR
  • Purchase Unit: HOUR
  1. On the GL Accounts tab, specify the following settings: a. Expense Account: 60000 - Purchase Expense b. Sales Account: 40000 - Sales Revenue
  2. On the form toolbar, click Save.
  3. On the Price/Cost tab, specify the following settings:
  • Default Price (Price Management section): 36
  • Pending Cost (Standard Cost section): 30
  1. On the More menu, click Update Cost. Notice that the system has copied the pending cost to the Current Cost box, cleared the Pending Cost box, and set the date in the Effective Date box to the current date.

Step 2: Creating the WEBSITESEO Item To create a non-stock item for the website creation and promotion for SEO World, do the following:

  1. On the Non-Stock Items (IN202000) form, add a new record.
  2. In the Summary area, specify the following settings:
  • Inventory ID: WEBSITESEO
  • Description: Creation and promotion of a website
  1. On the General tab, specify the following settings for the item:
  • Type: Service
  • Tax Category: EXEMPT
  • Close PO Line: By Amount With this option selected, a purchase order line for this item is completed and closed based on the line amount when the bill is released. You select this option because you pay a certain amount on a regular basis.
  1. In the Unit of Measure section of the General tab, specify the following settings:
  • Base Unit: HOUR
  • Sales Unit: HOUR
  • Purchase Unit: HOUR
  1. In the same section, click Add Row.
  2. Specify the following settings for the added row:
  • From Unit: DAY
  • Multiply/Divide: Multiply
  • Conversion Factor: 8
  1. On the GL Accounts tab, in the Expense Account box, select the 60000 - Purchase Expense account.
  2. On the form toolbar, click Save.
  3. On the Price/Cost tab, specify the following settings:
  • Default Price (Price Management section): 120
  • Pending Cost (Standard Cost section): 100 10.On the More menu, click Update Cost. Notice that the system has copied the pending cost to the Current Cost box, cleared the Pending Cost box, and set the date in the Effective Date box to the current date. Part 2: Basic Sales and Purchases | 28