Item

Items are goods and services that you purchase, manufacture or sell. Items can be finished goods, components, raw materials, spare parts, and non-stock items, services, and landed cost items, all of which you manage according to a management policy adapted to each item.

An item record contains general data about the item and at least 1 site that it's managed from. You can also add commercial and financial details, an image of the item, and items and prices specific to a supplier and customer. You can associate hazard criteria with chemical goods and allergens with food. If the item is manufactured, you can view the name of the bill of material (BOM) and routing used to build or maintain the item, which can be different from the item name, with links to the BOM and routing.

Create an item

You can create a new item or duplicate an item and modify as needed.

1. Select Create or Duplicate, depending on how you want to get started.
2. Enter the item name and if you're duplicating an item, a description for it. A duplicated item is active by default, but you can select its current Status.

3. Select the item Category.

   The Allergen tab displays if the item Category identifies the item as a food.

   The GHS classification tab displays if the item Category identifies the item as hazardous.

4. Enter the code that your organization uses for the item. You cannot enter an ID if they're assigned automatically to new items. Instead, the next code in sequence is generated when you create the item.

   Automatic sequence numbers are determined by the item category. If the item needs a specific ID, enter the ID first, then select the Category. You will be prompted to confirm which ID to use, your unique ID or to generate the next sequential ID.

5. If you are creating a new item, select the item Type. The item can be a Good, a Service or a Landed cost.

   If you are duplicating an item, select Duplicate. The item details display. You can edit selected item data but not all data. Ignore a step below if the field is not available for entry.

6. Leave the Stock management switch ON if the item is managed in stock. Switch it OFF if the item is a non-stock item such as a liquid.

   This switch is not available if the item is a service or a landed cost.

   This switch determines the characteristics you'll need to add for the item, such as lots and replenishment details.

7. To apply a management policy to the item, turn the appropriate switch ON. The item can be purchased, manufactured and sold.

   The item type and the switch determines the characteristics you'll need to add for the item, such as supplier prices and sales prices.

8. On the Information tab, enter a description of the item and add an image of it.

9. If the item is a goods item managed in stock, enter the GTIN-13 and Commodity code that determines the rate of customs duty and any taxes due on the item.

   These fields are not available if the item is a service or a landed cost.

10. A new item is active by default, but you can select its current Status.

11. If you integrate with Sage Intacct, you can see the integration status. If you're creating or updating an item, select Synchronise to send the data to Sage Intacct. In this case, you cannot modify the item ID. See Name and ID creation - best practice for more information.

    You can manage errors on the Integration page.

12. On the Management tab, if the item is a goods item managed in stock, select any Lot management, Serial number management and sequence number details.

    If you manage the item by Lot or Lot and sublot, deallocating reserved stock from an order processes the lots using a FIFO (First In, First Out) method or a FEFO (First Expired, First Out) method if you select the Expiry date management checkbox.

    For a landed cost item, see Add landed cost allocation rules.

13. The Sales block displays if the Sold switch is ON. Enter quantities, the currency and base prices for sales orders.

Add landed cost allocation rules

You create a landed cost item to capture additional shipping and overhead costs such as freight, insurance and customs duties.

To create a landed cost item, set the Type to Landed cost. The management policy identifies the item as Purchased and displays a Management tab and Landed costs block.

1. On the Management tab, in the Landed costs block, select the landed cost Type. The list of types is supplied with your system.
2. Select the Allocation rule by which the landed cost will be apportioned across purchase receipt lines.
3. Select the Allocation unit if the rule allocates the landed cost By volume or By weight.

Add item units

1. On the Units tab, select the item units and edit any unit conversion factors if necessary. The units needed are determined by the item management policies.

   Service items might use a unit of time such as week or hour.

2. Add Characteristics such as the weight and storage capacity details for a goods item managed in stock.
3. Save the item.

Add item-site data

On the Sites tab, you identify each site the item is stored at or managed from and define data that is specific to the item at the nominated site. You might use one site for production and another for storage; you might keep safety stock at one site but not at another; costs might be higher at one site than another; you have site-specific data for an item even though you are only based at one site. When you add a site to the grid you create item-site data.

You add and maintain item-site data on the Sites tab or on the Item-site page. Sage suggests you add and maintain item-site data on the Sites tab on this page and use the Item-site page as a quick reference for item-site information.

New and edited item-site data updates on the Item-site page and on this page when you save item-site data.

1. On the Sites tab, from the Item-sites grid select Add.
2. In the panel that opens, on the General tab, leave the Item name and select the Site where the item is stored.
3. Select the Specific item tax group checkbox if the item is taxed at a specific rate, then select the appropriate Item tax group.

4. Select the stock Valuation method for the item.

   The default stock valuation method is Standard cost. The item can be costed at the standard cost, using the average unit cost or using the FIFO method of stock valuation. If you select a FIFO valuation method, unique cost tiers are created as items are received into stock. The tiers are then consumed in chronological order as the stock is sold or issued.

   See Understanding production costs.

Add replenishment rules

In the panel, select the Replenishment tab. You use this tab to define when the stock item needs to be replenished at the site, and how. Replenishment rules control stock levels and stock overhead costs. By only ordering an item when there is a requirement for it keeps stock levels and associated stock overhead costs to a minimum.

If the item is not managed in stock, you only need to enter the Purchase lead time; service items are not replenished.

Set the Replenishment method to By MRP (By Material Requirements Planning) to include the item in an MRP calculation. The calculation matches supplies of components, raw materials and stock items with current and future demand for the item, and generates make and buy recommendations to satisfy any stock shortages. You can replenish stock levels from the MRP calculation result.

Alternatively, set the Replenishment method to By reorder point to generate make and buy recommendations from a stock reorder calculation if any demand drops the stock level to the Reorder point. As for MRP, you can replenish stock levels with a work order or purchase order from the reorder calculation result.

You need to set the preferred replenishment process if the item is purchased or manufactured:

1. Select Production if the item is manufactured. The Make-to-order checkbox is available if orderToOrderOption is active on the Service options page. If you select the checkbox, a work order for the item can be created directly from a sales order. Refer to Create a work order from a sales order for more information.
2. Select Purchasing if the item is purchased. The Buy-to-order checkbox is available if orderToOrderOption is active on the Service options page. If you select the checkbox, a purchase order for the item can be created directly from a sales order. Refer to Create a purchase order from a sales order for more information.

If the item is replenished, you need to enter rules to control stock levels of the item. Enter the stock level controls as Safety stock, the Reorder point, the Batch quantity and the Economic order quantity (EOQ).

You can decide to have no specific replenishment method for the item.

View projected stock availability

In the panel, on the General tab, in the Stock block you can select Projected stock to display projected stock levels in a graphical format.

The graph shows the projected required, expected and available stock quantities for the item at the site. The reorder point and safety stock levels can also be represented. The stock levels are calculated from active purchase orders, sales orders and work orders for 6 days or 6 weeks from the current date.

Projected stock is useful as a modelling tool for planning current and future material requirements:

• As an inventory manager you want to consider the current stock level and any demand for the item so you can organise your inventory efficiently.
• As a buyer you want to predict stock of a component you might need to buy so you can order the right quantity of the item.
• As a production manager you want to predict stock availability of a component so you can plan when to start production.
• As a sales administrator you want to predict stock of an item you sell so you can plan the shipments.

Add supplier rules

1. In the panel, on the Suppliers tab, from the Suppliers grid select Add.
2. Select a Supplier from the list of suppliers nominated as a supplier of the item.
3. Select the Default item-site-supplier checkbox if the supplier is the default supplier of the item for the site.
4. Enter the Minimum purchase quantity to order from the supplier to replenish stock levels.
5. Enter as the Purchase lead time, the average number of days it takes between placing a purchase order for the item with the supplier and the receipt of the goods.

When stock is ordered, rules you define on this tab take precedence over all other supply rules. These rules are item-site-supplier rules. If none are specified here, item-supplier rules defined on the Supplier record apply to all purchases.

Add item-site costs

1. In the panel, on the Costs tab, from the Costs grid select Add.
2. Select Standard cost as the Cost category.
3. The current date is the default Start date for the item-site cost but you can change it.
4. Enter the Quantity for the Cost detail figures.

5. If the item is manufactured, the item-site cost is calculated automatically based on the bill of material (BOM) and routing associated with the item-site if you turn on the Calculated switch then select Calculate.

   Alternatively, leave the Calculated switch off and enter the Material, Machine, Labour and Tool costs of the item.

   If the item is purchased, the Calculated switch is always turned off. You need to enter the Material cost of the item.

   The optimum cost of one single item is calculated as the item Unit cost. It is calculated automatically by dividing the Total cost by the item Quantity as you calculate or add the individual costs.

6. In the Cost chart block, you can view the breakdown of the costs in a graphical format.
7. Select OK.

Add an item-site cost for a new period

1. To add an item-site cost that is valid from a new start date:

   1. Run a standard cost calculation for the item, then create the item-site cost from the results grid. Skip the remaining steps in this section.
   2. In the panel, on the Costs tab, in the Costs grid, select the More actions icon for a line then select Add period.
2. In the panel that opens, the item-site cost details display with the Start date as the same date the following year, but you can change it.
3. Edit the Quantity if necessary.

4. Edit or calculate the Cost detail figures:

   1. If the item is manufactured, the item-site cost is calculated automatically based on the bill of material (BOM) and routing associated with the item-site if you turn on the Calculated switch then select Calculate.

      Alternatively, leave the Calculated switch off and enter the new Material, Machine, Labour and Tool costs of the item.

   2. If the item is purchased, the Calculated switch is always turned off. You need to enter the new Material cost of the item.
5. Select Dimensions to add attributes and dimensions to manage business rules and to analyse and track the item costs using analytical accounting data.
6. Select OK.

Add default values for stock transactions

To manage default assignment values for stock movements, you can select default storage locations and quality control statuses.

1. In the panel, on the Stock rules tab, select default storage locations:

   Outbound: For stock issue transactions, including shipping the item for a sales order.

   Inbound: For good inwards transactions, including a purchase receipt.

   Released item: For receiving finished items from production, including tracking a receipt from production.

2. Select default quality control statuses:

   Inbound: For good inwards transactions, including a purchase receipt.

   Released item: For receiving finished items from production, including tracking a receipt from production.

3. Select OK.

Add item-supplier data

The Suppliers and Supplier prices tabs display if the Purchased management policy switch is ON.

The Suppliers grid populates when the item is added to individual Supplier records. On this page, from the grid, you can add suppliers of an item, edit supplier information and create a new supplier.

You add supplier-specific prices for the item on the Supplier prices tab or on the Supplier page. Adding supplier-specific prices on the Suppliers page is more common because you create item prices from price lists you receive from your suppliers. Suppliers and supplier-specific data is item-supplier data.

If a supplier has been nominated to supply the item, you can add supplier rules on the item Sites tab that can specify minimum purchase quantities and a supplier-specific lead time per item per site. This is optional because the default quantities defined for the supplier and the item on the Supplier record apply to any purchases.

If the item is manufactured you do not need to add item-supplier data.

When you save item-supplier data, new and edited item-supplier data updates on the Supplier page and on this page.

To add an item-supplier or an item-supplier price record, select Add line or Add line in panel from the grid, then enter the pricing details from your supplier. If you are adding multiple prices for the same item-supplier, to prioritise a price, enter a lower number in the Priority field to assign a higher priority to the item-supplier price. The default value is 10. If you are adding multiple prices for the same item-supplier, you also need to make sure that the value of at least one of the following is unique:

• Unit of measure
• Valid from / Valid to
• From quantity / To quantity
• Currency
• Price

Add sales data

The Sales prices and Customers tabs display if the Sold management policy switch is ON.

The Customer prices grid on the Sales prices tab and the Customers grid on the Customers tab populate when the item is added to individual Customer records. On this page, from the grid, you can add customers for an item, edit customer information and create a new a customer.

If the customer does not pay the base price, you can add customer-specific prices for the item on the Sales prices tab or on the Customer page. You can also apply customer discount and surcharge percentages.

Sales data is item-customer data.

To add an item-customer or an item-customer price record, select Add line or Add line in panel from the grid, then enter the pricing quantities and prices.

Add financial data and default dimensions

Refer to Item tax group for more information.

1. On the Financial tab, select a Posting class.
2. For sold and purchased items, select an Item tax group to avoid manually entering the tax on each document for this item.
3. If you set up default dimensions rules for a company that default from an item, you can enter the default dimensions and attributes here. Based on the company rules, when you create a new document, like a sales order or purchase order, the default values entered here are automatically added to the item on the line.

1. In the Dimensions block, you can enter or select default values. Any values left blank can default from a different record or be entered manually on new document lines.
2. Task is only available if you enter a project first.
3. Select OK.

Add allergens or GHS classifications

The Allergen tab displays if the item Category identifies the item as a food.

The GHS classification tab displays if the item Category identifies the item as hazardous.

Select the list of substances that can cause an allergic reaction or the GHS hazard classifications for the item.

Edit an item

You can filter the main list by status or for service items.

If the item has been used in a transaction you can edit selected item data. Existing transactions are not updated with new or edited item data, they retain the item details at the time they were created.

Edit the item Status on the Information tab. An item might become obsolete or a customer might have returned an item and you want to block further sales pending investigation for example.

Edit item-site data on the Sites tab or on the Item-site page. Sage suggests you add and maintain item-site data on the Sites tab on this page, and use the Item-site page as a quick reference for item-site information.

To override the item-site cost:

1. On the Sites tab, in the Item-sites grid, select the More actions icon for the line then select Edit.
2. In the panel that opens, on the Costs tab, in the Costs grid, select the More actions icon for the line then select Edit.
3. Edit the Start date.

4. If the Calculated switch is on, turn it off then enter the new Material, Machine, Labour and Tool costs of the item.

   To reset the item-site cost based on changes to the BOM and routing, turn on the Calculated switch, select Calculate, then Save the new item-site cost.

   In the Cost chart block, you can view the breakdown of the costs in a graphical format.

5. Save the new item-site cost.

   A journal entry is created for the difference between the previous and new value of on-hand stock when the new cost becomes effective, if the item-site is costed at standard cost. This is to ensure accuracy between stock values and your financial solution.

Edit item-supplier data on the Supplier prices tab or on the Supplier page. Adding supplier-specific prices on the Suppliers page is more common because you create item prices from price lists you receive from your suppliers.

Edit item-customer data on the Sales prices or Customers tabs or on the Customer page.

When you save edited data, item-site, item-supplier and item-customer data updates on the Item-site, Supplier and Customer pages respectively, and on this page.

Delete an item

You can delete future costs from the item-site record; you cannot delete an item-site cost with a Start date on or before the current date.

If the item has been used in a transaction you cannot delete the item.

You can delete an item from the main view or from the More actions icon.