INV: Adding an Inventory Item

To add an inventory item to the Item Master File:

1. From the Inventory Main Menu, click Item Master File.
   The Item Master screen displays.
2. Enter an Item Number, then press Tab.
3. Type a unique Description to identify the item.
4. Type or select the Category.
   The Category field also lets the system know where in the General Ledger to post material expense when inventory is relieved. You may also expense the cost of items resold to a different expense account. The Category field is not used solely for "inventory" purposes. When a service item (i.e. 101 Monthly Service) is set up in the Inventory Master File, a category is needed to let the system know where in the General Ledger to post sales when this item number is used.
   To add a new Category, double-click in the Category field, or type a new Category and press Enter.
   The Inventory Categories screen displays.
5. Type or select the Item Type.
   Use Item Types to group related inventory items into a single category.
   To add a new Item Type, double-click in the Item Type field, or type a new Item Type and press Enter.
   The Item Types add/edit list displays.
6. Select the Job Cost Method.

   The Job Cost Method calculates the cost of the product when the product is used or resold to a job site.

   Standard Costs - If this option is selected, the Standard Cost for each Warehouse is used to calculate the cost of the item for any given job.

   Average Costs - If this item is selected, the Average Cost for each Warehouse is used to calculate the cost of the item for any given job.

7. Select the Resale Method.

   The Resale Method is used to calculate the cost of an item when it is resold.

   Use Normal Resale - If this option is selected, the system uses the dollar value contained in the Normal Resale Price field (in the Warehouse tab) as the resale price for the Item.

   Markup on Cost - If this option is selected, the system displays an additional field "Markup Percent". The Resale Price is calculated by multiplying the cost (based on the Job Cost Method selected above) of the Item for the Warehouse times the Markup Percent. The system first determines the cost and then multiples the markup percent x the calculated cost.

8. Click the Warehouse tab.
9. Click the Add New button to display a new line in the Warehouse Details grid.
10. Select the Warehouse where this item will be stocked, and then press Tab.
11. Enter the Standard Cost per unit for this Item (if the Normal Resale Price field is not used). This amount will expense for each unit used or resold if the Item's Job Cost Method is set up to use Standard Costs.
    OR
    Enter the Normal Resale Price (if Standard Cost is not used).
    

    Note:  The only exception to this is when an Item Group exists for a Job and the item has special pricing or there is a special Markup Percentage in the Job File. In this case the system ignores the normal resale pricing as indicated in the Inventory Master File and will use the Special Pricing (if any exist for this Job and Item) to figure what the Normal Resale Price should be. If there is no Special Pricing, but the Job has a special Markup Percentage, the system uses that percentage to determine the Normal Resale Price.

12. Press Tab.
13. Enter the Reorder Level. This is the minimum amount of inventory to have on hand before reordering.

Tip:  This information prints on the Reorder Report to get a listing of the items that need to be reordered.

14. Enter the Reorder Size. This is the number of units normally ordered for this item.

Tip:  This information prints on the "Inventory Master", "Re-Order" and "Received" reports.

15. Enter the Lead Time Days. This is the number of days needed to place an order for this item.

Tip:  This information prints on the "Inventory Master", "Re-Order" and "Received" reports.

16. Enter any Notes pertaining this record.