INV: Creating an Item Group

This procedure is used to create groups of items used or resold. By creating an Item Group, the system is able to determine if the items being requested are actually the correct items used at a job site.

Item Groups are also used to set up special pricing for a Job.

Example:  If a group of Jobs use the same items and resale pricing markup method, then create one Item Group and assign it to each Job.

To create an Item Group:

  1. From the Inventory Main Menu, click Item Master File.
    The ClosedItem Master screen displays.
  2. Enter an Item Number, and then press Tab
  3. Click the ClosedItem Group button.
  4. From the Inventory Groups screen, click the Create Item Group button to display the Inventory Groups for this Item.
  5. Enter a unique Description.

This Item Group Description appears in the drop down list of the Item Group field when you set up Jobs on the Job Master File screen. Item Group descriptions can be as simple as All Accounts, Banks, Schools, etc. If you have unique Item Groups for particular Jobs due to resale pricing or special products, we suggest that you use either the Job Name or the Job Number in the Category Description (i.e. Westside Schools or Job # 10002).

  1. Enter any Notes pertaining to this Item Group record.

To add items to an Item Group:

  1. Click the Add New button to open the Group Details grid.
  2. Enter the Item Number of the item being associated with the Item Group, or use the Find Feature to locate the Item Number, and then press Tab.
  3. After selecting the appropriate inventory item the Description of the item displays. The description of the Item Number displays on the screen based upon the description entered in the Inventory Master File. This may not be modified from this field.
  4. Select the Resale check box to indicate if this item is being resold to a job site.
  5. Select the Use Tiers check box if the item has multiple pricing schemes based on the quantities resold. When the Use Tiers check box is selected, the system opens the Groups Tiers grid.
  6. Enter the Price Type to determine how the system calculates the resale price for the job and item, and then press Tab. There are 4 Price Type options available:

New Sales Price Amount - If this option is selected, the Price Factor is entered as a dollar value. The system ignores the Normal Resale Price set up for this item, and bill at this amount instead.

Note: The Resale Method selected on the Pricing Tab of the Inventory Master File determines the Normal Resale Price. Whichever method is used for this item will be the Normal Resale Price used for the quantity displayed. The only exception to this is when the Job location is set up with a special Markup Percentage. In this case, the Normal Resale Price is figured using the Markup Percentage that is in the Job File and the Markup Method that is in the Inventory Master File. (If the Markup Method in the Inventory Master File is to Use Normal Resale Price and the Job File is set up to Use Special Markup%, the system uses the Standard Price to determine which cost it should use to figure the normal Resale Price.

Pct Markup to Cost - If this option is selected, the Price Factor is entered as a percentage. The system takes this percentage times the normal cost of this item to determine what the Resale Price will be.

Note: In the system, there is a Standard Cost which can be altered by you at any given time and there is also an Average Cost which is system maintained. Because of this, we have to have some way of telling the system which cost we want to look at to figure the markup percentage on. If the Resale Method for this item is set up to use the Normal Resale Price, the system will look at the Job Cost Method (Standard Costs or Average Costs) to determine the normal cost for this item. If the Resale Method for this item was set up to Markup on Standard Cost, the normal cost would be the Standard Cost. If the Resale Method for this item was set up to Markup on Average Cost, the normal cost would be the Average Cost.

Pct Discount from the Std Sales Price - If this option is selected, the Price Factor is entered as a percentage. The system takes this percentage times the normal Resale Price of this item to determine what the discount should be. It then subtracts this amount from the normal Resale Price to come up with the special pricing for this item and quantity.

Note: The Resale Method selected in the Pricing Information area of the Inventory Master File determines the normal Resale Price. Whichever method is used for this item will be the normal Resale Price used for the quantity displayed. The only exception to this is when the Job location is set up with a special Markup Percentage. In this case, the normal Resale Price is figured using the Markup Percentage that is in the Job File and the Markup Method that is in the Inventory Master File. (If the Markup Method in the Inventory Master File is to Use Normal Resale Price and the Job File is set up to Use Special Markup %, the system uses the Standard Price to determine which cost it should use to figure the normal Resale Price.

Same as Usual (Std Sales Price) - If this option is selected, the Price Factor field is not applicable.

Note: The Resale Method selected in the Pricing Information area of the Item Master File determines the normal Resale Price. Whichever method is used for this item will be the normal Resale Price that will be used for the quantity displayed. The only exception to this is when the Job location is set up with a special Markup Percentage. In this case, the normal Resale Price is figured using the Markup Percentage that is in the Job File and the Markup Method that is in the Inventory Master File. (If the Markup Method in the Inventory Master File is set to Use Normal Resale Price and the Job File is set up to Use Special Markup %, the system uses the Standard Price to determine which cost it should use to figure the normal Resale Price.

  1. Based upon the Pricing Type selected, the pricing factor displays accordingly. For the Percent Markup to Cost and Percent Discount from the Standard Sales Price, the pricing factor display as a percentage. For the New Sales Price Amount, it displays as a dollar value. The same as Usual (Std Sales Price) selection is left blank. Enter the appropriate value based upon the selection made.

Tip:  The Rollover option allows you to copy an Existing Item Group and assign a new Item Group Description. If you need to enter multiple Item Groups that are similar to one another, this would prevent the time-consuming task of entering all the Item Details, when you only need to add or change a few line items. Click the Rollover button and enter the new Item Group Description.