Describe product setup

The setup and functionality of released products play a crucial role in ensuring seamless operations across various modules. By defining module setup, organizations can optimize inventory management and financial processes, paving the way for efficient workflows and strategic decision-making.

Released product FastTabs

On the Released product page, you find multiple FastTabs, each containing configurations necessary for the finance and operations app modules.

The following are some of the key FastTabs:

• General: You can define the product number, name, type, and subtype on this FastTab. Key configurations include Item model group, Storage dimension group, and Tracking dimension group.

• Purchase: This FastTab contains configurations like purchase price, taxation on purchase, purchase discounts, charges on procurements, and rebate.

• Deliver: You can define the direct delivery related setup on this FastTab.

• Sales: The Sales FastTab includes configurations like sales price, taxation on sales, commission, sales discounts, charges on sales, freight, and rebate.

• Inventory: You can configure item weight, physical dimension, counting, shipping, packaging, and compliance on this FastTab.

• Engineer: On the Engineer FastTab, you can define the configurations related to the production process.

• Warehouse: You configure the Warehouse FastTab when you implement advanced warehousing.

• Manage costs: The configurations on this FastTab help to calculate inventory cost. A key, mandatory configuration here is Item group.

Released product configurations help to manage the associated inventory and financials.

Item group configuration

Item groups allow classification of products into categories based on properties and facilitate the posting of transactions in defined ledger accounts. Ledger accounts can be set up for sales, purchases, inventory, and production transactions.

Configuring item groups aids in controlling transaction posting to the main account. Additionally, it helps in monitoring the floating physical inventory value, which is a physical cost amount that hasn’t been financially updated in the general ledger.

You can also define the item sales tax group for purchases and sales in the item group. When you associate an item with an item group, the item sales tax group applies. You can define item sales tax group at the item level, which takes the precedence.

You configure item groups from Cost management > Inventory accounting policies setup > Item groups or Inventory management > Setup > Inventory > Item groups.

On the Released product page, you define the item group under the Manage costs FastTab.

Item model group configuration

Item model group is a key component for the inventory configuration that controls inventory behavior of the item. It contains several configuration parameters.

The key item model group parameters are as follows:

• Stocked product determines whether the product should be handled in inventory. On-hand quantities should be maintained for these products.

• Inventory model helps to perform the inventory valuation based on the selected inventory model, such as LIFO, FIFO, weighted average, and standard cost.

• Post physical inventory ensures posting of physical item transactions in ledger, which includes ledger transactions during packing slip or product receipt posting.

• Post financial inventory indicates updated financial value postings of items in the ledger. It helps posting the amount in the inventory receipt or issue account depending on the transaction.

• Physical negative inventory allows negative inventory quantities, which means some inventory items can’t be issued until they’re received.

• Financial negative inventory enables negative financial inventory, which means you can issue certain items received in the inventory before the account payable invoice is posted, resulting in negative financial inventory.

• Quarantine management indicates that the associated items are subject to the rules and requirements of quarantine management.

• Registration requirements indicate that the associated items must be registered before inventory is physically updated.

• Receiving requirements indicate that the associated items must have the physical receipt updated before they can be physically updated.

• Picking requirements indicate that the associated items must be picked from the inventory before any item is issued.

• Vendor check method enforces item procurement from the registered vendor only.

Default order setting configuration

Default order settings are used to configure items when creating purchase, sales, or transfer orders. The parameters defined here play important roles while setting up master planning. You can access this page from the Manage inventory menu or Plan menu of the Released product action pane.

The three FastTabs that contain default order setting configurations are the Purchase, Sales, and Inventory FastTabs.

With default order settings, you can configure the parameters on the Purchase FastTab. These parameters are set as default when you create a purchase order. For example, if you configure a default warehouse, the purchase order will automatically consider this warehouse as the default when adding a purchase line for the associated item. Similarly, you can define the standard order quantity for the item and set minimum and maximum order quantities to validate during purchase order creation. You can also define the lead time for procuring the item.

The Sales FastTab configurations set default parameters for creating sales orders for items, similar to purchase orders. It also includes delivery controls based on the available to promise (ATP) setup.

Inventory FastTab configurations drive the default parameters while processing inventory transactions.

Default order settings include the Default order type, with values of Purchase, Production, and Kanban. This configuration determines which planned order is generated during master planning.