Product

Back to Master Data Management

Introduction

Product master data window is the place where you can easily organize and centralize the key data of the items of any type you might manage as part of the organization processes and/or activities.

Organizations deal with a variety of different items may be required by an organization for the performance of its daily activities.

It is possible to load Product information into Openbravo en masse using the Import Data module, or one by one using the Product window.

This section describes how to set up Products individually.

Product

Product window allows the creation of items such as products, raw materials, resources, services, etc.

The information required to create a Product in Openbravo is determined by the nature of the Product, its Product Type.

There are four product types available:

• Item. The most frequently used product type is "Item". Inventory held for resale, materials that are placed into a production process, and semi-finished or finished goods created through production are examples of products defined using the product type "Item".
  • An item should be flagged as "Stocked", if quantity tracking is required for the item, otherwise there is no need to flag the item as "Stocked".
  • An item should be flagged as "Production" , if the item is used in manufacturing.
  • If an item is an intermediate or finished good, its bill of material (BOM) should be detailed on the Bill of Materials tab.
• Service. This product type is used to identify such provisions as professional services, transportation, telephony, and other items which do not correspond with material goods.
  • Therefore, a Service is not stockable but can be purchased or sold.
  • As service can have a bill of materials to be defined in the Bill of Materials tab.
• Resource and Expense. These product types can be used to distinguish between different types of products which can be purchased or sold but cannot be stocked.
  • Resource type can be used to configure resources such as Financial, Legal or Natural resources used by the organization.
  • Expense type can be used to configure expenses such as travel expenses to be used while reporting Employee expenses.

Product types do not confer different accounting treatments. In other words, all product types account same way while being purchased, stocked or sold.

All of them use the ledger accounts defined in the Accounting tab of the Product window.

Additional key data to fill in are:

• UOM, that is the unit of measure to be used while purchasing, storing and selling a product, for instance "Units".
  A product can also have alternative UOM besides product's UOM.
• Product Category, it is mandatory to select a product category to which the product is going to belong to.
  To learn more visit Product Category
• Tax Category, this category is key for managing the taxes related to the product. Taxes such as VAT depends on the type of product.
  To learn more visit Tax Category
• Purchase checkbox can be selected to indicate that the product can be purchased to an external supplier. This checkbox is an informative one mainly as it does not add any business logic behind but in regards to MRP.
  In that case, if selected MRP will then purchase the product if needed, otherwise it will produce it.
• Sales checkbox can be selected to indicate that the product is sold or can be sold to an external parties or customers. This checkbox is an informative one as it does not add any business logic behind.
• Stocked checkbox is selected if the product is part of the inventory, therefore proper inventory movement transactions are registered in Openbravo.
  This flag can not be changed anymore for a product, if that product is part of any sales, purchase, inventory or production document related, whatever document status is.
• Production checkbox is selected if the product is part of a production process. Once selected an additional field appears to select a "Process Plan".
  To learn more visit Process Plan
• Attribute Set, a product can have a group of features or an attribute set such as "Color and Size", to take into account while ordering or storing the product.
  • If an Attribute Set is selected here, Openbravo displays a new field named "Attribute Set Value".
    To learn more visit Attribute Set
• Attribute Set Value, if an Attribute Set value such as "Blue and Large" is selected, Openbravo displays a new field named "Use Attribute Set Value As".
• Attribute Set Value As, once an attribute set has been selected that one could be used as described below depending on the criteria selected in this field:
  • Default: This means that the attribute set value defined will be defaulted in each of the transactions, but it is allowed to be changed.
    In other words, the user will not have to care about setting it each time when creating transactions such as goods receipts and shipments.
    • For instance, it can be set to default the value of the attribute set Size of a product to Medium (because it is the most commonly used).
      This way, each time that that product is selected, its attribute set value will be set to Medium (unless selected from stock, in which case the attribute set value is set to the value in which the product is stored).
      It is possible to overwrite this attribute set value, to Small or Large for example.
  • Overwrite Specification: This means that the attribute set value will specify completely the product nevertheless, the attribute set value can be changed for this product.
    • For instance, product Alcohol Free Beer is given the attribute set Alcoholic Proof and the attribute set value 0% in the Product window. This definition specifies completely the product: the Alcohol Free Beer is supposed to have a 0% alcoholic proof. But, in the production process, some deviations can happen and this alcoholic proof can go to 0,01%. Using Overwrite Specification option the production manager will be allowed to register this deviation in the Production process for Alcohol Free Beer product.
  • Specification: This means that the attribute set value will specify completely the product. The attribute set value will always have this value and no other value will be allowed for it.
    • For instance, product Large Blue Jeans is given the attribute set Size & Color with values Large and Blue. This defines the product and will not change. Transactions are done and completed with this product, without forcing to re-set the attribute set value. User can then query all products having Large size or Blue color without having to query the transactions but only the product definition.
      To learn more about attributes, visit How to Manage Attributes and Attribute Sets article.
• UPC/EAN, used to store bar-code information
• Bill of Materials checkbox is selected when the product is a bundle of other products as listed in the Bill of Materials tab.
• Deferred Revenue: this flag is visible only for products having the Sale flag checked and indicates that by default, revenues for sales of this product need to be deferred. When this flag is checked, the Revenue Plan field group becomes visible, allowing users to configure the next two fields.
  • Revenue Plan Type: this field specifies the default frequency of the revenue distribution. At the moment, only monthly revenue plans are supported.
  • Period Number: this field specifies the default duration of a revenue plan. For example, an annual subscription to a magazine will be defined with a revenue plan of 12 monthly periods, while a season ski pass will have revenue plan of 5 monthly periods.
  • Default Period: this field specifies the first period in which revenue is going to be recognized.The options available are:
    • Current Month. This option will set the Revenue Plan Starting Period to the same period as the invoice accounting period.
    • Next Month. This option will set the Revenue Plan Starting Period to the invoice accounting next period.
    • Manual. This option will not set any revenue plan starting period, therefore a starting period can be selected while creating the sales invoice line.
• Deferred Expense: this flag is visible only for products having the Purchase flag checked and indicates that by default, revenues for sales of this product need to be deferred. When this flag is checked, the Expense Plan field group becomes visible, allowing users to configure the next two fields.
  • Expense Plan Type: this field specifies the default frequency of the expense distribution. At the moment, only monthly expense plans are supported.
  • Period Number: this field specifies the default duration of an expense plan.
  • Default Period: this field specifies the first period in which expense is going to be recognized.The options available are:
    • Current Month. This option will set the Expense Plan Starting Period to the same period as the invoice accounting period.
    • Next Month. This option will set the Expense Plan Starting Period to the invoice accounting next period.
    • Manual. This option will not set any expense plan starting period, therefore a starting period can be selected while creating the purchase invoice line.

These values are used when an invoice is created for a product having an expense plan and/or a revenue plan.

Same way, these values are also used when an invoice is created from another document (for example: the Generated Invoices process that creates invoices from sales orders). Same way these values can be modified on a transaction by transaction basis.

To learn more visit the How to manage deferred revenue and expenses article.

• Book Using Purchase Order Price: This flag is used when posting a Goods Receipt or a Matched Invoice document to the ledger.
  Normally the product cost is used while posting those transactions however this checkbox allows to use the product purchase price instead.
  This feature only works for "Expense" product type do not having the "Sales" checkbox selected.
  Notice that in this case a Purchase Order needs to be related to the Goods Receipt, otherwise an error message will be shown as the purchase product price is required.

This feature is available starting from 3.0PR17Q2.

• Returnable:This flag is used to indicate if a product can be returned and, in the case that it is, a new field called. When trying to return a non returnable product from the Return from Customer window an error will be shown.

• Overdue Return Days:In this field it is possible to configure the maximum amount of days before a product can not be returned. If the field is left in blank the product can be returned without time limitations. When trying to return a product which period has been expired a warning message will appear.

Note: If stocked is not checked and BOM is checked, the product price should be 0. Because in that special case, the product price is the sum of the prices of the bill of materials components it consists of. If promotion wanted to create, 'Discounts and Promotions' should be used.

Variants

Product can be marked as Is Generic. This means that variants of this product will be created based on some characteristics such as colour, size, etc. The definition of these characteristics takes place in the generic product so it can be said that a generic product is like a template where newly variants will inherit all the attributes (taxes, prices, image) of this product. Because of this a generic product cannot be used for transactions but its variants.

Note:Products that are marked as generic cannot be used in transactions operations such as sales orders, purchase orders, goods receipts, etc

When this flag is marked two buttons are shown:

• : It shows all variants that have been created or not for that specific generic product. It is very useful when:
  • The user does not want to generate all variants but just some of them. The button allows to select the possible combinations
  • The user adds one more value, for example, red when having before green and white and the variants were already created in the past. It will show the new combinations

For example imagine generic product T-Shirt Model A has the characteristics:

• Colour: Blue, White
• Size: S,M,L

But still variants have not been created. If you press the button you see all possible combinations:

Then all combinations can be selected or just pick some of them. Once the selection takes place pressing Done, combinations will be created as Products. This newly products will have the Generic Product field filled with the product that was marked as generic. We can say it is their parent product

• : It creates/explode all product variants, that is, all combinations based on the characteristics defined

Another button that might appear is . It only shows up when the generic product or the newly product variant has a non-variant characteristic related. Two scenarios:

1. Generic product: This button allows to enter the value of that characteristic.
   Imagine the characteristic is Fashion Line that has three value: Sport, Vintage, Classic.
   Unlike the characteristics that are variants users cannot enter the value through the Characteristic Configuration tab
2. Variant Product: This button allows to enter/update the characteristic that is not variant

Once a variant has been created its characteristics and values can be viewed either in the grid or in form view:

• Grid view: There is a new column Characteristic Description. This column is calculated and is not editable. It shows the characteristics with their values as a text. This column has a new search-selector in order to find product variants based on its characteristics

Press the button and opens a pop-up to select values:

• Form view: Product variants have a new section named Characteristic Description. This section contains as many fields as different characteristics the product has

There is a preference Show Product Characteristics Parents: Values can be 1,2,3,4, etc. The number means how many levels in the hierarchy tree the user wants to show in form view in the Product window. For example if the tree is: Colour->Green->Green light->0034

New values of an existing characteristic can be added. For example colour red when already having Blue and White. When it happens this new value is automatically added to all generic products that already have the characteristic Colour. This new value will be present in the configuration tab but deactivated. If the user wants to use it in a specific product in order to create new variants he can just activate the value and use the button "Manage Characteristics"

Modify Tax

This feature is available starting from 3.0PR19Q2.

• Modify Tax: This check allows services to modify the taxes of the product linked to. This allows to modify taxes calculation of a product depending on a service condition. For example, a new kitchen furniture is sold to a customer, the taxes applied to the furniture might change if the installation of the furniture is also provided by the seller of the furniture. Also, this functionality applies only to Orders. The documents that are created afterwards will take the information from the Order document.

This taxes modification is implemented through a service linked to the product. This service has to be marked as can modify taxes of the products linked to, and the configuration of the products to modify taxes and the new tax to apply must be also specified.

To configure it go to the Product window and create a new service. A service is just a product with the field Product Type set to Service. It has to be activated also the field Linked To Product and the field Modify Tax. When this field is activated, an new tab named Modify taxes categories is visible. In this Tab is defined the configuration of the taxes categories of products this service will modify when linked and the new tax category to apply.

To ease the configuration process two components have been added:

1.- Modify Tax for Product Category (Button): Pick and Execute window to assign the product categories and tax categories in the same action.

2.- Copy Service Modify Tax Configuration (Button): Pick and Execute window where services which modify taxes are displayed. User can select one to many service, and current configuration will be assigned to selected services. Once process have been executed, the old configuration (if exists) will be deleted and new one will be added. This process helps in deploying the same configuration to multiple services.

Price

A product can be part of many Price List Versions which are valid for a given time period.

There are two ways you can get a product to be part of a Price List:

1. by selecting the Price List/s and entering both the "Net Unit Price" and the "Net List Price" values in the Price List tab, while creating the product.
   As a consecuence of that, the product being created will also be part of the Price List selected.
2. by selecting the product and entering both the "Net Unit Price" and the "Net List Price" values, while creating the "Price List".
   As a consequence of that, that the Price List as well as both "Net Unit Price" and "Net List Price" values will be automatically shown in the "Price List" tab of the product.
   To learn more visit Price List.

Product Price with Exceptions

The product Price with Exceptions tab allows setting a different unit price for the selected product in a price list version. The new price can be established to be applicable for a date range and a specific organization. This new price will be used instead of the unit price coming from the price list version (product price tab) for the selected organization or any of its children when fulfilling the date criteria. If there are two exceptions valid for a given organization, that one with an organization closer to it in the tree structure will be the one chosen to be applied.

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Price Rule Version

This tab will only be available when field Is Price Rule Based is selected. This tab gives the possibility of adding Service Price Rules to the Service starting from a certain date.

This feature is available starting from 3.0RR19Q1.

Also in this window it is possible to define a maximum and minimum amounts that will be taken into account when showing services.

Those amounts define an interval between product prices so that the service will only be available to be added in case the sum of the selected products is between the interval.

For services of quantity rule: Unique Quantity the quantity of the line matters, as it will be only added one service.

For services of quantity rule: As per Product the quantity of the line does not matter, only matters the price of the product as there will be added as many services as products are selected. Indeed only if all the products prices are between the tranche the service will be shown.

Also if once a service (not yet delivered) has been added to the receipt, the price of the related product changes, a validation will be triggered, and in case the service no longer meets the tranche rules, it will be removed from the current receipt and a pop up will be shown saying so.

Accounting

Accounting tab allows to configure the ledger accounts to be used while posting product related transactions such as product purchase or sales to the general ledger.

As shown in the screen above, you can configure for each product and general ledger some accounts to be used in the below listed transactions:

• Product Assets: this field stores the default account to be used to record inventory transactions such as:
  • Inventory Counts
  • Inventory Movements
  • and Goods Receipt

This account is typically an asset account

• Product Expense: this field stores the default account to be used to record product's purchases:
  • Normally, this account can be configured as an "Expense" account type in case of not managing "Perpetual Inventory".
    In that case the expense is accounted at the time the goods are purchased at the purchase price.
    Same way, the revenue is accounted at the time the goods are sold at the sales price.
    Not managing "Perpetual Inventory" implies the need of manually adjusting the inventory value at the end of the year.
    That inventory adjustment implies to calculate the difference between the "Final Inventory Value" and the "Initial Inventory Value".
  • However, this account can also be configured as an "Asset" account in case of "Perpetual Inventory" management.
    In that case the expense needs to be accounted when the product is sold to the customer as "Cost of the Goods Sold" at the product cost.
    In Openbravo, the revenue is accounted at the time the goods are sold at the sales price and the cost of the goods sold is accounted at the time of shipping the goods at the product cost.
    Managing "Perpetual Inventory" does not imply the need of adjusting the inventory value at the end of the year.
• Product Deferred Expense: this field stores the default account to be used to record deferred expenses.
  This account is typically an asset account.
• Product Revenue: this field stores the default account to be used to record product sales revenues.
  This account is typically a revenue account.
• Product Deferred Revenue: this field stores the default account to be used to record deferred revenues.
  This account is typically a liability account.
• Product COGS: this field stores the default account to be used to record the cost of the goods sold.
  This account is typically an expense account.
• Product Revenue Return: this field stores the default account to be used to record sales returns .
  This account is typically a revenue account.
• Product COGS Return: this field stores the default account to be used to record .
  This account is typically an expense account.
• Invoice Price Variance: this field stores the default account to be used to record price differences between posted Goods Receipts and booked Purchase Invoices.
  This account is typically an asset account

At first, these accounts are inherited from the Defaults accounts of the organization's general ledger configuration for which the product is being created. The end-user can always change them.

Besides, it is important to remark that it is possible to configure the creation of new correlative accounts for the products as described in the General Ledgers tab of the Organization window.

Bill of Materials

This tab allows to edit the bill of materials components the selected product consists of.

Bill of Materials apply to products flagged as Bill of Materials.

This tab provides information of the list of products contained and its quantity for the Bill of Materials production.

If the product Tax_Category is flagged as As per BOM, this tab also provides information for the price of each product in the Bill of Materials list. The price and quantity in this list is used to perform the division of the base amount to calculate the taxes based on the taxes configured for each product of the list

Costing Rule

Costing rule tab allows to review the costing rules that apply to the product within a given date range.

Costing Rules apply to products set as "Item" type flagged as Stocked.

This tab provides information about the validated costing rule(s) which applies on a given date range to the product, as well as the Costing Algorithm defined for that rule.

Costing rules can be created and validated in the Costing Rules window related to the corresponding legal entity / organization.

Currency used by the costing rule is the currency set for the organization.

Costing

Costing tab collects and summarize product cost related information as a result of every product transaction. Product's costs are valid during a fixed date range and can be calculated either by using an Average or a Standard costing algorithm.

One of the first things to do while creating or importing a product into Openbravo is to inform Openbravo about:

1. the initial Cost of the products if any, by entering it in this tab.
   Keep reading to learn how to do it.
2. and the initial Stock of the products if any, by creating and booking a Physical Inventory.

Overall this tab allows to:

• define the Cost of stockable products, that cost can either be an standard cost or an average cost.
• define the Cost of non stockable products, that needs to be an standard cost.

Same way either a "Standard" or an "Average" Costing Rule needs also to be defined for the Organization as the way to calculate the cost of the products' transactions within that organization.

• review the average cost calculated by the Costing Server when using an "Average" Costing Algorithm.
  Note that when using a "Standard" costing algorithm the cost of every product transaction is the "default standard cost" entered in this tab.
  Also note that "default standard cost" can be used by the Default Cost method whenever it is not possible to get the price of a transaction for which its cost needs to be calculated

Average algorithms override the behavior of the "Default Cost" method prioritizing the use of the current "Average Cost" if any.

• and finally to have a view of all the input transactions of the product which have impacted on product cost calculation.
  • Input transactions such as vendor receipts are the ones which impact on product cost calculation, therefore "Inventory Transaction" field clearly reflects those ones one by one.
  • Same way, a "permanent" manual cost adjustment executed in an output transactions such as a "Goods Movement From" (M-) impacts on product cost calculation, therefore "Inventory Transaction" field clearly reflects these type of output transactions.
  • The very last transaction informs about:
    • the last cost valid until a given ending date
    • and the total amount of units of that product which are valuated at that cost.

If the Openbravo instance has been upgraded and therefore migrated from a version prior to 3.0 MP13 the costs calculated by the "legacy" engine are also visible here.
It is possible to recognize them by their cost type:

• Legacy Average
• and Legacy Standard.

If the Openbravo instance has not been upgraded, "Cost type" is set as "Average".

The way to define the Cost of a product implies to enter below detailed information:

• The Organization for which the calculated costs apply to. Note that the organization needs to be a Legal Entitytype organization.
• the Cost Type. There are two cost types available Standard and Average.
• the Cost of the product, that cost can either be the standard unit cost of the product or the average unit cost of the product.
• An Starting Date when the initial product cost entered is valid from.
• An Ending Date, when the initial product cost entered is valid until, i.e. 31-12-9999.
  That is the same as saying that the cost entered is valid until a new movement of that product dated on a given date prior to 31-12-9999. Obviously that new input movement will change the product cost.

Besides:

• the Manual flag, allows you to differentiate the cost transactions you have manually entered from the ones automatically created by Openbravo.
  • manual ones created by you while entering default product cost information should be checked as Manual.
  • automatic ones related to Material Transactions bookings will not be checked as Manual.
• the Permanent flag blocks the ability to delete the cost manually. All costs should be set as Permanent.
• the Warehouse allows to have a different cost by warehouse when desired and whenever the Costing Rule defined allows to get that. Note that you should not fill this field if the Costing Rule does not have the Warehouse Dimension field checked.

Average Cost Transactions

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Transaction Adjustments

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Transactions

Transaction tab is a summarized view of all the transactions of a product.

There is not a way for you to directly create new product transactions in the transactions tab.
Product transactions of any type are automatically saved and listed in this tab as they are booked in Openbravo.

As shown in the image above, Openbravo saves and informs us about below relevant data for each product transaction type:

• Storage Bin where the product has been stored in or taken from
• Movement Quantity, as the number of product units moved internally or either in or out
• Movement Date, as the date of the product transaction
• Movement Type, such as:
  • Customer Shipment, this type can have:
    • a negative movement quantity whenever a product is shipped to a customer in a Goods Shipment document.
    • a positive movement quantity whenever a product is returned back from a customer in a Return Material Receipt.
  • Internal Consumption, as the units consumed in internal activities such as projects, reparations. This type can be:
    • Positive if the units of the product reduce stock from the warehouse
    • or Negative if an internal consumption transaction is cancelled, this works like when a shipment is cancelled.
  • Inventory In, this one relates to a Physical Inventory Count higher than the Stock booked for a product in Openbravo.
  • Inventory Out, this one relates to a Physical Inventory Count lower than the Stock booked for a product in Openbravo.
  • Movement From, this one relates to Goods Movements from a Warehouse & Storage Bin
  • Movement To, this one relates to Goods Movements to a Warehouse & Storage Bin
  • Production, as the units of a product included in a work effort. This type can be:
    • Positive, for P+ when products are added to the warehouse
    • or Negative, for P- when products are consumed
  • Vendor Receipts, this type can have:
    • a positive movement quantity whenever a product is received from a vendor in a Goods Receipt document.
    • a negative movement quantity whenever a product is returned back to a vendor in a Return to Vendor Shipment.

Openbravo also informs us about the specific:

• Goods Receipt/Shipment Line
• Physical Inventory Line
• Movement Line
• Production Line
• or Project Issue

information of the product transaction, as applicable.

It is also possible to review:

1. the Costing Status of a transaction.

Costing status of a transaction can be any of the ones listed below and has a lot to do with the Costing Background Process:

• Not Calculated. This status means that the costing background process has not taken the transaction yet to calculate its cost.
• Cost Calculated. This status means that the costing background process has already taken the transaction and its cost has been calculated.
• Pending. This status has been implemented to get that the costing background process do not throw an error whenever it is not possible to calculate the cost of a transaction.
  This status is not used by the Costing Algorithms currently implemented in Openbravo but can be used by other costing algorithms such as FIFO for those cases where a product output transaction is booked without booking its corresponding product input transaction.
• Skip. This status has been implemented to get that the costing background process do not take into account the transactions set as "Skip" while calculating costs.
  This status is not used by the Costing Algorithms currently implemented in Openbravo but could be used by other costing algorithms.

2. and whether the cost of a transaction has been calculated or not.
As soon as a product transaction gets its cost calculated by the Costing Background Process the field "Is Cost Calculated" gets the value "Yes".

Once the cost of a transaction is calculated you can also view the:

• Trx Original Cost, that is the original cost of the transaction
• Total Cost, that is the sum of the original cost of the transaction and all adjustment costs of any type.
• Unit Cost, that is the sum of the original cost and all the "unit cost" type adjustments.
• Currency used for the calculations.

Additionally, "Is Cost Permanent" field informs whether the cost of a transaction is permanent or not. In case it is permanent, it will not be changed anymore.

Finally, it is important to remark that in the case of "Average" cost algorithm, the "average" cost of a product is calculated as "Moving Average" as explained in this wiki article.

The average cost of a product is calculated based on the product's transaction flow, therefore it is the sum or subtraction of the "Total Cost" of the transactions listed for the product, divided by the sum of the "Total Movement Quantity" of the transactions.

For instance the average cost of a product which transactions are listed below is equal to 23.33 = (2000.00-1000.00+2500.00)/(100-50+100):

• goods receipt for Movement Qty 100 for a Total cost of 2000
• goods shipment for Movement Qty -50 for a Total cost of 1000
• goods receipt for Movement Qty 100 for a Total cost of 2500

Manual Cost Adjustment

Additionally, the cost of a transactions can be modify by clicking on Manual Cost Adjustment process button. After clicking this button a new popup is opened:

This pop-up allows entering below detailed data:

• Total Cost Amount: that is the new total cost of the product transaction
• Accounting Date: that is the date when this manual change which will imply a cost adjustment is going to be post to the ledger
• Incremental:
  • if not checked the amount entered in the total cost amount field is the new Total Cost of the transaction which besides that will be set as a "Permanent" cost which cannot be adjusted anymore.
  • if checked the amount entered in the total cost amount field is going to be added to the current total cost, besides "Unit Cost" check-box is shown.
• Unit Cost: This check-box is shown only if "Incremental" check-box is selected.
  • if not checked, the incremental amount entered in the field total cost amount is not going to be consider part of the transaction unit cost but total cost. This is like entering an "extra" cost such as "Landed Cost", which does not change the unit cost of that transaction but the total cost.
  • if checked, the incremental amount entered in the field total cost amount is going to be consider part of the unit cost of the transaction.

For additional information about which cost adjustment is or it is not unit cost, please review this wiki article : Cost Adjustments - Introduction.

Once done a "manual cost correction" cost adjustment will be created.

This cost adjustment can be reviewed and post to the ledger in the Cost Adjustment window.

Same way, this cost adjustment can also be reviewed in the Transaction Cost tab.

Transaction Costs

Transaction Costs records are automatically created by the Costing Background Process and then listed for the product in this tab.

As soon as a product transaction gets its cost calculated a new record is created in this tab.

Same way as soon as a product transaction gets its cost adjusted a new record is created in this tab referring to a "Cost Adjustment Line".

Some relevant fields to note are:

• Cost Date: that is the date when the cost has been calculated (i.e. accounting date of a goods receipt)
• Cost: that is the total cost calculated by the costing background process
• Currency: that is the currency used to calculate the cost.
  Currency cost is legal entity currency, therefore product transaction having a different currency (price list in USD currency for instance) gets its cost calculated in the legacy currency (i.e. EUR)
• Cost Adjustment Line: if a calculated cost comes from a cost adjustment, this field populates the cost adjustment line that causes that cost.
  At the end, the total cost of a product transaction is the sum of all the cost listed in this tab, original and adjusted ones which could be part of the unit cost or not (i.e landed costs).
• Unit Cost: this field details whether the calculated cost is part of the unit cost of the product or not.
• Accounting Date:that is the accounting date when the cost has been calculated and post to the ledger (i.e. accounting date of a goods receipt post to the ledger)

Purchasing

Purchasing tab information is used for products that are planned by the purchasing plan.

In this tab the information that is required for the creation of the Purchasing plan and of the automatic creation of Purchase Orders from the Purchasing Plan is entered.
Also, the Requisition process uses the Business Partner information for the automatic creation of Purchase Orders.

• Business Partner, the vendor that will appear on the Purchase Order when created automatically from the Requisition or from the Purchasing Plan.
• Quality Rating: qualtiy rating of the vendor. Information only field that is not used by the MRP process.
• Current Vendor checkbox: indication of the default vendor that will be taken into account by the MRP process.
• UPC/EAN: Universal Product Code/European Article Number (barcode) of the product as used by the selected vendor. Information only, this information does not appear on a created Purchase Order.
• Currency: currency of the purchase order.
• Net List Price: information only field of the Net List Price that has to be updated manually on the automatically created Purchase Order from the Purchasing Plan.
• Price Effective From: the date that the entered prices became valid. Information only, not used by the MRP process.
• Purchase Order Price: information only field of the Net Unit Price that has to be updated manually on the automatically created Purchase Order from the Purchasing Plan.
• Last Purchase Order Price: the Net Unit Price on the most recently added Purchase Order.
• Last Invoice Price: the Net Unit Price on the most recently added Purchase Invoice.
• UOM: the unit of measure of the product.
• Minimum Order Qty.: a minimum order quantity for the vendor. In the Purchasing plan the quantity for suggested purchase orders is this value or above.
• Quantity per Package: information only for the packaging of the product. This information is not taken into account for the creation of the information in the Purchasing Plan nor for the creation of Purchase Orders.
• Purchasing Lead Time: time in calendar days between when the product is ordered from the vendor and when it is received in stock. In the Purchasing Plan this information is used to calculate when purchase orders should be placed, resulting in the Planned Order Date for the suggested purchase order.
• Fixed Cost per Order: information only field of a fixed amount that has to be added manually to the automatically created Purchase Order from the Purchasing Plan.
• Vendor Product No.: the vendor reference for the product
• Vendor Category: information only field to add vendor category information.
• Discontinued: information only field to indicate that this product is no longer used. The Purchasing Plan does not take this set up in account when generating the plan and when creating Purchase Orders. When selected the field Discontinued by date to indicate when the product is discontinued. For information only purposes.
• Quantity Type:
  • Exact: each suggested purchase order is for the exact required quantity. For example if the demand is for 85 units, the quantity for the suggested purchase order is 85 units.
  • Multiple: the quantity that appears as the quantity for the suggested purchase order is a multiple of the standard quantity (as defined on this screen). For example if the standard quantity is 20 units and the demand is for 85 units, the quantity for the suggested purchase order is 100.
• Manufacturer: information only field to indicate the manufacturer of the product.
• Standard Quantity: quantity that is taken into account in combination with the Quantity Type for the quantity value for the suggested purchase order.
• Capacity: quantity per day the vendor is able to supply. Based on this field and the lead time the purchase order date is calculated. The number of days is calculated as the max value of the lead time and the required quantity / capacity.

Manufacturing

Manufacturing tab is used for products that are planned by the manufacturing plan.

The information in this tab is mainly used by MRP to process the Manufacturing Plan and Purchasing Plan. The storage bin field is filled out for products in production to indicate the default storage bin the product will be stored in when coming out of production.

• Storage Bin: default location in the warehouse of the product.
• Planning Method: definition of the elements of supply and demands that are taken into account and with which percentage for the creation of the Manufacturing Plan and Purchasing Plan. For more details, see the Planning Method section.
• Planner: the person responsible for the execution of the MRP plan of the product. For more details, see the planner section.
• Capacity: production capacity per day for the product.
• Min. Quantity: minimum quantity to be entered on a work requirement.
  • Exact: each suggested work requirement is for the standard quantity (as defined on this screen). Multiple suggested work requirements appear for the total demand. For example if the standard quantity is 20 units and the demand is for 85 units, 5 lines of suggested work requirements with quantity 20 appear.
  • Multiple: the quantity that appears as the quantity for the suggested work requirement is a multiple of the standard quantity (as defined on this screen). For example if the standard quantity is 20 units and the demand is for 85 units, the quantity for the suggested work requirement is 100.
• Standard Quantity: quantity that is taken into account in combination with the Quantity Type for the quantity value for the suggested work requirement.
• Minimum Lead Time: manufacturing leadtime of the product.
• Safety Stock: the minimum level of stock that always has to be in the warehouse. For example if there is a safety stock for 1000 units and stock is 900 units, a work requirement (Manufacturing Plan) or purchase order (Purchasing Plan) is suggested for 100 units. Typically low cost products or products with a very long lead time are set up with a safety stock level.
• Max not reserved stock: Maximum stock without taking into account the pre-reserved stock. This field is only visible when Stock reservation feature is enabled. See the below example to understand how it works:

1. Safety stock and Max not reserved stock are 200 and 1000 units, respectively
2. There are several sales orders to be delivered by 3000 units in total
3. These sales orders will generate the corresponding purchase orders (pre-reserved) when launching the MRP
4. There are currently in stock 80 units
5. When MRP is launched it will create the corresponding pre-reserved and because being after below safety stock it will create another purchase order:
   1. As the Max not reserved stock is defined the system will create a purchase order of 920 units (1000-80)
   2. If this parameter wasn't defined it would work as usual and it would create a purchase order of 120 units (200-80)

• Abc: value used in warehouse management to indicate a combination of the stock level and the cost of a part. The value is calculated by running the Pareto Product Report.

Translation

Product names can be translated to any language.

The way to get that is as simple as:

• select first the language required
• and then enter the product name translated into that language.

Characteristics

Relation of characteristics assigned to the Product

Fields:

• Sequence number: Order of the characteristics
• Characteristic: List all the characteristic defined in Product Characteristics window
• Variant: When it is marked it will explode/create combinations with its values. If it is not marked it won't create combinations with other characteristics. For example
  • Characteristic Colour: Variant marked with value Blue and White
  • Characteristic Size: Variant marked with value M and L
  • Characteristic Fashion line: Variant not marked with value Sport
  • It will create four variants/products and for all of them with the characteristic Sport
• Explode Configuration Tab: Flag available on Generic Products and Variant Characteristics. When it is checked the values of the selected variant characteristic are automatically inserted in the Characteristic Configuration tab. If it is not checked the values must be added manually.
• Defines Price: Every value of that characteristic will define the price of the newly product. It will overwrite the price defined for the generic product. This price is defined in the Characteristic Configuration tab
• Price List Type: It is shown when Defines Price is marked. It allows to select in which type of price list you want to overwrite the price. For example:
  • The generic product has two price lists: One is for sales and the other for purchase
  • You select Sales Price List value. Then when creating the product variants it will only overwrite the price in price lists defined as Sales
  • The opposite if the value selected is Purchase Price List
• Define image: Every value of that characteristic will define the image of the newly product. It will overwrite the image of the generic product. This image is defined in the Characteristic Configuration tab
• Characteristic Subset: List all the subsets included for the selected Characteristic (i.e. Pants)

Once the record is saved all the values of the characteristic are populated into the characteristic configuration tab

Explode Configuration Tab flag is available since PR16Q1.

Characteristic Configuration

Characteristic Configuration tab contains the available values for each characteristic assigned to the generic product. Price modifiers to create the variants are defined in this tab as well.

Fields to take into account:

• Characteristic value: Cannot be editable since it is populated automatically when selecting the characteristic
• Code: Code for the value. It inherits what has been defined in product characteristic window
• Unit price: This field is displayed when the characteristic is marked as Defines Price. The aim of this field is to have different prices per value. For example depending on the Sizes
• Image: This field is displayed when the characteristic is marked as Defines Image. The aim of this field is to have different images per value. For example depending on the colour

Unit Cost

Unit Cost Tab displays information about the actual "Unitary Cost" (Unit Cost) of the product.

The "Unitary Cost" of a Product is the value of each stocked unit of the product no matter the costing algorithm used to calculate the cost of that product.

This cost is calculated using the "Total Stock" of a product and the "Total Value" of the stock of the product, as per formula below:

• Unit Cost = Total Stock Value / Total Stock

This way, the unitary cost calculated is independent of the "Costing Algorithm" used to calculate the cost of each transaction and product, therefore this unitary cost is compatible with all "Costing Algorithms" (Average, Standard, FIFO, ...)

In this Tab there is going to be a record for:

• each Organization that is a Legal Entity that has a Costing Rule defined
• or each Organization and Warehouse, whenever Warehouse Dimension is defined as a costing dimension of the current Costing Rule defined for the "Legal Entity".

Stock

This Tab shows the available Stock for this Product in the application. It only shows Storage Bins for which the quantity available of the Product is not 0

For each not empty storage bin, it also show information about the:

• reserved quantity
• and the allocated quantity

Product Categories

The user can define if a product of a certain product category can be related to a product of 'Service' type by creating a relation between an Order Line of the Service product and another Sales Order Line of the product belonging to included/excluded product categories.

This tab will only be available when field ‘Included Product Categories’ of the Service has a value. It contains all the product categories related to the service.

The following information about related products is available in the tab:

• Search Key: Search Key of the Product Category.
• Name: Name of the Product Category.
• Description: Description of the Product Category.

This tab is not editable, it is not possible to add records manually either edit them. It only allows to delete records. To add new records it is necessary to click on ‘Relate Prod Categories’ button (Visible only when field ‘Included Product Categories’ has a value). This button will open a Pick & Edit displaying all product categories not related to the service.

Category Price Rule Version

ManualDoc:TFD12E781543C4CE99EF685A67A7D2142

Products

The user can define if a product can be related to a product of 'Service' type by creating a relation between an Order Line of the Service product and another Sales Order Line of the product included/excluded.

This tab will only be available when field ‘Included Products’ of the Service has a value. It contains all the product related to the service.

The following information about related products is available in the tab:

• Search Key: Search Key of the Product.
• Name: Name of the Product.
• Brand: Brand Key of the Product.
• Product Category: Product Category to which belongs the product.
• Generic Product: Generic Product of the Product it if has any.
• Characteristic Description: Characteristics of the Product it if has any.

This tab is not editable, it is not possible to add records manually either edit them. It only allows to delete records. To add new records it is necessary to click on ‘Relate Products’ button (Visible only when field ‘Included Products’ has a value). This button will open a Pick & Edit displaying all products not related to the service.

Product Price Rule Version

ManualDoc:T994A26A418BB4E51AA9C42FE786E24A0

Alternate UOM

Fields to note:

• UOM, that is the alternative unit of measure of the product, for instance "Pallet".
  It is important to remark that any unit of measure needs to be created and configured in Unit of Measure window.
• Conversion Rate, that is the conversion between product's alternative unit of measure (AUM) to product's unit of measure.
  For instance, if product's AUM conversion to product's UOM is 50; that means that 1 Pallet represents 50 Units.
• Gtin, that is the "Global Trade Item Number" for the product defined in the corresponding AUM
• Sales, Purchase and Logistics, those fields allow to define the use of product's AUM within Sales, Purchase and Inventory flows.
  Values allowed are:
  • Primary: Product's AUM defined in this tab is used as default unit of measure in the selected flow (Sales or Purchase), when creating a sales or purchas document such as an order or receipt/shipment.
    Only one Primary AUM can be defined per Product and flow.
    For instance, if "Pallet" is the primary AUM defined for a product within Purchase flow, that means that everytime that a purchase document is created, "Pallet" will be the default unit of measure shown.
  • Secondary. Product's AUM defined in this tab can be selected for the selected flow when creating a Document.
    For instance, if "Pallet" is the secondary AUM defined for a product within Sales flow, while "Pack" is primary one; that means that everytime that a sales document is created, "Pack" will be the default unit of measure shown, but end-user can change it to "Pallet".
  • Not Applicable. The AUM defined in this tab for the product will not be available for selection when creating Documents for the selected flow.
    That is the option to select for "Logistics" as the use of altenative unit of measure is currently implemented just for sales and purchase. Inventory transactions/documents always refer to product's unit of measure.

For additional information about how to manage altenative unit of measure, please review this How To document.

Modify Taxes Categories

Defines taxes modification for products linked to service. Products linked to this service that belongs to the configured category will change the tax category when linked to this service.

ManualDoc:T3E0794D777C74CF5A4CFAAE43A851275

Media

ManualDoc:TADE6916905F7406BB70C1073133EDF0D

Full list of Product window fields and their descriptions is available in the Product Screen Reference.

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