Product

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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 an item.
• 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 is selected to indicate that the product is purchased to an external supplier.
• Sales checkbox is selected to indicate that the product is sold or can be sold to an external parties or customers.
• Stocked checkbox is selected if the product is part of the inventory, therefore proper inventory movement transactions are registered in Openbravo.
• 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.

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.

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.

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.

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 which applies on a given date as well as the Costing Algorithm defined for that rule.

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 the products, that cost can either be an standard cost or an average 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 transactions of the product which have impacted on its product cost calculation. The last one informs you 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.

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.

Transactions

The 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 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 quantinty 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 oto the warehouse
    • or Negative, for P- when products are consummed
  • Vendor Receipts, this type can have:
    • a positive movement quantinty 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.

Finally, it is also possible to review the Costing Status of a transaction.
The 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.

Once the cost is calculated you can also view the total cost amount of the transaction, the currency of the cost and the costing algorithm used to calculate it.

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 the capacity separate lines are suggested for the purchase order if the demand for a day is higher than the 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.

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

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