Accounting Seed uses the Salesforce Product object as the product master. All the fields and objects needed to manage products are either on the Product object itself or can be seen as a related list on the Product.
Setting Up an Inventoried Product
The following fields should be completed if the Product is used on Accounting Seed Order Management:
Revenue GL Account - The revenue GL account for the product will automatically populate on the billing line if it is set on the Salesforce Product.
GL Variables 1-4 - If populated on the Product record, they will automatically flow through to the Billing Line, Sales Order Line, Purchase Order Line, and Payable Line. These values can then be edited if necessary on the specific line items. This provides a consistent, easy way to automate the accounting for your products.
Expense GL Account - The expense GL account is debited when the product is sold via the posting of a billing. For more information on the debits and credits behind product transactions, please see the Debit & Credit Entries Created When Posting article.
Inventory GL Account - The inventory GL account is used in the accounting of all inventory movements in Accounting Seed ERP. The inventory GL account is credited when the product is sold via the posting of a billing and debited when inventory is received via a Purchase Order. For more information on the debits and credits behind product transactions, please see the Debit & Credit Entries Created When Posting article.
Inventory Product - Inventory product means that this product can be stocked in a warehouse and warehouse location. This field must be checked in order to allocate the product from inventory stock or receive the product into inventory stock.
Inventory Type - The following values are available for selection of Inventory type:
- Purchased - If the inventory type is set as Purchased for a product, then the product will be available to use in the Create Purchase Order from Sales Order function. When a billing line with a purchased product is posted, the standard cost of the purchased product will be recognized.
- Manufactured - If an item is marked as Manufactured, it will be available to build via the Create Manufacturing Order button on the Product record or Sales Order list view. Additionally, since it is a manufactured product, it can not be purchased. When a billing line with a manufactured product is posted, the standard cost will be recognized for the manufactured product.
- Kit - Kits are simply a way to group products for purposes of selling them as a single unit in an opportunity or billing. A product can be sold by itself or bundled together in a kit. When creating a sales order from an opportunity with a kit as one of the opportunity products, the product parts of the kit will each be passed as separate line items to the sales order. Product parts will be passed into the sales order from the opportunity with a unit price of zero. The kit product itself will be passed into the sales order, with the price entered on the opportunity product line. When a kit is billed, the cost of its product parts at standard cost will be recognized when the billing transaction is posted. Please see the product parts section below for setting up kit components as product parts.
- Raw Material - Raw materials should not be used on the opportunity product or sales order line. The way to exclude raw materials from the opportunity is to not list them in any price books. Raw materials should only be a part of a bill of material for a manufactured product. Raw materials can be purchased through the purchase order fulfillment process from the list view of the project object.
Product Parts - Product parts should show as a related list on the product page layout. If the product parts related list is absent from the page layout, simply add it by adjusting the page layout. Product parts are kit components if the inventory type is marked Kit and they are the bill of materials if the inventory type is marked Manufacturing. To create a new product part click the New Product Part button on the product part related list. Select the product, which is a kit component or manufacturing bill of material and specify the quantity of parts that make up this kit or manufactured product.
- Kit Products have a product part limit of 5 (five) product parts.
- Manufactured Products have a product part limit of 100 product parts.
Default Vendor - Default vendor is used in the purchase order fulfillment process. When you generate purchase orders from sales orders, the default vendor listed on the product will default in the Draft Purchase Order screen.
Serialized - If the product is checked true for serialized, an individual record will be inserted for each inventory movement. This allows the user to record an individual serial number for each inventory movement. Inventory movements are also required to be entered as whole numbers.
If a product is not checked true for serialized, then a single inventory record is inserted for movements regardless of the quantity of inventory moved.
Sales Order Exclude - To prevent a Kit’s product parts from passing into the Sales Order as a line, check the Sales Order Exclude option on the product. This will prevent any part of a kit from passing to the sales order.
- For example, if you have sold a customer Kit ABC which contains products A, B, and C, and you want only products A and B to pass to the sales order, then check the sales order exclude option on product C and do not check the Sales Order Exclude options on products A and B.
- An example of this would be if you have a non-inventoried part, such as a warranty shipping charge, or installation service that is sold as part of a kit but has no physical inventory fulfillment, you may want to exclude it from the sales order. You can do so by clicking the Sales Order Exclude option on the product part.
Inventory Asset - If a product is checked true for inventory asset, an Asset record will be created when the Sales Order is allocated and Sales Order inventory movement(s) are created for each Sales Order Line. The Asset record can be found on the Asset related list under the Sales Order Inventory Movement object.
Lead time - Lead time is the amount of time, in days, it takes for a product to arrive at the distribution/manufacturing site. It is used in the purchase order fulfillment process as a metric to assist in procurement timing.
Manufacturing Order Template - The manufacturing order template is the Project template used for a Manufacturing work order. It also contains the Bill of Material for a manufactured product. The Manufacturing Order Template field needs to be completed for each product that is marked as a manufactured product. More information is available in the Building Inventory article of the Knowledge Base.
Unit Cost - Unit cost is the standard unit cost for a purchased or manufactured product. It is important to make sure any Unit Cost value is entered in the base currency of your organization. Unit cost should not be changed without considering the effect on Inventory movements in process, or the value of inventory on the balance sheet. Please see the Inventory Utility section of the Knowledge Base before changing the value of unit cost on a product record.
Minimum Order Quantity - Minimum order quantity is the least amount of units that can be ordered in a single order from a vendor. It is used as a reference field in the purchase order fulfillment process.
Safety Stock Quantity - Safety stock quantity is the minimum amount of inventory that you would like to keep on hand. It is used in the purchase order fulfillment process.