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.
Use this article to learn more about:
Set 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 Product record.
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 allocated on a Sales Order. For more information on the debits and credits behind product transactions, please see Debit & Credit Entries Created When Posting.
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 allocated on the sales order. For more information on the debits and credits behind product transactions, please see Debit & Credit Entries Created When Posting.
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 - A purchased product is an item bought from a customer or vendor. 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 purchased product is allocated on a Sales Order, the weighted-average cost of the purchase product will be recognized.
- Manufactured - If an item is marked as Manufactured, it will be available to build via the Build Product function on the product record. Additionally, since it is a manufactured product, it can not be purchased. When a manufactured product is allocated on a Sales Order, the weighted-average cost of the manufactured product will be recognized.
- 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. The cost of the kit’s product parts will be recognized based on the weighted-average cost when allocated on the sales order. Please see the product parts section below for setting up kit components as product parts.
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 249 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 you 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.
Important: Serialized products cannot be changed back to NOT serialized if any inventory movements are associated with the products. All inventory movements must be removed (unreceived, unallocated, un-transferred) before the serialization can be turned off.
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.
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.
Unit Cost - Unit cost is the standard unit cost for a purchased or manufactured product in Accounting Seed’s legacy standard cost inventory valuation system. It is not used in our weighted-average cost inventory valuation system.
The Purchase Price object is a new object introduced with the Hibiscus release of Accounting Seed. Purchase Price is a way to store default prices for a purchased product and will default to the Purchase Order Line as Unit Price. A default Purchase Price can be set up to be vendor specific or non-vendor specific. If non-vendor specific, it will be the default Purchase Price for the product when a matching vendor is not selected. This object is specific to our Weighted-Average Cost system, and is found as a related list item on the Products record.
Create a Purchase Price
- Navigate to Accounting Home and click the Setup tab. Then, under the Master menu, click Products.
Note: To see a list view of Purchase Prices select Product Purchase Prices from the Master menu. You can also create a new Purchase Price directly from the list view.
- Select a list view (other than the Recently Viewed list view).
- From the Products list view, select the Product for which you want to generate a Purchase Price.
- Click New on the Purchase Price section under related lists.
- Complete the following fields when creating a Purchase Price for a Product
- Required Fields on this page:
- Product - this is the product a purchase price is being set for
- Unit Price - this is the cost that will auto-populate as Unit Price on the Purchase Order Line of a Purchase Order
- Non-Required Fields on this page:
- Vendor - the Vendor whom this purchase price relates to.
Note: If a vendor is not set, then this Purchase Price will be the default Purchase Price for the product when a matching vendor is not selected.
- Vendor - the Vendor whom this purchase price relates to.
- Click Save, or Save & New if you need to enter another Purchase Price for this product for a different vendor.
The Purchase Price for a product defaults to the Unit Cost field on the Purchase Order. To create the Purchase Order for a Product with a Purchase Price, please see Create a Purchase Order.