How do we use items in an ERP system? Is there a difference in the type of item entities in our ERP systems? There are many situations where the type of item entity doesn’t require the use of Inventory (or Stock) items. When there’s no need to track quantities or the inability to physically count items, we can utilize Non-Stock or Miscellaneous Items. Transactions for labor hour, services, or charges can best be handled using Non-Stock or Miscellaneous item codes. When Vendor purchases are for direct expensed products and flat/fixed charges, these item codes allow for easy transaction processing.
In Acumatica the verbiage of this item entity is Non-Stock Item, and there are types these items: non-stock, service, labor, charge, and expense. We can also assign default price and cost for the item for use in Receivables, Payables, Purchasing and Sales Order and Invoice transactions. The price and/or costs can be periodically maintained for each Non-Stock Item code or Price Class, with a quick Action updating existing transactions. Also, vendor pricing can be specified for each item code. While the item’s Tax Category, unit of measure, and expense account assignment is required, we have the option to assign a default sales account to aid in quick transaction entry.
For Sage 100/100 cloud these items are called Miscellaneous Items. We can allow these codes to be used in the Accounts Receivable, Accounts Payable, Purchase Order, Sales Order, and Bills of Material modules by assignment, with module specific settings. In the item record we can also assign sales and purchasing tax classes, units of measure, standard price and costs values, and appropriate General Ledger Accounts. In the item record we can also view the item code history for sales and receipts by period per fiscal year, even comparing years.
With all of the item code configurations allowed in each system, users have a very quick, easy way to enter transactions for products that don’t need to be track in inventory, services, and charges as Non-Stock/Miscellaneous Item codes.