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Item
At first go through core features of Item in ERPNext.
An Item is a product or a service offered by your company.
The term Item is also applicable to raw materials or components of products yet to be produced (before they can be sold to customers). ERPNext allows you to manage all sorts of items like raw-materials, sub-assemblies, finished goods, item variants, and service items.
ERPNext is optimized for itemized management of your sales and purchase. If you are in services, you can create an Item for each service that you offer. Completing the Item Master is very essential for the successful implementation of ERPNext.
To access the Item list, go to:
Home > GSD > Items > Item
Before creating and using an Item, it is advised that you create the following first:
- Item Group
- Warehouse
- A Unit of Measure if required
- Go to the Item list, click on new.
- Enter an Item Code, the name will be auto-filled the same as Item Code on clicking inside the Item Name field.
- Select an Item Group.
- Enter the opening stock units and standard selling rate.
- Save.
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Item Name: Item name is the actual name of your product or service.
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Item Code: Item Code is a short-form to denote your Item. If you have very few Items, it is advisable to keep the Item Name and the Item Code same. This helps new users to recognize and update Item details in all transactions. In case you have a lot of Items with long names and the list runs in hundreds, it is advisable to code. To understand naming Item codes see Item Codification. You can also generate Item Code based on a Naming Series by enabling this feature in Stock Settings.
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Item Group: Item Group is used to categorize an Item under various criteria like products, raw materials, services, sub-assemblies, consumables or all Item groups. Create your default Item Group list under Setup > Item Group and pre-select the option while filling your New Item details under Item Group. Item groups can be sub-assemblies, raw materials, etc, or based on your business use case.
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Default Unit of Measure: This is the default measuring unit that you will use for your product. It could be Nos, Kgs, Meters, etc. You can store all the UOMs that your product will require under Set Up> Master Data > UOM. These can be preselected while filling New Item by using % sign to get a pop up of the UOM list. Visit the UoM page for more details
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Disabled: If you disable an Item, it cannot be selected in any transaction.
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Maintain Stock: If you are maintaining stock of this Item in your Inventory, ERPNext will make a stock ledger entry for each transaction of this item. Ensure to keep this option unchecked when creating a non-stock Item (make to order/engineer) or a service.
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Is Fixed Asset: Tick this checkbox if this item is a company Asset. Check out the Asset Module to know more.
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Auto Create Assets on Purchase: If Item is a Company Asset, tick this checkbox if you want to auto create assets while purchasing this item through Purchase Cycle. Check out the Asset Page to know more.
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Uploading an Image: To upload an image for your icon that will appear in all transactions, save the partially filled form. Only after your file is saved the 'Change' button will appear on the Image icon. Click on Change, then click on Upload, and upload the image.
- Brand: If you have more than one brand save them under Selling > Brand and pre-select them while filling a New Item.
- Description: Description of the item. The text from the Item Code will be fetched by default.
Barcodes can be recorded in Items to quickly scan and add them in transactions. In the Barcodes table you can add an Item's barcode for scanning. There are two types of barcodes in ERPNext:
- EAN: The European Article Number is a 13 digit number. EAN is used internationally and recognized by more POS systems.
- UPC: The Universal Product Code is a 12 digit number. UPC is generally used only in USA and Canada.
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Shelf Life In Days: This is for a product Batch. The number of days after which product batch will be unusable. For example, medicines.
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End of Life: For a single item/product, the date after which it'll be completely unusable. That is, the item will be unusable in transactions and manufacturing. For example, you're using plastic crystals for manufacturing Items for the next 5 years after which you want to use plastic beads.
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Warranty: To track a warranty period, it is necessary that the Item is serialized. When this Item is delivered, the delivery date and the expiry period is saved in the Serial Number master. Through the serial number master, you can track the warranty status.
A warranty period is a time period in which a purchased product may be returned or exchanged.
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Weight UOM: The Unit of Measure for the item. This can be Nos, Kilo, etc. The Weight UoM which you use internally can be different from the purchase UoM.
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Weight Per Unit: The actual weight per unit of the item. Eg: 1 kilo biscuits or 10 biscuits per pack.
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Default Material Request Type: When you create a new Material Request for this item, the field set here will be selected by default in the new Material Request. This is also known as an 'indent'.
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Valuation Method: Select the Valuation Method whether FIFO or Moving Average. To know more about Valuation Methods, click here.
When the stock of an item dips under a certain quantity, you can set an automatic reorder under 'Auto Reorder' section. This should be enabled in Stock Settings. This will raise a Material Request for the Item. The user with roles Purchase Manager and Stock Manager will be notified when the Material Request is created.
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Check in (group): In which group warehouses to check the quantity of the item.
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Request for: Which warehouse to stock the item reorder.
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Re-order Level: When this quantity is reached, the reorder will be triggered. Re-order level can be determined based on the lead time and the average daily consumption. For example, you can set the reorder level of Motherboard at 10. When only 10 Motherboards are remaining in stock, the system will either automatically create a Material Request in your ERPNext account.
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Re-order Qty: The number of units to be reordered so that the sum of ordering cost and holding cost is at its minimum. The re-order quantity is based on the 'Minimum Order Qty' specified by the supplier and many other factors.
For example, If reorder level is 100 items, your reorder quantity may not necessarily be 100 items. The Reorder quantity can be greater than or equal to the reorder level. It may depend upon lead time, discount, transportation and average daily consumption.
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Material Request Type: The Material Request type with which the stock will be reordered. This depends whether you buy the Item, manufacture it yourself or transfer it between Warehouses.
Note: The Material Request is created at 12 midnight depending on the set reorder level.
You can add alternate UoMs for an Item. If the default UoM in which you sell is numbers (NoS) but you receive it in Kilos, you can set an additional UoM with an appropriate conversion factor. For example, 500 Nos of screws = 1 Kilogram, so select Kilogram/Litre as UOM and set the conversion factor as 500. To know more about selling in different UoM, visit this page.
With Serial Numbers, you can track warranty and returns. In case any individual Item is recalled by the supplier the number system helps to track individual Item. The numbering system also manages expiry dates.
Please note that if you sell your items in thousands, and if the items are very small like pens or erasers, you need not serialize them.
In ERPNext, you will have to mention the Serial Number in some accounting entries. If your product is not a big consumer durable Item, if it has no warranty and has no chances of being recalled, avoid giving serial numbers.
A set of Items can be manufactured in batches. This is useful for moving the batch and associate an expiry date with a certain batch.
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Has Batch No: Options for batch number, expiry date, and retaining sample stock will be revealed on ticking this checkbox. You cannot activate this if there is any pre-existing transaction for this item. If this is disabled, you'll have to enter the serial numbers manually for every transaction.
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Batch Number Series: Prefix that'll be applied to batch numbers. If you set 5x1SCR, then the first batch will be named like 5x1SCR00001 on first transaction/manufacture.
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Automatically Create New Batch: If the batch number is not mentioned in transactions, then they will be automatically created according to a format like AAAA.00001. If you always want to manually create a batch number for this item, leave this field blank. This setting will override 'Naming Series Prefix' in Stock Settings. Batch numbers can be set to be generated automatically if you manufacture the Items or can be entered manually if it comes from an external manufacturer.
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Has Expiry Date: If you tick this, the batch number will be created according to the expiry date. The expiry dates can be set in the 'Batch' master.
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Retain Sample: To retain a minimum number of sample stock of the item. You need to set a Sample Retention Warehouse in Stock Settings for this. To know more, click here.
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Has Serial No: This is similar to Batch Number Series, it'll be created when you make transactions/manufacture. If you set Serial Number Series as AA, then on the first transaction a serial number like AA00001 will be created.
Tip: While entering an Item Code in an Items table, if the table requires inventory details, then depending on whether the entered item is batched or serialized, you can enter serial or batch numbers right away in a pop-up dialog.
Note: Once you mark an item as serialized or batched or neither, you cannot change it after you have made a Stock Entry.
To know more, visit the Stock Reconciliation page.
An Item Variant is a different version of a Item. To learn more about managing variants see Item Variants.
In this section, you can define Company-wide transaction-related defaults for this Item.
- Default Warehouse: This is the Warehouse that is automatically selected in your transactions with this item.
- Default Price List: Whether Standard Selling or Standard Buying. Likewise, you can also set the purchasing and selling default accounts
- Supplier: If a default supplier is set, this supplier will be selected for new purchase transactions.
- Default Expense Account: It is the account in which cost of the Item will be debited.
- Default Income Account: It is the account in which income from selling the Item will be credited.
- Default Cost Center: It is used for tracking expense for this Item.
Tip: You can add more rows for multiple companies.
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Default Purchase Unit of Measure: The default UoM that will be used in Purchase transactions.
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Minimum Order Qty: The minimum quantity required for purchase transactions like Purchase Orders. If set, the system will not let you proceed with the purchase transaction if the item quantity in the purchase transaction is lesser than the quantity set in this field.
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Safety Stock: “Safety Stock” is used in the report “Itemwise Recommended Reorder Level”. Based on Safety Stock, average daily consumption and the lead time, the system suggests Reorder Level of an item.
Reorder Level = Safety Stock + (Average Daily Consumption * Lead Time)
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Last Purchase Rate: The rate at which you last purchased this item using a Purchase Invoice will be displayed here.
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Is Purchase Item: If unticked, you won't be able to use this item in purchase transactions.
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Is Customer Provided Item: Checked if Item is provided by a customer and received through Stock Entry > Material Receipt. If Checked, Customer field is Mandatory as the default customer for Material Request. To know more visit this page.
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Lead time days: Lead time days are the number of days between ordering the Item and it to reach the Warehouse.
- Delivered by Supplier (Drop Ship): If the item is delivered directly by the supplier to the customer, tick this checkbox. Read more here.
- Supplier Codes: Track Item Code defined by the Suppliers for this Item. In the Purchase transactions, on selecting an Item, a Supplier Part No. will be fetched as well for the Supplier's reference. You can read more about it here.
If you're sourcing the item from another country, you can set the details here.
- Country of Origin: The country from which you're sourcing the item.
- Customs Tariff Number: You can create a customs tariff number with a description and use it for reference here to share with custom agencies. Later it can be used to add in Delivery Notes.
- Inspection Required before Purchase: If an inspection is mandatory before the item is purchased, i.e., before you generate Purchase Receipt, tick this checkbox.
- Inspection Required before Delivery: If an inspection is required at the time of delivery from your Supplier is mandatory for this Item, tick this checkbox. That is, before you generate a Delivery Note.
- Quality Inspection Template: If a Quality Inspection is prepared for this Item, then this template of criteria will automatically be updated in the Quality Inspection table of the Quality Inspection. Examples of Criteria are: Weight, Length, Finish, etc.
Quality Inspection can be done with Quick View and you need not go to a different page to update the details inspection in ERPNext.
To know more about Quality Inspection, click here.