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Mark Rockwell, Rockton Software

6 Ways to Define Your Inventory in Dynamics GP


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Inventory Control in Dynamics GP allows you to define the different types of items you use through Item Types. The Item Type assigned to an Inventory item describes the type of item being bought or sold. It also determines which posting accounts are used when an item is posted on a transaction. There are 6 different Item Types to choose from. It’s easy to forget what each type is used for and what the limitations might be on each.  Let’s take a look as we break them down for you.

 

6 Inventory Item Types

1. Sales Inventory

A Sales Inventory item is typically a physical item kept in stock. Quantities are tracked for these and you can enter both increase and decrease Inventory Adjustments for them. Since quantities are tracked for this Item Type, there may come a time where you no longer carry the Item. You can change the Item Type to Discontinued so that you no longer allow purchases of the item, but you allow the sale of the remaining quantities.

 

2. Discontinued

The Discontinued Item Type is very similar to the Sales Inventory Item Type. You track the quantities for this Item Type but can only sell the quantities, you may not purchase additional quantities. You may, however, change a Discontinued item to Sales Inventory item, which allows you to purchase more.

 

There may be times when you do not want users to be able to sell discontinued items. There is an option in Sales Order Processing Setup Options called ‘Allow sale of discontinued items’. Users may only sell discontinued items when this option is marked.

 

3. Miscellaneous Charge

A Miscellaneous Charge item is an Item where quantities are not tracked, such as a freight charge or mileage. The current cost of the item is also not tracked. With this Item Type, you may not change the Item Type after it has been selected and the record saved.

 

4. Kit

A Kit Item Type is an item made up of multiple components. Quantities are not tracked for the kit but are tracked for the components that make up the kit, if the component is a Sales Inventory Item Type. When you enter a kit on a transaction, each component is checked for shortages. A kit may only be used with Sales Order Processing, but not the Invoicing module. The components are purchased through Purchase Order Processing rather than the kit.

 

5. Services

A service item is great for tracking service charges such as labor, training, or service plans. While you can enter a quantity to sell, the quantities are not tracked within Dynamics GP. Also, you may enter a cost on the Item but when sold the Cost of Goods Sold and Inventory accounts are not updated. Lastly, when an Item Type is set as Services, it may not be changed to a different Item Type later.

 

6. Flat Fee

An Item Type of Flat Fee is helpful when you want to track an extra fee such as delivery or a restocking fee. Much like a Service item, you may enter a quantity on a sales transaction, but the quantities are not tracked within Inventory nor is the cost tracked. You may not change this Item Type once it has been assigned.

The chart below offers a quick reference to the different Item Types available in Dynamics GP.

Other things to Consider

Non-Inventory

You may also have instances where you need to sell something that is not part of your Inventory and you do not want to add it to Inventory. You can set up Dynamics GP to allow the use of non-inventory items. When you enter a transaction, you enter the non-inventory item on the line and include the description, unit price, and unit cost. The items won’t be tracked in inventory and are posted to the default accounts you assigned for non-inventory items. You also see those records on your analysis and history reports.

 

Changing Item Types

When it comes to changing the Item Type assigned to an Item, you may only do so for Sales Inventory and Discontinued Items. In order to change the Item Type, you must first bring the quantity on the item to 0 and make sure the item does not exist on any transactions. Next, remove history for all transactions where that Item appears, then you change the Item Type. An easier option may be to create a new Item Number.

 

The Inventory module in Dynamics GP has a lot to offer, but it is important to know the Item Types available and create your inventory accordingly.

 

About Rockton Software

 

Rockton Software, a Microsoft Dynamics Partner, is an Independent Solutions Vendor (ISV) based in the United States. The company started in 1999 by offering custom development for clients using Microsoft Dynamics GP accounting software. Today, Rockton Software is a creative company with add-on products for Dynamics GP as well as custom development. The Dynamics GP product suite consists of SmartFill, Dynamics GP Toolbox, Auditor, Dynamics Report Manager, Omni Price, Project Cost, Exchange Rate Import, and our newest addition to the Rockton product family, Rockton Pricing Management.

 

Work Simpler & Easier® isn’t just a catchy motto. It’s a lifestyle.

 

Rockton Software is a virtual company with employees in seven states and its headquarters in Erie, Colorado. Serving over 100,000 users worldwide, Rockton Software supports innovation by offering Microsoft Dynamics add-ons for all industries. Whether you’re in need of auditing, pricing, searching, reporting, project cost, or general user enhancements, we’ve got the solution for you!

 

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