Details of a Product
1. Basic Info
Product Name: Unambiguous and clear name of the product should be specified.
Stock Keeping Unit: Stock Keeping Unit(SKU) represents the unique unit code number for machine readability assigned to the each product item. Unique code is used to identify the single stock unit.
Standards of SKU:
- SKU name shouldn't start with numbers or symbols.
- It should always start with letters followed by unique number for the unit.
- Half part of code should be starting letters of product and half number should be unique number given to it.
Example: If the product name is Cadbaury Chochlate then the SKU of a product can be Cad2342.
The Unit of measure is the standard unit of measure by means of which a quantity is measured, accounted for and expressed.
The company has setup unit of measurement groups to add consistency and ease to setup unit of measure for product.
When an item is created a unit of measurement group is assigned to it. The group contains all the units of measure required for the item.
Below table represents a set of relevant unit of measures for the product.
2. Selling Prices
Selling prices of the product are given at different levels based on customer type and regularity and transaction volume.
3. Default Effected Accounts
Sale of a product effects the journal ledger accounts like Inventory account, Income account, and Cost of Good sold account which is to be added to a product.
Inventory Account
It is used to calculate the net value of asset at the end of every year.
Income Account
The value of asset is decreased by its depreciation value, which is effected in income account to know the retained earnings.
Cost of goods sold Account
This account is used to calculate the cost of goods including labour, wages and all direct expenses to calculate the selling price.
4. Reorder Levels
The reorder level is the level of point at which the company should reorder the quantity or start manufacturing the product.
Safety stock
The safety stock is the stock held by the company in excess of its requirements for the lead time to safeguard against stock-out.
Safety Stock= (Maximum daily usage - Avg daily usage) * Lead time
Reorder Quantity
The quantity of product to be ordered after reaching the reorder level which is calculated by the following formula,
RQ= Safety Stock * Avg daily usage * Lead time.
Lead Time
The time taken by the supplier to deliver the product.
Assigned Bin
The Bin at which the product is stored.
5. Purchasing Info
Preferred supplier
The preferred supplier of this product decided based quality and lead time.
Generic Name
The name which is given by the supplier for that product.
Generic SKU
The SKU code of the product given by supplier for identification.
6. Alternate Units of Measure
The alternate units of measure are units at which the product is measured and expressed.
7. Website Module
The product information if specified in website for reference, website name needs to be provided.
8. Special Instructions
The instructions during shipment of product like number of days required for shipment and rules of shipment needs to be specified.
8. Notes
The notes required for internal reference like who is the administrator for the sale of product and units of measure are noted.
1. Basic Info
Product Name: Unambiguous and clear name of the product should be specified.
Stock Keeping Unit: Stock Keeping Unit(SKU) represents the unique unit code number for machine readability assigned to the each product item. Unique code is used to identify the single stock unit.
Standards of SKU:
- SKU name shouldn't start with numbers or symbols.
- It should always start with letters followed by unique number for the unit.
- Half part of code should be starting letters of product and half number should be unique number given to it.
Example: If the product name is Cadbaury Chochlate then the SKU of a product can be Cad2342.
Kind of Product
The kind of product should be specified whether it is stock or Non-stock or Custom or Supplies.
Stock: It represents the inventory which the company deals with.
Non-Stock:
It represents the stock which is not dealt by the company and arranged at special cases if customer orders.
Custom:
Custom product is the modified final product based on the custom requirements of the customer.
Supplies:
A small category of stock used in the production process.
AlTernate Name
Alternate name should be specified for the product.
2. Additional Info
TypE/Form:
The type of product or form in which the stock is stored and sold i.e., block, slab, tile, cut-to-size, strainer,liners etc., is to be selected.
Category:
Category of the product can be Marble, Granite, Quartzite, Sandstone, Limestone etc., should be selected.
Sub-category:
Sub-Category of the product whether it is low margin, high margin, mid margin is to be specified.
Group:
The group of the product can be basic, premium, exotics, super-exotic can be specified.
Base color:
The base color of product whether black, brown, white is to be selected.
Origin:
The location where the product origin took place is to be specified.
Thickness:
The product thickness whether 2cm or 3cm is to be specified.Series Name:
The series name is a model number used to identity the product.
Unit of Measure:
The Unit of measure is the standard unit of measure by means of which a quantity is measured, accounted for and expressed.
Unit of Measurement Group:
The company has setup unit of measurement groups to add consistency and ease to setup unit of measure for product.
When an item is created a unit of measurement group is assigned to it. The group contains all the units of measure required for the item.
Below table represents a set of relevant unit of measures for the product.
2. Selling Prices
Selling prices of the product are given at different levels based on customer type and regularity and transaction volume.
3. Default Effected Accounts
Sale of a product effects the journal ledger accounts like Inventory account, Income account, and Cost of Good sold account which is to be added to a product.
Inventory Account
It is used to calculate the net value of asset at the end of every year.
Income Account
The value of asset is decreased by its depreciation value, which is effected in income account to know the retained earnings.
Cost of goods sold Account
This account is used to calculate the cost of goods including labour, wages and all direct expenses to calculate the selling price.
4. Reorder Levels
The reorder level is the level of point at which the company should reorder the quantity or start manufacturing the product.
Safety stock
The safety stock is the stock held by the company in excess of its requirements for the lead time to safeguard against stock-out.
Safety Stock= (Maximum daily usage - Avg daily usage) * Lead time
Reorder Quantity
The quantity of product to be ordered after reaching the reorder level which is calculated by the following formula,
RQ= Safety Stock * Avg daily usage * Lead time.
Lead Time
The time taken by the supplier to deliver the product.
Assigned Bin
The Bin at which the product is stored.
5. Purchasing Info
The preferred supplier of this product decided based quality and lead time.
Generic Name
The name which is given by the supplier for that product.
Generic SKU
6. Alternate Units of Measure
The alternate units of measure are units at which the product is measured and expressed.
7. Website Module
8. Special Instructions
The instructions during shipment of product like number of days required for shipment and rules of shipment needs to be specified.
8. Notes
The notes required for internal reference like who is the administrator for the sale of product and units of measure are noted.
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