temporary part number

  • Bart

    Bart - 2010-03-03

    In our old software, we could create a temporary SKU for items we purchased & sold. This was convenient for items that we would purchase only once or very rarely. But in Compiere this does not appear to be an option. Do we have to create a new Product for every item we purchase, even if we will never purchase it again?

  • stingreye

    stingreye - 2010-03-03

    its actually easy.  WE use it alot!

    We created products called "DMISC" "EMISC" etc that have GL codes associated with them.  We create as many "temporary" products GL codes for that we need.   On the order, in the orderline description you key in the "temporary part#/description".

    Some real examples we use:
    1) Toilet Paper - Product created "Misc" (service item for unlimited inventory) points to miscelaneous office supplies.   Create an order pick MISC product.  Add "Toilet Paper 500 rolls" to the description.  YOu can them receive and invoice it just like a regular product.  It doesn not affect inventory.

    2) Brackets/"purchased items"/"work in process subassemblies" - some times we sell miscellanous products to our customer that are not our normal products, they need wire or brackets or some other miscellanous component or subassembly.  We have a product called "MiscComponents" as a service item so that inventory is not impacted.  We then add it to the order line and have "1'3/4" Bracket Zinc Plated"  The packing slip prints the product MiscComponents along with the orderline description that has 1'3/4" Bracket Zinc Plated" so that shipping department knows what it needs to ship.  It works really well.

    Other Temporary Items we use:
    1) Drop Shipments to our customer's customers - we create a location called drop ship.  We key in the drop ship address into the description field on the order header.  The drop ship address prints in that field on packing slip and invoice and really works well.  It keeps us from having to continually add addresses and MOST importantly keeps us from accidentally sending a large stocking order to a residential address for one of our customer's customers.

    2) Credit Card Purchases - Add a credit card vendor.  We then us "ship to locations" to indicate all the different vendors that accept credit cards.  The vendor invoices should them match the credit card bill that comes.

    I hope that helps!


  • Bart

    Bart - 2010-03-03

    thanks Steve!

  • Bart

    Bart - 2010-03-03

    BTW Steve,
    When you create these misc service items, how is the GL fields handled? When you create a new product, there are GL fields for inventory CGS etc. Are these fields ignored for service items? IOW, how is inventory valuation handled when purchasing/selling this type of item?

  • stingreye

    stingreye - 2010-03-03

    Just checked it in Garden World Demo.  It looks like service Items do not impact COGS or Asset GL's.  I guess this makes sense since they do not have an inventory qty associated with them.  It will affect A/R and Revenue accounts when you invoice them (we use it for various fees).

    We turned off accounting for COGS and Asset Accounts.  We use a different method to handle GL transactions for COGS and Inventory (more manual with a gross margin report that we use).  It was a carry over from our old system.  We do use the invoicing to affect the revenue accounts and the A/R.

  • Bart

    Bart - 2010-03-04

    We did an experiment. For a specific MISC item, we made a PO, Material Receipt, Sales Order, Shipment, Invoice.
    The PO amt was 17.73, but when we click the "Posted" button from Material Receipt window, it says 1.96 (the last current cost), when we press the "Posted" button  from the Shipment window, it also says 1.96
    Doesn't sound right.
    Should we be skipping the Material Receipt and Shipment stages?

  • Bart

    Bart - 2010-03-04

    It gets more complicated (for my little brain)… later, when we do the Invoice Vendor, the current cost is updated with the correct amt.  We are struggling to understand the numbers in the Product Costs window and we are concerned that inventory valuation is not correct. We wonder whether skipping Material Receipt and Shipment stages has any effect on MISC service items.

  • aladin

    aladin - 2010-03-05

    I think you are getting in to the area of costing. The following is from my memory because I don't have a Compiere system to hand.

    On the Product window check the "stock" flag (yes/no). If set to yes then the system used the Product Asset account otherwise the Product Expense account when posting in MR/Shipment.  There were a few bugs back in the 2.6.1 days which should be fixed now, but I never did get the concept of a service item having stock (if someone knows..).

    Check on the Accounting Schema to see the Costing Method, i.e. Standard Cost, Average Order, Average Invoice, Actual (FIFO), Last PO,  etc. This flag is overriden at a Product Category level if required.  This setting defines what is entered in the Product Cost > Current Cost field. If using Standard Cost then the Product Cost is the Standard Cost, if average cost, then the current average cost, etc.

    From what you are describing it sounds like the current cost is being updated at the invoice time, so either "average invoice" or "last invoice" settings are used. This is a business call on what settings you should set at, but my last company always found that Compiere didn't handle average costs that well, and stuck with standard costs. Compiere has the problem that if average invoice was used, than the average cost is updated too late, and if average PO then it doesn't take into account what was actually invoiced/paid. There were a number of bugs in average costing I remember as well.

    If your accountants aren't sure how the inventory is being valuled then you may need to spend some time investigating on a test system.

    Hope this helps.

  • Bart

    Bart - 2010-03-05

    Thanks Jeff

  • Dale H

    Dale H - 2010-05-22

    We use PO average costing and I agree Compiere didn't handle it correctly; however the recent fix corrects the problem.  Also, we capture the difference between PO and Vendor invoice in a Purchase Price Variance (PPV) account which is used to monitor accuracy by purchasing.

    Also, we are testing "one-time" sell items by using lot tracking and tying the purchase order cost to the sales invoice.  Results of testing should be available in the next 10 days if you have an interest.


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