simpliRP ERP : Significance of ITEM MASTER in Organizations

Presents

The Significance of ITEM MASTER in Organizations

simpliRP  ERP  is the Robust & Economical ERP for MSME / SME / SMB Industry. It has been our continuous endeavor to simplify the industrial processes. Lean & Robust process is the requirement of the day. Please visit us at www.simplirp.com.

An ITEM is the core element in simpliRP  ERP, for MSME / SME / SMB. The business revolves around ITEM., which is the element in INVENTORY System. An ITEM is called as ITEM CODE / ITEM NAME / MODEL NO. / PART CODE / PART NAME / SKU [Stock Keeping Unit] by Manufacturing Sector.  An item master is a key information in any inventory system. This ITEM MASTER includes the description, unit of measure, category, HSN, Barcode and so forth for an item. An item master is the  information source for activities such as material requisitions, purchases, sales, production issue, production receipt, QA parameter definitions, delivery challans, invoices etc.,

POINTS TO PONDER :

In any organization, defining item master is the toughest in their process, physically.

For Understanding, We can segregate into three major kinds,  for purpose of creating Item Master:

1. Purchased Items.
2. Invoiced items
3. Internal items

Purchased Items : always maintain the ITEM NAME or ITEM CODE as mentioned in supplier invoice. This will enable smooth GST  input credit. This will also facilitate smooth GST Audits, if any.

Invoiced Items : always maintain the ITEM NAME or ITEM CODE as mentioned in the Customer Order . These Invoiced Items are either finished goods or scrap. [Assets are not considered here]

This will enable customer system and your system have same matching ITEM NAME /  ITEM CODE. So that there is no painstaking month end matching of Invoices with Customer Order. And it will also ensure, the payment cycle is smooth, seamlessly.

Internal items : in this, you can maintain the ITEM NAME or ITEM CODE as recognized by your internal employees or internal process.
In case of assets or tool , ensure ITEM CODE or ITEM NAME contains the serial number , make and model of that asset or tool.

EXAMPLE OF NEW ITEM CODE FOR ASSET : USHA FAN RACER 1200MM BROWN SNO 123456

EXAMPLE OF NEW ITEM CODE FOR TOOL : DIGITAL VERNIER CALIBER X 1234 SNO 6547229

What is ITEM CODE / ITEM NAME / MODEL NO. / PART NO.  in simpliRP  ERP   ?

• ITEM NAME or ITEM CODE or MODEL NO. or PART NO. all are same.
• ITEM NAME / ITEM CODE / MODEL NO. is UNIQUE name you can give to the item
• Stock will be maintained to this ITEM CODE / ITEM NAME.
• This ITEM CODE / ITEM NAME will appear in the invoice.
•  ITEM NAME or ITEM CODE or MODEL NO. or PART NO. cannot be duplicate.

For Each Process output item, you need to create separate ITEM NAME.
Example. , in simpliRP  ERP   : If there is process of converting a 22MM SS ROD into 0.75 INCH BOLT

STEP 1	PROCESS NAME	ITEM
1	RAW MATERIAL	22 MM SS ROD
2	CUTTING	CUT ITEM
3	FORGING	FORGING ITEM
4	FINISHED GOODS	0.75 INCH BOLT

The above example* has to be defined as follows in system :

#	ITEM NAME to be created in the system	TYPE OF ITEM	UNIT
1	22 MM SS ROD	RAW MATERIAL	KG
2	0.75 INCH BOLT CUTTING	WIP	NUMBER
3	0.75 INCH BOLT FORGING	WIP	NUMBER
4	0.75 INCH BOLT FG	FINISHED GOODS	NUMBER

*just example, not a real process.

Please note, the process name can be added to the FG Part Number [FG ITEM NAME / FG ITEM NUMBER], so that they get grouped automatically by process and final ITEM NAME.

Why we should not use special characters in Item Master creation.

• Please do not use any special characters like “!@#$%^&*()+{}[]|\/”,’~`. this will create problems while doing transactions or GST return filing
• however you can use - (minus) or . [dot] symbol.

EDITING or DELETING of ITEM CODE / ITEM NAME [ITEM MASTER]

WHY You should never DELETE or EDIT an ITEM CODE / ITEM NAME . , in simpliRP  ERP   ?

• A transaction may have taken place on an ITEM CODE / ITEM NAME. if we delete it, these transactions will become headless.
• If you edit an ITEM CODE / ITEM NAME, the value of that item will change. For example, if you change the "USHA FAN " -- > "USHA FAN REGULATOR", it will change the value to tenth of its original value.
• In case you do not want that ITEM NAME / ITEM CODE, you should make it inactive in that system.

This solution is available Off-The-Shelf along with the simpliRP   ERP  .

Change is Good

 a Robust, Economical & Simple ERP for MSME / SME / SMB. simpliRP ERP does not require USER ACCEPTANCE TESTING. With little training, MSME/ SME / SMB can start using the ERP right from day one. It saves lot of time & energy of MSME / SME / SMB , can implement the ERP swiftly. Please visit us at www.simplirp.com and please have glance on the product. simpliRP ERP is available ON CLOUD also on very economical prices.

Improving business processes is a requirement in today’s business scenario, to stay competitive. In a time when  GST pressures & Slow-Down Fear mongers, selecting simpliRP ERP will ensure lean organization and success. simpliRP ERP allows you to take time to make the changes incrementally. Organizations will find the true power available to them.