Item Groups - Setup 
Definition
Use this window to classify your inventory items into groups. For example, you can create groups that correspond to your business areas and assign the items to a business area using the group.
Item groups can also describe the nature of an item. An extensive inventory would necessitate general group definitions; while a small inventory of items could have more detailed descriptions of the item groups.
You can use item groups to format your reports and evaluations, and to process several items together. For example, you could select all the raw materials for a physical inventory.
To access, choose Administration ®Setup ®Inventory ®Item Groups.
To duplicate the Item Group, right click on the window and choose Duplicate.
Item Groups – Setup, General Tab
Field |
Activity/Description |
Item Group Name |
Specifies the name of the group. |
Planning Method |
Select one of the following: ● MRP – to plan item procurement with the MRP system ● None –item procurement is not planned by MRP; and no production order or purchase order recommendations are created for the item. |
Procurement Method |
Select one of the following methods for the MRP: ● Make – MRP generates production order recommendations for the item. ● Buy – MRP generates purchase order recommendations for the item. |
Order Interval |
Select a value to define time intervals between different orders. Select Define New to open Define Order Intervals, where you enter a name and frequency for the interval. |
Order Multiple |
Enter a numeric value to define the size of the lots for the MRP. For example, if the value is 12, and you need 20 items, the MRP recommendation is for 24 items. |
Minimum Order Qty. |
Enter a value to define the minimum lot size. |
Lead Time |
Enter the number of days to calculate the duration of time from ordering a product to the time when the product is received or produced. |
Cycle Group |
Select an inventory cycle for this group. The inventory cycles define and schedule inventory counts. For more information, see Inventory Cycles - Setup. |
Alert |
Activates alert notifications of inventory counts for this group. |
Inventory Valuation By |
Select one of the following methods: ● Moving Average –based on the calculation of an average cost for the item in each sales and purchasing transaction. ● Standard – the standard pricing system permits the selection of a fixed price, which is then used for all transactions. ● FIFO – an additional perpetual inventory system, in which goods purchased first are sold first, regardless of the actual goods flow. For more details, see Perpetual Inventory. |
Country-Specific Fields: Brazil
Field |
Activity / Description |
Item Classification for Taxes – Radio Button |
Classifies the item as Service or Material. This choice determines subsequent fields. |
For item classified as Service:
Field |
Activity / Description |
Outgoing Service Code |
Select an outgoing service code from the drop-down list, or choose Define New to create a new one. The outgoing service code is related to ISS tax, and is used in Sales Quotation, Sales Order, Delivery, A/R Invoice, A/P Goods Return and A/P Credit Memo. |
Incoming Service Code |
Press TAB to open the Choose From List window, where you can select the incoming service code or define a new one. The Incoming Service Code is related to ISS tax and is used in Purchase Order, Goods Receipt PO, A/P Invoice, A/R Returns and A/R Credit Memo. |
Service Group |
Select a service group from the drop-down list, or choose Define New to create a new one. Service groups are used for Automatic Tax Code Determination. |
You must first define County in Company Details before you can
select an outgoing or incoming service code here.
Country-Specific Fields: India
Field |
Activity / Description |
Item Category – Radio Button |
Classifies the item as Service or Material. |
Service Category |
Select a service category from the drop-down list, or choose Define New to create a new one. The service category is used as a key field in tax code determination. |
Planning Method, Procurement Method, Order Interval, Order Multiple, Minimum Order Qty., Lead Time, Cycle Group, Inventory Valuation By |
These fields are not visible. |
When you add a new item in Item Master Data and select an item group, the item classification information is copied from this window to Item Master Data.
However, further changes to service category can only be made manually, and changes from item to service are not possible at the item level.
For item classified as Material:
Field |
Activity / Description |
Material Type |
Select a material type from the following three options, or choose Define New to create a new one: ● Finished Goods ● Goods in Process ● Raw Material |
NCM Code |
Select an NCM Code from the drop-down list, or choose Define New to create a new one. |
Material Group |
Select a material group from the drop-down list, or choose Define New to create a new one. Material groups are used for the Automatic Tax Code Determination. |
Product Source |
Select a product source from the following options: ● Purchased from the domestic vendor ● Imported by the company ● Imported good purchased from the domestic vendor ● Produced by the company This field is for your information only. The product source does not affect the tax calculation or posting; it is used for CST generation. |
When you add a new item in Item Master Data and select an item group,
the classification information is copied from this window to Item Master
Data. Further changes can be made manually.
Item Groups – Setup, Accounting Tab
Define group-wide accounts for this group. An item you assign to this group automatically receives the group accounts (provided that you set the G/L Method field in Item Management to Item Group).
Expense, Revenue, Decreasing, and Increasing accounts receive settings from G/L Account Determination. (Choose Administration ® Setup ® Financials.). You can change these settings manually.