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Object documentationItem Groups - Setup Locate this document in the navigation structure

 

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. If you enter a large number of items in SAP Business One, it makes sense to define groups in more general terms. If you handle just a few items in your company, the description of the item group can be more detailed.

You can use the item groups to format your reports and evaluations and to select several items so that they can be processed together. For example, you could select all the raw materials for a physical inventory.

To open the window, choose   Administration   Setup   Inventory   Define Item Groups  .

To duplicate the Item Group, right-click the window and choose Duplicate.

Note Note

This topic documents fields and other elements in this window that either are not self-explanatory or require additional information.

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Item Groups - Setup, General Tab
Item Group Name

Specifies the name of the group.

Planning Method

Select one of the following:

  • MRP – the item can be planned by MRP.

  • None – the item cannot be planned by MRP.

Note Note

Only items with the Planning Method of MRP are available for selection when you are running the MRP wizard.

End of the note.
Procurement Method

Select one of the following procurement methods for the order recommendations in MRP:

  • Make – MRP generates production order recommendations for the item.

    Note Note

    All parent items should be defined as Make in order to calculate the requirements for their child items in the MRP run. In the case of a sales or assembly bill of materials (BOM), no actual production order will be issued for the parent item, only the requirements for its child items.

    End of the note.
  • Buy – MRP generates purchase order recommendations for the item.

    Note Note

    The Buy method should be selected for the child items at the lowest level of the BOM, or for items which are not part of a BOM.

    End of the note.
Order Interval

Select one of the defined intervals or select Define New to open Order Interval - Setup window.

In MRP calculations, the application automatically groups the recommended orders into interval periods, and arranges orders within the same period into the first working day of that period.

For more information about how the order interval definition affects MRP calculations, see Example: Lead Time, Holidays, and Order Interval in MRP.

For more information about how to create a new order interval, see Order Interval — Setup Window.

Order Multiple

Enter the numeric value to define the size of the lots for the MRP.

Example Example

If the value is 12, the item is ordered in multiples of 12. So if you need 20 items and the value is 12, the MRP recommendation is for 24 items.

End of the example.
Minimum Order Qty

Enter the value to define the minimum lot size.

Example Example

When the value is 100, and you need 80 to meet a sales order, the MRP recommends 100 to satisfy the demand as well as the definition for minimum order quantity.

End of the example.
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 Code

Select an inventory cycle for this group. The inventory cycles define and schedule inventory counts.

Alert

Activates alert notifications of inventory counts for this group.

Inventory Valuation By

Select one of the following:

  • Moving Average – the method is 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.

Item Category

Define whether the Item Group is for Material Item or Service Item.

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. You can change these settings manually.

More Information

Inventory Cycles - Setup