Show TOC

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, from the SAP Business One Main Menu, 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.

End of the note.
Item Groups - Setup, General Tab
Item Group Name

Specifies the name of the group.

Default UoM Group

Specify a default UoM (Unit of Measurement) group for the item group. If you select the item group for a new item in the Item Master Data window, the UoM group for that new item is by default the one specified in this field.

Default Inventory UoM

Specify a default inventory UoM for the item group. If you select the item group for a new item you create in the Item Master Data window, the inventory UoM for that new item is by default the one specified in this field. If you leave this field blank, the inventory UoM is by default the base UoM of the UoM group you specified in the Default UoM Group field.

Note Note

This field is visible when the value in the Default UoM Group field is not blank or Manual.

End of the note.
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.
Component Warehouse

In MRP calculations, the application needs to determine the warehouse of the required component items.

The current item group is considered as the group for parent items, and this dropdown list lets you select a warehouse source to be used in the MRP calculation for their component items.

From Bill of Materials Line - Use the component warehouse defined in the Bill of Materials window line.

From Parent Item Document Line - Use the parent item's warehouse defined in the line of the parent item demand document.

Note Note

This field is available only if you have selected Make in the Procurement Method dropdown list.

The option you have selected here is automatically carried to the same field on the Planning Data tab in the Item Master Data window of the items which belong to current item group.

End of the note.

Example Example


Parent Item: C001

Component Item: C002, C003



Header Warehouse

Line Warehouse

Bill of Materials:

Warehouse 01 (for C001)

Warehouse 02 (for C002)

Warehouse 03 (for C003)

Sales Order:


Warehouse A (for C001)


  • If you have selected From Bill of Materials Line:

    Warehouse 02 and warehouse 03 are used in the MRP calculation, for C002 and C003 separately.

  • If you have selected From Parent Item Document Line:

    Warehouse A is used for C001 in the MRP calculation if Sales Order is selected as a source of demand.

End of the example.
Order Interval

Select one of the defined intervals or Define New to open the 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 a 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.
Checking Rule

Specify an ATP checking rule. For more information, see Assigning ATP Checking Rules.

Note Note

To use this function, you must complete the following:

  1. Install SAP Business One, analytics powered by SAP HANA.

  2. Initialize corresponding company databases in the Administration Console.

  3. Log on to SAP Business One, version for SAP HANA again.

For more information about installing the application and initializing company databases on an SAP HANA database server, see the SAP Business One, version for SAP HANA Administrator's Guide.

End of the note.
Minimum Order Qty

Enter an amount value in inventory UoM 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.

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.

Note Note

The following four fields are available only if you have enabled bin locations for at least one warehouse:

End of the note.
Whse Code, Whse Name

Display the codes and names of all warehouses which have enabled bin locations.

Default Bin Location

Specify the default bin location in the warehouse for receiving items which belong to the item group.

Enforce Default Bin Loc.

Note Note

If you have not specified a default bin location, the checkbox is disabled.

End of the note.

Select the checkbox to enforce the use of the default bin location for receipt of items which belong to the item group. That is, when you receive an item of this group to your warehouse, you must place it in the default bin location, unless you have specifically assigned another default bin location to this particular item.

SAP Business One lets you specify default bin locations on three different levels: warehouse, item group, and item. Among the three default bin locations, the priority is as follows:

Default Bin Location of Item > Default Bin Location of Item Group > Default Bin Location of Warehouse

Therefore, if you have specified a default bin location for the item, the enforced default bin location on the item group level is not in effect.

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.