Create a Purchased Part (Inventory Item)

System Location: Data Entry > Inventory > Inventory Items

This topic provides an example on how to create an inventory item that is purchased from an outside vendor. The advantages of creating these items (commonly referred to as "purchased parts") include the ability to:

  • Track on hand quantities and associated costs for inventory management and valuation purposes
  • Provide anticipated cost information that can be used for estimating
  • Populate other areas of the software with part related information quickly and consistently

Though the Inventory Items Navigator will display a list of ALL parts - including manufactured ones - the assumption is that estimates are created and maintained under the Quoting Area of JobBOSS2. This topic deals solely with purchased parts.

For more information see Estimating.

 

 

  1. Go to the blue Data Entry button, open the Inventory dropdown menu, and select Inventory Items.
  2. Click New (located at the top of the page.)
General Section
  1. Provide information as appropriate:
    • Part Number
    • Description
    • Pricing Unit of Measure
      • Automatically updates to / from Stocking Unit (located in Inventory Section)
    • Product Code
    • Inventory GL Code
    • Revision

Information in the Quantity Breaks Grid will automatically populate with details provided in Purchasing Section.

Inventory Section
  1. Provide information as appropriate.

    Quantities in this section should all be entered in terms of the listed Stocking Unit.

    Stocking Information

    • Unit: Represents how part is stocked, used, and sold
      • Automatically updates to / from Pricing Unit (located in General Section)

    Re-Order Information

    • Level
    • Quantity: Represents the quantity of the part (in terms of Stocking Unit) that will be used as the default quantity for replenishment purposes
      • If a Purchasing Factor other than 1 is present, make sure the Re-Order Quantity is entered in terms of the part's Stocking Unit. The system will convert the amount accordingly on purchase orders.

    Located under 'Re-Order Information'

    • Part Weight (lbs)
    • Default Bin Location: Represents the default physical storage location for the part (assuming there are any units On Hand)
      • The Bin Location listed here must be listed in the Bin Locations Grid (below)

    If quantities and related information is known at the time of entering the inventory item it can be entered in the Bin Location Grid; however, for purposes of this example it is assumed those details will be entered using Inventory Adjustments.

    For more information see Inventory Adjustments.

Purchasing Section
  1. Provide the following Inventory Information as appropriate.
    • Primary Vendor: Represents the vendor that the system assumes the part will be purchased from
      • Items MUST have a Primary Vendor selected in order to be recognized as a purchased part
      • Secondary and Alternate Vendor are optional fields and are used for reference purposes only
      • Parts that do not have a Primary Vendor assigned are assumed to be manufactured parts (Estimates) and will be treated accordingly when creating job requirements.
    • Purchasing GL Code
    • Lead Time (Days
      • Populates from Primary Vendor selected
    • Purchasing Unit Of Measure: Represents how the part is purchased
      • May be different than the Pricing / Stocking Unit of Measure
        • If different, Purchasing Factor must be something other than "1"
    • Purchasing Factor: A numeric value used to convert between Purchasing and Stocking Units if they are different
      • Must have a value listed regardless of various units listed
        • If Purchasing and Stocking Units are the same, Purchasing Factor must = 1
        • If Purchasing and Stocking Units are different, Purchasing Factor cannot = 1

        This example represents how to calculate the Purchasing Factor for material that is purchased by the 'FT' (Foot) and stocked by the 'IN' (Inch).

        • Purchasing Factor "formula" = Purchasing Unit / Stocking Unit
          • PF = FT/IN
          • PF = 1/12 = 0.0833333 (repeating)
        • The value entered as the Purchasing Factor would be 0.08333333 (8 character limit after the decimal)
        • Purchasing Factors can be less than 1 (as indicated here) or greater than 1 depending on the relationship between the units of measure

        The same logic can be applied to any two units when considering how to convert between them for purposes of calculating a Purchasing Factor.

  2. Enter information in the following columns of the Quantity Breaks Grid for each cost break point as needed.
    • Purch Qty (PURCHASING UNIT): Represents the lowest quantity that can be purchased (in terms of Purchasing Unit) at the associated Unit Cost
      • Exception: If the FIRST break is greater than 1, the value represents the largest quantity that can be purchased at the associated Unit Cost.
        • Any quantity equal to or less than this value would use the associated Unit Cost
    • Unit Cost: Dollar amount that is expected to be charged per unit (in terms of Purchasing Unit) given the total quantity purchased
      • Typically Unit Cost decreases as more units are purchased

    Information in the Quantity Breaks Grid is used for estimating purposes and populates purchase orders by default if a Vendor RFQ is not used.

  3. Click Save to save and close the record.
    1. Use the Save dropdown menu if you want to create a new record or print a report upon saving.

 

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