Chapter 4: Manage Items

CHAPTER 4: MANAGE ITEMS

Objectives
The objectives are:

• Explain the purpose of all fields and functions on the item card.
• Identify and use the links and functions provided with the item card
buttons.
• Create a new item.
• Examine an item's availability over time.
• Analyze item figures with statistics windows and reports.

Introduction
Item cards are placeholders for critical master data that is used throughout the
supply chain areas of the program. This central record integrates with ongoing
business documents to provide information, such as cost, price, availability, and
sales terms. In addition, each item card offers multiple views and functions to
help manage the item while in inventory.

As items are in the center of most businesses, the item and inventory
functionality is prerequisite knowledge for anyone learning to use the basic
supply chain functionality of Microsoft Dynamics® NAV 2009.

This course demonstrates the integration of item cards with purchases and sales.
For detailed information on more supply chain flows, refer to the following
courses:

• Manufacturing I in Microsoft Dynamics® NAV 2009

• Manufacturing II in Microsoft Dynamics® NAV 2009
• Inventory Management in Microsoft Dynamics® NAV 2009

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The Item Card

Before buying and selling items, you must set up information and policies that
the program uses in item transactions. All this item-specific information is
entered and maintained in one central place: the item card.

When you create document lines for a specific item, the relevant information
from the item card is entered in most of the fields on the lines and calculated
according to the quantity you enter .

Users can access item cards from different places in the Role Center:

• Departments > Purchase > Planning > Lists > Items

• Departments > Warehouse > Planning & Execution > Lists >
Items
• Departments > Manufacturing > Product Design > Lists > Items

FIGURE 4.1 NEW ITEM CARD SHOWING THE GENERAL FASTTABS

When you set up a new item on an item card, there are fields that must always be
filled in, fields that can be filled in as needed, and fields in which you cannot
enter anything because they are maintained by the program.

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The tables in the following topics go through all the fields on each item card tab
to give direction on how to fill in the fields. The following codes in the Fill In
column indicate whether the field must be filled in:

man = Mandatory

opt = Optional

aut = Automatic

General FastTabs
The following table goes through every field on the General FastTabs and gives
directions on how to fill it in.

Field Fill in Instruction

No. man The program is preset with automatic numbering using generic
number series. It is advisable to use this predefined setup. For
more information on selecting from number series, refer to the
"Create a New Item" demonstration.
Description opt Enter the name of the item.
Base Unit of opt Look up to the Item Units of Measure window and select the
Measure unit type that you want to keep the item in. You may need to
(BUM) create a base unit of measure if what you need is not on the
default list.
Bill of Material aut This field indicates if the item has the function of a sales bill of
material. For detailed information about BOMs, refer to the
training manuals titled "Trade in Microsoft Dynamics® NAV
2009".
Note that the sales BOM is not related to the production BOM.
For detailed information, refer to the "Manufacturing I in
Microsoft Dynamics® NAV 2009" course .
Shelf No. man Enter a text value to name the place in inventory where you
keep the item. This field is not used by the system, however,
the shelf number is displayed in the Picking List report.
Automatic Ext. opt Select this field to ensure that any extended text will be added
Text automatically on sales or purchase documents for this item.
Refer to the "Add and Use Extended Texts" demonstration.
Created from aut This field indicates that the item card was originally a nonstock
Nonstock Item item. Refer to the "Use the Item Card" lesson in this course.
Item Category opt Look up and select from the predefined codes (or define new
Code ones). Item category codes consist of a combination of posting
groups (the three fields in the top right corner of the Invoicing
FastTabs). When you use an item category code, you do not
have to enter posting groups every time you set up an item
card.

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Field Fill in Instruction

Product Group opt Enter the name of a product group to indicate the group of
Code product that this item belongs to, for example, paint, tools, and
batteries.
Search opt The item name you wrote in the Description field is entered
Description here as a default, but you can change it if you want to use a
different name when you search for the item.
Inventory aut This field shows how many units (in the base unit of measure)
of the item are on inventory.
Qty. on Purch. aut This field shows how many units are on purchase orders but are
Order not yet received.
Qty. on Sales aut This field shows how many units are on sales orders but are not
Order yet shipped.
Blocked opt Select this field for the program to disallow all posting of
transactions with this item.
Last Date aut This field is filled in automatically with the date that a change
Modified was last made to any information on the item card.

Invoicing FastTabs
The Invoicing FastTabs holds various figures and options relating to cost, price,
and posting of the item. For detailed information on the cost-related fields, refer
to the "Inventory Costing in Microsoft Dynamics® NAV 2009" course.

FIGURE 4.2 THE ITEM CARD OF SIDE PANEL SHOWING THE INVOICING
FASTTABS

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The following table goes through every field on the Invoicing FastTabs and
gives directions on how to fill it in:

Field Fill in Instruction

Costing Method man Select the way that the item's cost flow is managed.
The most common method is FIFO, which means First-
in-First-out. With this method, the items that were
purchased first are always sold first. The FIFO costing
method values the inventory decrease by using the value
of the first inventory increase. The costing method
determines how costs are calculated and how inventory
is valued.
Cost is adjusted aut This status field indicates if the item's unit cost is
adjusted for differing unit costs between inbound and
outbound item transactions over time.
Cost is Posted to aut This status field relates to the concept of cost
G/L reconciliation.
Standard Cost opt This field shows the calculated item cost if you are using
standard costing method.
Unit Cost aut When creating a new item, enter the cost for each unit
that you expect to pay for the item. Later, the program
updates the field so it contains the item's current
(possibly adjusted) cost. This field always reflects the
most recent direct unit cost of the item on inbound
transactions and related outbound transactions. For more
information about how and why the Unit Cost field is
updated, refer to the "Create a Purchase Order"
demonstration.
Overhead Rate man Enter an amount to cover the indirect costs for the item.
Indirect Cost % man Enter a percentage that corresponds to the indirect costs
(freight and warehouse handling, for example)
associated with the purchase of the item.
Last Direct Cost aut/opt When creating a new item, enter the cost for each unit
that you expect to pay for the item. The value is then
automatically inserted in, for example, the Direct Unit
Cost Excl. VAT field on a new purchase line.

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Field Fill in Instruction

Price/Profit man Select one of the profit calculation options:
Calculation Profit = Price - Cost: If you have fixed unit prices,
select this option. Profit is calculated as the difference
between the unit price and the unit cost.
Price = Cost + Profit: If you price your resources
according to a certain profit margin, select this option.
Price is calculated by adding the profit to the unit cost.
Profit is calculated from the unit price with the profit
percentage you enter.
No Relationship: Select this feature if you do not want to
use the automatic profit calculation features.
Profit % opt/man Depending on your choice in the Price/Profit
Calculation field, you can enter a percentage (and the
program calculates the unit price). Or, you can see the
percentage the program has calculated: Profit% = 1 -
(Unit Cost : Unit Price) x 100
Unit Price opt/man Depending on the option you selected in the
Price/Profit Calculation field, you can enter a
percentage (and the program calculates the Profit %).
Or, you can see the percentage the program has
calculated: Unit Price = Unit Cost : (1 - Profit)
The value in this field is carried to sales lines as the Unit
Price Excl. VAT field. However, you can always
overwrite it if you want to sell at another price.
Gen. Prod. man Unless you use an item category code, you must look up
Posting Group from this field and select a posting group from the
predefined posting groups.
When you post transactions that involve this item, the
program uses this code in combination with a general
business posting group code in the General Posting
Setup window.
VAT Prod. man Unless you use an item category code, you must look up
Posting Group from this field and select a posting group from the
predefined posting groups.
When you post transactions that involve this item, the
program uses this code in combination with a VAT
business posting group code in the VAT Posting Setup
window.
Inventory Posting man Unless you use an item category code, you must look up
Group from this field and select a posting group from the
predefined posting groups.
Net Invoiced Qty. aut This field shows the quantity of invoiced purchases
minus the quantity of invoiced sales.

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Field Fill in Instruction

Allow Invoice opt Select this field if you want the program to allow an
Disc. invoice discount when the item is sold.
Item Discount opt This field relates to the Sales Line Pricing functionality.
Group For detailed information, refer to the "Trade in
Microsoft Dynamics® NAV 2009" course.
Sales Unit of aut/opt This field contains the unit of measure code the program
Measure must use when you sell the item. It is automatically
filled in when you fill in the Base Unit of Measure
field.
Only change this field if you sell the item in units that
differ from the code in the Base Unit of Measure field.

NOTE: If you do not use the base unit of measure, or if

you delete the sales unit of measure on the item card, the
Unit of Measure Code field will not be filled in on the
sales line.

Replenishment FastTabs
The Replenishment FastTabs holds information that the system uses when
supplying items, whether by purchase or production. For detailed information on
most of the fields on this tab, refer to the "Manufacturing I in Microsoft
Dynamics® NAV 2009" course.

FIGURE 4.3 THE ITEM CARD OF BICYCLE SHOWING THE

REPLENISHMENT FASTTABS

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The following table goes through every field on the Replenishment FastTabs
and gives directions on how to fill it in.

Field Fill in Instruction

Replenishment man Select whether your standard way of supplying the item
System is by buying it (Purchase) or producing it (Prod. Order).
Vendor No. opt Select a default supplier of the item and that vendor will
then be suggested when planning for the item.
Vendor Item No. opt Select the vendor's own item identification (if different
from yours)
Purchase Unit of opt This field contains the unit of measure code that the
Measure program must use when you purchase the item. It is
automatically filled in when you fill in the Base Unit of
Measure field.
Only change this field if you purchase the item in units
that differ from the code in the Base Unit of Measure
field.

NOTE: If you do not use the base unit of measure, or if

you delete the purchase unit of measure on the item
card, the Unit of Measure Code field will not be filled in
on the purchase line.
Lead Time opt Enter a date formula in the Lead Time Calculation
Calculation field to specify the time it takes to replenish this
purchased item, such as 1W. The program uses this field
in date calculations as follows:
Order Date + Default Safety Lead Time + Lead Time
Calculation = Planned Receipt Date.
Manufacturing man Select, for example, Make-to-Order to have the program
Policy consider all BOM levels during planning.

NOTE: If both the parent item and its subassemblies use

Make-to-Order, the planning logic will create a
production order with subassembly production order
lines indented under the parent's order line.
Routing No. opt Look up and select a routing to govern the item's
manufacturing process. A specific routing must be set up
and certified before it can be used for an item card.
Production BOM opt Look up and select a production BOM to govern the
product structure of the item. A specific production
BOM must be set up and certified before it can be used
for an item card.

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Field Fill in Instruction

Flushing Method opt Select whether consumption of this item in production
must be calculated and posted manually, by choosing
Manual, or automatically, by choosing either:
• Forward - to have the program automatically
calculate and post consumption when the production
order is released.
• Backward - to have the program automatically
calculate and post consumption when the released
production order is finished.
Scrap % opt Specify the percentage of the item that you expect to be
scrapped in the production process. The program uses
this percentage when it calculates unit prices and net
requirements.
Lot Size opt Specify how many units of the item are usually
produced in one production lot (but you can still create
orders of a different quantity). The program uses this
number to calculate the item's standard cost and to
distribute the fixed costs of manufacturing the lot.

Planning FastTabs
The Planning FastTabs holds information that is used by the automatic materials
requirement planning (MRP) system. All the fields on the right-hand side of the
tab are specific planning parameters for the complex functionality of the MRP
system and are therefore not covered in this training manual. For detailed
information about planning parameters, refer to the "Manufacturing I in
Microsoft Dynamics® NAV 2009" and "Manufacturing II in Microsoft
Dynamics® NAV 2009"courses.

FIGURE 4.4 THE ITEM CARD OF BICYCLE SHOWING THE PLANNING

FASTTABS

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The following table goes through some of the fields on the Planning FastTabs
and gives directions on how to fill it in.

Field Fill in Instruction

Reordering Policy man Select the planning method to be used by the MRP
engine.
Reserve man Choose whether the program will allow reservation for
this item. The option you select here is carried to sales
lines for the item and will override a reservation option
on the sales header (carried from the customer card).
However, if you select Optional in this field and you
enter the item on a sales line where the sales header
contains Always, the sales line will be assigned the
option Always.
Order Tracking man Choose whether the program needs to create order
Policy tracking links between matching supply and demand.
Select Tracking Only to have the program create order
tracking entries in two circumstances:
• Dynamically, when creating any order that can be
matched by an existing order directly.
• When creating a supply order specifically for the
demand.
Select None if the program does not need to create order
tracking entries at all.
Stockkeeping Unit aut This field is filled in if the item card has one or more
Exists corresponding stockkeeping units (SKUs) for different
locations. For detailed information on SKUs, refer to the
"Inventory Management Microsoft Dynamics® NAV
2009" course.
Critical opt Select this field to indicate that the item must be
included in the available-to-promise (ATP) calculations
of its parent item. For detailed information about ATP,
refer to"Inventory Management in Microsoft Dynamics®
NAV 2009" and "Manufacturing II in Microsoft
Dynamics® NAV 2009" courses .

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Foreign Trade FastTabs

The Foreign Trade FastTabs holds information relating to a company's trade
with other countries or regions.

FIGURE 4.5 THE ITEM CARD OF THE ATHENS DESK SHOWING THE
FOREIGN TRADE FASTTABS

The following table goes through the fields on the Foreign Trade FastTabs and
gives directions on how to fill it in.

Field Fill in Instruction

Tariff No. opt Enter a code for the item's tariff number. This number is
required if you do INTRASTAT reporting when you
make out export statements, and so on. For detailed
information about INTRASTAT, refer to the "Finance in
Microsoft Dynamics® NAV 2009" course.
Country/Region opt Enter a code for the country/region in which the item
of Origin Code was produced or processed. The field is used for
reporting to INTRASTAT.
Net Weight opt Enter the net weight of the item, if required to complete
customs documents, waybills, and so on.
Gross Weight Enter the gross weight of the item, if required to
complete customs documents, waybills, and so on.

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Item Tracking, E-Commerce, and Warehouse FastTabs

The last three FastTabs on the item card are for special purposes and are not
covered in this training manual, except for the following short overview:

• The Item Tracking FastTabs governs the use of serial and lot
numbers assigned to the item for tracking purposes. For detailed
information about item tracking, refer to the "Inventory Management
in Microsoft Dynamics® NAV 2009" course.
• The E-Commerce FastTabs relates to business-to-business trade by
means of the add-on product Commerce Gateway.
• The Warehouse FastTabs holds information about how the item is
received, stored, and shipped in special warehouse activities that are
covered in the "Warehouse Management in Microsoft Dynamics®
NAV 2009" course.

Once an item card is created, the item is ready to be purchased or sold on

document lines. The program offers additional item-specific features that must be
set up through the Item button; these are described in "Use the Item Card" lesson
in this course.

Use the Item Card

The item card has links to additional setup information, functions, and analysis
figures.

The additional setup information and functions on the buttons are described in
this lesson, while different forms of item analysis are described in the lessons
"View Item Availability" and "Analyze Item Figures" lessons.

Item Button
The Item button has links that open various windows with additional information
and setup options for the item. From an item card, click on
Related Information > Item.

The link has the following menu items:

• Stockkeeping Units
• Entries (select option)
• Statistics (select option)
• Items by Location
• Item Availability by (select option)
• Bin Contents
• Comments
• Dimensions

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• Picture

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• Units of Measure
• Variants
• Cross References
• Substitutions
• Nonstock Items
• Translations
• Extended Texts
• Assembly List (select option)
• Manufacturing (select option)
• Service Items
• Troubleshooting
• Resource (select option)
• Identifiers

Stockkeeping Units

The Stockkeeping Units menu item opens a list of any SKUs that exist for the
item.

Entries

The Entries (Ctrl+Shift+N) menu item opens the Item Ledger Entries window
with a list of the entries created from posted item transactions for the item. Refer
also to the "Analyze Item Figures" lesson for more information about item ledger
entries.

Statistics

The Statistics menu item (Ctrl+Shift+J)opens the Item Statistics window,

where you can view various details about activities with this item. Refer also to
the "Analyze Item Figures" lesson for more detail.

Items By Location

The Items By Location menu item opens a matrix window showing the
availability of all items across locations.

Item Availability by Period

The Item Availability by Period menu item opens a matrix window showing
advanced availability information for the item over time. For more information,
refer to the lesson "View Item Availability" lesson.

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Bin Contents

The Bin Contents menu item shows the availability of items according the
warehouse bin where they are placed. For detailed information on using bins,
refer to the "Warehouse Management in Microsoft Dynamics® NAV 2009"
manual .

Comments

The Comments menu item opens the Comment Sheet window for the customer.

Here you can read, write, or assign a comment text, such as a comment that the
item is fragile. The comment is not carried to documents created for the item. For
that purpose, you can use the Extended Texts feature.

Dimensions

Any code that you define in this specific Item - Default Dimensions window
(Shift+Ctrl+D) will be used in all documents and entries that you create for the
item in question. Dimensions can be very practical if you want to make detailed
analysis of historical transactions.

When you are selling services in connection with projects, it is particularly

relevant to use, for example, a project code dimension because it helps you to
link several different item transactions to one project.

The "Add and View Dimensions" lesson in this course describes the basic
dimensions functionality in more detail. For detailed information about setting up
a dimension, refer to the "Application Setup" course.

Picture

If you have a digitalized picture of an item (that is, a picture that is a file in .BMP
format), you can insert it on the item card as follows:

1. Click Related Information > Item > Picture. The Item Picture
window appears.
2. Right-click and select picture.
3. Select the drive, path, and file name, and then click OK.

The picture is imported. To view the picture from the item card, click Item >
Picture.

Units of Measure

The features in the Item Unit of Measure window (the same window that opens
from the Base Unit of Measure field) allow you to:

• Specify an unlimited number of alternative unit of measure codes for

each item and define a conversion factor for each alternative unit of
measure code.

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• Set up an unlimited number of unit of measure codes in addition to

the ones predefined in the program.
• Specify a default unit of measure code for sales transactions and a
default unit of measure code for purchase transactions.

You can specify an unlimited number of alternative units of measure individually

for each item. Each alternative unit of measure is related to the Base Unit of
Measure field on the item card through a conversion factor, defined in the Qty.
per Unit of Measure field. This factor specifies the number of base units of
measure that the alternative unit of measure represents.

Define a New Unit of Measure

Follow these steps to define an alternative unit of measure for item 80100,
printing paper:

1. Open the item card for item 80100.

2. Click Related Information > Item > Units of Measure. The Item
Units of Measure window appears.

FIGURE 4.6 ITEM UNITS OF MEASURE WINDOW SHOWING ONE BASE AND
TWO ALTERNATIVE UNITS OF MEASURE.

This item, Printing Paper, is held in inventory in boxes that contain

five packs (one pack equals 0.2 boxes). The item is also handled in
pallets that each contain 32 boxes. Box is the base unit of measure.
3. On a new, empty line, look up from the Code field to open the Units
of Measure window.

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4. Select PCS as an alternative unit of measure and then click OK.

5. In the Qty. per Unit of Measure field, enter 0.0001 to define that a
piece equals 1/1000 of the base unit of measure, Box, or that one box
contains 10000 pieces of printing paper.
6. Click OK.

NOTE: Although the base unit of measure codes are used to set up alternative
units of measure, each code can be defined differently for different items. For
example, even though the BOX code represents one unit of item 80100, you can
set up the BOX code for another item and define it so that it represents eight base
units of that item.

Variants

The Variants menu item opens the Item Variants window where you can
specify variants of the item in question. This is useful if you have a large number
of almost identical items that vary only in color, as an example. Instead of setting
up each variant as a separate item, you can set up one item and then specify the
various colors as variants of the item. For more information about how variants
can be used, refer to the "Manufacturing I in Microsoft Dynamics® NAV 2009"
course .

Cross References

The Cross References menu item opens the Item Cross Reference Entries
window, where you can create references from the item in question to, for
example, another item in inventory to indicate that they come from the same
vendor.

Substitutions

The Substitutions menu item opens the Item Substitution Entry window,
where you can set up items that can be used as substitutes for the item in
question.

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When the quantity of items requested on the sales line exceeds the quantity
available from inventory, the system will inform you that substitutes are available
to fulfill the demand.

FIGURE 4.7 SUBSTITUTE ITEM 1980-S DEFINED FOR ITEM 1968-S

Nonstock Items

The Nonstock Items menu option opens the Nonstock Item List window, which
shows information about items that your company sells but does not carry in
inventory. You usually handle the sale of a nonstock item in one of two ways, as
shown in the following table.

Drop The item is shipped from the vendor directly to the

Shipment customer. You buy and sell the item but do not handle,
stock or deliver it.
Special Order You purchase a nonstock item from the vendor especially for
a customer, receive it at your warehouse and ship it to the
customer, either by itself or in combination with other items
on the sales order.

To create a new item card for a nonstock item, click Departments >
Warehouse > Planning & Execution > Lists > Nonstock Items > New.

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Enter your information (an example is shown below):

FIGURE 4.8 NONSTOCK ITEM SET UP

To convert the nonstock item card to a proper item card, click Create Item from
the Process pane.

Translations

The Translations menu option opens a window where you can maintain the
item's description text in different languages. When the item is handled on
document lines, the language code of that document will define which translation
to use in the Description field.

Extended Texts

If you need more than one line to describe an item on a sales, purchase, or service
document, you can set this up in the Extended Texts window. It will then be
shown in the Description field on all document lines that can handle items. The
window contains the options shown in the following table.

For example, to view extended texts, go to:

1. Departments > Purchase > Planning > Lists > Items.

2. Click on Related Information > Item > Extended Texts.

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3. Click New.

FIGURE 4.9 NEW EXTENDED TEXT WINDOW

Field Instruction
General
FastTabs
Language Code Look up and select from the predefined language codes.
When a language code is entered, extended text will only
be inserted on sales and purchase documents for
customers and vendors with that particular language code.
Leave the field blank if you want to use the extended text
for local (domestic) customers and vendors.
All Language Place a check mark if the text is to be used regardless of
Codes language code.
Starting Date Enter a date if the extended text is to be used from a
specific date.
Ending Date Enter a date if the extended text is to be used up to a
specific date.
Sales FastTabs
Sales Quote … Select one or more of these fields to indicate on which
Prepmt. Sales kinds of sales documents you want to use the extended
Credit Memo text.
Purchases
FastTabs

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Field Instruction
Purchase Quote Select one or more of these fields to indicate on which
... Prepmt. kinds of purchase documents you want to use the
Purchase Credit extended text.
Memo
Service FastTabs
Service Quote … Select one or more of these fields to indicate on which
Service Credit kinds of service documents you want to use the extended
Memo text.

Demonstration - Add and Use Extended Texts

Follow these steps to add an extended text to item 70060 and then use that
extended text on an existing unposted purchase line:

1. Open the item card for item 70000, Side Panel.

2. Click Related Information > Item > Extended Texts; the
Extended Text window opens. Click New.
3. On the General FastTabs, select All Language Codes. Leave the
other fields empty.
4. On the Lines FastTabs, enter the following text: Purchase with item
7001 (Base).
5. On the three remaining FastTabs, leave the default selection of all
possible documents and then close the window.
6. Select the Automatic Ext. Texts field on the General FastTabs of
the item card.

The extended text is now added to item 7000. Proceed to use it on a

purchase line.
7. Click Departments > Purchase > Planning > Purchase Orders.
8. Double-click order number 106014, Beschläge Schacherhuber , to
open it.
9. In the No. field on the purchase line, delete the item number 70060
line.
10. Look up and select item number 70000 and then leave the No. field
to commit the data entry.

Notice that the Description field is supplemented with the extended text,
"Purchase with item 70001, Base".

Assembly List

The Assembly List menu item offers different ways to view the item's position in
a sales bill of materials. The menu also contains a function to calculate the
standard cost of items using the standard costing method.

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Manufacturing

The Manufacturing menu item links to the Prod. BOM Where-Used window,
which offers different ways to view in which product structures (other Production
BOMs) the item is used. The menu also contains a function to calculate the
standard cost of items using the standard costing method.

Service Items, Troubleshooting, and Resource

The Service Items menu link opens a list of versions of the item in question that
are managed as service items. The service items versions are identified by serial
numbers. Troubleshooting is used in repair/support of service items, and
Resource links service workers to the item. For detailed information about
handling and posting service items in connection with service orders, refer to the
"Service Management" course .

Identifiers

The Identifiers menu item opens a window where you can create a unique
identifier for each item that you want warehouse employees to keep track of
within the warehouse by using handheld devices. The item identifier can include
the item number, the variant code, and the unit of measure.

Sales Button
The Sales button has links to your different sales price and line discount policies
for the item and links to open sales orders where the item is being processed. The
button has the following menu items:

To view the Sales button, go to:

1. Departments > Purchase > Planning > Lists > Items.

2. Click on Related Information > Sales.
o Prices: Opens the Sales Prices window, where you can define
sales prices as alternatives to the price in the Unit Price field on
the item card. These alternative sales prices will then be granted
under certain conditions.
o Line Discounts: Opens the Sales Line Discounts window where
you can define different sales discounts that you grant for the
item under certain conditions. For detailed information about
sales line discounts and prices, refer to the "Trade" course .
o Prepayment Percentages: Opens the Sales Prepayment
Percentages window, where you define prepayment conditions
that you require for the item. For detailed information on
prepayments, refer to the "Finance" course .
o Orders, Return Orders: Opens lists of all the existing
(unposted) sales orders or sales return orders where the item is
being processed.

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Purchase Button
The Purchases button has links to your different purchase price and line discount
policies for the item and links to open purchase orders where the item is being
processed. The button has the following menu items:

To view the Purchases button, go to:

1. Departments > Purchase > Planning > Lists > Items.

2. Click on Related Information > Purchases.
o Vendors: Opens the Item Vendor Catalog window where you
can list different vendors who can supply the item.
o Prices: Opens the Purchase Prices window where you can
define purchase prices as alternatives to the price in the Unit
Cost field on the item card. These alternative purchase prices
will then be granted under certain conditions.
o Line discounts: Opens the Purchase Line Discounts window
where you can define different purchase discounts that you grant
for the item under certain conditions.
o Prepayment Percentages: Opens the Purchase Prepmt.
Percentages window where you define prepayment conditions
that you require for the item.
o Orders, Return Orders: Opens lists of all the existing
(unposted) purchase orders or purchase return orders where the
item is being processed.

Functions Button
The Functions button has functions for the creation of different types of data
records based on the data in the item card and contains the following functions:

To view the Functions button, go to:

1. Departments > Purchase > Planning > Lists > Items.

2. Click Actions > Functions.
o Create Stockkeeping Unit: Opens a batch job request from
where you can define how to convert the item card to a location-
specific instance of the card.
o Calculate Counting Period: Starts the calculation of items that
were in inventory in the physical inventory counting period you
defined on the Warehouse FastTabs. For detailed information
about counting items in inventory, refer to the " Inventory
Management in Microsoft Dynamics® NAV 2009
" course .

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Demonstration - Create a New Item

Scenario: As the product designer at Cronus International, you are responsible
for setting up new items. A customer has requested a special paint color,
Sunflower Yellow, that Cronus International does not sell. However, the
purchasing agent at Cronus has located a vendor from whom to purchase this
color, and you must now create the new item in the database.

Only the minimum required fields are filled in for the purpose of this
demonstration.

Fill in the General FastTabs

Proceed to create the new paint item in the database. Follow these steps to fill in
the minimum required fields on the General FastTabs:

1. Click Departments > Purchase > Planning > List > Items
If item cards already exist, the program will open the last one used.
2. To open a new item card, click the New icon on the toolbar.
3. In the No. field, click the button beside it to open the No. Series
window.
Multiple number series have been set up for item numbers to group
different items by their item numbers. Notice in the first number
series line that both the Default Nos. and Manual Nos. fields are
selected. This means that you can either have a number created
automatically (by pressing the enter key after inserting a new record)
or manually (by typing it) in the No. field. With the last four number
series, you must type a number manually. The item number must be
filled in; and from then on, it identifies the item in all types of
processing with the item. This is also the case for number series in
other master data records such as vendor cards and customer cards.
4. Select the second line, ITEM2 (the paint number series), and then
click OK.

TIP: If you do not require a specific number series, simply leave the empty No.
field (by using Arrow, Tab, Enter, or mouse) to have the program insert the next
number in the default number series.

NOTE: The last number series used will provide the numbers from then on when
you use the automatic number insertion. In the current demo database, the Paint
number series will therefore be used when you use automatic number insertion.

5. In the Description field, type Paint, sunflower yellow.

6. In the Base Unit of Measure field, click the arrow button and click
New.

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7. Under the Code field, click the arrow to view a list and select CAN.
8. Leave the default value 1 in the Qty. per Unit of Measure field.
9. Click OK.
10. In the Shelf No. field, type B6 to specify where to place the item in
the warehouse.

Fill in the Invoicing FastTabs

Follow these steps to fill in the minimum required fields on the Invoicing
FastTabs:

1. In the Costing Method field, leave the default of FIFO.

2. In the Unit Cost field, type 1.40.
3. In the Last Direct Cost field, type 1.40.
4. In the Unit Price field, type 2.70.
Notice that the Profit % field now shows a calculated profit of
approximately 48 percent.
5. Look up in the Gen. Prod. Posting Group field and select RETAIL.
The VAT Prod. Posting Group field is automatically set to 25
percent because of the existing posting setup.
6. Look up in the Inventory Posting Group field and select RESALE.

FIGURE 4.10 NEW ITEM CREATED

The remaining tabs and fields are not necessary to fill in at this time. The new
item, 70105, Paint, sunflower yellow is ready for further processing.

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View Item Availability

To find out how many units of an item will be available in the near future, use the
Item Availability by Periods window. This matrix window displays the item's
availability across calendar days according to the different demand and supply
points that the supply planning system uses to maintain a balanced order plan.

To access the Item Availability by Periods, Variants, or Location window in

an item card, go to: Related Information > Item > Item Availability by.

Open the Item Availability by Periods Window

In the Item Availability by Periods window, you can check the availability of
each item in a calendar-like layout that shows the quantity of the item that is
inbound, outbound, or in inventory on a specific day (or other period that you
define).

Follow these steps to open the availability details from a purchase line for item
1906-S:

1. Go to the item card of item 1906-S, ATHENS Mobile Pedestal.

2. Click Related Information > Purchases > Orders.
3. In the Purchase Orders window, select the second line (ATHENS
Mobile Pedestal) and click Related Information > Line > Show
Document; purchase order 6004 opens.
4. With the first purchase line selected, click the Actions button
(lightning bolt symbol) and click Line > Item Availability by >
Period; the Availability by Periods window appears.

FIGURE 4.11 ITEM AVAILABILITY BY PERIODS FOR ITEM 1906-S

Notice that there are five available pieces on 01/29/2010. Press the ESC key.

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Replace Default Columns with Basic Terms

The default layout and terminology of the Item Availability windows reflect the
industry-standard concept of Master Production Scheduling (MPS). If you are not
familiar with the terminology of the default columns and you are not a planner,
you can replace the advanced columns with alternative field names that are more
logical to you.

Follow these steps to add columns that reflect the availability information in
more basic terms:

1. With the cursor on any line in the window, click the Actions button
and click Choose Columns.
2. In the "Show Columns in this order," field select and click the
Remove button for these fields:
a. Department Code
b. Line Discount %

3. As replacements, select the following fields and click the Add

button.
a. Unit of Measure
b. Prepayment %

4. Click OK to show the new columns.

FIGURE 4.12 ITEM AVAILABILITY BY PERIODS WINDOW SHOWING THE

SELECTED COLUMNS

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Analyze Item Figures

To gain insight into activities of an item, you can use different statistics windows
and reports that display detailed historical information about each item.

The following are windows and reports for item analysis:

• Item Statistics - shows item activity over time and by G/L accounts
• Item Entry Statistics - shows posting activity by value and quantity
• Item Turnover - shows sales and purchases by value and quantity
over time
• Item Ledger Entries - shows the item's past and current inventory
• Item Registers - shows all transaction entries and their related
information.
• Various inventory reports

Item Statistics Window

Access the Item Statistics window from an item card by pressing Ctrl+Shift+J or
by clicking Related Information > Item > Statistics > Statistics.

FIGURE 4.13 THE ITEM STATISTICS OF ITEM 1906-S

You can set many different filters in the header to define what is included in the
statistics figures. The two left-hand columns on each line indicate the starting
date for and the name of the period for which information is shown on the line.
You can change the length of periods (for example: day, month, or year) and
whether it must be viewed as a net change or balance at date by selecting your
preference in the Matrix Options FastTabs.

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Depending on what you select in the Show as Lines field, you will see different
views of the statistics of this item. The different statistical views are:

• Profit Calculation
• Cost Specification
• Purchase Item Charge Specification
• Sales Item Charge Specification
• Period that is undefined.

From the Item Statistics window, click the Show Matrix button on the Action
Pane to view the information based on your settings.

Item Entry Statistics Window

Access the Item Entry Statistics window from an item card by clicking Related
Information > Item > Statistics > Entry Statistics.

FIGURE 4.14 ITEM ENTRY STATISTICS FOR ITEM 1906-S

The Most Recently Posted FastTabs shows the most recently posted entry of
various types of sales and purchase transactions.

The To Be Posted FastTabs displays information about the next and last
purchase receipts and the next and last sales shipments.

"Next" means the bottom purchase and sales lines (which have been set up but
not yet posted as received or shipped) on the order with the lowest order number.
Likewise, "Last" means the last purchase and sales order lines on the order with
the highest order number.

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Item Turnover Window

Access the Item Turnover window from an item card by clicking Related
Information > Item > Statistics > Turnover.

FIGURE 4.15 ITEM TURNOVER FOR ITEM 1960-S

On each line, the columns display the amounts for the period indicated to the left,
as shown in the following table.

Column Meaning
Purchases The quantity purchased within or at the end of the period.
(Qty.)
Purchases The local currency value of the quantity purchased within or
(LCY) at the end of the period.
Sales (Qty.) The quantity sold within or at the end of the period.
Sales (LCY) The local currency value of the quantity sold within or at the
end of the period.

By choosing a period (for example: day, month, or quarter) and a calculation type
(for example: Net Change or Balance at Date), you can determine the way
amounts are calculated. When you select Net Change, calculations are based on
entries with posting dates within the selected period. When you select Balance at
Date, calculations are based on entries posted with dates up to and including the
last day of the selected period.

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Item Ledger Entries Window

Access the Item Ledger Entries window from an item card by pressing Ctrl +
Shift + N, or click on: Related Information Item > Entries > Ledger Entries.

FIGURE 4.16 ITEM LEDGER ENTRIES FOR ITEM 1960-S ROME GUEST
CHAIR, GREEN

This window displays a list of the entries that have been posted with the item (all
of the item's movement in and out of inventory due to purchases, sales,
production, inventory adjustments, and more). Negative figures represent sales,
component consumption, or negative adjustments. Positive figures represent
purchases, production output, or positive adjustments. The Cost Amount
(Actual) field shows you the item's total inventory value at all times.

The list of entries is sorted by posting date. You can limit the list by setting, for
example, a date filter on the Posting Date field.

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Item Registers Window

Apart from printed inventory audit reports, accountants and auditors can view
detailed information about posted item entries in the Item Registers window.
Access the window by clicking Departments > Warehouse > History >
Registers > Item Registers.

FIGURE 4.17 ITEM REGISTERS WINDOW SHOWING ALL ITEM

TRANSACTION ENTRIES SORTED BY CREATION DATE.

Note that this rather complex list of transaction entries is mainly used for
auditing or inventory costing control.

The entries in an item register are the result of item transaction posting from all
types of item-handling documents in the system, from sales invoices to
manufacturing output journals.

Every register shows the first and last entry numbers of its entries. To view the
detailed entries of a particular entry, place the cursor on an entry line and then
click Related Information > Register and select one of these options:

• Item Ledger
• Phys. Inventory Ledger
• Value Entries
• Capacity Ledger

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A window with details for that selected entry will open, for example, when you
click Item Ledger, the Item Ledger Entries window opens showing the detailed
entries for the selected item register line.

Inventory Reports
The program offers a series of reports with various item statistics and information
that you can print as standard reports or import into Microsoft® Excel® or
Microsoft® Word for further processing or printing. The following selection of
item reports for basic needs is accessed from the Sales & Marketing or Purchase
menus in the navigation pane, while a few are in the Warehouse menu. Some
reports include:

• Inventory Picking List

• Inventory Put-away List
• Inventory Cost and Price List
• Inventory Availability
• Inventory Customer Sales
• Inventory Order Details
• Inventory Sales Statistics

Inventory Picking List

The Inventory Picking List report displays a list of items that needs to be picked.
Based on the filters that you have selected, the report can show item number,
customer name, document number, shipment date, quantity to ship, and unit of
measure.

Inventory Put-Away List

The Inventory Put-away List report displays a list that shows what items need to
be removed from a certain location or transporting a material to a storage area.
The report can show document number, location code, quantity to receive, and
unit of measure.

Inventory Cost and Price List

The Inventory Cost and Price List report displays a list of price information for
the selected items: direct unit cost, last direct cost, unit price, profit percentage,
and profit.

The report can be exported directly to Excel when you press Print. To enable this,
you must place a check mark in the Print to Excel field.

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Inventory - Availability

The Inventory-Availability report displays a list of the quantity of each item in

sales and purchase orders and the quantity available in inventory.

The list is divided into columns that cover six periods with starting and ending
dates as well as the periods before and after those periods. The report is useful
when you are planning your inventory purchases.

Inventory - Customer Sales

The Inventory Customer Sales report displays a list of the customers that have
purchased the selected items within a selected period. It shows the quantity,
amount, discount, profit, and profit percentage. The report can be used in an
analysis of customers' purchasing patterns.

Inventory Order Details

The Inventory Order Details report displays a list of the orders that have not yet
been shipped or received and the items in the orders. It shows the order number,
customer's name, shipment date, order quantity, quantity on back order,
outstanding quantity, and unit price, as well as possible discount percentage and
amount. The quantity on back order and outstanding quantity and amount are
totaled for each item. The report can be used to find out whether there are
currently shipment problems or any that can be expected.

Inventory - Sales Statistics

The Inventory Sales Statistics report displays a list of sales information about
each item: direct unit cost, unit price, sales quantity, sales in LCY, profit, and
profit percentage. It also shows totals in the last four values for all the items. The
report can be used for analyses of profit on individual items or trends in revenues
and profit.

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Lab 4.1 – Create a New Item

Perform this exercise to apply your knowledge about item cards.

Scenario

Your company is getting ready to offer a new USB mouse. As the purchasing
agent, you must create the new item with the following information:

Item No. Next in the default number series (Paint)

Description USB Mouse
Unit of Measure PCS
Costing Method FIFO
Unit Cost 11.50
Last Direct Cost 11.50
Price/Profit Calculation Price=Cost+Profit
Profit % 35
General Product Posting RETAIL
Group
VAT Product Posting Group VAT25
Inventory Posting Group RESALE
Replenishment System PURCHASE

Challenge Yourself!
Create the item based on the information provided.

Need a Little Help?

1. Leave the empty No. field to have the program insert the next default
number.
Note that the Unit Price field is calculated for you.
2. The last value is maintained on the third tab

Step by Step

1. From the Role Center window, click Items on the left pane.
2. Click New.
3. Leave the No. field empty and press Enter to have the program insert
the next number USB in the current default number series.
4. Enter USB Mouse in the Description field.

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5. Look up in the Base Unit of Measure field, then look up in the

Code field and select PCS. Note: If the list is blank, perform steps 6-
9.
6. Click the drop-down arrow in the Code column.
7. Click PCS.
8. Click OK.
9. On the Invoicing FastTabs, enter 11.50 in the Unit Cost field.
10. In the Price/Profit Calculation field, select Price=Cost+Profit
11. In the Profit % field, enter 35.
12. Look up in the Gen. Product Posting Group field and select
RETAIL.
13. Look up in the Inventory Posting Group field and select RESALE.
14. On the Replenishment FastTabs, confirm that the Replenishment
System field contains Purchase.
15. Click OK.

Summary
Items are a central element of the ERP system and the use of item cards is
required knowledge for any user or partner role training to become a product
specialist.

Once an item is created, it can be purchased, stored, reclassified, consumed,

outputted, sold, and tracked in various ERP processes throughout the system.
This will be demonstrated for sales and purchases in the "Process Purchases" and
"Process Sales" chapters in the Introduction to Microsoft Dynamics NAV 2009
courseware .

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Test Your Knowledge

1. On which item card FastTabs is price information maintained?
( ) Foreign Trade
( ) Pricing
( ) Invoicing
( ) General

2. Which item card buttons link to related documents?

( ) Functions
( ) Sales
( ) Documents
( ) Purchases

3. Select a way to open a new empty item card. (Select all that apply)
( ) Click Edit, New
( ) Click the New icon
( ) Press F4
( ) Press F2

4. The purpose of the Item Availability by Periods window is to: (Select all that
apply)
( ) Show the quantity of the item that is purchased in a certain period.
( ) Show how many units of the item that will be available in the near
future.
( ) Show how many units of the item that are inbound, outbound, or on
inventory on a specific day - or other period that you define.
( ) Show the quantity of the item that is available on a certain day in
different locations.

5. Outline the functionality of the Item Turnover window.

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Introduction to Microsoft Dynamics® NAV 2009

6. The purpose of the Item Entry Statistics window is to: (Select all that apply)
( ) Show all item activity over time by inventory G/L accounts
( ) Show all of the item's posting activity
( ) Show the quantity of the item that is purchased in a certain period.
( ) Show when the item is next being posted

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Quick Interaction: Lessons Learned

Take a moment and write down three key points you have learned from this
chapter

1.

2.

3.

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Solutions
Test Your Knowledge
1. On which item card FastTabs is price information maintained?
( ) Foreign Trade
( ) Pricing
(•) Invoicing
( ) General

2. Which item card buttons link to related documents?

( ) Functions
( ) Sales
( ) Documents
(•) Purchases

3. Select a way to open a new empty item card. (Select all that apply)
( ) Click Edit, New
(√) Click the New icon
( ) Press F4
( ) Press F2

4. The purpose of the Item Availability by Periods window is to: (Select all that
apply)
( ) Show the quantity of the item that is purchased in a certain period.
(√) Show how many units of the item that will be available in the near
future.
(√) Show how many units of the item that are inbound, outbound, or on
inventory on a specific day - or other period that you define.
( ) Show the quantity of the item that is available on a certain day in
different locations.

5. Outline the functionality of the Item Turnover window.

MODEL ANSWER: It shows sales and purchases of the item by value and
quantity over time.

6. The purpose of the Item Entry Statistics window is to: (Select all that apply)
( ) Show all item activity over time by inventory G/L accounts
(√) Show all of the item's posting activity
( ) Show the quantity of the item that is purchased in a certain period.
(√) Show when the item is next being posted

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