Purchase Item Master

Overview

The Purchase Item Master object is used to maintain data pertaining to Purchased items (Direct, Indirect, Outside Operation, Service, and Subcontract items).

  IMPORTANT  This is a required record for all items that are purchased. The record is used in the creation of Purchase Order Lines.

These records are created in the following ways:
 

• Automatically via the creation of the Engineering Item Master / Inventory Item Master (where the source is Purchased or Subcontract).

• Manually as needed, for Indirect or Service Items, to purchase Direct items that are normally manufactured, and for Outside Operations.

A Purchase Item Master record is required to purchase a normally manufactured item (Source = Manufactured) and may be created directly from the Purchase Item page. 

  NOTE  A Purchase Item Master record is required to purchase an Outside Operation. That Purchase Item, Master record's item number, must be the same as the item number being manufactured on the Work Order that contains the Outside Operation.

  NOTE  Because there can only be one Purchase Item Master record for any given item number, it is not possible (1) to purchase a normally manufactured item (Source = Manufactured) and (2) to define an Outside Operation for that same normally manufactured item. Either one can be done, but not both.

The Purchase Item Master records for Service Items or Indirect Material may be created:

• Directly from the Purchase Item page.

• Automatically during PO Entry when adding a Purchase Order Line for a Service or Indirect Material Item, using the Add Item button. This requires a setting on PO Control to be positive.

The ‘Item Type’ field indicates whether the Item is a Direct Material Item (Purchased or Subcontract), or is for Indirect Material, an Outside Operation, or a Service.
 

• If the Item is a Direct Material Item, it can be a Purchased, Subcontract, or Manufactured item that is occasionally purchased. 

• If an item can be both ‘make’ and ‘buy’, a Purchase Item Master must exist (as noted above). 

• If the item can be both ‘make’ and ‘buy’ but is typically a ‘make part’ (Inventory Item source code = ‘Manufactured’), MRP will plan it as being manufactured in-house, but if there is a Purchase Item Master record for the part, it can be manually added to a Purchase Order should the need arise. 
   

  TIP  Many of the Purchase Item Master data fields default from the PO Commodity Code associated with the item. Individual fields may be changed from the default values; however, the main purpose of the Commodity Code feature is to populate these fields as a standard default to ensure uniformity within groups of similar items. Therefore, if you routinely override many Commodity Code values, you may be better off creating additional Commodity Codes.

Navigation

Purchase Item Master

• This path brings the user to the ListView, displaying all existing Purchase Item Master records.

• From here, the user may view, edit, or delete (if unused) existing Purchase Item Master records. 

• The user may create a new Purchase Item Master record by clicking the ‘New Purchase Item Master’ button.

Step 1 - ‘New Purchase Item Master’ Button

• New Purchased Items added here are generally Indirect Items or Service Items.

• Direct Purchased Item records are automatically created when the Engineering Item Master is created for purchased parts. However, as discussed above, you can also manually add Purchase Item Masters for Outside Operations and for Manufactured items that you may purchase occasionally. 

• To modify an existing record, click the ‘Edit’ function. 

  NOTE  See the field-level help for further definitions of each page data field.

Fields
 

Item Type:  Defines the type of Purchased Item: Direct indicates inventoried items, Indirect indicates non-inventoried material or supplies. Outside Operation is for 3rd-party work in the manufacturing process, and Service is used for non-material items, for example, repair work, maintenance, etc.
 

  NOTE  Outside Operation will be available in the 'Item Type' select list only when the 'Outside Operations Booking Active' in the Shop Floor Control section on the Division is enabled.

Item Number:  For Direct Items, this defaults from the Engineering Item Master. For Indirect and Service Items, this is a user-defined field that can not be changed once the record is saved. For Outside Operations, this is the item being manufactured.

Item Description:  User-defined descriptive name of the item. Direct Items are set from the Engineering Item Master and must be maintained from there. Indirect and Service Item Descriptions are maintained here.

PO Commodity Code:  The PO Commodity Code, or item group defaults, assigned to this Item. The chosen Commodity Code defaults several fields on the Purchase Item Master. Commodity Code values are denoted by a blue (com cod) message to the right of the field.

Service Type:  Only applicable when the PO Item Type is Service. Indicates the unit of measure used when this Service is purchased.  There are four Service Types: 

• Dollar Amount

• Hourly Rate

• Daily Rate

• Monthly Rate

  EXAMPLE  If the Service that this item represents is specified on a Purchase Order in terms of an Hourly Price and Quantity, the Service Type is 'Hourly' and the Unit of Measure is ‘HR’. If the Service being purchased is in a flat dollar amount, the Service Type is 'Dollar Amount', the Unit of Measure is 'EA' and the Purchase Order Quantity would be 1.

  NOTE  The 'Service Type' of the Purchase Item cannot be changed when it is used on a Purchase Order Line belonging to an open Purchase Order.

Override VAT Class:  When set to a VAT Class, this PO Item will use this value rather than the Primary VAT Class defined on the associated Division Master. If the PO Commodity Code value is overridden, this VAT Class will be used rather than that on the associated PO Commodity Code.

Inactive Status:  When checked, this purchased item can no longer be added to a Purchase Order going forward. If an inactive item is already on any Purchase Orders, those orders can still be processed.

 NOTE  This applies only to Indirect and Service items. The Direct Item's Inactive Status is controlled by the associated Engineering Item Master.

Defaults Tab
 

Fields
 

Lead Time, Requisition Convert:  The time required for a planner to analyze the Requisition created by MRP, select a Vendor, convert it to a Purchase Order and place the Purchase Order with the Vendor. 

• It is specified in days, and there is a Commodity Code default for this value.

• This lead time is one of the lead times used to derive the Scheduled Requisition Firm Date (i.e., the date by which the planner should have ‘firmed’ this requisition after analyzing the suggested MRP planned requisitions).

Lead Time, Vendor:  The time, in days, required by the vendor to have this item available to ship. This time is used by MRP for planning purposes and is included in overall lead time.

Buyer:  This is the buyer responsible for purchasing the item. The Responsible Planner field from the Commodity Code record will initialize this field.

  TIP  This is helpful for sorting reports and views.

Purchasing UOM:  The Purchasing Unit of Measure. If the Purchase Order Unit of Measure is not the same as the Inventory Unit of Measure, there must be a corresponding entry in the Unit of Measure Conversion object.

Over Receipt Indicator:  The checkbox indicates whether or not Over Receipts are allowed for this Item in receiving.

• In Edit mode, two boxes appear here. The box on the left indicates the Commodity Code value, while the box on the right indicates whether the Commodity Code value has been overwritten.

• Checked here means that Over Receipts are allowed for this item, while unchecked means that the Purchase Order Line quantity must be adjusted to equal the receipt quantity before the Over Receipt can be done.

Taxable:  When checked, this item is considered to be taxable. Direct Material items default to ‘not taxable’, while Indirect Material or Service Items default to ‘taxable’. This is an indicator only and will print in the 'Taxable' column in the PO Print template.

  NOTE  In either case, this value can be overridden.

ODC ID:  This is only applicable for Indirect Material and Service Items.

• This field can be selected with a valid record from the ODC Code Maintenance object.

• If the PO Item Type is Indirect Material, only those ODC Codes where TYPE is for "Travel" or "Indirect Material Expenses" can be selected. If the PO Item Type is Service, only those codes whose TYPE is for "Service" can be selected.

• This value must be null for all Direct Items (Purchased or Subcontract) for which the ODC Code does not apply.

• The receipt of an Indirect Material Item

• The authorization of Service or Indirect Material

• The PO – AP Match for any price differences

Organizational Department:  Organizational Department that this PO Item is associated with. If the flag is checked, the PO Commodity Code value is used; if unchecked, an override may be set. Not required.

Default PO Line Price:  If no Item Vendor price has been established for the item, the Purchase Order Line will populate with this default PO price. This is not a required field.

Subcontract Component Issue From Site:  The Site from which subcontract components will be issued. If the checkbox is checked, the Commodity Code value is used. When unchecked, the Issue From Site field is enabled and can be entered as an override to the Commodity Code.

Subcontract Component Issue From Loc ID:  The Inventory Location ID from which subcontract components will be issued. Can only set field directly here if Commodity Code value for Subcontract Component Issue From Site is overridden, & must be a valid Inventory Location ID for the override Site.

Conversion Factor:  The Purchasing Unit of Measure Conversion Factor.

• This is the factor that, when multiplied by the Purchasing Unit of Measure quantity, yields the Inventory Unit of Measure quantity.

• This factor is used to calculate standard costs (material component) in Purchase Requisition, Purchase Order creation, and Purchase Order receiving. 

  EXAMPLE  If the Purchasing Unit of Measure is a dozen and the Inventory Unit of Measure is each, the Unit of Measure Conversion Factor is 12. Multiplying the received quantity by 12 will provide the correct quantity for Inventory. The system does this automatically. If the order quantity is 2 (i.e., two dozen), the system will put 24 (i.e., 2 x 12) into inventory when the parts are moved to an Inventory Location.

Decimal Qty Precision:  This field specifies the number of decimal places where the Purchase Order quantity is expressed for this Item. 

  EXAMPLE  An entry of 3 indicates that the Purchase Order quantity will be stored with 3 decimals of precision.

• This field is initialized from the Inventory Quantity Decimal field (Inventory Commodity Code) when a Purchase Item record is added for a Direct Material Item.

• For Indirect Material/Services this field is initialized from the Purchasing Commodity Code and can be overridden in Purchase Item maintenance.

Accounting Dimension Value:  If the Accounting Dimension Value Checkbox is checked, the PO Commodity Code value is used; if unchecked, an override must be set in this field. 'None' is acceptable.

Print Engineering Item Notes:  When checked, the PO Print program will print the Notes attached to the Engineering Item Master record for this item.

Print Engineering Item Rev Notes:  When checked, the PO Print program will print the Notes attached to the corresponding Item’s current Revision record. 

Print Purchasing Item Notes:  When checked, the PO Print program will print the Notes attached to the Purchase Item Master record. 

Indirect/Service Expense Account:  The Sub-Ledger Account (aka Mfg Account) that should be debited when purchasing this Indirect or Service Item.

Inspection Order Template:  The Inspection Order Template to be used when creating Inspection Orders for this PO Item. If the checkbox is checked, the Commodity Code value is used. When unchecked, the field allows selecting the desired template, overriding the Commodity Code value.

Default Country of Origin:  Select the ISO Country Code to be used as the Country of Origin, if applicable.

Subject to Withholding Tax:  When checked, this Purchased Item will be subject to Withholding Tax. See Withholding Tax documentation for more information. Note that if the Commodity Code Indicator is checked, the value used is derived from the PO Commodity Code associated with this item.

Inter-System Direct Sales Tab
 

Fields
 

Inter-System Direct Item:  When checked, indicates the Item can be bought/sold between two Rootstock Divisions or Rootstock Companies using Inter-System functionality.

Sell from Company:  When the Item is identified as 'Inter-System' (between Rootstock Companies or Rootstock Divisions), this is the Company that the Sales Order will be auto-added for when doing an Inter-Company Purchase Order.

Sell from Division:  When the Item is identified as 'Inter-System' (between Rootstock Companies or Rootstock Divisions), this is the Division in which the Sales Order will be auto-added when doing an Inter-Division Purchase Order.

Sell from Customer:  When the Item is identified as 'Inter-System' (between Rootstock Companies or Rootstock Divisions), this is the Customer for which the Sales Order will be auto-added when doing an Inter-Company Purchase Order.

Sell from Product:  When the Item is identified as 'Inter-System' (between Rootstock Companies or Rootstock Divisions), this is the corresponding Rootstock Product for which the Sales Order will be auto-added when doing an Inter-Company Purchase Order.

Step 2 – Save the record

  NOTE  The Purchase Item Master Defaults Tab contains specific purchasing-related information about the item. Some fields (*) are governed by the Commodity Code assigned to the Item. These Commodity Code values may be overridden for any individual item; however, the main purpose of the Commodity Code feature is to identify these fields as default standards to ensure uniformity within a group of similar items. Therefore, if you regularly override Commodity Code values, you probably need additional Purchasing Commodity Codes.

SEE ALSO
 

Purchasing Overview
Inventory Item Master
Unit of Measure Master
Engineering Item Master