Each item requires a company, a name, a source, and stocking and packing UOMs. However, as items drive many processes in Kenandy, it's recommended that you add as much information as possible in the item record.

1. From the Item page, click New.
2. From the Manage Items page, enter the header information. For example:
   • Active: When the item is inactive, you cannot add it to a purchase order or a work order. This is true for items that have been made inactive as well as for items that have not yet been activated. Items that have been used in transactions cannot be deleted, but you can make them inactive.

   • Source: The item source controls the behavior of the item as it moves through various process flows. For example, the source is used to inform MRP, and it differentiates between manufactured, purchased, expense and build-to-order items.

3. Click Save Changes at the top of the page.

   A new item (header) is created and you can add inventory details to it. In addition to the inventory detail, you can enter planning or purchasing details, and you can also create an item specification and a product.

4. Open the Inventory tab to enter inventory information. For example:
   • Item Attribute: Items can be tracked by attribute, such as lot, expiration date, and minimum shelf life. If you choose to specify an attribute, you are prompted for that information when you receive, manufacture, or sell this item.

   Note: You cannot add any item attributes to an item with its type set to Outside Processing.
   You can add the License Plate Number (LPN) item attribute to container items only.

   • Non Inventory: By default most new items are inventory items. To make your item a non-inventory item, select the Non Inventory checkbox.
     
     Expense and Miscellaneous type items are set to Non-Inventory by default to prevent them from being included in item costing.
5. Open the Purchasing tab to enter purchasing related information. For example:
   • Buyer/Planner: The buyer/planner is required for purchased items that you plan for using MRP.
   • Approved Supplier Required: For items that you stock, you can require that they come from an approved supplier. Later, when the item is added to a purchase agreement, the supplier is verified to make sure it is on the approved supplier list.
6. Open the Planning tab to specify planning related information. For example:

   Use Lot Sizing: The primary purpose of lot sizing is to inflate the planned requirement to protect against unexpected shortages. If lot sizing is checked for the item but Safety stock, Shrinkage, EOQ, and the Order Multiple are all set to zero, it is equivalent to no lot sizing. If Use Lot Sizing is cleared, then the lot for lot technique is used.

7. Open the Order Management tab to create a product for the item. The steps are as follows:
   1. Specify the fulfillment source to differentiate between items that you keep in stock (Inventory) and items that you source from a third-party supplier (Drop Ship or Back To Back).
   2. For items that are not shipped, such as expenses, select the Non Shippable checkbox.
   3. Click (Add New), enter a product name, the selling UOM, and then click (Save Changes).
   4. Click Details to add product detail information.

      To learn more, see Products.

8. Open the Specification tab to create an item specification for the item. The steps are as follows:
   1. If you're using agreements, and you want to bundle products, select the Configurable checkbox to make the item configurable.

      When you create a related configurable product, you can then add child products to this product on the agreement lines.

   2. Click (Add New).
   3. Enter the Revision number.
   4. If the item specification is specific to a facility rather than a company, select the facility.

      For phantom item specifications, the facility must match the facility specified on any work orders that include the assembly. Without a matching facility, the BOM cannot be exploded.

   5. Enter the date on which the item specification becomes effective.

      The default date is today's date. If the item specification is for planning purposes, enter a start date that is in the future.

   6. Review the Costing and Production checkboxes, and update as follows:
      • Costing: If the specification is for costing purposes only, select Costing and clear Production.
      • Production: If the specification is for production, select Production and clear Costing.

      If the costing and production checkboxes are both selected, a production specification that tracks costs is generated.

   7. To add more detailed information, click Details.

      The Item Specification page opens and you can add components and build out the BOM. To learn more, see Item Specifications.

9. Open the Assign Facility tab to add facility specific information to the item. The steps are as follows:
   1. Click (Add New), enter the name of the Facility, and then click (Save Changes).
   2. To add more detailed information, click Details.

      By associating an item to a specific facility, you can maintain lot sizing information for MRP purposes for that item and facility

      The Facility Item page opens and you can specify the safety stock, EOQ, Shrinkage and other lot sizing specifications. To learn more, see Facility Items .

The standard cost of an item can include material, labor, overhead, and outside processing. In addition to the standard cost, you can break down these cost categories for reporting purposes. For example, you can create an item type to track the cost of the packaging and the ingredients included in the material. When you run the assembly cost rollup, the cost of the item type cost is rolled up to a custom field. For information about setting up item types, talk to your system administrator.

Generate a cost rollup for an item type:

1. From the Item Detail page, select an Item Type, and click Save.
2. From the Company page, select Use Item Types For Cost Rollup.
3. From the list of Custom Objects, locate the Assembly Cost Rollup, open it, and generate the report.

Items that have been used in transactions cannot be deleted, but you can make them inactive. For example, if you want to clean up your item list so that old items cannot be used on a purchase order, you can make the item inactive.

When the item is inactive, you cannot add it to a purchase order or work order. This is true for items that have been made inactive as well as for items that have not yet been activated.

Before making the item inactive, review the following checklists:

Inventory Tracked Item Checklist

	Review	Action
P	On-hand inventory	Reduce on-hand inventory to zero at all locations and the following SKIDs: Location SKID Allocated SKID In-Transit SKID To run the On-Hand Inventory by Facility report, go to Reports > Kenandy Materials Management.
ü	Open Sales Order Lines	If the item is on any open sales order lines, cancel the line.
ü	Open Purchase Order Lines	If the item is on any open purchase order lines, cancel the line.
ü	AP and AR invoices	If the item is on any unfinalized AP and AR invoices, finalize the invoice.

 

Non-Inventory Tracked Item Checklist

	Review	Action
ü	Open Sales Order Lines	If the item is on any open sales order lines, cancel the line.
ü	Open Purchase Order Lines	If the item is on any open purchase order lines, cancel the line.
ü	Transfer Order Lines	If the item is on any transfer order lines, cancel the line.
ü	AP and AR invoices	If the item is on any unfinalized AP and AR invoices, finalize the invoice.

Make an Item Inactive

1. From the Item page, click New.
2. Click Edit.
3. Remove the check mark from Active checkbox.
4. Click Save.

When you build to order, manufacturing typically starts after you receive an order. You can specify the item source as Build To Order. When a work order is completed for a Build To Order item, the item is allocated to the sales order so that it can be picked and shipped.

1. Create a product:
   1. Create a new item with the Source set to Build To Order.
   2. Create a new item specification for the Build To Order item, and then add a BOM that specifies the components in your Build to Order assembly item.
   3. Create a new product for the Build to Order assembly item.
2. Add the Build to Order product to a sales order, and then release the order.

   When you release the sales order a work order is generated. The work order need date is based on the need date for the (build to order) sales order line.

3. Complete the Work Order.

   When the work order is complete, the completed items are automatically allocated to the sales order line, and the items can be picked and shipped to the customer.

A kit is similar to a make to order product except that the components in a kit are mandatory, whereas a pick to order product is configurable. In a kit, the parent item is for invoicing purposes only, it is not a shippable item.

1. To create a kit, complete the following steps:
   1. Create a new item with the Source set to Kit.
   2. Select the Non-Inventory checkbox.
   3. Create a new item specification for the Kit, and then add the component items to build out the BOM.

      The parent (level zero) is the kit.

   4. Create a new product for the kit.
2. Add the product to a sales order, and then release the order.

   When you release the sales order, a shipment for the items in the kit is created.

3. Confirm the shipment.

   When the shipment is confirmed, the items can be picked and shipped to the customer.

Container items can be cases, cartons, boxes, bags, barrels, pallets, or any other item that acts as packaging for other items.

To create a container item, follow these steps:

1. Click All Tabs (plus sign), then click Items.
2. Click New.
3. Create the item header.
   1. Enter the required information into the item header fields as described in Create and Manage Items .
      Note: Choose Purchased as the item's Source.
   2. Select the Container checkbox.
4. Enter information into the Inventory tab.
   1. Enter an Item Attribute.
      Note: You can enter an attribute that includes License Plate Number only for a container item that's tied to your top level package class. For example, a pallet (PT).
   2. Choose the Packaging UOM you want to use for this container item.
      The packaging UOM describes how you count this container item.
      For example, if this container item is a pallet, it probably doesn't come packed in a bigger container. So choose each (EA) as the pallet's packaging UOM.
   3. Choose a Stocking UOM.
      Usually the stocking UOM is the same as the packaging UOM for container items.
   4. Enter the Container Package Class for this container item.
5. (Optional) Enter information into other tabs.
   If you purchase this container, enter information into the Purchasing tab.
6. Click Save Changes.

Kenandy creates the container item.

What's Next

Go back to the Package Classes page and add Default Container Items to your package classes.

You can now add this container item to item specifications as components of items you manufacture.

For example, if this container item is a cardboard carton you use to package a tent you manufacture, add this container item as a component to the tent's item specification.

The following table lists the fields that Kenandy provides. Your system administrator selects the fields that are displayed on your user interface.

Item Header

Field	Description
Active	An indication of whether the item is active. When the item is inactive, you cannot add it to a purchase order or a work order. This is true for items that have been made inactive as well as for items that have not yet been activated. Items that have been used in transactions cannot be deleted, but you can make them inactive.
Class	A further definition of an item type. For example, in accounting, you can use the class to determine the subtransaction type and to assign the default accounting segment.
Company	The company for the item.
Container	Select Container only if this item is a container item. Container items can be cases, cartons, pallets, barrels, or any other item that can act as packaging for another item.
Container Item	Choose a container item that will hold the item you're creating.
Description	Describe this item.
Extended Description	If you need to provide a long description of this item, use Extended Description to add to the information you entered in Description.
Fulfillment Source	Choose one of the following:  Inventory Drop Ship Back to back
Item	The unique name for the item.
Source	The source for the item. This field controls the behavior of the item as it moves through various process flows. For example, a Manufactured item informs MRP.

 

Item Inventory Fields

Field	Description
ABC Code	The ABC code for the item This code is used for cycle counting. If you cycle count using the ABC method, you can identify the item as A, B, or C on the Item Detail page. To set up the intervals between cycle counts, go to the Company or Facility page.
Container Package Class	Choose a package class for this item only if you're creating a container item. If you're creating any other kind of item, leave this field blank.
Dimension UOM	The dimension unit of measure for the item. This field is used in conjunction with one or more of the dimensions (length, height, width). This value specifies the unit of measure (for example, feet or inches).
Last Cycle Count	The last cycle count for the item. This field is populated after you complete a cycle count. The last cycle count date and the ABC code information are used to calculate the Next Cycle Count Date. To manage the ABC code information, go to the Company page.
Next Cycle Count Date	The date of the next cycle count. This date is based on last cycle count date plus the number of days corresponding to the ABC code. To manage the ABC code information, go to the Company page.
Item Attribute	A further definition of the item. For example, items can be tracked by attribute, such as lot, expiration date, and minimum shelf life. If you choose to specify one or more of these attributes, you are prompted for that information when you receive the goods.
Height Length Width	The height, length, and width of the item. These fields are used to specify the dimensions of the item.
Non-Inventory	An indication of whether the item is not tracked as inventory. Non-inventory items are typically used for expense or miscellaneous items, but any item can be marked as non-inventory. For example, for One-Time Charge items, which are used on agreements, select the Non-Inventory checkbox. When you create an item with the source set to Miscellaneous or Expense, the Non-Inventory checkbox is automatically selected. This prevents item costs from being created for miscellaneous or expense items.
Packaging UOM	Choose the packaging UOM you use for this item.
Stocking UOM	The stocking unit of measure for the item. You can apply a stocking UOM to items that you keep in stock. For example, if you purchase in dozens (DZ) but stock in eaches (EA), you can set up a conversion UOM to automatically convert from dozens to eaches. Go to the UOM page to manage conversion factors.
Track Install Base	An indication of whether the item has been installed at a customer site. The Install SKID identifies where the item was installed. To track items at a customer site, select this checkbox and the same checkbox on the Customer sold-to record.
Weight	The weight of the item. You can use the weight in conjunction with the Weight UOM to specify the weight of the selected item.
Weight UOM	The weight unit of measure for the item. This field applies to manufactured items only. For example, if you purchase in dozens (DZ) but stock in eaches (EA), one UOM can be converted to another. The conversion factor information is stored on the UOM page.

 

Planning Fields

Field	Description
Aggregation Days	The aggregation days for the item. MRP uses this field. If Use Lot Sizing is selected, this value indicates the number of days over which MRP aggregates planned orders. MRP consolidates purchase order or work order lines by the number of days specified. For example, if there are two different demands for the same items on two consecutive days, two purchase order lines are created based on the planned orders. If Aggregation Days is set to 2 or more, these two lines are aggregated into one line.
EOQ	The economic order quantity (EOQ). This quantity is the optimum quantity to make or buy. EOQ is determined by optimizing the cost incurred to place each order with the carrying cost of holding these items in stock.
Item Type	Select this option for items with Type = Outside Processing only. For all other item types, you must set this field to None before you make this item active.
Lead Time	The number of manufacturing days needed to receive the item into inventory from the time it is ordered (for purchased or outsourced items). The total number of days needed to produce the item (for manufactured items).
Level	The first step in an MRP run. MRP generates the level. Items that are purchased (Buy) and outsourced are Level 0.
Ordering Multiple	The ordering multiple for the item. MRP uses this field to plan orders. For example, if the order multiple is 25 and the actual demand is 70, then MRP recommends an order of 75. The calculation follows: if (OrderingMultiple > 0.0) { if (MRPQty > mth.round(MRPQty)) MRPQty = math.round(MRPQty) + 1.0; else MRPQty = math.round(MRPQty); During the purchase agreement release process, the quantity is verified to make sure it meets the order multiple and minimum order quantity requirements as specified on the item and item cross reference.
Safety Stock	The amount of stock over and above the forecast that provides a buffer for unanticipated needs.
Shrinkage	The loss of inventory due to defective or unusable material; expressed as a percentage. MRP inflates the planned orders to cover shrinkage. The shrinkage calculation follows: if (Shrinkage > 0.0) MRPQty = (double)math.round((MRPQty / (100.0 - Shrinkage)) * 100.0)
Use Lot Sizing	An indication of whether lot sizing applies to the item. The primary purpose of lot sizing is to inflate the planned requirement to protect against unexpected shortages. If lot sizing is checked for the item but Safety stock, Shrinkage, EOQ, and the Order Multiple are all set to zero, it is equivalent to no lot sizing. If the Use Lot Sizing checkbox is cleared, then all other inventory planning settings on the Item Planning tab are ignored and the lot of lot method is used.

 

Purchasing Fields

Field	Description
Approved Supplier Required	You can specify that items may be purchased only from an approved supplier. This applies to items with a fulfillment source of inventory. When checked, approval and release of purchase agreements or POs requires that the supplier named on the PA/PO match with a supplier defined on the item cross reference. When checked, Approved Supplier Required enables a validation check at time of release ensuring that the item on the line matches up with a supplier defined as an approved supplier. Approved suppliers are defined as item cross references on the item. POs or agreements for this item can't be released or approved unless the supplier and item cross reference don't match. When Approved Supplier Required is checked, you must set up an item cross reference for each approved supplier. The item cross reference defines approved suppliers for that item.
Buyer/Planner	The principal buyer responsible for purchasing this item or the planner responsible for planning orders for the item. This field is required for purchased items that you plan for using MRP.
Purchasing UOM	The purchasing unit of measure for the item. When items are received into inventory, if the purchasing UOM is not equal to the stocking UOM, then the conversion factor is used to convert purchased quantities to stocking quantities. The conversion factor information is stored on the UOM page. For drop-ship sales orders, the purchasing UOM on the item must be the same as the selling UOM on the product.
Supplier	The supplier who provides the item. For purchased items, if there is no purchase agreement you must specify a supplier, otherwise MRP cannot generate a purchase order.

 

Order Management Fields

Fulfillment Source	The fulfillment source for the item. Use the fulfillment source to differentiate between items that you keep in stock versus drop-ship or back-to-back items that your source from a third-party supplier. Options include: Inventory Drop-ship Back To Back When you set the item fulfillment source, items added to a sales order line trigger the creation of an appropriate sales order, purchase order or requisition. For example, if the item fulfillment source is drop-ship, a drop-ship order is created.
Non Shippable	An indication of whether the item is not a shippable item. When you create an item the default setting is shippable. For items such as expenses or warranties, select the checkbox.

 

Specification Fields

Configurable	If you're using agreements, and you want bundle products, select this checkbox to make the item configurable. When you create a related configurable product, you can then add child products to this product on agreement lines. Otherwise, leave this checkbox blank.
Grid	Displays item specification header details, which we cover in the Item Specifications topic.

 

Assign Facility Fields

Grid	Displays the name of the facility and the facility item's source.