Configurations
- Create products: Use attributes and variants, as the product received will be the same but in different colors. Ensure you also create the “generic” value.
2. Product category: Assign the appropriate inventory valuation costing method to the product category. In this case, we will use the AVCO (Average Costing) method.
Business Flow
- Purchase generic plastic balls: You can create the invoice if necessary (the invoiced product will be the generic if you do it before changing the purchased products)
2. Receiving products:
- On the day of reception, before entering the inventory into the system, modify the purchase order, even if it is confirmed.
- Set the quantity of the generic product to 0 and add the actual quantities of each color you are receiving.
- Set the unit price to the balls you are receiving, since this price will be the one take into account for the inventory valuation.
3. Receiving process:
- Click the receipt button. This action will cancel the previous receipt and automatically create a new one.
4. Validation:
- The new receipt will show the specific products you are receiving. Validate the quantities and details.
5. Inventory valuation:
- The costs of the variants will be automatically adjusted since we are using the AVCO costing method.
Summary
The generic product is primarily used to send the request for quotation to the supplier. However, it’s crucial to modify the purchase order once the specific details are known to ensure accurate inventory cost accounting. This flow is especially useful for companies that purchase mystery boxes of products, as they are unaware of what will be stored or sold until reception, requiring precise inventory valuation.
Note: Modifications to purchase orders can only be performed by authorized users, specifically purchase users and administrators. Inventory users, however, do not have the permissions necessary to make changes to this process.
