A bill of material finished item is an item whose quantities are maintained in a warehouse and it is produced by using component items whose quantities are also maintained in the same warehouse. The bill of material finished item must be set up as a valid item in the Item F/M and the BOM/Formula flag must be set to B. An example of a bill of material finished item is a tool kit where the components are the tools that are used to produce the kit.

A component item is an item used to produce a bill of material item. Its quantities are maintained in a warehouse and it must be set up as a valid item in the Item F/M.

A formula is made up of ingredients which are items maintained in a warehouse. A formula, however, is not an inventory item. It is used to produce a formulation finished item. For example, a formula may be set up which produces 800 ounces of cough syrup.

A formulation finished item is an item whose quantities are maintained in a warehouse and it is produced by using a formula (made up of ingredients) and packaging items (ingredients and packaging items whose quantities are also maintained in the same warehouse). See example on Formulation Menu.

An item which is used to produce a formula. It must be set up as a valid item in the Item F/M and its inventory quantities are maintained. An example is sugar as an ingredient of cough syrup.

An amount that is added to the final cost of producing a finished item. For example, if it takes one employee (paid $5.00/hr) two hours to produce a finished item, the labor cost might be $10.00.

An item which is flagged as a lot item through the Item F/M is one which when received or sold must be assigned a lot number per unit. Multiple units may be assigned to the same lot. Examples of lots are reels (wire, etc.) or lots in lumberyards or brickyards.

An amount that is added to the final cost of producing a finished item. For example, when producing items, there may be a cost of lighting, heat, etc. for the laborers.

An amount that is added to the final cost of producing a bill of material finished item. For example, if a tool kit is produced and must be packaged in a special box, the cost of the box is the packaging cost.

An item which is used to produce a formulation finished item. It must be set up as a valid item in the Item F/M and its inventory quantities are maintained. An example is bottles and labels are packaging items used to produce a case of cough syrup.

An item which is flagged as a serial item through the Item F/M is one which when received or sold must be assigned a serial number per unit. For example, every copier sold must be assigned a serial number for serial tracking purposes.

An amount which may not be exceeded when producing a formula to manufacture a formulation finished item. The number is used to ensure that the amount of formula produced does not differ from the units required by more than the percentage amount.