SytelineMaster

What is a Product Code?

Product Codes are one of the key areas in developing and implementing SyteLine.  Items (Parts) are the driving point of the system.  All modules utilize items or derive their information from the use of items.  Every item must have a Product Code.  The Product Code is the method used to link a variety of functional areas of the system to an item.

Determining your company’s catalogue of Product Codes is not always an easy task.  The following information is a list of where and how SyteLine uses Product Codes.  They are not listed in any order of importance.  The main module(s) where the functionality is used is/are listed next to or below the functionality statement.

Assign General Ledger Account Numbers (IC, PO, CO, SFC)

The Product Code is the vehicle for linking an item to the Chart of Accounts.  They system performs “on-line” accounting with all movements of items.  These movements are accounted for in the General Ledger by the accounts tied to the Product Code.  More than one item may be assigned to the same default account in the General Ledger.  These “default” accounts are:

Inventory*

WIP

Inventory Adjustments

Material Overheads

Sales*

Cost of Goods Sold*

Sales Discounts*

This assumes that the MULTI-WAREHOUSE DISTRIBUTION ACCOUNT functionality is NOT being used (see #7)

Assign Inventory Grouping for Sorting Reports  (IC, PO, CO, SFC, MRP)

The primary method of gathering information from the system is by the Item Number.  The secondary sorting method is the Product Code.  Items having the same Product Code can be grouped together on reports.  Some examples of how groupings might be arranged:

Raw Materials

Steel

Sub-Assemblies

Custom Materials

Glass

Finish Goods – medical

Finished Goods – computer

Assign an Identification for Sales Analysis (IC, CO)

Sales analysis reports can be printed to scrutinize sales by dollars and/or quantities within Product Codes.  General Ledger accounts have no bearing on these reports.

Assigned Standard Cost Variances (IC, PO, CO, SFC)

When the Cost Type = Standard,  all Item Standard Cost Variances are reported against the item in the default variance accounts listed in it’s Product Codes.

Assign Fixed and Variable Material Overhead Costs (IC, SFC)

Material overhead costs are assigned to items through their Product Code.  Each Product Code allows a Fixed and/or a Variable overhead cost to be loaded.  These costs are percentages (%) used to calculate an item’s overhead during Standard Cost roll-up and for General Ledger account posting as they take place.  An item’s total cost, with overhead percentage applied, is calculated in the following manner:

The item’s Bill of Material cost is multiplied by each overhead factor of it’s Product Code.  The overhead cost is then added to the Bill of Material cost to arrive at the total material and overhead applied to the material cost.

Set Standard Product Line Mark-ups (IC, CO)

A standard percentage mark-up can be used with all items within a Product Code.  This eliminates the need to input pricing during the Order Entry process or to “auto-set” prices based on the item costs to all customers.  (There are other levels of customer/item pricing available in the CUSTOMER/ITEM CROSS REFERENCE FILE and the PRICING MATRIX functions within SyteLine.

Multi-Warehouse Distribution Accounts (IC, CO)

The Product Code can be used to setup separate accounts for each warehouse.  This allows for accounting and inventory count information to be sorted by warehouse.  This data can be used to control warehouse demands, stock consignments, and Profit & Loss centers.  The accounts can be established for each Warehouse/Product Code combination.

Set Standard Discounts by Customer Type and Product Code (CO)

A standard discount file can be assembled to allow an item to have a default discount applied during the Order Entry process.  This discount is determined by the combination of the customer’s type and the item’s Product Code.

Inventory Cycle Count Functionality (IC)

The Product Code can be utilized for setting the Cycle Count parameter flag.  It is also a primary sort field for generating Cycle Count Sheets.  Count discrepancy percentages in Cycle Counting can be established to reduce the number of quantity discrepancies reported on the Cycle Count Variance Report.  Example:  Setting the Count Tolerance at 2% for items that are weight-counted will eliminate the printing of quantity variances in a range of +/- 2% on the Cycle Count Variance Report.

MRP Parameters (MRP)

MRP information can be controlled and built by Product Code.  Forecast ranges and Reschedule PO/JOB tolerance can be constructed to tailor the MRP actions and messages by Product Code.

Salesperson Commissions (CO)

Salesperson’s commission records are driven by the combination of the item’s Product Code and the order’s Salesperson(s).  The commission computed is a factor of the item’s price and the salesperson’s commission percentage for that Product Code

Pricing (CO, IC)

Product Codes can be utilized to facilitate a variety of pricing possibilities.  Price matrix functions are driven by Product Codes and can be used to select the correct pricing formula during price calculations in the Order Entry Function.

System Utilities (IC, CO, PO, SFC)

Many system utilities for “upkeep”, “changes”, and “deletions” are setup for utilizing Product Codes to select items or records to perform utility functions.