Inventory Categories

Overview:

Inventory Categories are in the middle of the inventory item organization and reporting hierarchy. Each Inventory Item is assigned to an Inventory Category and each Inventory Category is assigned to an Inventory Department.

The cost, value on hand, and usage for each Inventory Item will roll up to its assigned Inventory Category, and each Category then roll up to its assigned Inventory Department. Categories are typically set up to align with how you report your cost of goods sold on your profit and loss statement. Inventory Categories and Departments are typically summarized in Inventory Reports.

Things to know!

This feature will only be accessible and visible to users who are given access to it.
Categories are a grouping of Inventory Items for subtotaling costs, usage, and inventory item on-hand valuations.
As part of your initial setup, COGS-Well support will set up your Inventory Categories using your chart of accounts as a guide. You can review and make any desired changes to Categories via this function.
Categories are typically set up to align with how you report your cost of goods sold on your profit and loss statement.
An Inventory Item can be assigned to only one Inventory Category and an Inventory Category can be assigned to only one Department.
Categories can be given General Ledger Asset and Expense Account assignments if you want to post purchases and/or inventory valuation adjustments by Category to your accounting system.
Even if you are not posting purchases or ending inventory valuations to your accounting system, Inventory Categories are useful for organizing COGS-Well reporting and data entry.

Add or Edit Inventory Categories

An example of the hierarchical relationship between Inventory Items, Categories, and Departments is below:

To add, review, edit, or delete Inventory Categories, navigate to Inventory>Setup>Categories via the Main Menu, or Manage Inventory>Categories via the Process Menu. Upon selection, a "Find Grid" will display a listing of all of your Inventory Categories.

Find Grid Definitions:

+ Add, Export, and Search Options:

The blue "+ Add" button is used to add a new transaction.
The "XLSX" button will export the information on the grid to a spreadsheet.
The search option can find any part of a word or date on the grid. Type in your search criteria to initiate the search.

Edit/Delete: Click the Edit or Delete button to the right on the row of the Item that you wish to edit or Delete.

Special Find Grid Search, Filter, and Sort Tools:

Magnifying Glass Icon: The magnifying glass at the top of each column in the above grid has a search function that enables you to search within that field. If you hover your mouse over the magnifying class you will see options to use to refine your search.
Magnifying Glass and Calendar Icon: If a column has a magnifying glass and a calendar at the top of the column, the calendar can be used to select a date, and if you hover over the magnifying glass after you select a date, you will have options to refine the filter (such as equal to or greater than the selected date).
(All) Incon: Columns that display "All" have a drop-down arrow on the right that is used to select and filter for a specific status. For example, the Active column can be filtered for "Yes" items only.

The Find Grid includes more tools to help you find, filter, or sort the information on the grid according to your requirements. Some of these tools are intuitive, but other helpful tools can easily be overlooked. Please click this link for more information on Find Grid Tools - FAQs.

Add or Edit a Category:

If you select to add or edit an Inventory Category, a screen like the one below will display.

Category Name: Give your Inventory Category a name (required field).

Inventory Department: This is the Inventory Department that you want to assign this Category to. Use the drop-down search to see available Departments.

GL Asset Account: Select a GL Asset Account if you plan to post an ending inventory adjustment from this Category to your accounting system.

GL Expense Account: Select a GL Expense Account if you plan to post invoice expenses from this Category to your accounts payable system.

Cost Alert Trigger Percentage: Cost Alerts are generated by a change in the cost of an inventory item. Cost Alerts are based on "Trigger Percentages". A Trigger Percentage is the percentage change amount in an item's cost that you have flagged to receive an Alert.

A default Trigger Percentage for all items is set up in Company Settings. Only enter a value in this field if you do not want to use the default value which is displayed beside this field. For more information on Cost Alerts please click this link: Cost Alerts.

Report Unit: There are four Inventory Reports (Extension, Usage Variance, Theoretical On-Hand, and Actual Cost of Sales) that can be modified from reporting values by an item's Pack Size to reporting by an item's Count Unit. If you use the drop-down to change to Count Unit then all of the inventory items associated with this Inventory Category will report using Count Units on the above four reports.

An example could be a Category for Meat and you want the above reports to use the Count Unit (pounds and each) versus the Pack Size. Report Units can also be configured at the Department or the Inventory Item level.

Number of Pricing History Days: This field is only relevant if you are using or are going to use the Order by Item feature and you wish COGS-Well to assist you in vendor selection. It represents how many days from the current date COGS-Well will look back at a vendor's pricing for an item. The default is set up in your Company Settings on the Ordering Tab (in this example it is 365 days). You can override the default for a specific Category by entering an override.

Sort Order: If you have a desired order that you prefer your Categories to report in, then enter a numeric value for the Sort order (the lower the number the higher the order). If a sort order is not entered the Categories will print out alphabetically.

Active: The system default is to check the Active setting. To make a Category inactive, click the box to remove the checkmark. An inactive Category can be made active again.

Save, Delete, and Exit:

At the bottom of the screen are the Save, Delete, and Exit buttons.

Save - Saves the entry or entries without exiting.

Delete - Deletes the Category that you are viewing.

Exit - Exits without saving any new entries or edits.