Creating and Managing Direct Items

Derek Torres
Derek Torres
  • Updated

Important Note: PartsLedger is now PartsManager. PartsManager retains all of the parts purchasing and warehouse management automation benefits of its predecessor. To read more about this exciting change, click here.

 

Direct Items in PartsManager, formerly known as PartsLedger, is a type of item you order on a Purchase Order directly for a Sales Order (ServiceTrade Job). Direct Items are items you never want to receive in your Warehouse inventory.

  • Direct Items can only be selected on a Purchase Order when Direct Purchase for Sales Order is enabled.
  • When you add a Direct Item to a Purchase Order, its Sales Order field will be required. This will prevent you from receiving a Direct Item into Inventory.

Direct_Required.png

 Examples: Ad hoc (MTL) items.

This article will walk through managing Direct Items and using Direct Items items in PartsManager.

 

Step 1: Setting Up Direct Financial Accounts

You may already have these accounts set up. You can skip this step if you have already created these accounts.

It's best practice to set up two financial accounts to track Direct Items. A Direct Order Accrual account and a Cost of Direct Items account. Follow the steps below to create Direct Items financial accounts.

Note: These are recommended settings. If your company wants to use different financial accounts to track Direct Items, or you have specific financial account settings for an integration, you do not need to follow these steps.

  1. On the navigation bar, click Financial.
  2. Then click Accounts to open the Ledger Account.
  3. Click the + New button to open the Add Ledger Account Menu.
  4. For the Direct Order Accrual account, enter the following:
    • Number - Any number you want for this account.
    • Name - "Direct Order Accrual"
    • Descriptionnot required
    • Type - Asset
    • Sub-Type - Inventory
    • Location - Your Company Location
    • Natural Balance - Debit
  5. Click Submit to create this account.

  6. For the Cost of Direct Items account, enter the following:
    • Number - Any number you want for this account.
    • Name - "Cost of Direct Items"
    • Descriptionnot required
    • Type - Asset
    • Sub-Type - COGS
    • Location - Your company Location
    • Natural Balance - Debit
  7. Click Submit to create this account.

Step 2: Setting Up Direct Items

This section will walk you through setting up Direct Items in your Items List. Repeat the steps below for every Direct Item you want to add to your Items List.

Click the following link to learn more about Creating and Managing Items in PartsManager.

  1. On the navigation bar, click Inventory.
  2. Then click Items to open the Items List.
  3. Click the + New button to open the Add Items Menu.
  4. Enter the following in the fields below; any fields not shown are optional:
    • Name - The name of the consumable item.
    • Default Sales Price - Enter "$0.01"
    • Default Purchase Price - Enter the price of the item.
    • Default Inventory Account - Enter your "Direct Order Accrual" account.
    • Default COGS Account - Enter your new "Cost of Direct Items" account.
      • Note: If you are not following our recommended financial account settings, use your preferred Inventory and COGS Accounts.
    • Type - select Direct.
  5. Click Submit to create the item.

Step 3: Using Direct Items on Purchase Orders

This section will walk you through adding Direct Items to Purchase Orders. Before you begin, please read Creating Purchase Orders in PartsManager.

  • Direct Items can only be selected on a Purchase Order when Direct Purchase for Sales Order is enabled.
  • When you add a Direct Item to a Purchase Order, its Sales Order field will be required. This will prevent you from receiving a Direct Item into Inventory.
  1. Follow the normal steps for Creating a Purchase Order.
  2. You will need to select a Warehouse, even though this is a non-inventoried item. Read How Do Direct Items Work? to learn more.
  3. Follow the normal steps for Adding Items to a Purchase Order, but select a consumable type item.
  4. Follow the normal steps for Receiving Items on a Purchase Order in PartsManager.

How Do Direct Items Work?

When you receive a Direct Item, you must select a Warehouse on the Purchase Order even though you will not keep this item in your inventory. When the Direct Item is received, a positive "Receive" type stock adjustment will move the item to your warehouse's stock. There will also simultaneously be a negative "Fulfill" type stock adjustment that removes the item from your warehouse's stock onto the selected Sales Order.

Because Direct Items can only be selected on a Purchase Order when Direct Purchase for Sales Order is enabled, and Sales Order field will be required. This will prevent you from receiving a Direct Item into Inventory.

 

Was this article helpful?

/

Comments

0 comments

Please sign in to leave a comment.