Item master – purchase is responsible for storing the monetary details about the item. The currency used for transaction, purchase rates (inclusive and exclusive of tax) and Economic Order Quantity (EOQ) are some of the information stored in this tab.

Fields & its description:

There are options to confirm if the item is purchasable and if that item can be bought without a purchase order. Check the respective check boxes for confirming.

• Purchase Incharge

Purchase in charge is the employee who is responsible for the purchase of the item. Select the employee from the pick list.

• Minimum Stock

This is the minimum stock that must be maintained of the item. Specify in numbers about the minimum stock. Doing so will ensure that there is always that much quantity of the item in the inventory.

• Economic Order Quantity

EOQ is the number of units that a company should add to inventory with each order to minimize the total costs of inventory—such as holding costs, order costs, and shortage costs.

•  Lot Size

Specify the size of the lot in this screen.

• Purchase Currency

The currency used in the purchase of this item can be mentioned here.

• Std. Purchase Rate

This is the standard rate used to purchase the item regularly.

• Std. Purchase Rate (Inclusive)

The standard rate including all the services or items normally expected or required.

• Purchase Cost

Purchase cost is the net landing cost of the item.

• Maximum Stock

This indicates the maximum stock allowed in keeping the item. This can help in making sure that the stock does not exceed the maximum amount.

•  Tolerance Type

Tolerance with regards to loss of goods among other irregularities can be controlled by specifying the limit in loss of quantity or % basis.

As soon as you select a tolerance type, Tolerance value field appears where you can specify the exact value.

• Lead Time

Lead time is the latency time allowed for the purchase of the item.

• Last Purchase Rate/Currency

Specify the rate of last purchase of the item in this field. Similarly mention the currency used for the transaction.