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After completing this session you should understand inventory management concepts and inventory workflow processes in ServMan. Specific learning objectives include the following:
Proper Inventory management is important on many different levels to ServMan users. Some of the more important considerations in inventory management include tracking on-hand quantities, controlling pricing, measuring costs, proper item categorization for job-related reporting and flat-rate standards for technician performance reporting. The direction of the session may be influenced by the mix of users and the nature of their inventory needs, but it is important that the cause and effect of various inventory item types, item set-up elements and item categorization are covered in the session.
ServMan provides the flexibility of a variety of item types for managing inventory. The different items available are delineated and explained below.
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Item Type |
Description |
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By making an item a Stock Item, ServMan will track your quantities on hand, quantities reserved by customer orders and quantities on order from your vendors. When you receive a Stock Item into inventory ServMan will update your Inventory General Ledger account and maintain an internal item cost table to allow tracking of FIFO, LIFO or Moving Average cost methods. Be advised that if you enter an item as a Stock Item then you must be willing to not only itemize every purchase of the item, but you must itemize your Orders and Invoices EVERY time you use the item. For example: A box of screws is not a good item to make a stock item because you will not itemize every screw you use on a service call or work order. If you do not itemize the part when you use it then ServMan has no way to relieve your inventory. You can optionally choose to track the quantities for an item but have the item Expensed when purchased. This is accomplished by un-checking the Update to COG's check box on the item setup. |
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Non-stock |
Non-stock items are items that you may use frequently, but don’t need ServMan to track the on hand quantities. Having a non-stock item in your item file makes it easier for you when you are entering a Quote, Order, Invoice or Purchase Order. All you have to do is enter the item number and ServMan will fill in the rest of the information. Non-stock items are typically expensed when purchased, while Stock items are expensed when sold.
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Labor |
If an item is a labor item then you have the option of logging a technician’s time directly against that item on your Order or Invoice to your customer. ServMan will automatically prompt for a technician’s time when you put the item on an Order or Invoice if you check the box “Prompt for Time In/Time Out” on Page 2 of the Item Setup Screen. |
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Service |
Service items are a cross between non-stock items and labor items. If you sell a service to your customers such as Preventative Maintenance Service, then you might want to create a Service item. In many localities labor is not taxable and a Preventative Maintenance Service would be considered a form of labor. Consequently, ServMan’s tax codes treat Service items and Labor items the same way. One major difference between Service and Labor item types is that you cannot log time to a Service item. |
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Expense |
ServMan is a full accounting system through which you will be paying your bills. Expense items are used for detailing the bills that you pay to your vendors. For example, you may want to use ServMan’s Purchase Order system to order office supplies and equipment. It will make creating a Purchase Order easier if you add Expense items for laser printer cartridges and computer paper. That way ServMan will remember the correct item number, description, cost and GL codes. |
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Template |
A Template item contains a list of other item numbers. An example of a Template item may be a Quote template that includes several options that are often used during the quoting process. When you add a Template item to a Quote, Order, Purchase Order or Invoice you can select the optional components you want to include from a list. Templates can also contain other templates. |
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Assembly |
At first glance, Assembly items appear to be the same as Template items. The item screen for an Assembly item contains a Bill of Materials tab which looks similar to the Template Components tab. The difference is that a Template item is just a list of other items. An Assembly item is built from other items and becomes a Stock item. To build an Assembly item you should go to the Inventory Navigator and select Build Assemblies. You will be taken to a screen where you can enter the warehouse that you will be creating the assembly for, the item number of the assembly and the quantity you want to build. When you click on the Update button ServMan will relieve the items from stock that were on the Bill of Materials list and add to stock the quantity of the Assembly items you wanted to build |
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Flat Rate |
Many industries use Flat Rate items to specify a pre-established price for a service being performed which includes both parts and labor. ServMan supports the use of flat rate components and includes a standard import allowing the import of a flat rate “book” that you have purchased from a third-party provider. |
The following section details the use/purpose of each field when setting up items in your system. When you select an item "type" you will notice that you will have different options on the screen. Many fields are the same regardless of the item type like Item number, Descriptions, Cost, etc.. Item codes are used for many purposes other than Inventory management. Logging time, materials, expenses and other functions all use item codes. Look over the use of each field and be sure you understand its purpose. Taking advantage of the many setup options for your items will significantly enhance your users use of the software.
| Field Name | Description |
| Item Number |
Item numbers are your companies reference for this item. The system allows you to search by any field on the item so you your numbering convention isn't critical, you will also have Manufacturing Item number and UPC codes to search by. When creating your internal item numbers you should keep the following in mind.
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| Type |
Controls the item type and field selection options. Item types are defined in the section above. |
| Serialized |
Only displayed if an item is a Stock item. This option allows you to track serial numbers for your items and exposes a Serial Tab allowing you to view your on hand quantities by serial number. |
| Inactive |
When you have history for an item you do not want to delete it. Flagging the item as inactive allows you to make it no longer be displayed in your search listing for historical purposes but still maintain your history for the item. |
| Description |
This is a 30 character description for the item. The system allows you to have this as well and an unlimited description for the item. Think of this as a billing description. You can choose to have either or both descriptions displayed on your print documents. This is determined and configured during your installation. |
| Ext Description |
An unlimited description for your item. |
| Cost |
This displays your last cost paid for the item. If you don't want this to update with every purchase you can "lock" the cost by checking the "Do Not Update Cost When Received" check box on page two of the item setup screen. This cost will be pulled to quotes orders and invoices when keyed into the system. For Stock Items, the cost will be updated to the then current LIFO, FIFO, or Average cost, (based on your system settings) the Stock item is posted to COG's. This is accomplished when updating invoices to AR or Posting materials to WIP or COGS directly from orders. |
| Price |
This is the RETAIL selling price for the item. |
| Manufacturer |
You can maintain a database of manufacturers. They are setup under MasterFiles->Miscellaneous |
| Mfg Item Number |
The Manufacturers number for this item. |
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Section Two is where we set up our default GL codes for this item. GL Codes determine where the income and cost for our item will posted in our General Ledger. The system allows us to use wild cards in the GL Codes that we enter here that are filed in later based on the department we choose when were using the item on orders and invoices. Read more on using GL Masking in your General Ledger documentation.
The Above view is for a Stocking Item. There are two views you see for this section, Stocking Items, and everything else. Because Stock Items post to an Inventory Account when received they have a flag setting of Update to Cost of Goods Sold button that is auto selected. This exposes an Inventory Account and a Cost of Sales Account. When we purchase Stock Items, they are not Expensed to a Cost of Sales Account but rater post to an Inventory account on your balance sheet. When the Stock items are removed from inventory they will go to the GL Cost of Sales Account, (Expense Account) listed here.
If a GL Code is "Masked" like the two codes listed above for Income and Cost of Sales the Mask, in this case the "DD" portion of the code, will be replaced by the value assigned to the Department that used the material. Using the example above for example, if we have a Department setup called "Service", and the Service department has a Mask of "10". (Setup on the Department settings screen) Than the GL Codes being posted to would be 41000-00-10 for Income and 50000-00-10 for Cost of Sales. These codes must exist in your GL Code setup for the system to work properly.
GL Mask supported are listed under the General Ledger documentation but can include Mask for Branch, Department, State and Warehouse.
When adding new items it is best to find a similar item, and choose to ADD Copy. This will copy the GL Settings so you will not need to remember how to set these values.
Non-Stock items will only have an Income Account and an Expense Account.
Update to COG's - The update to COG's field can be set for any item type and is a powerful feature that should not be adjusted unless specifically advised by Accounting.
This field should remain checked for all Stock items that you wish to receive into the Inventory account in your general ledger. ServMan will track quantities on hand for all Stock items. Normally the value of a Stock item will be added to the Inventory general ledger account when it is received and then removed from the Inventory account and posted to a Cost of Sales account when it is sold.
ServMan Optionally allows you track your quantities on hand of a Stock item, but treat it as a Non-stock item from an accounting perspective (charge Cost of Sales immediately when purchased and do not post to the Inventory GL account) if the Update COGS box is not checked. If the Update COGS box is not checked then you will be prompted to enter a GL expense account instead of the inventory account above.
The next section of the screen, at the bottom will look different based on if the item your looking at is a Stock or Non-Stock based items. Warehouse information is only displayed for Stock Items.
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Default Warehouse |
If you have more than one warehouse in ServMan then this field may be used to set the default warehouse the item will be pulled from when using quotes, work and sales orders, or received to in purchase orders. The default warehouse setting on branches, departments and employees will take precedence over this field. |
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Minimum Order Qty |
This is the minimum quantity that your customer must order this item from you. The normal value is zero. |
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Minimum ReOrder Qty |
This is the minimum quantity that your vendor requires you to purchase when reordering this item. The normal value is zero. |
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Cost Code for Job Cost |
The cost code for job cost field is used to categorize costs and income for many reports and is frequently set as a required field. |
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Total All |
Displays your totals for ALL warehouses |
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Warehouse Balances |
Allows you to access and adjust your warehouse balances for this item. |
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Warehouse Quantities |
This section displays your item stocking detail by Warehouse. Clicking on an entry allows you to access the Warehouse detail screen to make adjustments. |
Page 2 of the item setup should be completed for all items. Like Page 1, you will note different options based on the item type. Our screen below is for a stock item. Our field descriptions will describe all fields regardless of item type that may be displayed. Please note that additional options have been created for Tax Exempt items. Click HERE to learn more about these options.
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Description |
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UPC Code |
The software allows support for Standardized UPC code searches using bar-code devices. |
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Primary Category |
You can search by category at the office and using ServMan Mobile. Primary categories can have Sub-Categories assigned to allow more concise data searchers. |
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Sub Category |
Can be subordinate to the Primary Category. Simplifies searches. |
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Do Not update Cost When Received |
If checked, will not update the Cost field on Page one of the item setup. |
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Do Not Update Vendor Catalog When Received |
The software allows specified Vendors to be flagged to auto build and maintain Vendor Pricing Catalogs. If checked, the item will not update to their catalog when purchased. |
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Warranty |
The system allows you to assign a warranty code to an item. Warranty information will be pushed to client system records when the items are sold. |
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Unit Settings UOM |
You can set units of measure for how an item is Purchased, Stocked and Sold. The Unit of Measure (UOM) can be used alone or in conjunction with Conversion codes. Common Unit of Measure codes are Each, Hour, Day or Case and define how items are purchased or sold in ServMan. The purchasing/receiving UOM will be displayed on purchase orders and vendor bills, while the stocking UOM is reference only. The sales UOM will be displayed on orders, invoices and quotes. |
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Conversion Codes |
When used in conjunction with Conversion codes the Unit of Measure allows for powerful inventory tracking of Stock items when the sales UOM is different than the purchase UOM. The conversion code is used to map an item’s purchase UOM to its sales UOM. |
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Update to Client Systems DataBase |
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Systems Type |
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Labor Type |
This field is used for the Technician Productivity report. The valid choices are blank, Travel, Trip Charge, and G&A |
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Labor Pay Type |
This field is used in the payroll module for determining pay rates. Setting this field for specific labor codes and using those codes to log time to will let you control how overtime is calculated as well as how Sick and Vacation time is tracked. Your company may create custom labor pay types, but the most common standard types are Regular, Overtime, Double-time, Sick, Holiday, and Vacation hours. |
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Prompt for Time In/Time out |
This field is defaulted to being checked for Labor items. When checked the user will be prompted to log an employee’s time when this code is entered on a work order. Logging time is how employee costs are assigned to orders and jobs. |
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Default Print Flags |
Leaving this field blank or entering a Y will allow this item to print on quotes, orders and invoices. Setting this field to N will block printing of this item. Setting this field to N may be useful if you have items that you add to orders and invoices for costing purposes, but may not want your customer to see on their paperwork. One other common value is D. If this field is set to D then only the description (not the item number or price) will display on the quote, order or invoice. NOTE: the value in this field may be overridden on the quote, order or invoice. |
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Tax Exempt |
Sales Tax will not be charged for this item. NEW in Release 2017 A.27 - Please Read! |
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Download to Mobile |
This item will be available to technicians on their mobile devices. |
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Is A Loaner |
This creates a unique instance of the item for use in tracking if rented or loaned. Loaners require a unique ITEM code for each piece of equipment being tracked. |
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Prompt for Label Qty |
If using the Wireless Warehouse module, the system will print labels upon receipt of purchase orders. |
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Exempt from Commissions |
If using Commission reporting and item can be flagged as exempt. |
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Spiff Amount |
The amount you may credit a LEAD technician if this item is used on an order scheduled to them. Used on the Technician Performance report and by the integrated Payroll System. |
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Piece Rate |
The amount you may credit a LEAD technician if used on an order assigned to them. Used by the integrated Payroll System. |
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Commission Code |
A commission code that is applied to this item on quotes, orders and invoices for the purpose of commission reporting to the integrated payroll system. |
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Default Vendor |
The Default vendor for this item. Used by the AutoPurchasing Module. If set, purchases will default to this vendor. |
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Default Vendor Part Number |
If set, will be populated to purchase orders if for the Default Vendor. |
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Lead Time |
The number of days expected when purchasing this equipment. |
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PO Description Option |
Used when creating PO directly from an order. Default will use the description from the item, you can optionally set the system to use the description from the Order detail line. This should be set when using MISC item codes to describe purchases. |
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Skill Set Required |
If using skill sets for your employees and scheduling. If an item has a skill set assigned and it is scheduled to a technician without the proper skill set assignments, a warning will be generated. |
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Group Codes |
When downloading item listings to Mobile users you can create Groups of items. Example - Plumbing, Electrical, HVAC. An item can have any number of Group codes assigned. Technicians are then assigned Groups of items to download to their devices. |
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Contract Activity |
All item types allow selection of a value for this field, but a Service item is most likely the item type that you will actually select a Contract Activity value for. Valid choices are blank, SELL, PERFORM, and RENEW. The ServMan PM (Contract Management) module will look for specific items on your orders and invoices with these values for various procedures within that module. |
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