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Introduction

Products are things you sell that have components in their breakdown/Bill of Materials. Components are the parts that go into the make up of a product. Lets look at some examples of this.

·         Example 1 - shows a typical trophy that has a product code and then a group of components that make up the product.

·         Example 2 - Shows pretty much the same as 1 except that the component chosen has the same code as the Product code which is exactly what the supplier intended. They sell you a component called RF1041A. They use that same component code as the Product Code in their retail catalogues.

·         Example 3 - shows a Polo Shirt being treated the same way as example 2. The product has a code which is the same as the component

Lets examine Example 3 a little more.

Starting with a supplier order; you can only order components so you have to firstly regard a Polo shirt as a component so when an Apparel supplier gives you their product list AwardPro considers it as a component list. You have to import the list as a component. You can then create a product out of the CP0422 by manually creating a product in the Product editor or by setting up a Product Import list. Just remember before importing products you must firstly import the components that will make up the products.

If we only sold Products that were single components we would not need to have products and components but we do sell products often that have got a Bill of materials (also known as Breakdown or Kit) so hence the need for the component - Product system.

You can sell components directly at the sales screen but you do not have the same Product Editor features that a Product has.

Let's examine the difference between selling a Product and selling a Component

At the Job Item screen, when writing up a sales order, you can chose to add a Product, Component or Process. Lets disregard Process for this examination.

When you add a Product to a Sales Screen

1.      Product costing is based on the Product Type Mark Up which can be individually changed at the Product Editor

2.      Products are costed based on the Single unit supplier purchase price.

3.      You can modify the components in the Bill Of Materials

4.      You can have a Value Add Form associated to the Product

5.      Products can have a quantity breaks built into then

6.      Products pricing can be managed via the mark Up centre in System Set Up

When add a Component to a Sales Screen

1.      Components added as a line item are marked up based on the Component Type Mark Up which can be individually changed at the Component Editor.

2.      The mark up of a component added as a line item is based on the components quantity buy cost.

3.      As a component is singular their is no opportunity to add other components to the sales line

4.      Value Add Form does not work with components being added as a line item.

Let's examine Point 2 of both situations.

Products are costed based on the Single unit supplier purchase price.

When you create a product and add components the system will always take the first component quantity price row to mark up form. So it is costing off the single item price. If the customer buys enough product to enable you to get a better purchase price the program will not pass this on to the customer. If you want ed to pass on savings to the customer you could apply a discount.

Even though the program marks up form the single unit price your sales analysis report will take into account the actual buy price of the component based on the quantity purchase price. So when you look at the sales analysis form it is always showing you the really component cost.

The mark up of a component added as a line item is based on the components quantity buy cost.

in the case of adding a component as a Line item the system will use the component only mark up factor and it will mark up based on the actually component quantity price.

So you could actually sell Polo Shirts or Promo Pens directly as a component if you set the mark up of it's component type correctly and you are happy to maintain the same mark up from each supplier quantity buy.

Here's an example

So you could really sell typical Promotional Products as Components and use the quantity buy price mark up system

Summary

AwardPro is designed to sell products with Bill of Materials housing the component (supplier part) But you could consider components as products for things such as Promotional products that never really have an array of components in their make up.

Products do offer certainly controls that provide good sales functionality at the sales screen.

Further further information

Please read through the Help section on Products. You will notice that some Product Help documents have been numbered. This is designed to guide you through the section to proved the best opportunity for comprehension.

We also have lots of Videos in the Video centre

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