[Music] hi guys welcome to my youtube channel and welcome to microsoft erp beginners tutorial episode number 12. in this episode uh we are going to discuss about a lot of important topics like released products and what is a item model group and what is an item group all the three are extremely important so let's get started [Music] the previous episode we did uh created a product and then we released it into a released product and this is the product uh that we were actually we did released in the last episode so um since it is just released from a product to a released item uh the setups the the the mandatory all the mandatory fields are not it completed so um so what are the mandatory field that are required in order to complete a release product setup so in order to know that you need to click on the the validate button that i'm highlighting in the cursor so when you click on the validate button system will automatically tell you that the enter value in the item model group field in the release products so the item model group is missing but uh so but once i fill it the system will also say that the item group is missing so even this is this is a mandatory field and likewise even the system will warn me for the units which is not been filled against different tabs these are all called as fast tab in microsoft dynamics 365 so there are these are some of the basic setup that i might need to fill in for completing or finishing um the creation of a released item but these are the minimal setup required for me to proceed further with the supply chain course okay but there are so many things that we need to learn there are like multiple tabs that we need to cover as uh as a part of the course to completely understand the release products uh we will definitely go through every single field in this form but we if i go through now uh you may not be able to understand various things like if i talk about reservation hierarchy now you may not really um connect or understand what i really mean so we will be covering every single field here whenever we touch the relevant topic for example this one maybe we will cover very quickly in the next episode because it's a very simple topic where we can create a template of any item and apply the template for a newly created item so that all the mandatory fields from this item will be copied to the other newly created items so you can save multiple templates for example if you want to save the template or the fields of this item then you need to just go and create a personal or a shared template if you create it as a personal template then it will only be available for you and you can copy this template and apply clicking on the apply template button you can apply the template to any other item so in the next item you don't need to fill the storage dimension tracking or item model group or model group again and again you can just store this template and copy or apply this template in the next item for that you need to first create your personal template by clicking on this button create personal template if you only wanted to have it with your user then you need to click on the personal template but if you want to share your template with all the users of this environment then you can create a shared template and that way any user of this environment will able to see your template and they can apply the templates and use your template and quickly create an item it's basically enables you to create an item faster because the templates are stored for every different patterns of item and you can use it and create an item very easily so that's about the item template maybe we will create a template later quickly and use it in use it during the release item creation process later sometime but that's the concept of the template likewise there are multiple areas like dimension group which we already know and the counting reason code we will cover it while we discuss about the counting journal because the counting reason code can be a mandatory or optional if i make the counting reason code as a mandatory code then it will become mandatory for me whenever i'm doing a counting journal for this item and i find there is a concept of counting uh cycle counting which happens in any inventory uh every month or a year or a quarterly basis where we take a stock uh we will take we will will count the stock in the inventory on the shelf and match the stock with the on hand inventory in the system to make sure whether the system data is matching with the real-time inventory data if it is not matching if there is any discrepancies and if i keep my counting reason code as mandatory then it will become mandatory for me to provide a reason on why there is a discrepancy so that those data can be later validated and find the majority reasons behind discrepancies in the warehouse and they can try to resolve the process and optimize the specific business process which is causing the discrepancies right so this is just a process of generating data whenever there is a discrepancy but if i keep the counting reason code as an optional then uh while counting the stock counting for this item then if there is a discrepancy then you did not mention reason you will still be able to post the accounting journal so that's the reason of this particular accounting reason code policy but all this we will discuss in detail during the relevant topics likewise in the purchase tab you have so many options right these are the options like multi lan discount line discount total discount these are all different topics for different episodes in future so when we discuss about the procurement and sourcing module we will cover about the multi-land single and total discount as an individual episodes because they are very deep concept and that deserves a separate episode each so we'll do that and likewise what is the trade agreement and like we know that there is i already mentioned that there is a pricing engine in the system where you can maintain the pricing specific to a color or size or configuration or a customer so all those are maintained in the trade agreement section loyalty is uh sorry royalty is a separate concept as such we will discuss during the procurement module later likewise it's possible to define a specific vendor as an approved vendor in the list we will again come back to this topic later so there are inventory matching policies and likewise in the sales and marketing modules there are many different topics and this is for the bom configurations and this is for maintaining your weighted average cost and things like that so every module or every tab has its specific episode in future so keep watching my series and you will eventually understand everything so um but at the moment i want to first do the minimal setup required to complete the release product setup so that i can proceed with my supply chain course so i'm going to first do my item model group so as we know this is a new legal entity and this legal entity doesn't have any item model group so we first need to create an item model group to proceed further so for creating an item model group you can just go here and click right click and view details and then it will take you to the item model group screen or the full path is when module and it is here item model group so you will see that the same page is opening here as well but i think i am in a different legal entity so it has a data here but let me change this to adc motors as well let's go back here and yeah so we need to first create an item model group so what is an item model group so item model group is an extremely extremely important setup it's a mandatory setup in every single item and item model group is the one which controls the inventory evaluation or inventory the costing process uh so whether your inventory model or valuation is fifo lifo or weighted average or standard cost or um lifo everything is stored here and only based on whatever we set here the inventory valuation inventory costing and everything are driven and taken care of every single parameter here has a purpose and every single parameter here has separate scenario we will go through every single parameters in very very detailed way once we finish our procurement and uh marketing sales and marketing processes in future um but at this moment i'm going to give you a high level overview of the item model group if you do not understand any of the parameters anything that i talk now as a beginner you may not actually understand but if not then uh don't don't worry we will cover it in detail later and you will start understanding all the topics as we go on with the series but i'm just going to give you a quick overview so that it gives you at least an idea of what a item model group is so click on the new button and let's create a new item model group or general is going to be my item model group um so just click give a item model group name and save it as soon as you save it you will see that the item all group is grayed out you cannot change it now in order for you to change the name you might need to delete it and create it again but if you already assign this item model group to an item and you perform a transaction then you will never be able to even delete it so you need to name it carefully while do it for the first go so once you create an item model group there are multiple parameters let's go through one by one uh first parameter is the stocked product uh this parameter is very very important because this parameter is what controls whether your product is a stock product or a non-stock product so let if i am creating this item model group as a stocked product and i'm going to assign this item model group into one of my uh release product item then that means that the item that i'm going to assign it to will be a stocked product that is the on hand inventory of that item will be available i can view the on hand inventory of that particular item because the stock the product is checked and the item is a stocked item so um if i am going to remove the stocked item and i make it as a non-stocked item let's say for example or if i use this item model group and i assign it to a specific release product item then that particular release product item will behave like a non-stock product so which means that the on hand inventory will not be available for us to view uh so you cannot see the on hand inventory uh for that particular item if the product is a non-stock product okay so i'm going to make a product my product as a stock product because i want to see the on hand inventory because i'm going to assign this group to a 14 inch alloy wheel and we definitely need to track the inventory status of the alloy wheel so um i'm going to make this particular item group as a stock product so if you you may have a question like if it is a stocked product then will my on hand inventory will always be available the answer is no because if it is a stocked product and if your released item that to which you're going to apply this item model group a to if the release product subtype is item let me explain this better let me get into the release product so let's get into the release product very quickly and click on the new button so while creating a release product you will have two options one is your released product type is item or service so as i mentioned before the previous episode item is for the tangible products and services for the non-tangible products which is a subcontractor service or a labor service or maybe a work order service that we offered to the customer and you wanted to track it as an item so in such cases you create a service item so if you created your product type as a service and you have your item model group as stocked even then if it's stocked but your item is still a service item so if the item is a service item on your inventory model group is stocked then you will not be able to see the on hand inventory that is your on hand inventory table will not display any inventory for that particular item but your inventory transactions table will still have the transactions made available in such scenario okay so uh to summarize if you click on the stock product and if your released product is item that is it's a tangible product then you will be able to see the on hand inventory so if your released a product is a service product and if the stocked product checkbox is checked for the item model group then you will still not be able to see the available inventory there is one hand inventory but you will see the invented transactions running and you can see the whole history of inventory transactions ok so that is when the stock product is checked okay that is the importance of the stock product checkbox and another next parameter is inventory model very very very important parameter only based on whatever inventory model we are choosing here uh the costing calculation or the inventory evaluation everything will follow the inventory model that we set up here but uh if you don't understand or don't know about inventory models don't worry we are going to cover or have a separate episode for fifo d4 c4 date rated average weighted average rate etc um so we will be covering them in detail but i will give you an overview now to start with um so the fifo lifo before date weighted average weighted average date so these are like one two three four five six seven there are seven inventory models available uh provided by microsoft dynamics recipient by default out of which first is first uh five of them from the fifo to weighted average date so for all of this they follow the on hand weighted average cost so which means that whenever there is an issue transaction happen that is whenever we sell that product with any of this inventory model after we do an issue that is after we post the packing slip and we sell the product there is a need of issue adjustment all those issues need to be adjusted to come out with the real cost because when you actually issue there will only be an estimated costing posted so in order to realize the real cost you might need to do some adjustments uh in the future during the period closing uh um so it's also called as inventory closing or inventory evaluation process so you need to re-evaluate your inventory based on whether it's a lifo fifa or lifo date or whatever inventory model we choose so that is definitely required for all of this first five inventory model or inventory evaluation methods okay so in short the fifo only for lifo date or weighted average weight average date everything requires an inventory evaluation process during the period closing during the month end okay but when it comes to the standard costing or moving average the standard costing follows the cost from the item master and the moving average follows the moving average so for the moving average in the standard cost it is not required for us to do the inventory evaluation inventory um closing process okay so inventory evaluation only required to adjust the issue transactions and to realize the real cost so that they're only required for the first five inventory models okay just remember this for now if you do not understand we will go through one by one each of them in detail later so that is the significance of the inventory model for now i am going to choose my inventory model as a weighted average maybe i will also give the description as a weighted average here okay okay so um that's about the inventory model the cost price this is also a very important setup i'm going to just turn this on for now so when you say include the physical value for the cost price so which means if you are going to include the physical value physical value meaning the physical transactions uh in the microsoft dynamics 365 there is a physical transaction and financial transaction in the case of a physical transaction meaning is your product receipt that is when you are receiving your item you need to post something called as a product receipt that will bring the item into the inventory so that is the physical transaction well then the sales cycle while selling a product to the customer you need to post something called as your um packing slip so that is again another form of your physical transaction likewise even in the production module you will consume your item through a packing slip so that is also as form of physical transactions so for all this physical transaction there is an impact on the inventory during the purchase process your inventory will be increased during the sales process your inventory will be decreased during your during your production process your raw material inventory will reduce so there is an impact on inventory in the physical inventory as well at the same time there is also a financial impact into the gl books so there will be an accounting a transaction posted into the general ledger okay so every physical transaction will also have its associated general ledger posting a financial posting that happens at the back end so when i turn on the the physical value then what happens is um the the physical transactions that i i mentioned just now which is the our receipts transaction or issue transaction will be included i'm repeating will be included as a part of our weighted average cash cost calculation so which means that you have received an item you have already posted your product receipt but you did not invoice the item yet even with the posting of the product receipt your weighted average cost will be calculated that is um the even the product received will be included as a part of your weighted average calculation but if i do not turn on and if i turn off and if i receive my product my product receipt will not be considered or included as a part of my received item will not be included during my weighted average or on hand weighted average uh cost calculation only the invoiced purchase order will be a part of my um weighted average cost calculation so coming to the ledger integration there are two parameters and both are extremely important one is the post physical inventory others are post financial inventory so if i turn off the post physical inventory then what happens so as i defined before or mentioned before during the physical transactions during the inventory physical transactions which is during the purchase during the product receipt posting or during the packing slip posting um in the purchase order or sales order respectively uh there will be an associated gl posting happening that is there will be an uh estimated cost posted to the general ledger right so that process will not happen if i am going to turn this off so the financial posting for every single physical transactions happens only on and only if i turn on the post physical inventory checkbox and other thing is if i do not turn on the post physical inventory checkbox then of course there is no estimated posting of course happening during the physical transactions so which means that there is no accurate liability on the product restate meaning there is no account of all those uh there's no financial account of all those received products which are not invoiced right so uh so this can cause some inconvenience because it's a it's an automated process which actually happens automatically when you turn the parameter on but the automation doesn't happen when you turn the parameter off that is your accurate liability is not tracked so which means it will cause a lot of inconvenience for you during the inventory evaluation or inventory closing process so um so this automation is very very helpful for us to um perform our inventory uh closing process so that you will know the open transactions which are not invoiced so it is very very much recommended that you check the post physical inventory checkbox to keep track of your accurate liability um during the physical transaction likewise uh the post financial inventory is also extremely important parameter so if i turn off the post physical inventory parameter then it's called as a non-integrated inventory so which means uh the the gl postings that is the the connection you're disconnecting the connection between your inventory sub ledger and your general ledger so they're completely disconnected and everything gets only posted to your inventory level and they are not accounted into your gl level so it's a complete disintegration between your inventory and your financials so um so this is not recommended there could be a scenario where you wanted to turn off but in my case i'm going to turn on because i wanted an integrated inventory i want every single inventory transactions to automatically flow into my general ledger so for that to happen you need to turn on the post financial inventory but we will as i mentioned cover it in detail in future um episodes with some examples and some scenarios and the accurate liability for product receipt cannot be unchecked it is grayed out but if you are not checking the post physical inventory which will actually not post the estimated transactions um so when i'm not checking this i will have an ability to uncheck this as well so which means there's no accurate liability is posted into the system during the product receipt if i do so but if i turn on this then the accurate liability will be turned on automatically because this parameter uh when it is turned on it's going to post the general ledger and it's definitely going to track the accurate liability and all the estimated costing so when i turn this on i cannot turn this off because by default all this will be tracked in the system and another way of turning this off is if you make your product as a non-stock product then you will have an ability to turn this off because when a product is non-stocked then the financial postings will happen by default you do not have a choice as you see they're all grayed out so when a product is non-stock the financial postings will definitely happen by default but if you also do not want your accurate or estimated posting to happen then you can turn this off so in such cases your physical postings will not happen in gl but your financial posting will definitely happen by default for the non-stock product so a non-stock product can be either with a estimated posting or without the estimated posting based on whether you check this or not okay so at this moment i'm going to make my product as a stocked product so all three will be clicked by default so that these are some of the basics about the parameters over here and the inventory uh a policies uh first tab so if i check the physical negative inventory then what happens is the system will allow me to deliver a product even if the inventory availability is not there that is even if my physical inventory is zero there is no stock available even then i can able to go ahead and issue the item to the customer and deliver the item and my inventory will become -1 i now go ahead and even deliver 100 products in such cases the inventory will now become minus 100 and so on so the negative inventory will be maintained as your inventory on hand so that is the reason or to turn on the physical negative inventory but it's not highly recommended to do that unless you have a scenario to turn that on uh there could be different scenarios so like um like you have a scenario of selling a product even before you product is manufactured so uh you already sold the product and your inventory is minus one the product will actually be only manufactured after two days and will be available in the inventory and you know that the product is uh will be available by next day so you go ahead and sell it and the product is then available later or maybe you see that the inventory is zero but uh you know that there is a product that will be coming coming in in next to two days because it's in the purchase process in on arrival so you don't want to block the inventory so you just want to go ahead with your sales process and post the packing slip but your item is on the way and it will be soon delivered to the customer so in such cases also you can maybe uh post the physical inventory as negative for now i'm not going to make my inventory negative for uh for my products so i'm going to turn that off so similarly the financial negative inventory so if this particular parameter is turned on then what happens um what happens is we will be able to go ahead and purchase a product bring it to the stock uh receive it post the product receipt and go into the issued transaction that is into the sales order sell the product to the customer and deliver it to the customer and even invoice the sales order to the customer but still your purchase order is not invoiced your purchase order is only received and you already sold it and also delivered it and invoiced your sales order but your purchase order is not invoiced so if your financial negative invent is turned on the scenario can happen but if your physical negative inventory is turned off then um of course you have to inverse your purchase order right before you go ahead and deliver it so that's the difference between uh physical financial negative inventory when it's turned on so in this moment i'm going to turn on my financial negative inventory because i want to deliver the product irrespective of whether i invoice my purchase order or not so i'm going to turn on my financial negative inventory and all other parameters are related with different topics like quarantine management is your product will come into the quarantined warehouse and then it will be released to your actual warehouse while receiving so there are different things uh that we will discuss in detail later and uh the physical update also like for example uh if you turn on the receive receiving requirement then that means that you definitely need to post the product receipt that is you need to receive the product post the product receipt before you go ahead and invoice your purchase order your purchase order cannot be invoiced unless you post your product receipt if you check on the uh receiving requirement likewise uh the deduction requirement is your um your sales order needs to be packing slip posted before you go ahead if your sales order invoice you cannot inverse your sales order unless you post your packing slip so that's about the detection requirement if you turn on the registration requirement then what happens is you definitely need to register your product before you go ahead and post your product receipt in the purchase these two are related to the purchase these two are related to the sales so if i turn on the registration requirement then that means that i need to register my product before i post my uh product receipt okay so if i do not turn on this then i can still go ahead and directly post my product receipt without registration but we normally encourage to turn this on for scenarios where you need a registration to be done like you're using a item arrival journal or item or arrival journal uh first and then you register the product at the doorstep and then you receive it so to encourage that process then you will need to to enforce that process you need to turn on the registration requirement or maybe you want to encourage customer to first register with the serial number before you go ahead and do the receiving and even such cases you might need to turn on the registration requirement for now i'm not going to turn that on likewise even the picking picking requirement is you need to first post the picking list before you post the packing slip if you turn on this particular parameter so they are um the basic overview of this parameters but we will also test them later when we are discussing about the sales and marketing module so that's a pretty much overview of the item model group hope you got a good high level overview of this so let me now go ahead and assign this to my released product because it's a mandatory setup so go down and assign it so now next one is going to be the item group so the item group again the full path is you have to get into the inventory management and just below the above the item model group you will find the item group so let me show you that as well get into the inventory management module and you will find the item model group and group together over here under the inventory section but the easy way to go there is also through the right click view details and you will it will take you to the item model group okay so there is no item model group in the system let's create one quickly click on the new button and select an item model group and make it as uh maybe you can say it is for a spare part part so this is a item model group where i'm going to group all my spare part item together into this group so it's a process of categorize all the similar item which needs to be posted um in a specific or similar ledger accounts can be grouped together into one group and you can create an item group and assign to all of this those items okay so the item group is a way of grouping all the items similar items together so that they all follow the similar postings that is they will follow the similar main account to post their financials so this is uh the spare part item group and as soon as i save it i will see that there is a different field that needs to set with the main account so this is a section where you will provide with all the main account that will be used for the postings the gl postings so when i going to when i will be assigning this particular item group to my item and when i'm going to sell my item to a customer during the sale process as we know that there is a gl posting happening that is while selling the my inventory is reducing so my asset account will be credited so but we need to define the account right we need to define the asset account in the system so where do we do that so we'll do that all of that here so we will tag our asset account our expense account so all of that over here uh in this particular section uh or like all the accounts here will be related to the sales order okay all this uh sales transactions but at this moment i'm not going to tag the account that is for a different episode this is just an overview of the item group so all your main accounts related with the sales process will be tagged here all the main accounts related with your purchase process that is while you're receiving your purchase order your asset account will get debited as we discussed in the episode number two or three uh the concept of debit and credit right so you might need to tag your asset account and define it here uh in this section so so all the account only if they are assigned here the posting can happen smoothly or else you will get an error and you might need to go and assign a proper main account before you proceed further with the posting process likewise in the inventory section you will define all your main accounts that are required uh or that will be affected uh while posting your maybe your inventory adjustments or during your inventory evaluation so all those relevant main accounts are assigned here against every single account types likewise even for the production module the postings happen during the inventory i mean consumption of the raw material and you might need to also have a area to hold all your whip uh work in progress wip so all those accounts related to whip are all defined over here so this particular section is dedicated to the production process so these are the three important things or uh uh the four important things that you need to be mindful of and assign your main accounts here okay so uh assigning of main accounts and what main accounts will be ascending against every single account type all those we'll discuss in detail later but this is a very quick overview about what an item group is but very quickly there's also another way that you can define your main accounts within item group one is from this screen and another is from the posting profiles that is if you get into the inventory management module under the posting there is something called as a posting profile screen so if you go here so even from here you will be able to tag the account into the item group but this screen is where you will see all the accounts specific to one item group but in this screen you will see multiple tabs or each tab referring to the sales purchase order inventory and production and here you can assign accounts main accounts for multiple item groups so it's more easy to work with multiple item groups simultaneously if you are going to assign a main account from here but from here it will be only for one item group at a time because we are at the item group section so for example if i go here and let's say i'm getting into the purchase section and i'm clicking on add button and i'm choosing group here and i'm choosing my item group so which is a spare part and let's say i'm going to assign a main account here this is going to be an asset account so let me choose an asset account for a spare part and just save it and you go back to your item group because at this stage i have chosen my item group spare part so go into your item group spare part refresh your screen you will see that the main account is assigned here so you can even assign it from here or from here but you need to choose the relevant group but microsoft also has a provision that either you choose the group or maybe you choose a table in such cases you will choose a specific item and not a group or you choose all and just make sure all the item follows the setup even in such cases since it's uh for all the items and this main account has been tagged even in such situation you will see the item group still here because it is applicable anyways for all the items right so um so here you will have a better flexibility to assign an item or main account either into a specific group level all level or uh at the table level okay so i'm just going to delete it for now but i just wanted to show that there are multiple areas where you can go ahead and set up your item group so that's about the item group so let's go back and assign this item group to our item copy and put your item group here go down uh so the item group is tagged now let's now validate if anything missing i think the units will be missing yeah the inventory sales units are missing so let's just quickly uh map the units the inventory unit is mapped here so i'm it's going to be in each s so it will be stored in each is in the inventory and i will be selling it in each as well so if you want to sell it in box then maybe you can define a box here but i'm going to maintain it in each s and likewise the purchase also is going to happen in each s in my purchase order so that's your unit and just close this warning and validate it again and this time you will see that the item is successfully validated and all your minimal setup required for um for a release product is now ready okay so your release product is ready to go and to be used in the purchase order provided we finish our item group setup with the main accounts right so um that's the end of this episode but in the next episode we will see what is a product master and we will try to quickly create a product master as well in the system so that uh it will be more handy uh while we are going into the procurement and sourcing module and uh do some transactions using the product and product master that is using a product which is going to be your vehicle and the product master is going to be a vehicle the product is a spare part so it will be more easy that we have both both of the master data before we go with the transactions so thanks for watching the video see you again in the next video [Music]