SKUs and their Locations
A Stock Keeping Unit (SKU) is a distinct thing, such as a product or service that is offered for sale. A SKU does not have to be a physical item, often things such as LABOR or INSTALLATION are also created as SKU’s so they can be easily tracked on sales.
A few of the more important attributes for a SKU are:
- A General Ledger revenue and Asset account.
- One or more Vendors that can provide the SKU. One of the vendors is listed as the Default vendor and will be selected first for proposed re-stock Purchase Orders
- One or more Units of Measure (UOM).
- A UOM is a combination of a short code such as EA, CASE, or BOX and a size. The UOM is typically abbreviated as CASE/24 or BOX/12. The size is not shown if it’s one (1). Therefore EA wouldn’t be shown as EA/1, but just as EA.
- SKUs pricing is based off the UOM. Often times a business will offer dicounts for purchasing a larger UOM.
- A UOM also has dimensions; Height, Width, & Depth.
- One or more Locations.
Stockor is a multi-location system. It encourages setting up separate locations and keeping goods separated by location. Locations do not have to be a physical location, often times it might make business sense to segregate SKUs by business units or even by processing stage.
A SKU Location tracks:
- The quantity that is on hand.
- The quantity that is allocated. Stockor is a real-time inventory system. When a Sales Order is placed, it will attempt to reserve the quantity to it by increasing the location’s allocated count. The allocation is released and on-hand quantity lowered when the SKU is shipped.
- The cost of the SKU. Stockor uses the Moving Average Cost method of calculating cost for each SKU.
- A BIN location. When a Sales Order is being shipped, a Pick Ticket is generated for the items that will print in BIN order for maximum picking efficiency.
See Also: Wikipedia has a good article on what a SKU is and how they’re used: http://en.wikipedia.org/wiki/Stock-keeping_unit