warehousing classification

“In this page, you can find everything related to the warehousing classification page, how to access it, its advantages, and how to add a new warehousing classification.

To access the warehousing classification page, please follow the following instructions:

• Start by clicking on the ‘Warehouses’ menu in the main menu.
• Then, click on ‘Warehouse Structure’ available in the top toolbar of the page, and then click on the link to warehousing classifications.
• You will be taken to the ‘Warehousing Classifications’ page, which displays all the classifications added to the system.
• You can also edit the details of any classification by simply clicking on the button at the end of the classification.

Options and features of the Warehousing Classification page:

• Process Variety: The system provides a variety of operations related to warehousing classifications, whether you want to add a new classification, modify existing ones, or delete them, you can do so easily according to your needs.
• User-Friendly Interface: The system interface provides an easy-to-use interface for entering warehousing classification details. You can easily enter basic information such as name and classification type.
• Organized Display: In addition to entering data, you can view classification data in an organized and easily readable manner. You will find a list of all registered classifications with the ability to search and sort based on various factors.
• Classifications and their Relationship with Items: After creating and defining warehousing classifications, these classifications become a powerful tool for organizing and categorizing inventory items. You will use them to group similar products under one classification, making it easier to control inventory and track the movement of goods more efficiently. Using warehousing classifications, you will be able to organize products and divide them into specific categories, making inventory management easier and improving operational efficiency.
• Predefined Settings: Each warehousing classification comes with predefined settings. When adding a new warehousing classification and selecting that classification, the settings will be automatically filled in. Of course, you can modify these settings according to your needs.

Explanation of how to add a new warehousing classification:

• You will need to enter the general settings for the classification, including:

  1. Classification Name: Enter the name of the classification you want to add to the inventory. It’s recommended to add a description that clearly reflects the characteristics and features of the classification.
  2. Classification Type: Choose the classification type from the available options, whether it’s a manufactured product, a service, or a product purchased for resale.
  3. Tax Type: Select the appropriate tax type for the classification according to the applicable tax policies.
  4. Unit of Measure: Choose the appropriate unit of measure for the classification, such as pieces, kilograms, or liters, based on the appropriate measurements for the classification.
  5. Exclude from Sales and Purchases: You can activate one or both of these options as needed. If one of them is activated, the items associated with those classifications will not appear in sales or purchase documents according to your choice while still appearing in the rest of the system documents.

• You will need to specify the General Ledger accounts associated with the warehousing classification:

  1. Sales Account: Start by selecting the appropriate account to be used in the accounting entries related to sales documents related to inventory items associated with the new classification. This account can be related to operations such as ‘Sales Invoices’ and ‘Sales Returns’ for recording sales and return transactions related to products.
  2. Inventory Account: Specify the account that suits the accounting entries for inventory movements related to inventory items associated with the new classification. This account is used in operations such as ‘Stock Receipts’ and ‘Delivery Orders’ to record incoming and outgoing movements related to products.
  3. Cost Account: Specify the account that is appropriate for accounting entries for the cost of the inventory item associated with the new classification. This includes sales invoices and sales returns.
  4. Inventory Adjustments Account: If there are inventory adjustment operations, you must specify the appropriate account for use in accounting entries related to inventory adjustment documents for products associated with the new classification.
  5. Work in Progress Inventory Account: This account is used to record manufacturing and production operations and is linked to products associated with the new classification. It is only used if the classification type is ‘Manufactured,’ and it is used in accounting entries related to work orders and production stages. The account is closed when production of the product is complete, and the balance is transferred to the inventory account.

Note: The choice of General Ledger accounts may vary depending on the type of item added, whether it’s ‘Purchased for Resale,’ ‘Service,’ or ‘Manufactured.’ For example, in the case of a manufactured item, additional options such as ‘Work in Progress Inventory Account – Production Lines’ may appear. In the case of a service item, options like ‘Inventory Account – Inventory Adjustment Account’ may not be present.

Finally, click the ‘Add New Warehousing Classification’ button.”