Article Management

Note! This manual is developed for the MKG004 software. If you use MKG5 or MKG3, the description of the operation may differ from your environment. We aim to create a product-specific description for this topic in the future.

Important aspects recorded and maintained for an article include properties (descriptions), type (purchase, sale, or production), stock (free, shelf, and economic), price agreements (purchase and sale), translations, financial processing (what bookings occur at different times), and the pricing system. It is not mandatory to work with articles within MKG. Without articles, it is easier to work (less maintenance), but this results in limited recording of the aforementioned data.

Objective

An article provides support and consistency to all processes related to products. With articles, history can be tracked. Based on the guidelines below, it is advised to work with articles.

• Sales
• Stock is maintained.
• It concerns a regularly recurring product.
• A calculation or bill of materials is built.
• The financial settlement is determined at the article level.
• Article usage must be easily visible.
• There are sales price agreements.

• Purchase
• Stock is maintained.
• It concerns a regularly recurring product.
• The financial settlement is determined at the article level.
• Article usage must be easily visible.
• There are purchase price agreements.

• Production (semi-finished/final product)
• Stock is maintained.
• It concerns a regularly recurring product.
• A calculation or bill of materials is built.
• The financial settlement is determined at the article level.
• Article usage must be easily visible.

Creating an Article

When creating an article, you can choose a new article or a copy based on an existing article . Both situations are explained below.

New Article

After opening Article Management (MKG menu Articles Article Management), the following screen is displayed:

A new article can be created by choosing the New button:

First, the basic data must be filled in:

• Article (Mandatory). Unique article code. When copying an existing article, this field will be cleared to create a different article code.
• Search Name (Mandatory). The search name of the article, to easily find the article.
• Active. Checkbox to make the article active or not.
• Cost Article. Checkbox to convert the article to a cost article.
• Drawing. The drawing number associated with the article.
• Revision. Revision number of the drawing.
• Pos. Position number of the article on the drawing.
• Location. Location where the article is located when in stock.

The description of the article is filled in on the 'General' tab.

Based on an Existing Article

Copy an existing article by selecting it and then clicking the Copy the current line button. Then the following question is asked: "Do you want to copy the translations?" This relates to the 'Translations' tab (see further in this manual). After accepting, the same screen opens as when creating a new article, with the difference that now, based on the selected article, several fields are already filled in.

General Tab

After the general data of the article is filled in, the 'General' tab can be further filled in:

• Description. Three lines are available here for the article description. For a VRM article, a description will be automatically built here, which can be adjusted afterward. A VRM article uses the Formula field (see Creating a VRM Article).
• Certificate. Certificate associated with the article.
• Stock.
• Order-driven. A production/purchase requirement arises based on ongoing orders. For example: if a customer places a sales order for 100 units, a requirement of 100 units arises.
• Stock-driven. A production/purchase requirement arises based on stock. For example: if the stock of the article falls below a certain level, a requirement arises immediately. If 'Stock-driven' is chosen, the fields Min. stock and Replenish to become available.
• Min. Stock. The free stock that must be present at a minimum.
• Replenish to. If the article falls below the minimum stock level, an article requirement is generated to at least this level. The stocks are displayed on the 'Stock' tab.
• Internal Handling Time. The number of days needed for a ready article to be made ready for sale. Sales order delivery date - internal handling time = production order planning.
• Do Not Allow Auto-reserve. For some articles, it may be important to consciously choose a batch when this article is reserved from sales order management or production order management. This option will not allow auto-reserve.
• Stock System. With automatic reservation, this setting determines from which batch should be reserved. There are three options:
• According to administration settings.
• FIFO: First In First Out.
• LIFO: Last In First Out.
• Closed Batch Registration. If an article has this property, it cannot be backflushed. In other words, this article cannot be anonymously taken from stock (see also Batch Management).
• Closed Location Management. Besides being required to choose a batch, the location from which the article is taken must also be specified when using this article (see also Batch Management).
• Create Batches per 1 Unit. A batch is created per unit. For example: if 10 units are produced, 10 batches are created when the production order is completed.
• Warehouse Location. Selection field to determine the standard batch location.

Processes Tab

Sales

• Block Sales. Checkbox to indicate that the article should not be sold. This blocks sales quotations and sales orders.
• Service. The article concerns a service and not a product.
• Debtor. This field can be filled in if it concerns a customer-specific article.
• Variable Sales Price. The variable sales price per sales unit.
• Last Sales Price. If the article is sold, the last sales price becomes visible here:

• One-time Sales Price. The price that must be taken per order line, regardless of the number of sales units.
• Discount Group. Selection field to indicate which discount group this article may use (see Article Discount Group: Process Table).
• Transport Weight. Field to fill in the weight (if no unit ratio is set on the 'Units' tab). This can be used in reports.
• Sales Internal. Memo block to place information for internal use.
• Sales External. Memo block to place information for external use.

Purchase

• Block Purchase. Checkbox to indicate that the article should not be purchased. This blocks purchase rules; also from production or sales, this article cannot be purchased.
• Purchase Article. It can be indicated whether this article is actually a purchase article.
• Supplier. A standard supplier can be specified here for the article. When purchasing, this supplier will automatically be filled in as the creditor.
• Purchase Price. The purchase price per unit.
• Last Purchase Price. If the article is sold, the last purchase price becomes visible here:

• Purchase Lead Time. The lead time (working days) needed from purchase order to delivery by the supplier.
• Order Quantity. The order quantity shows the batch size in which the article must be ordered. This is calculated within the Stock Requirement List.
• Trade Length. If a length is entered here, possibly within article management, it will be ordered for the specified length.
• Request Quote. This setting can determine whether a purchase quote for the article should be automatically requested:
• Default. The article group determines whether a purchase quote should be automatically requested.
• Yes. A purchase quote is always requested.
• No. A purchase quote is never requested.

For the 'Default' choice, an article group must be filled in on the 'Financial' tab. Additionally, the article must not be stock-driven. Stock-driven articles are excluded from automatic purchase quote requests. For these articles, you must do it manually.

• Purchase Internal. Memo block to place information for internal use.
• Purchase External. Memo block to place information for external use.

If 'Stock-driven' is chosen on the 'General' tab, the fields below become available:

• Order. Checkbox to indicate that the article should be ordered without a link to sales, production, or stock. This creates a requirement in the order advice for stock (Stock Requirement List). After creating the purchase rule, the checkbox will automatically be turned off (if 'One-time' is also chosen). Upon arrival, the article will be booked into stock. This checkbox is also used to generate an order signal for cost articles in the Stock Requirement List.
• Order Code. The order code of the article can be filled in here.
• Quantity. The quantity that must be ordered.
• Order On. The date on which the order must be placed.
• Every. Choice of the number of orders. For days, weeks, and months, a number can be entered.

Production

• Block Production. Checkbox to indicate that the article should not be produced. It also blocks material rules, making the issuance of this article impossible. It also blocks production-related processes, such as bills of materials and calculations.
• Backflush Allowed. The possibility of automatic post-calculation is offered here. This then transfers the pre-calculation information to the post-calculation based on pre-calculation prices or advice prices. A waste percentage can also be given here. With the 'Round' checkbox, it can be indicated that the waste should be rounded to whole numbers.
• Calculation Price. A calculation price for the article can be specified here.
• Production Lead Time. The lead time needed from creation of the production order line to delivery to sales (internal delivery).
• Batch Size. The quantity that must be produced at once.
• Waste. A waste percentage can be entered here.
• Round. Checkbox to indicate whether the waste should be rounded to whole units after calculation.
• Production Memo. Memo block to place information for internal use.

Units Tab

On the 'Units' tab, the ratios between the various units are established:

Ratios

The ratio can be entered here per unit group. The unit group with the asterisk and non-editable fields is the 'base unit' of the article. This is the stock unit, as it can be filled in lower on the screen. It is crucial that this is filled in correctly so that this article can be ordered in meters, for example, and the invoice can be booked in kilograms (see Units: Process Table).

Ratios cannot be adjusted after the use of the article, but unknown ratios can be filled in.

When creating a VRM article, ratios are automatically filled in. This is based on the parameters as entered (consider: length, width, thickness, material type).

Units

The units are also of great importance. Here it is indicated in which unit an article is kept in stock, sold, etc. (see Units: Process Table). The unit ‘Stock’ determines how the article is measured in its existence and use. If the article is in use, the units cannot be adjusted.

Stock Tab

On the 'Stock' tab, the stock of an article is maintained as it applies at the moment. There are three types of stock to distinguish. Additionally, there are two types that can be self-defined (see for setup administration settings). On the tab are five choice buttons available: Article stock, Stock over time, Management info, Physical Stock, and Active Batches.

Article Stock

Article stock provides a visual image of the free, economic, shelf, and total stock:

On the right side of the screen, the stock levels are displayed and how they relate to the various processes. It also indicates in which status the order is and where the article is needed or produced for. By clicking on the status, the orders in which the article is currently located are shown. When clicking on the hyperlink historical (or quotation, calculation), the screen opens in which the historical orders (quotations, calculations) are shown in which the article has been consumed or produced.

Stock in Numbers

• Shelf Stock. The shelf stock is the stock that is actually in the warehouse. This also includes stock that can be reserved for a production or sales order.
• Free Stock. The free stock is the stock that is in the warehouse and is actually available. This is the shelf stock corrected with the reservations; it can be negative stock.
• Economic Stock. The economic stock is the stock that takes into account ongoing purchase, sales, and production orders. This is the stock on which economic risk rests. This stock is, for example, (negatively) corrected with:
• articles that are sold but not yet delivered in sales orders;
• articles that are produced but not yet reported ready;
• articles in purchase orders that have been ordered but not yet received.

Stock Calculation: An Example

Below is an example to clearly map when shelf, free, or economic stock is present. In this example, an article with a stock of 25 units is assumed. The screen below is the starting position:

A customer places an order for 50 units, and the sales order is created:

There are still 25 units on the shelf. The free stock is now shelf - sales = 25 - 50 = -25 units. The economic stock is now shelf - sales = 25 - 50 = -25 units. A production order is now created for 100 units (the batch size of this article), and this production order is taken into production:

There are still 25 units on the shelf. The free stock is still shelf - sales = 25 - 50 = -25 units. The economic stock is now shelf - sales + production = 25 - 50 + 100 = 75 units.

In the graph, 'Free' is at +75, this setting is often applied. The free stock is then all non-reserved physical stock + ongoing production orders + ongoing purchases. This is comparable to the physical stock screen.

Stock Over Time

With the selection 'Stock Over Time', the stock is plotted against the timeline:

In this screen, various matters can be set to get as realistic a picture as possible of the stock development of the article. This is especially important for articles with a long lead time for purchase or production.

• Date until. Indicates the date until which the stock over time must be calculated from today's date.
• Overview per. Choice field to indicate on what basis the data should be presented. The choices are: day, week, month, quarter, year.
• Forecast. In this choice field, it can be chosen whether the forecast orders should be included in the presentation or not.

After changing data, always click the Refresh button to retrieve the current data. When the Overview button is clicked, the following screen is displayed:

In this screen, the orders (sales, purchase, and production) that relate to the stock levels are shown. A stock mutation can also be simulated by creating fictitious purchase or production orders using the Simulation button. The Vrw Simulation button can be used to delete a simulation. With the Show Moments option, it can be chosen to present purchase and production moments. This is presented based on the settings on the article regarding the lead time of purchase and/or production.

If an exclamation mark appears before a line, it means that the physical stock has fallen below the minimum level.

Graphs

Within 'Stock Over Time', a graph is used. But also within 'Management Info', a graph display can be chosen. By right-clicking in the graph, the menu below is opened:

• Series. The desired data can be chosen to be presented in the graph.
• Data Labels. For the chosen series, it can be determined which label is shown in the graph.
• Trendlines. A certain trend of a series can be shown. The trendline can be shown in various ways.
• Print. The graph is printed directly to the printer.
• Properties. In this screen, the previous options are summarized (see screen below).

Management Info

With the selection 'Management Info', information is given about the formation of the stock value:

This is divided into the various items of valuation. A selection can be made on fiscal year and periods. At the 'Begin Period' line, the position of the stock in the last period before the chosen period is displayed. Then click Refresh to retrieve the values again. With the Text or Graph icon, the display form can be chosen. After a choice, always click Refresh first.

Physical Stock

The 'Physical Stock' section shows the shelf stock as it is known on a certain date. The Including Forecast option calculates the quantities including forecast orders.

At Physical, the number that is actually on the shelf at the chosen moment is displayed. This number is then further calculated based on expectations, reservations, and needs. For example, if there are 25 units at 'expected - purchase', these 25 units have already been ordered but have not yet arrived. Once the article is booked in, it is added to physical. By clicking on the link, an overview of the mutation data is provided.

Right-click in the Date: field. The 'No Date Selection' option appears. When enabled, MKG will leave the date field empty by default when reopening this screen.

Active Batches

The 'Active Batches' section shows the freely available stock or the physical stock and/or the expected stock batches, depending on the chosen setting.

In the above screen, among other things, the source batches and the warehouse locations where these batches are located are shown. Instead of a batch number, a purchase or production order can also be displayed here if it is chosen to also show the expected stock. This concerns orders that have already been created but have not yet arrived or been completed (see also Batch Management).

Translations Tab

If articles are purchased or sold abroad, translations can be recorded for an article. On the 'Translations' tab, an overview of the translations is provided.

A translation can be created by clicking the Article Translation icon in the menu bar. The screen below opens:

On the left side, the translations are placed, on the right side, the original texts are displayed. With the Copy Text button, the original texts, on the right side that have already been entered, are moved to the translation texts.

• Language. Selection field to select the language.
• Description. The translation of the article.
• Sales. The memo field to place the external text translation.
• Purchase. The memo field to place the external text translation.

If an order is now created with a debtor/creditor with English as the language, the English article description will be used.

Financial Tab

On the 'Financial' tab, the financial processing of the article is recorded. First, an explanation is given about determining the settlement prices the article has.

Settlement Price

The settlement price is the price at which an article is settled to a sales order, production order, or stock. MKG distinguishes three types of settlement prices: the fixed settlement price (VVP), the average settlement price (GVP), and the actual settlement price (WVP).

• Stock Quantity. The financial stock quantities of everything that is financially processed.
• Stock Value. The financial stock value of everything that is financially processed.

General

• Intrastat Code. Selection field to select the Intrastat code (see Intrastat Code: Process Table).
• VAT. Selection field for the VAT tax of the article.
• Article Group. Selection field to select the article group (see: Article Group: Process Table).

Process Groups

• Sales Group. Selection field to select the sales group for financial processing in the sales process.
• Purchase Group. Selection field to select the purchase group for financial processing in the purchase process.
• Production Group. Selection field to select the production group for financial processing in the production process.
• Stock Group. Selection field to select the stock group for financial processing in the stock process.
• Intrastat Surcharge Sales. Enter a surcharge percentage for Intrastat value in sales.
• Intrastat Surcharge Purchase. Enter a surcharge percentage for Intrastat value in purchase.

The VAT and process groups must be filled in.

Free Fields Tab

On the 'Free Fields' tab, five free fields, five free dates, and five free memo fields are available. The user can fill these in to store additional information with the article. A free field can be used in combination with the date field behind it. These fields can be used in reports, in selection conditions, or are purely informative.

If the user is logged in as an administrator, the label can be adjusted using the right mouse button. This will be adjusted on all articles.

Usage Tab

The 'Usage' tab shows in which components the article is used. The components are: Calculations, Sales Quotation Lines, Sales Order Lines, Bills of Materials, Production Orders, Purchase Order Lines, and Batches. If the article is used on, for example, a production order as material in the pre-calculation, the production order data is shown under: Production Order Materials PC. On the right side of the screen, the Manage button is available. If the production order is selected and the Manage button is chosen, the production order opens.

Documents Tab

The 'Documents' tab shows documents linked to the article, see also Document Management.

Articles and Bills of Materials: Index

Batch Management: Index

Related

• Batch Management