Products

1. In the Navigation pane, highlight the Purchasing > Setup > Products folder.
2. Click . The New Product window opens.

   

3. Enter a unique Name for the product.
4. Enter a Description of the product.

5. If the amount from the purchase of this product should be allocated to any purchases of non-allocated products included in the same shipment for a purchase order, mark the Allocated checkbox. Allocated product costs are posted to the accounts associated with the non-allocated products.

   If you need to allocate an amount to some, but not all, non-allocated products in a shipment, isolate the products you do not want to allocate to in a separate shipment.

   Example

   You can create an allocated "product" for tax and freight charges so that these amounts can be allocated to the non-allocated purchases in a shipment.

6. If the product represents a type of product rather than a specific product, mark the Generic checkbox. Currently, this setting is for informational purposes only; it does not affect the functioning of ActivityHD Purchasing.
7. If the product can be purchased from any vendor with any unit of measure, mark the Product Unrestricted checkbox. If you do not mark this checkbox, the product can only be purchased in the vendor/unit of measure combinations defined in the Detail table.

8. From the Require Receipt drop-down list, select at which point to require a receipt for the product. Your options are:

   • Close Order. Require a receipt before the product order can be closed.
   • Merge Invoice. Require a receipt before the invoice for the product can be merged.
   • Never. Never require a receipt. This option is appropriate for "products" such as sales tax and freight.

9. In the APCodes field, select the APCodes to apply to the purchase of this product when the purchase is invoiced. In particular, if the product is subject to 1099 reporting, be sure to designate a payment reporting-type APCode which specifies the appropriate 1099 type and then ensure that the appropriate rows in the Detail table below have the Reporting checkbox marked.

   Example

   If the purchase is subject to use tax, select the APCode for the applicable use tax.

   If you enter multiple APCodes, separate them with commas.

   Note

   The Ctrl and Shift selection features are available in the Find dialog box so you can select multiple APCodes. ActivityHD automatically separates your selections by commas.

10. The Expense field is enabled unless the Allocated checkbox is marked. Enter the account mask to use to derive the GL expense account number for purchases with this product.
11. The Inventory field is enabled unless the Allocated checkbox is marked. Enter the account mask to use to derive the GL inventory account number for purchases with this product.

12. The Detail table allows you to define the allowable vendor/unit of measure combinations for the product. If you did not mark the Product Unrestricted checkbox, only the combinations entered in the table (that are not flagged as obsolete) are allowed for the product. If you can purchase the product from multiple vendors, you need at least one line per vendor. If you can purchase the product from a particular vendor in multiple units of measure, you need one line per vendor/unit of measure combination.

    Example

    Suppose you can purchase printer toner from two vendors. From Toner Depot, you can order single toner cartridges and you can order by the case. You can only buy toner from Toner Max by the case. Setup for this example would require three detail lines:

    

    For each allowed vendor/unit of measure combination, perform the following steps:

    1. In the Vendor column, select the vendor that supplies the product. Leave this field blank if the product can be purchased from any vendor.
    2. In the UOM column, select the unit of measure in which the product can be purchased from the corresponding vendor.
    3. Enter a Description of the vendor/unit of measure combination.
    4. In the Part Number column, enter the vendor's part number for the vendor/unit of measure combination of the product.
    5. If the unit of measure should be used as the default whenever this product is entered on a purchase line for the vendor, mark the Default checkbox. This option applies whenever there are multiple units of measure for the product for the same vendor. If there is only one vendor/unit of measure combination for a vendor, it is automatically considered the default. Only one default can be specified per vendor per product.

    6. If the vendor/unit of measure combination should be included in the basis for payment reporting-type APCodes on purchasing invoices, mark the Reporting checkbox. To ensure that PO invoices with the vendor/unit of measure combination are flagged as subject to 1099, mark the checkbox and ensure that a payment reporting-type APCode which specifies the appropriate 1099 type is designated in the APCodes field above.

       Example

       Suppose you have a "software consulting" product and that product can be provided by either your software provider or by an independent consultant. You would want to flag the vendor/unit of measure combination that represents the independent consultant for reporting so that any amounts paid to the consultant can be reported on a 1099-NEC. In this case, a payment reporting-type APCode for non-employee compensation would be assigned to the product.

    7. If the vendor/unit of measure combination should be included in the basis for payment withholding-type APCodes on purchasing invoices, mark the Withholding checkbox.
    8. In the Memo column, enter any notes about the vendor/unit of measure combination.
    9. With the same line still selected in the Detail table, move to the Cost table to enter cost information for the vendor/unit of measure combination.
       1. In the Effective Date column, enter the date the cost becomes effective for the selected vendor/unit of measure combination.
       2. In the Unit Cost column, enter the cost per unit of the product as of the specified effective date. This is the default cost of the product for the vendor/unit of measure combination during the effective date range. The default cost can be overridden when you enter a purchase.
       3. In the Memo column, enter any notes about the cost entry.

       4. If you have knowledge of future cost changes that you want to enter for the vendor/unit of measure combination, repeat steps i-iii for each cost entry.

          Example

          Suppose a product costs $39.95 effective 1/1/2021 and will rise to $42.50 as of 9/1/2021.

          

          With this setup, the unit cost for purchases made from 1/1/2021 to 8/31/2021 would default to $39.95. Starting on 9/1/2021, the unit cost would default to $42.50.

13. When you finish, save the new product.

If a vendor/unit of measure combination for a product is no longer valid, you can flag it as obsolete. Provided that the product is not marked as Purchase Unrestricted, flagging the detail line as obsolete makes the vendor/unit of measure combination ineligible for use on future purchases.

To flag a vendor/unit of measure combination as obsolete:

1. In the Navigation pane, highlight the Purchasing > Setup > Products folder.
2. In the HD view, locate and double-click the product with the detail line you need to flag as obsolete to open the Product window with the product loaded.
3. In the Detail table, locate and select the detail line that contains the vendor/unit of measure combination you need to flag as obsolete.
4. Mark the Obsolete checkbox for the selected detail line.

   

5. Save your changes.