WHERE : BOM / Inventory
In your BOM, you will notice that in the side bar, we have separate pull downs for INVENTORY and ITEMS LIST.
INVENTORY : This is where you create INVENTORY ITEMS that you can buy, into one or many stock locations, sorted by INVENTORY CATEGORY. When you use the DOCUMENTS menu to purchase these INVENTORY ITEMS, the cost price and stock on hand quantity will be updated. This is also where you can create a PRODUCTION SHOP to combine different INVENTORY ITEMS into something new ( for example, you may keep eggs, flour and butter as raw materials, that you turn into cakes that you can transfer and / or sell. More on PRODUCTION SHOPS later ).
ITEMS LIST : This is what you actually SELL on your POS APP, WEB APP, MOBILE APP. Sometimes I will refer to these as MENU ITEMS ( just to confuse you ). When you sell an ITEM, that can be the end of the story. However, if you want to do STOCK CONTROL and COSTING, you would “link” your MENU ITEM to an INVENTORY ITEM/S via a RECIPE. Your RECIPE could be a simple 1-to-1 relationship or it could be a very complex ratio with multiple levels. More on this later.
When you go down the STOCK CONTROL route, you need to put a bit of planning into how you are going to SELL and BUY, as well as the relationship between the INVENTORY ITEM/S and the MENU ITEM/S.
I will probably do a FAQ just on this concept.