An inventoried INV product is usually warehoused and typically goes through a shipping and invoicing process. This typically includes books, shirts, standards, and other intellectual property.
A non-inventoried INV product is considered perpetual and will always be available for sale because supply levels are not tracked in inventory. A non-inventoried product does not have cost-of-goods sold accounts associated with it.
As of 7.5.2, when a non-inventoried INV product is added to an order line, if that non-inventoried product does not have a warehouse, no shipping fees will be charged to the order line. The “Line Status” will still be “P” (Proforma) and the “Fulfill Status” will still be “N” (Not Fulfilled). This allows back office staff to make any changes they need to make to the order line. When the order line is paid and the order line is activated, the “Line Status” will be updated to “A” (Active) and the “Fulfill Status” will be updated to “Pre-Shipped”, which will cause the order line to be invoiced. There will still be $0 shipping fees on the order line, because pre-shipped lines to not have shipping fees. For more information on how the system respects shipping fees, please see Shipping Overview.
If
organizations want shipping fees to be added to INV order lines for non-inventoried
products, the organization will need to define a warehouse for the non-inventoried
product. When a warehouse is identified for a non-inventoried INV product,
then the system looks to the product rate code definition to determine
whether shipping charges should be added to the order AND packing slips
will be printed for these products from which the order can be fulfilled.
Unfortunately, for some organizations this may cause an issue as defining a warehouse for a non-inventoried INV product causes any of its order lines to appear on packing slips, which may be undesirable because the reality behind this type of product is that it does not have an actual inventory location/bin. To avoid this, as of 7.5.0, a new flag has been added in the INV_PRODUCT_DETAIL table at the warehouse/bin level called INCLUDE_ON_PACKING_SLIP. The Include on Packing Slip checkbox displays on the Inventory Locations screen for INV products and will default as checked. The only function of this flag is to stop the order line for a non-inventoried INV product with a warehouse defined from appearing on the pick lists and packing slips when unchecked.
A non-inventoried INV product used as a "package" of other inventoried INV products defined as components should have a warehouse defined. This will result in the system populating the order line Fulfill Status as "Not Fulfilled" upon adding the non-inventoried INV product to an order with the system Default Inventory Status value set to "Active". The non-inventoried INV product order line will not be invoiced and shipping charges will be correctly calculated and applied to it based on the component inventoried INV product order lines as part of the "package". The non-inventoried INV product order line would be invoiced via the INV200, INV610, or INV620 processes. If the non-inventoried INV product order line is invoiced via manually updating the Fulfill Status to "Pre-Shipped", the shipping charges will be removed because shipping is not charged for non-inventoried inventory product order lines that are "Pre-Shipped".
As
of 7.4.2, when a non-inventoried INV product has inventoried
INV product(s) as components, and when one or more of the component products
is shipped through the Shipping Maintenance (INV200)
screen, the Fulfill Status of the non-inventoried INV product
linked to warehouse will be set to "S" (shipped) if it is not
already "P" (Pre-shipped) or "S". If the non-inventoried INV
product has one or more INV products as components, and is not linked
to a warehouse, when one or more of the component products is shipped
through the Shipping Maintenance (INV200)
screen, the Fulfill Status of the non-inventoried INV product
not linked to a warehouse will be set to "P" (Pre-shipped) if
it is not already "P" or "S" (Shipped).
Shipping
fees can only be assigned to order lines with non-inventoried INV products
linked to a warehouse.
There are two reasons that shipping fees can only be applied to order lines with INV products linked to a warehouse:
· The fulfill status for order lines with non-inventoried INV products not linked to a warehouse defaults to pre-shipped, and applying shipping fees to a pre-shipped order line contradicts the meaning of "pre-shipped".
· Pre-shipped order lines are invoiced immediately as soon as the order line status is activated. If shipping fees were allowed to be applied to pre-shipped order lines and the order lines had been paid by credit card, it would mean the shipping fees would be collected immediately, which is contrary to best practices, which dictate that credit card fees for shippable products should not be collected until the product ships.
Assigning Non-Inventoried INV Products to a Warehouse
Typically, you define INV products as non-inventoried usually because you manage inventory in another software application and don’t need inventory counts and cost-of-goods-sold (COGS) to be managed in Personify360. But even though inventory counts and COGS are not being managed in Personify360, INV products are still shippable products. Even if you are manually boxing and shipping INV products, customers still expect a packing slip in their order. By assigning a warehouse and bin to a non-inventoried INV product, INV200 and INV620 will generate packing slips and invoices for non-inventoried INV products.