# Set up items and products (/docs/product-development/items-and-products)

A product is made from items (materials and components) and sold at a price. Engineering owns the
technical product record. Sales owns the price, quantities and packaging. The store keeper (Farah Hanim)
owns the item list, and purchasing (Lim Wei Jie) can edit it too. The engineer (Daniel Tan) creates the
product.

```mermaid
%% title: What you set up, in order
flowchart LR
  A["Item types and units"] --> B["Materials and items"]
  B --> C["Product (Draft)"]
  C --> D["Bill of materials and method"]
  C --> E["Sales product and prices"]
```

The setup forms help you as you go. Every field has an (i) that says what it is, gives an example
and what happens if you leave it blank. Long forms are split into steps named by what they hold,
such as **The operation**, **Quality checks** and **If a part fails** for an operation, and each step
starts with one line on what it is for.

## Create a material or an item [#create-a-material-or-an-item]

<Steps>
<Step>

Open **Inventory** and choose **Items** (`/inventory/invItems`). Choose **Add**.

</Step>
<Step>

Fill in the **Description** and, if your team has one, the **Internal reference** (your old item code).
The **Item code** is assigned on save, for example `ITM-0012`. Choose the **Inventory type**: **Purchased** or
**Customer consignment**. For consignment stock choose the **Owner (consignment)**.

</Step>
<Step>

Choose the **Type**, the **Unit**, the **Picking rule** (**FEFO** takes the lot that expires first,
**FIFO** the oldest received) and the **Storage condition**.

</Step>
<Step>

Set the **Shelf life (days)** and the **Min. shelf life at issue (days)** if the material expires. Add the
**Purchase spec** and the **Supplier** if you know them.

For a compound tested at incoming inspection (item type **CoA + tests**), copy its limits from the
purchase spec into **Incoming hardness min (Shore A)**, **Incoming hardness max (Shore A)**,
**Incoming cure time min (s)** and **Incoming cure time max (s)**. Each grade has its own: incoming
inspection judges every lot against them, and cannot accept a lot of a silicone compound that has none.

</Step>
<Step>

Save. **On hand**, **Available** and **Quarantine / hold** fill in by themselves from the stock lots. You
cannot type them.

</Step>
</Steps>

The item **Type** decides how incoming material is inspected. Item types (for example a resin or a
printed carton) carry one of **CoA + tests**, **AQL sampling**, **CoC only** or **None**. See
[Inspect incoming material](/docs/purchasing/incoming-inspection).

<GuideStep
  title="Materials and items"
  description="The item list with stock figures calculated from the lots."
  src="/guide/items-and-products/1.png"
  alt="Inventory Items list with item code, description, type, unit, on hand, available and quarantine columns"
  width={1440}
  height={1000}
  callouts={[
    { x: 10, y: 20, caption: "Add opens the new item form." },
    { x: 30, y: 32, caption: "Item code (assigned on save) and description." },
    { x: 70, y: 32, caption: "On hand, Available and Quarantine / hold come from the stock lots." },
  ]}
/>

## Units and unit conversions [#units-and-unit-conversions]

Quantities use the units in **Units of measure**. If you buy in drums but stock in kilograms, add a
unit conversion: open **Inventory** and choose **Unit conversions** (`/inventory/uomc`). A conversion
names the **Item**, the **Base unit**, the **Transaction unit** with its pack size (for example
`drum (25 kg)`), the **Factor** and the **Precision**. The item must exist first, so add the item
under **Materials & items** (with its base unit) and then its pack conversion. A new conversion is
**Pending approval**. Someone other than the person who created it, for example QA or purchasing, chooses
**Approve conversion**, a signed step that uses their e-signature (if they sign for a delegator, the
delegator must not be the creator either). Until it is approved, transactions in that unit are
refused. If you change an approved conversion, it goes back to **Pending approval**.

## Create a product [#create-a-product]

<Steps>
<Step>

Open **Engineering** and choose **Products** (`/engineering/engineering`). Choose **Add**.

</Step>
<Step>

Fill in the **Name**, the **Part no.** (the customer's or your engineering part number) and the **Rev**.
The **Product ID** is assigned on save, for example `PRD-0007`, and the part number can be changed later.
Choose the **Customer** if it is known. Set the **Shelf life (days)** if the
finished product expires: each finished lot then gets an **Expiry** that many days after it is made.
Leave it blank for a product that does not expire. Add the customer drawing number if you have it.

</Step>
<Step>

Under **Bill of materials**, add one line for each material or component the product uses: pick
the **Material or component** from your materials and enter the **Qty per 1,000 pcs**. Choose
**Add a line** for the next one. The first line becomes the product's main **Material**. The lines
are saved with the product as the bill of materials of its primary production method, so a product
that uses two materials has two lines. You can change them later on the bill of materials.

</Step>
<Step>

Save. The product starts in **Draft** and stays editable. Example: `PROD-A` is a Draft product,
`General-SDS-01` is Released. Products made before numbering keep their part number as their ID.
Pickers show **Name · Part no.**, and you can search by either.

</Step>
</Steps>

<GuideStep
  title="Products"
  description="The engineering product list. Add creates a Draft product."
  src="/guide/items-and-products/2.png"
  alt="Engineering Products list with part number, name, revision, customer and status columns"
  width={1440}
  height={1000}
  callouts={[
    { x: 10, y: 18, caption: "Add opens the new product form." },
    { x: 30, y: 35, caption: "Product ID, name, part number and revision." },
    { x: 85, y: 35, caption: "Status: Draft, In review, Released or Obsolete." },
  ]}
/>

## The product workspace [#the-product-workspace]

Open the product (for example `/r/PROD-A`). The tabs are **Engineering**, **Sales**, **Purchasing**,
**Production**, **Quality**, **Logistics** and **Attachments**. Drag a tab to reorder them for yourself;
**Reset order** restores the default.

- **Engineering** has two views: **Setup** (the production method, its operations, components, machine
  options, work instructions, parameters and the inspection plan) and **Revisions & ECN** (approvals,
  revision history and the change notes).
- **Sales**, **Purchasing**, **Production**, **Quality** and **Logistics** show what other
  departments hold for this product: prices, quotations, orders, vendor prices, manufacturing orders,
  moulds, process validations, the inspection plan, first article reports, stock lots and delivery
  orders. Choose **Open list** to go to the full list.
- **Attachments** holds the customer drawing and specifications. The default category is
  **Drawing / specification**.

<GuideStep
  title="A Draft product"
  description="The product workspace for PROD-A, with its tabs and the Engineering Setup view."
  src="/guide/items-and-products/3.png"
  alt="Product page for PROD-A showing the status Draft and the tabs Engineering, Sales, Purchasing, Production, Quality, Logistics and Attachments"
  width={1440}
  height={1000}
  callouts={[
    { x: 20, y: 12, caption: "The part number, revision and status." },
    { x: 50, y: 22, caption: "The workspace tabs." },
    { x: 30, y: 30, caption: "Setup and Revisions & ECN switch the Engineering view." },
  ]}
/>

## Sales product and prices [#sales-product-and-prices]

Open **Sales** and choose **Products** (`/sales/salesProducts`). Add a sales product for the
engineering part. Enter the **List price (RM)**, **MOQ (pcs)**, **Lead time (days)**, the **Unit of
Measure (UoM)** and the **Packaging**. **UDI-DI (GTIN)** is optional. **Website & catalogue** is
**Published** or **Unpublished** (give an **Unpublish reason** when you unpublish).

- **Price breaks** give a unit price from a quantity (**From quantity (pcs)** and **Unit price (RM)**).
- **Customer prices** give a customer a price, with their **Customer part no.**, **Valid until** and an
  **Agreement ref.**

Sales owns these numbers. Engineering owns the revision and drawings and changes them under change
control.

If the system refuses a step here, see [Product development: why the app refuses](/docs/product-development/refusals#set-up-items-and-products).

<NextSteps>

<NextStep href="/docs/product-development/bill-of-materials" title="Build the bill of materials" description="List the components the product uses per 1,000 pieces." />

<NextStep href="/docs/product-development/development-items" title="Start a development item" description="Track a product before it is qualified." />

<NextStep href="/docs/product-development/refusals" title="Product development: why the app refuses" description="Every message on these pages and what to do." />

</NextSteps>