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Suggestions on Item Classes Please

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Posted on by Community Member Microsoft Employee

Hello, I’m looking for suggestions on Item Classes. We’re using only a single Sales, Inventory & COGS accounts so not concerned with different distribution accounts. And only one valuation method for all items. Is there a driver that would dictate the best way to setup your item categories like by sales or some other data warehouse intelligence point?

For example if item classes can be used to rolldown price changes then setting up item classes may be based on material: paper, glass, metal, etc.
Or maybe Domestic & Foreign but then this can easily change and the item would be mis-classed
LIFO Class or FIFO Class is not applicable since we use only one valuation method.

Again, looking for some experience and best way to setup item classes so a year from now we don’t find out we should have setup our classes a certain way so we’d be able to do X. Or run X report. Or X analysis.
Much Thanks.Gi

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Dan Liebl 7,320 on at

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Re: Suggestions on Item Classes Please

There is not a black and white answer to your question. However, based on what you said, you could get by on 1 class. Keep in mind, the item class is a default for adding new items. It can be used for reporting as well. so the question you have to ask is how do you want to report? Are the end users adding new items comfortable enough in GP to make sure they get the correct decimal places or U of M schedule (other ways I have used classes)? The answers to those questions should help to guide you to your answer.

Dan Liebl, CMA CPIM | Senior Consultant | OTT,Inc | DLiebl@OTT-inc.com