Purchased Items, along with Recipe Items and Sales Items, make up your Inventory in R365. Extra care should be paid when creating these various Inventory Items as they will have a lasting financial impact through the Stock Count and Menu Item to Recipe Assignments. The R365 Ops Team is available to work with you as you setup your initial Inventory Database in R365.
We recommend that you create an individual Item Record for each Inventory Item you use in your Restaurants. Items may include Ingredients, Spices, Supplies, Paper, Packaging etc. Once an Item has been created, it can be counted on Stock Counts, used as Ingredients in Recipes, and reported on in My Reports.
This article will detail each component of the Purchased Item record. Click here to learn more about Item Costing in R365 and how you can get the most out of this powerful feature in the R365 Operations Module.
Create a Purchased Item
- Manually - Hover over the 'Item' menu in the top ribbon, then the 'Setup' sub-menu and select 'New Purchased Item'
- Copying from an existing Purchased Item - Use the 'Copy' option found on the 'Save' menu of an existing Purchased Item
- Via the Import Tool - Items can be added to a template and imported into R365 in bulk
Save & Copy Options
As you work on your Purchased Item records, be sure to Save periodically to protect your data. The three save options are the standard save options throughout R365.
In addition to saving, you can use the 'Copy' feature to create a duplicate of the existing Purchased Item record in a new tab. Copied Purchased Items will prepend '[COPY]' to the Purchased Item Name as shown below:
All relevant Purchased Item information will be copied over to the new record, however the following information will not be copied:
- Vendor Items
- Recipes On
- Item Locations
1) Name* - Enter the Name for the Purchased Item as it will appear throughout R365. Purchased Item Names should be unique, but it is not required
2) Type* - This value is read-only and cannot be modified. It identifies the Item as a Purchased Item
3) Catering Item Checkbox - Check this box if this Purchased Item will also be available for sale on Catering Menus in the Catering Module. When checked, the 'Catering' tab will appear on the Purchased Item record. Click here for more information on how to setup Purchased Items as Catering Items
4) Number (optional) - Enter a Number value for the Purchased Item. This value can be useful for filtering and sorting purposed in the 'Items' list. All alphanumeric characters are accepted in this field
5) Description - Enter a description for the Purchased Item. Similar to 'Number', this value is available on the 'Items' list
6) Commissary Item Checkbox - Check this box if this Purchased Item will also be available for ordering on a Commissary Order in the Commissary Feature. When Checked, the 'Sales' tab will appear on the Purchased Item record. Click here for more information on how to setup Purchased Items as Commissary Items
7) Available in AR Invoice - Check this box if this Purchased Item will also be available as a Sales Item on the AR Invoice. When Checked, the 'Sales' tab will appear on the Purchased Item record. Click here for more information on how to setup Purchased Items as Sales Items
8) Active Checkbox - This box is checked by Default and indicates that this Purchased Item is Active in R365 and can be selected on AP Invoices, and counted on Stock Counts. When an Item is discontinued, uncheck this box to remove the Item from Item Selectors throughout R365
9) Actual as Theoretical Checkbox - Check this box to us the Actual Usage for this Item in place of the Theoretical Usage (via Recipes mapped to Menu Items) on the AvT Report
10) Select Recipe Image Button - This button is not applicable to Purchased Items and is only used on Recipe Items
11) Upload File Button - Attach a file to the Purchased Item record using this button
Inventory Cost Tab
1) Cost Account* - Select the GL Account where the Costs associated with this Purchased Item will be recorded (on AP Invoices, Stock Count Inventory Adjustments etc.)
2) Inventory Account* - Select the GL Account where the Inventory Asset Value associated with this Purchased Item will be recorded (on AP Invoices, Stock Count Inventory Adjustments etc.)
3) Inventory U of M* - Select the Primary Reporting U of M for the Purchased Item. Click here for more information on U of Ms
4) Inventory Cost - this field will contain the Cost associated with the Inventory U of M and will be updated based on the Cost Update Method set on the 'Purchasing' tab
5) Count U of M 2 - Set a secondary Count U of M for the Purchased Item. Additional count units of measure allows you to count by multiple U of M during a Stock Count
6) Count U of M 3 - Set a tertiary Count U of M for the Purchased Item. Additional count units of measure allows you to count by multiple U of M during a Stock Count
7) Waste Account - Select the GL Account that you want to Debit upon entering a Waste Log
8) Acceptable Theoretical Variance % - This value is currently a placeholder for future development around the AvT Report
9) Item Cost Graph - As this Purchased Item is purchased over time, this graph will display each the price at time of purchase in a running line
1) Default Purchase U of M - This is the default Unit of Measure for this Purchased Item and will automatically appear each time the Item is selected. It represents the most common way the Item is received
2) Cost Update Method - The Inventory Cost value on the Inventory Cost tab is updated based on this setting. Options include:
- Auto Update from Invoice - R365 will use the Item Cost on the last approved Invoice as the Inventory Cost
- Auto Update Average Last 3 Invoices - R365 will average the Cost from the last 3 approved Invoices as the Inventory Cost
- Manual - No Cost updates will be made by R365. The Inventory Cost value must be manually updated. This option is rarely used
3) Par Qty - Currently Informational Only
4) Brand - Currently Informational Only
5) Yield Percent - This value is currently a placeholder for future development for using Recipes and Reporting
Item Category Tab
Item Categories are fully customizable and are used for reporting purposed. Refer to the R365 Academy Lesson on Item Categories for more information
1) Item Category 1 - Enter an Item Category 1 for the Purchased Item. This should be the main category, such as 'Food'
2) Item Category 2 - Enter an Item Category 2 for the Purchased Item. This should be the secondary category within the main Category (Category 1), such as 'Meat'
3) Item Category 3 - Enter an Item Category 3 for the Purchased Item. These Categories are used infrequently but can represent the more detailed type within the Category 2, such as 'Beef'
4) Key Item Checkbox - Check this box if this Purchased Item is considered a 'Key Item'. Key Items can be set on various Inventory reports to more quickly review the key / strategic inventory items
Custom Item Categories can be created to classify the Item for sorting as well as reporting. Reports that utilize Item Categories include:
- AvT Analysis - Actual vs Theoretical efficiency with full drill by Item Category
- Item Category Theo Variance - $ variance over time in any category per Location (see trends of variances)
- Item Price Change Analysis - see received cost fluctuations over time for each Item
- Item Theo Cost Analysis - precursor to AvT Analysis
- Item Theo Variance - drill down from Item Category thoe variance - shows item by item total variance $ trends
U of M Equivalence Tab
Click here for more information on U of M Equivalencies
This tab will contain each of the Transactions (AP Invoice, AP Credit Memo, Stock Count etc.) where this Item has appeared
Recipes On Tab
If this Item is included on a Recipe as an Ingredient, that Recipe will be listed here. For your core ingredients, this list will be a quick look at all of the Recipes that depend on this Item
Vendor Items Tab
This tab will contain a link to each of the Vendors Items that has been created for the Item. Depending on the Vendor, the Vendor Item can have it's own Purchase U of M and Split U of M
Item Locations Tab
Item Locations exist to keep the Location Cost of an Item separate from the Location Cost of other Locations. Click here for more information on Item Locations.
If you do not have Item Locations for this Purchased Item, once the Purchased Item record has been saved return to the 'Item Locations' tab and click the 'Create for All Locations' toggle to automatically create an Item Location for each Location in R365. Note: the will create Item Locations for every Location record. You will have to manually delete any Item Locations that you do not want to utilize.
Review this tab to see each of the Item Locations for the Item as well as their most up-to-date cost (per AP Invoice entry, or manual update of Item Locations).
This article was updated and replaced on 1/24/2019. Click here to download the previous version
* Denotes a required field.