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Inventory Structure

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Understanding the product hierarchy and inventory structure

In FusionERP 8, Product means the Item bought, sold, produced for which separate record of transaction & stock is maintained.


For efficient management, a product can be classified into 3 hierarchical levels, called

Department (Great Grand Father)
Group (Grand Father)
Sub Group (Father)
Product (Son) comes under Sub Group.


You may also add second parallel hierarchical level, called

Principal Company and

Note : A Product can only have one Sub Group and one Brand associated with it.


Inventory Grouping focuses on the planning and controlling of an organization’s inventories. While planning the inventory grouping, you must start with a very clear definition of its hierarchy.

All the products should be grouped in terms of their use. The correct hierarchy is the mother of Management Information System [MIS]. This hierarchy ultimately helps in decision-making.


      Productivity Tip

All the products should be grouped in terms of their use.

The correct categorization is the mother of all MIS (Management Information System).


Product Hierarchy (Example 1):

An example of inventory grouping is displayed below. This is, however, indicative and may vary from business to business.

Product Hierarchy (Example 2):


Product Hierarchy (Example 2):


Product Attributes / Options:

Product Attributes are properties by which a product is further classified in transactions & stock. Separate master can also be created for Product Attributes.

(e.g Color, Size, Design, Warranty, Batch, Lot, Serial Number, IMEI, etc).

However, if the product value is dominantly dependent on size (e.g 100 ml 200 ml, 500 ml or 1kg pack, 5 kg pack etc) or Design, you may treat them as different product, as suitable (as the prices are different).

List of Attributes:

You may create 3 user defined list of such attributes (e.g for sizes, colour, design, warranty, article number, serial number, IMEI, lot number, etc), which may contain several values (one record for each value) for each type of attribute in each list.

You may create several lists of same attribute (e.g Shirt Size, Trouser Size, Shoe Size, Vest size, Belt Size, Sneaker Size, etc for SIZE attribute) and link them with Product. So, when you select an Item to which Shirt Size list is linked, during voucher entry, you may select a size from Shirt Size list only (the Shoe sizes list will not appear).

Attribute Fields:

Apart from 3 lists discussed above, you may further create 3 types of attributes fields where the user can enter specific data (of a defined data type, number, data, character). For example, you can create 3 user fields for Model (character field), Warranty Period (Date field), Weight (Number field).

Now you can link these attributes, same as list, against each product and during voucher entry, to enter the data.

This way, you customize the Data input for each Product during voucher entries.