ANS-1442 · INVENTORY & ITEM MANAGEMENT
How to Track Lot-Numbered Sample Items and Manage Their Cost in NetSuite?
NetSuite users can leverage parent-child item relationships to track lot-numbered samples while implementing accounting strategies to manage their cost impact on sellable inventory.
Short answer
To track lot-numbered sample items, utilize NetSuite's parent-child item functionality. Designate a child item specifically for samples, distinct from the sellable parent product. This separation enables precise quantity tracking for giveaways. Implement specific accounting treatments or inventory adjustments for these sample items to manage their financial impact on the average cost of your primary sellable inventory.
Scenario
Organizations often need to distribute lot-numbered inventory items as samples to customers. A key challenge is accurately tracking these sample quantities while ensuring their associated costs are managed in a way that does not distort the average cost of the main sellable inventory. This requires a method to differentiate samples from regular sales inventory within NetSuite.
Solution
A recommended approach involves configuring parent-child item relationships within NetSuite.
Create a Parent Item
Establish the main lot-numbered inventory item that is sold to customers. This item will carry the primary inventory and cost tracking.
Create a Child Item for Samples
Create a distinct child item linked to the parent. This child item should be specifically designated for samples or giveaways.
Track Sample Quantities
Use the child item to record all sample distributions. This ensures accurate tracking of quantities given away without directly depleting the parent item's sellable stock.
Manage Cost Impact
While lot-numbered items inherently track specific costs, the use of a separate child item allows for distinct accounting treatments. Implement inventory adjustments, write-offs, or transfers to a specific sample inventory location to manage the cost of these samples. This strategy helps to mitigate their impact on the average cost calculation of the primary sellable inventory.
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