When to Create a New Item
When to Create a New Item
There are certain item elements that impact if you can reuse an existing item or you need to create a new item
- Posting Group
- Default Tax Code
- Classification/Cost Code
- Model Specific Pricing
Posting Groups
Posting groups decide with general ledger transactions for this item are posted against. Examples of reasons that you would have different posting groups are for house construction, warranty and land development. Since these areas usually require the transactions in those groups posted to a different general ledger, they require different items in the item library.
Default Tax Code
Each item has a default tax code associated to it. While you can override the default tax code on the job, if you want the correct tax code to be applied during the initial application of the item to the job, then each tax region would need to have a unique item in the item library.
Classification/Cost Code
If you want to pull reports by cost code, and you want certain costs in each of those buckets, you will need to have an item for each of those cost codes. For example, if you want to differentiate the lumber on your cost code report for lumber draw 1 and lumber draw 2, then you will a code code for each of those items.
Model Specific Pricing
If there are model specific pricing, usually referred to as full turnkey key or lumpsum pricing, each model will need to have a unique item to house that pricing. For example, if you have a plumbing contract that is a supply and install for model A and model B, you will need to have an item for the plumbing contract for model A and a second item for the plumbing contract for model B.
