Suggestions for Setting Up the Inventory Item File

• Item Codes do not need to match the vendor’s item numbers.

• The vendor’s item number can be entered on the Bid Price tab. This allows you to always use the same Item Code even if the Bid Vendor or the Vendor’s Item Number changes.

• Set up your items in a way that is convenient for sorting by Item Descriptions.

Example:if you use several different types of cheese, you can make the descriptions all start with the word “Cheese” so they will be together when sorted by description.

• Primary Unit, Qty Per Primary Unit and Secondary Unit
  • Please consider how you will be ordering and counting the item as you set this part up. This information is used for entering transactions and calculating the value of your inventory.

Example:  Case - 6 - #10 Canwith a bid price of $25.00

• Case is the Primarypackaging unit, as the item is usually ordered from the vendor.  The bid price always applies to the Primary unit.

• Qty Per Unit (6) is the number of Secondary units (#10 cans) contained within one Primary unit (case). 

• #10 Can is how the item is packaged within the primary unit. 

• Orderingand Receiving use Primary Units unlessAllow Ordering Secondary Quantity is checked in Item Maintenance.

  • But when counting inventory for Usage, Transfers, Adjustments and Physicals, you can use either the Primary or Secondary units (Cases or Cans).

• Note about Qty Per Unit If you use 1 as the Quantity per Unit, that means that the Primary and Secondary unit are the same and you will not be able to enter partial units.

Example:Box-1-25# (with 1 as Qty Per Unit) could not be broken down in to partial units.

In most cases it would be better to set it as Box-25-Pounds (with 25 as Qty Per Unit), so you could report as either whole Boxes (Primary) or Pounds (Secondary).

More Examples

Unit - Qty Per Unit - Secondary Unit: How ordered and counted

Box - 96 - Portion: 
Order by the Box
Record Usage and Physical counts by either Box or Portion
1 Portion = 1/96 Box

Case - 40 - LB: 
Order by the Case
Record Usage and Physical counts by either whole case or by the pound
1 LB = 1/40 Case

Case - 4 - 5# Bag
Order by Case
Record Usage and Physical counts by either whole case or 5# Bag (no partial bags)
1 Bag = 1/4 Case

Roll - 1 - Each:
Qty Per Unit is 1; therefore Primary and Secondary are the same.
Order by Roll
Count by Roll or Each
1 Roll = 1 Each (no partial units)

How to handle USDA Commodity Items

USDA does not require that commodities be inventoried separately from purchased inventory. However, some districts still prefer to keep separate inventories for purchased food and commodities.

• If you decide to combine your USDA inventory with purchased inventory, you can use the same Item Codes for commodities as their equivalent purchased items.

  Example:Canned green beans that come from USDA could use the same Item Code as purchased green beans if the packaging is the same. Just set up the Inventory item as it will be purchased from the Vendor, using the Purchased Vendor and Price. 

  • When receiving the item as a commodity, you will just need to select the USDA Vendor and enter the commodity value instead of using the bid price.

• If you prefer to handle your commodities separately from purchased inventory, set up separate Item Codes for commodities and purchased items.
  • Then you will need to enter all transactions (Receiving, Usage, etc.) for commodities using the Commodity Item Code and all transactions for the purchased items with different Item Codes.