item form - Item type options

Hello Masters,

In Item details form , there is a field called Item Type . It has options Item, BOM, Service.

Could u explain when can we use the BOM, Service.

Here I am not able to understand the BOM use.

For example I am going to create the New item A ( it is finished good, the replenishment process for this item = Production)

Then what option should I take is it Item or BOm.

What is the use of the service , how to use .

Thanks in advance.

There is no such field as replenishment process = replenishment.

Therefore if it is a manufactured item, and will appear on a production order it will have a BOM, therefore it will be a BOM item. You can only manufacture BOM type items and can only specify a BOM against BOM type items.

A service item is any other item you need to appear on a purchase or sales line that you do not hold inventory of - so you have a different item group for these posting very differently. These are also used in sub-contracting in production. For example if you add freight as a miscellaneous charge the end client does not see this, they see it as a miscellaneous charge, however you can set this up as a service item so it can be added to a line, seen on the order and also obeys the trade agreement rules.

May be you misunderstood my query.

I did not mention there is field called replenishment process in Axapta. Just I am explain the replenishment methods ( purchase, production, transfer)

Second thing is

  1. let ‘s say item = ice cream . we will produce this item . so item type = BOm . is it true ?

2 ) To make item , we use rawmateials , so for that rawmaterials we use item type = item. Is it correct ?

3 ) Still I am not able to understand about the use of service . please let me know about the service

  1. Yes

  2. Yes

  3. You ship the ice cream to the customer, you charge them for this service, this would be a service item (if you want). A service item is anything you do not want inventory of in reality, but it is up to you to determine your own distinguishing factors for this on a business by business case. Lets say as part of the ice cream manufacture a supplier piped toffee into your toffe surprise finished goods, this would be a service on the BOM creating a purchase order - you do not stock the toffee, you pay the supplier for the service of piping the toffee in.

Thanks steven,

i gone through the manuls , i could not find about the Item type = service option. in item master that means with a suitable example with some traansactions

is there any material like that .

if i select the option = service then how to do the transactions.

Apart from the item type section in inventory I am not aware of any material, still it is kind of irrelevant, you need to look at the transactions as associated with the item group. Manufacturing also references this item type in the subcontractor section.

Thanks My dear sir,

really i am very thankful for your valable service & support to freshers.

already you had good experience about this option item type = service.

so could u throw one example to do the transactions . i will pass the transactions , then i can about the use of this .

Not sure what you wnat really. Add a service item called freight, then ship it and invoice it.

Thanks steven,

I looking for a good example to do transactions.

if it is freight , then i can do this through miscellneous charges concept .

i need not to create the item na .

what u say .

Freight is a perfect example because it is shown as a line item, the miscellaneous costs are simply a figure and many businesses need this separated out with a description.

It is kind of irrelevant, the process is the same, no matter waht “service” is being provided. Ass an item called annual maintenance, or maintenance repairs, or office furniture, or manuals. Any item you consider a “service” to your end customer, so it is business specific.

Thanks steven,

really good .

but it is better if u give some more explanation on this .( may be u are little bit hurry )

Well I gave you 5 examples, could you perhaps define the exact quantity of examples you require? Are you in a little bit of a hurry to read my replies?

In my opinion I have given you ALL the examples you need. You are doing this backwards. Understand the concept of the item type service - use it with one example, once you understand this you can apply it to the requirements of your customer, which is what you should be doing and not being restricted by the examples someone else has listed for you.

Thanks steven,

sorry , dont be anger .

still i did not get the clear picture about this , that’ y i am pushing .

ok if u dont have the time to sahre the real scnerio and example . leave this one here .

i will also close this as SOLVED.

I am at a loss to explain this any simpler - I have given you five examples, all it is is anything you “consider” a service to the customer.

I cannot give you a clearer picture - what service do you provide to your customers - support? installation? configuration? training? None of these would be an item, they are a service because you do not want to know the number you have in inventory.

Create an item flagged as a service and post it, although I believe this is not the issue here, you do not understand the concept of a service.

There is no anger, just frustration, I have explained this simply, with examples and you are basically saying I cannot be bothered, which writing it like that also sounds offensive. I beleive I have explained this simply, with examples, if you still cannot understand it go and talk to someone regarding what a service is, perhaps they can put it in a context you can understand.

Hi,

I was searching for information on service items in DAX2009 and ran across this post and found it hilarious. I understood what you were saying completely and could understand your frustration. I believe you may be able to help me with a certain issue I am having.

I have a client that charges for licensing or clicks, which is what they call it, to their customers to use a machine that is put on their customer site. It’s almost a pay per click type scenario. If the customer wants to use the machine, they have to call this company and buy a certain # of clicks. This company will then dial in and activate that number of clicks on the machine. If the customer uses them all up, they need to call in again and prepay for another round of clicks and so on.

They have this click item, setup as a service right now. It’s an intangible item that carries zero cost and generates revenue for them. They are the gatekeeper, so to speak. It’s an awesome business model actually. However, I’m not sure this is the best method for them that will allow them to slice and dice and enforce trade agreements and so forth, since a lot of those functionalities aren’t available in DAX2009 for a Service Item.

They are in essence leasing the use of a machine. They are not however, calling it a lease with revenue, simply because they do not know how to set it up in AX. They are instead, calling it, a fixed asset located at their client’s site and then charging a service fee for (x) number of clicks to be used on that machine. Is there a way to capture equipment leasing revenue in DAX2009 Bus. Ess. base package.

Thanks. Mister N Zone

I think the direct answer to your last question is No. However in AX2009 you can do this if you have the Service and Maintenance and Contract modules (Thy data). In this way you have contracts that periodically invoice, and you can add the service item as a charge against a service object. This however maybe overkill for you.

What do you feel does not work in AX2009 for a service item? Trade agreements should work and dimensions will still give dimensional analysis of revenue or you can configure the posting groups.

I am working on a similar concept currently with macine readings and invoicing based upon these. This is retrospective and proactive based upon usage. Yours is essentially a fixed amount driven by the customer call because they have run out, so a service item seems the perfect approach!

Hi Randy,

I think you can consider 2 options (standard AX):

  • Using of Service Items with sales order (might think about subcription order), which is simple and easy. However, this is not really feasible since you may have many extra activities around the machine.

  • Using Service Management module which provides you more functionalities, including contract, order, quote… and you can also consider Project Accounting module to integrate with Service management.

Hope this help.