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Creating Inventory Items
Inventory items are essential elements used in production or sales processes, such as raw materials, semi-finished products, or composite items. This feature helps in accurately tracking inventory and managing material costs to ensure efficient business operations.retm.com.sa
Steps to Add Inventory Items
- From the dashboard, navigate to Inventory, then select Inventory Items from the menu.
- Click on Add from the top menu, or click the arrow next to "Add" to use the bulk addition option for entering multiple items at once.
- Enter the inventory item data, such as name, identification code, and barcode.
- After verifying the entered data, click on Save.

Explanation of Required Fields When Adding New Inventory Items
- Name: Enter the item's name in both Arabic and the English language.
- Identification Code: A unique code used to easily search and track the item.
- Barcode: Used to identify the item during inventory or sales operations.
- Item Type: Specify whether it is:
- Raw Materials: Unprocessed elements used to produce other items, like flour for baking bread or fabric for making clothes.
- Semi-Finished Products: Items that have undergone partial manufacturing but are not ready for sale, such as pizza dough or pre-assembled wooden panels.
- Composite Items: Final products composed of multiple inventory materials combined, like a sandwich or pizza, where different components are used to create the final item.
- Consumption Unit: The unit in which the item is consumed, such as grams, liters, or pieces.
- Inventory Unit: The primary unit used for storing the item.
- Conversion Factor: The number or ratio used to convert one unit of measurement to another, depending on the relationship between the two units.
- For example, to convert length from meters to centimeters, the conversion factor is 100, since 1 meter = 100 centimeters.
- To convert weight from kilograms to grams, the conversion factor is 1000, as 1 kilogram = 1000 grams.
- Cost Calculation Method: Choose one of the following methods:
- Fixed Price: Manually set.
- From Purchase Transactions: Automatically calculated based on purchase invoices.
- Cost Price: If "Fixed Price" is selected, enter the cost per unit.
- Categories: You can link the item to specific categories like "Cups" or a particular supplier to organize and retrieve them when needed in inventory operations.
- After entering all the data, click on Save to save the new inventory item.


Frequently Asked Questions
What is the difference between raw materials, semi-finished products, and composite items?
- Raw Materials: These are the raw components used in producing other items, like sugar for making sweets.
- Semi-Finished Products: Items that have been partially manufactured but are not ready for sale, such as ready-to-bake dough.
- Composite Items: Final products composed of multiple materials, like a burger consisting of bread, meat, and sauces.
How is the cost of an inventory item calculated?
The cost is determined in two ways:
- Fixed Price: Entered manually when adding the item.
- From Purchase Transactions: Automatically calculated based on purchase invoices.
Can inventory item consumption be tracked?
Yes, from the dashboard, click on Reports, then Inventory Reports. When an inventory item is linked to a specific product, the consumed quantity is automatically deducted when recording sales or production operations, aiding in efficient inventory monitoring