What is product and How to configure product in OpenERP


Hello Friends,

Today we will discuss about the product and how to configure product in OpenERP.

Product module in OpenERP


What is product :

    A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual form.In short it will offered and serves the basic business needs like sales, purchase, manufacture and services.

    We can also say product is key of ERP. To unlock the erp with the key of product we should know about the product and how to configure product If product is not properly configured then it will creates so many issue and ERP flow is break down.

Product kanban View in OpenERP


How to configure product in OpenERP :

    In OpenERP Product Form, There are three fields are important for stock management when you are configuring a new product
 
    Product Type
    Procurement Method
    Supply Method

1] Product Type :
            The Product Type determines how the product will be managed in stock management.
In OpenERP three distinct product types are:

 (a) Stockable Product : This product is used in stock management and it will demanded in stock less or more based on it's defined reordering rule [minimum stock rule] in the system. Examples:- Computer, shoes, beg
 
 (b) Consumable : This product is not used in stock management. once you receive it and delivery it because this type of product stock is not maintain in the system . it just like a stock of some time of duration. Examples:- Fruit, Milk, Food ...

 (c) Service : This product is not used in stock management. This type of product will configure when your company is providing any type of services. Examples:- Man Power, a consulting service.


2] Procurement Method :
            The procurement method determines how the product will be replenished.
   In OpenERP two distinct procurement method are:
 
   (a) Make to Stock : when stock is needed then the product will take from the stock, If the quantities in stock is too low to fulfill the order then it will set a quantity based on the reordering rule [minimum stock rule] in Procurement and generate purchase or manufacturing order [depends on supply method] to meet the needs of product
 
   (b) Make to Order : when sale order is confirmed, it will not check the stock level and immediately it will generate the purchase or manufacturing order [depends on supply method] with the same quantity of ordered.


3] Supply Method :
            The supply method determines the purpose of the product either it will be buy or produce.
   In OpenERP two distinct supply method are:
 
  (a) Produce : when the product is manufactured or the service is supplied from internal resources.
         
  (b) Buy : when the product is bought from a supplier


Hope that was helpful.

If I just made your day a little better then thank me with a coffee or maybe a  pizza


Cheers ENJOY OpenERP  !!
Thanks,

Mayur Maheshwari


4 comments:

  1. Nice Post.
    I like the way you written the post.
    Post is very Informative and easy to understand.
    Eresource provides single level bills of materials & mutli level bills of material. For each manufactured line item on a WO, the system provides a bill of materials (BOM) and routing. Eresource's erp bills of materials are completely integrated into the system.
    Thanks for sharing such a nice blog openerp bill of material.

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