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For the ERP to give accurate stock, it is essential to have unique identity for every stock item. The best way to create this unique identification is by giving it a unique code.
This unique code is called Item Number or Item Code or Part number.
Some companies adopt a numeric code system and some adopt a alpha numeric code.
There are many patterns in which the codification can be done and code numbers vary from 4-5 digits to 16 digits or even more sometimes.
The code number changes even if the part varies slightly. Whatever needs to be identified in stock separately must have a distinct part number.
List of components and raw material required to make an item is called the Bill of Material or BOM. BOM is very important to calculate the material requirement and also the costing of an item.
It is therefore required to make the BOM accurately.
Some companies migrate from accounting software to ERP. These companies usually do not have item codification and there are some companies who have item codification but it is not methodically done.
The biggest problem is of duplicates. Same item with different item numbers and different items having the same item number.
Some people try to accommodate all the parameters of the item in the code and they mess-up. Especially when sizes are to be accommodated with different unit of measurements and in different decimals.
Sometimes the sequence of the code goes wrong. Because of this, the stock lists don't get sorted as expected.
In bigger assemblies, the designers tend to forget certain items when they prepare the Bill of Material. This results in a shortfall of that item and delay in delivering the products.
OurSys ERP has a built-in Item Code Builder and BOM Builder.
Users can create templates for different categories of items and add parameters to the templates. There can be multiple options within each parameter.
To generate a new item code, the user simply has to select the item category and select the right option for each parameter. The system checks if an item number exists for the combination and then generates a unique code.
Users can select multiple options to generate all permutations of the options selected. Thus generating multiple items quickly.
Similarly users can create templates of BOM for each category of assembly. So to create a new BOM, user has to select the category and select items from master as per the template.
Thus BOM can be created quickly and correctly.
With OurSys Item Code Builder feature, users can generate unique codes consistently as per the standard set in the masters.
The problem of generating duplicate codes also gets full-proofed as OurSys checks for duplicates before generating the code.
OurSys feature of BOM builder is easy to use and eliminates human errors while preparing BOM. The problem of user forgetting a component has been completely eliminated.
Both the process of Item Code generation and Bill of Material generation has become super quick and accurate.
OurSys ERP has helped in bringing in discipline in item coding process.
The process has become person independent and any user can generate consistent codes without making mistakes.
The stock statements are better organised as similar items are grouped together. The sorting also happens correctly with the sequence of description
Implementation of ERP system becomes easier as one of the main stumbling blocks is removed.
Bill of Material preparation becomes accurate as components are never missed.
