Item Types

What are item types?

Users can create and manage 6 different types of items when creating an order. 

1. Drop-Ship Item (DRPS) - A vendor ships the item directly to the customer. The item does *not* exist in the company inventory.
2. Decorate & Ship (DECS) - Supplier ships the item to the decorator, who decorates the item and ships the item to the end-user customer. DECS items do *not* exist in the company inventory and require decorating instructions as well as the artwork when creating an order.
3. Order for Stock (OSTK) - A sales person orders this item to be stocked in the distributor warehouse. The items are then sold to the customer when there is an order for that item. For OSTK orders (i) The Ship-To address is the distributor's warehouse, and (ii) Aturian adds all costs (ex: Inbound Freight) to calculate the unit cost of the item, and (iii) The distributor manages the item in its warehouse. There are 4 key sub categories for OSTK items:
   1. Standard (OSTK) - A standard stock item is owned by the distributor as an asset in its inventory. The customer is *not* billed when the inbound stock order is filled by the supplier.
   2. Prepaid (OSTK-PPD) - Unlike the standard stock item, the customer is billed for pre-paid stock items at the sell price of that item, even though the item resides in the distributor's inventory as an asset until the item is sold to the customer via a ship from inventory order. Invoicing the prepaid stock order creates a customer deposit on the customer's account that will be automatically applied to future ship from inventory invoices. Important: The salesperson does *not* get commission when the stock is filled. They get the commission when the item is shipped from inventory.
   3. Customer Owned Stock - Zero Sell (COS-ZS) - These stock items are billed to the customer just like drop-ship items, even though the items reside in the distributor's warehouse until they are shipped out when the ship-from-Inventory orders are filled. These items do *not* contribute to the distributor's assets and they are carried at zero-cost. Commissions are accrued when the customer is billed for the inbound stock item. The zero-sell illustrates that these items are invoiced at $0 to the customer when an outbound ship-from-inventory order is filled.
   4. Customer Owned Stock - Order Price (COS-OP) - These stock items behave exactly like COS-ZS listed above. The difference is that the invoice is created when the ship-from-inventory orders are filled for these items. Please see the SINV section listed below.
4. Decorate for Stock (DSTK) - Decorated items for stock in the company warehouse. Follows the same concept as the OSTK orders, except that the distributor receives invoices from multiple vendors (blanks supplier, decorator and shipper).
5. Ship from Inventory (SINV) - These items are the same physical OSTK items that were put on the warehouse shelves by the inbound stock orders. Outbound stock items are termed as ship-from-inventory items(SINV). The cost of SINV items must include the (i) the cost of the item itself as charged by the supplier in the inbound stock order, plus (ii) the inbound freight, plus (iii) the warehouse overhead, plus (iv) the handling costs that the distributor incurs in picking-packing-shipping that item to the customer. SINV items are invoiced to the customer, however invoicing depends on the type of OSTK item that is shipped:
   1. Shipping a standard OSTK Item - The sell price listed in the SINV order is charged to the customer. Profits are calculated based on the unit cost of the item and the sell price listed in the order for that item.
   2. Shipping a pre-paid stock item - The sell price listed in the SINV order is charged to the customer, however, since the customer has already paid for this inventory item, the invoice uses the customer deposit that was created when the inbound stock order was invoiced. Distributor recognizes revenue and reduces its liability. If the sell price on the SINV order is different from the sell price listed when the inbound stock order was invoiced to the customer, the difference is either billed to the customer or continues to exist in the customer's account as a deposit. Commissions are paid on the sell price in the SINV order.
   3. Shipping a COS-ZS Item - These items have already been paid for when the customer is invoiced for the inbound COS-ZS stock items. These items are billed to the customer at $0 regardless of the sell price defined in the order.
   4. Shipping a COS-OP Item - Unlike COS-ZS, the customer is invoiced at the sell price listed in the SINV order for this item. This generates additional revenue for the distributor. This revenue can be returned to the customer as royalty.
6. Sample (SMPL) - Items that are sent to customers as part of proposals or quotes before the customer can place an order. Cost of sample items is typically paid from a Marketing account and do not contribute to the profits of a company. Sample items can be shipped directly to a customer or to a sales person who  presents it to the customer.