- Finished Good
- We cut a PO for the product, receive the product, and ship it out to customers. There are no changes made to the product at any of our warehoused locations.
- Ex: TH93110 Paper Pad or MRC9133-BK Mini Monster
- The final product created by a BOM that we ship out to customers is a finished good. If there is a production order involved, the parent item is considered the finished good.
- Ex: 1005 6” Satin Grip-A-Strip or MRCT9933-MUL Multicam Mini Monster
- Catalogs, displays, or any other marketing-related materials that are shipped to customers are finished goods.
- Ex: BLUDISP-01 Large Floor Standing Display or TH93770 2019 CHA Catalog
- We cut a PO for the product, receive the product, and ship it out to customers. There are no changes made to the product at any of our warehoused locations.
- Raw Material
- We cut a PO for the product, receive it, and consume it via the production order process to create a parent item. It doesn’t matter if the product is physically received into a binned location or virtually in an outside location. If the item is part of a BOM, and we don’t sell the component itself, then it is raw.
- Ex: BMRCT9933-MUL (Mini Monster without Multicam material) or BWYL00027 15D Nylon Greige material
- Supplies (cartons, labels, stickers) specifically purchased to go into a BOM to create a finished good.
- Ex: BOXFAS25 (Snack Box 12.25 x 6.5 x 2.75)
- We cut a PO for the product, receive it, and consume it via the production order process to create a parent item. It doesn’t matter if the product is physically received into a binned location or virtually in an outside location. If the item is part of a BOM, and we don’t sell the component itself, then it is raw.
- Shipping Supply
- These are the supplies (cartons, tape, pallets, shrink wrap, etc.) the warehouse purchases to pick, pack, and ship products every day. They are not forecasted, typically not involved in BOMs, and inventory is depleted via manual adjustments.
- Ex: Bubblewrap or IDT-4-6p (4×6 thermal labels) or S1 (10x7x4 carton for shipping)
- These are the supplies (cartons, tape, pallets, shrink wrap, etc.) the warehouse purchases to pick, pack, and ship products every day. They are not forecasted, typically not involved in BOMs, and inventory is depleted via manual adjustments.
- Work in Process Item (WIP)
- A WIP is an item number set up to track and inventory products in the transition phase. They are not raw materials, but they have not been manufactured into the final product.
- Ex: BFLs in Floating Luxuries. The item physically exists but has to be filled with beads before it is considered a finished good.
- A WIP is an item number set up to track and inventory products in the transition phase. They are not raw materials, but they have not been manufactured into the final product.
- Spare Part
- A spare or replacement part that we bring in and ship out to customers when there are issues. They are not associated with any BOM.
- Ex: SP0001 Blue lid for CHPCNA/BL or BLUSB-WH-PM Packing Material for BLUSBWH
- A spare or replacement part that we bring in and ship out to customers when there are issues. They are not associated with any BOM.
Material Cost Type Definitions
Updated on April 5, 2024