This guide covers extended product management, where products can consist of composite products and their sub-products. Extended product management allows for hierarchical construction of products, meaning a product can be composed of other products. Composite products can be either stockable or virtual. The guide also covers stock and reporting procedures.

Key terms in the guide include composite product, which is a product/model that consists of other products/models (an item that bundles other products/models together). Another key term is sub product, which refers to a regular product/model that is part of building a composite product.

CONTENTS

Sub products and composite products
Handling and reporting composite products
Default sub products for models and mass operations for sub products

Sub products and composite products

A composite product refers to a product/model to which other products are connected. For example, if the parts of a shelf are to be considered as separate products (e.g., shelf board, frame, back panel, and leg), they can be created as individual products (with possible models) and then a shelf product can be created that consists of these previously created parts. Thus, the shelf is a composite product that consists of other products (sub products). A composite product can be virtual or stockable (physical).

Stockable/physical (to be manufactured for stock)

a composite product that is assembled from sub products and the stock quantity of sub products is reduced at the time of assembly, not at the time of use (from a stock management perspective, the composite product is already formed)

Virtual (sales configuration)

a composite product whose sub products are stockable, but the product item itself is not stockable, and the product is assembled from other products at the time of use, reducing the stock quantities of sub products only at the time of use

Sub product hierarchy

The depth of the hierarchy is not limited, so composite products can also be bundled into new composite products if desired. A finished shelf can belong to a larger entity consisting of, for example, a display cabinet, this shelf, and a wall shelf. Similarly, a product that is a sub product can be composed of smaller parts, such as a light fixture attached to the ceiling of a display cabinet.

Managing a product's sub products

Managing a product's sub products is done on the product view's Sub products tab. The view looks slightly different depending on whether the product has models or not.

A composite product is always built by first creating a new individual product. If the composite product is to have models, models are created for this product next, and finally, the composite product structure is formed from sub products. The composite product structure is formed by linking existing products or product models in the system to the composite product item or its models as sub products from the product card's Sub products tab.

The difference between a stockable and a virtual composite product is defined in the system by whether the Stockable checkbox is checked on the product card for the composite product item or not. If the checkbox is checked, the item is read in the system as a stockable composite product, i.e., a stock configuration. If the checkbox is not checked, the composite product is read as a non-stockable virtual product item, i.e., a sales configuration. Sub products set for a virtual composite product can be stockable products, which are handled in stock management at the time of use of the composite product instead of the composite product item itself.

Product without models

Proceed with a product without models as follows:

First, select the sub products to be handled for the product with their values.
From the selected sub products, set for the product those sub products or their models that the product actually contains.

Main product with models

Proceed with a main product that has models as follows:

First, select the sub products to be handled for the product with their values.
Set default sub products for the product that the models to be created will contain. When setting default sub products, you can also update the changes to existing models, i.e., the function offers mass operations.
For the product's models shown in the list, define the sub products they contain from those sub products that were initially selected for the product.

Setting sub products for a product/model

Managing a product's sub products is done on the product's Sub products tab.

Set sub products for a product or model as follows:

Select the main products/models to be linked. Products are retrieved one by one.
Check the sub products already selected, which are shown in a separate section.
Define the sub product specifications: how many sub products go to the main product and what changes are made to purchase prices.
View the sub products linked to the main product, which are shown in their own section.

Selecting sub products when they are model variations

Below is an example of a model product, sofa armrest. This product has three different models that differ in height. By selecting the main product item, the models can also be selected at once as sub products for the desired composite product.

A product can be added as a sub product either by selecting the main product of the models or just a specific model.

When the main product of the models is selected, all models become selectable as sub products for the composite product.

Adding models through the main product as a mass

From the edit icon of the selected composite product's sub product box, you can open the function (see image above), where you can select which models of the sub product are in use for the product.

In the opened view, select the models to be added and define how many pieces of these models are used in the composite product.

Once the sub products have been selected, their quantities and effects on the main product's price are defined. If it is a sub product with models, the definition must be made per model.

Setting sub products

Setting sub products is accessed from the composite product's Sub products tab and the Setting sub products button. This allows you to define the selected sub products for the composite product.

In the sub products definition window, make the following selections:

Select the desired products that were previously defined to be linked to the composite product. If it is a product with models, select only one model unless the product consists of multiple models. For example, in sofa manufacturing, only one armrest size is used.
Set the quantity of sub products used to make/manufacture the composite product. In the example, the sofa frame includes, for example, 12 springs and 10 meters of upholstery fabric. The units are defined on the products' own product cards.
Define the change in the composite product's sales price, with which the selected individual sub product affects the sales price, if automatic calculation is selected on the product card for sub products.
Define the change in the composite product's purchase price, with which the selected individual sub product affects the composite product's purchase price, if automatic calculation is selected on the product card for sub products.
Save the selected changes.

Handling and reporting composite products

Handling

Purchase

Composite products cannot be directly handled in purchase processing, and each sub product must be handled separately. This means that composite products cannot be added to a purchase order, as there is no automation built for sub products in this process for stock transactions. Sub product purchase entries must be made in stock bookkeeping as individual rows either through a purchase order or without purchase order processing with manual purchase entries for the stock transaction.

Sales

The sales processing of a stockable composite product and a virtual composite product differ in the stock entries made at the time of sale. However, they share the commonality that the sales price formation can be done in the same way for both. On the product card, the final price can be set by the user, or the price can be automatically calculated from the sales prices set for the sub products by summing them up and multiplying them by the number of sub products per product.

Sub products can be assigned their own price in addition to their impact on the final price of the composite product with an absolute price change. This determination is made when the sub product is linked to the composite product structure. The price change can represent, for example, a manufacturing cost, which changes the value of the final product when one piece or unit of the sub product is used in the composite product's manufacturing.

Handling a stockable composite product in sales

A stockable composite product item, i.e., a product to be manufactured for stock, is handled in sales like any individual product. Separate manufacturing entries are made for the composite product in stock, during which sub products are automatically reduced in stock in the same proportion as they are set to be used in the composite product structure.

Stockable composite product manufacturing entries

The stock can be sold into a negative balance, so manufacturing entries can also be made retrospectively, thus balancing stock bookkeeping depending on use cases and customer needs.

Handling a virtual composite product in sales

A virtual composite product differs from a stockable composite product in that it is not a stockable product item itself, even though its sub products can be stockable. Sub products can also be linked from the product register to other non-stockable product items, such as "service charge for work done per hour". In this case, the significance of the sub product is visible in the billing process and in how the final price of the composite product is formed, if the price is to be automatically calculated directly from the sub product structure and the user does not set the final price of the composite product themselves.

Since no stock handling is done for the virtual composite product itself, stock transactions for its sub products are created at the time of use of the composite product. In sales, this means that reducing stock transactions are created for the sub products in the stock information of the sales order or sales invoice when the virtual composite product is taken into sales processing. Stock transactions for sub products are automatically created in the same proportion as they are linked to the composite product structure. During the sales order, sub products are reserved from stock, and on the sales invoice, they are directly reduced from the stock balance. The stock balance reduction also occurs at the billing stage of the order when an open order is invoiced. In this case, the sub products reserved from stock are automatically changed to be reduced from stock.

Stock management

A virtual composite product is not brought into stock handling, but stock bookkeeping only covers the sub products marked as stockable that are added to its structure. A stockable composite product is handled in stock bookkeeping itself, and reducing stock entries are made for its sub products automatically when manufacturing entries are made for the composite product.

The difference between a stockable and a virtual composite product is defined in the system by whether the Stockable checkbox is checked on the product card for the composite product item or not. If the checkbox is checked, the item is read in the system as a stockable composite product. If the checkbox is not checked, the composite product is read as a non-stockable, i.e., virtual product item. Sub products set for a virtual composite product can be stockable products, which are handled in stock management at the time of use of the composite product instead of the composite product item itself.

All available stock information and settings in the system can be normally entered for a stockable composite product on the product card:

Vendor-specific purchase information
Default stock
Product location in the stock
Default alert limit
Weight (kg)
Customs tariff
EAN codes (2 pcs)

Sub products stock handling

Corresponding stock settings must be made for sub products on their own product cards. Default settings are critical in the automatic stock handling of sub products when the composite product is handled. For example, the default stock is the stock from which sub products are reduced when a virtual composite product is sold or a stockable composite product is manufactured. The stock setting can be changed directly from the stock transaction row if the sub product is in multiple stocks and the balance of a stock other than the default is to be reduced. In this case, the change is made manually with a stock transaction.

Reporting & sub product diagram

The composite product structure is reported in two places: in the product register's product listing as sub product diagrams and on the composite product's product card in the product view and the Sub products tab.

Below is an example from the product listing, showing a composite product.

This opens the view below, showing the composite product and the sub products added to it.

The sub product diagrams show the following information:

Sub product structure in a tree model, showing which sub products the composite product consists of and how many pieces are linked.
Both the composite product's and sub products':
- Price information
- Stock information
The number of composite products that can be composed/used based on the sub products' stock situation.
Information on whether the composite product is a virtual or stockable product.

Product's sub product diagram

On the product card in the product view, sub products that the composite product consists of are seen at a rough level without detailing the sub products' stock information.

On the product card's Sub products tab, the existing sub product structure of the composite product can be built and modified. In this view, it is defined how many pieces of each sub product are used in handling one composite product and the absolute price change to the composite product's final price for each sub product. Stock status is not reported in this view.

The view can also be accessed from the product listing. In the product listing, the sub products added to the composite product can be seen for the composite product.

This opens the view below, where the quantity of sub products, price change, and purchase price change can be edited.

Composite product sales reporting

Sales reporting is done like with other products from the sales reports. Sales reports do not detail sub products, but reporting is implemented at the final product level.

In the sales order or invoice view, sub products are not detailed, but only composite product items and the price settings brought from them are visible. On orders and invoices sent to customers, only composite product items are seen without sub products and the final prices.

Composite product stock reporting

Entries that differ from the handling of an individual product in stock are the manufacturing entry for a stockable composite product and the stock transactions for sub products formed from the sales event of a virtual composite product. In both cases, the stock transactions for sub products are automated in the same proportion as they are set to belong to the composite product structure.

Stockable composite product manufacturing entries

When a sub product structure has been created for a stockable composite product, manufacturing entries can be made for the composite product, with the formation of stock transactions for sub products automated.

There is also a separate guide page for manufacturing entries.

Default sub products for models and mass operations for sub products

Default sub products for models

If a product has models, there is an option on the product's Sub product tab to set default sub products for the models. These are used when new models are created for the product, so the created model has the set default sub products linked by default.

Setting default sub products opens from the Set default sub products link.

In the opened function, default sub products are selected, their default quantities are given, and the price change is set.

After the changes, press the save button, and the selected sub products will be linked as sub products.

If you want to make updates to existing models, for example by quantity and price, check the box reflect changes to existing models as well. This is a useful function if there are many models and the change is to be made quickly for all.

Add and update

If the model has a sub product that was edited, the changes are updated to it. If the product does not have the sub product, the sub product is added to the model.

Update

If the model has a sub product that was edited, the changes are updated to it.

Add

If the model does not have the edited sub product, the sub product is added to the model.

Setting sub products is essentially and functionally similar whether sub products are set for a product, model, or default sub products for models are being set. Instructions have therefore been written in one place, as explained in the guide at setting sub products for a product/model.

Virtual product/model (sales configuration)

A virtual composite product is used when a sales configuration is to be formed so that sub products are automatically reduced from stock at the time of the sales transaction and the composite product item is not manufactured for stock before the sale.

The determination of a virtual composite product is made on the product card by leaving out the stockable setting.

In the sub product diagram, the box edges of a virtual (non-stockable) product are shown in gray. In the hierarchy, a virtual product is not shown in red if it is not composable, making it clear which concrete (stockable) products prevent the assembly of the composite product.

In the example, the main product model "Wooden table, white, 100, 80, 100" is a virtual product (i.e., it is not marked as stockable), so the diagram shows how many of this type of composite product can be composed at the time of diagram inspection. A virtual composite product is not composable if there is not enough of one of its sub products available.

In the structure below, sub products are reduced from stock during the manufacturing entry. These are stockable products, but the wooden table is a virtual product. If the product is shown in red, it is not in stock. The Composable section shows how many pieces of the product can be manufactured at the moment.

Virtual products located in the hierarchy are also shown with gray borders. Instead of stock information, they show how many would be composable based on the stock information of the sub products they contain.

The edges of a sub product are shown in gray if it is not a stockable product. Below is an example of assembly cost.

Stockable product/model (manufactured product)

If the previously examined wooden table were stockable, it would have its own stock information, and the quantity of its sub products would no longer have any effect on it. This is because the sub products have already been reduced from stock earlier when creating the composite product, unlike in the case of a virtual product where the reduction occurs only at the time of sale.

The box edges of a stockable product are shown in black. The box is red if there is not enough of the product in stock or its "situation" is zero or less.

Below is an example of a diagram where the composite product is not available in the required quantity.

The composite product and sub product are shown with a red background when there is not enough stock for the manufacturing process.

Manufacturable: How many products can be manufactured if it is a virtual product that is manufactured through a manufacturing entry.

In stock: How many pieces of the product are in stock.

Reserved: How many pieces have been ordered.

Incoming: How many pieces have been ordered that have not yet been recorded as delivered to stock.

Situation: Calculated from the in stock - reserved fields.

Manufacturing value: Manufacturing cost recorded for the stock entry.

Average price: The average price of the product's manufacturing.

Purchase price: The price at which the product has been purchased from vendors/vendor.

Frequently asked questions

Question: What is the difference between a composite product and a sub product?

Answer: A composite product is a product or model that consists of other products or models and bundles these together. A sub product is a regular product or model that is part of building a composite product.

Question: How do stockable and virtual composite products differ from each other?

Answer: A stockable composite product is a physical product that is manufactured for stock and whose sub products are reduced from stock at the time of manufacturing. A virtual composite product is not stockable itself; its sub products are reduced from stock only at the time of sale or use.

Question: How do you set sub products for a product or model?

Answer: Open the product's Sub products tab, select the sub products to be handled, choose the products or models to be linked, define the quantities and the changes in sales price and purchase price, and save the changes.

Question: How do manufacturing entries for a stockable composite product affect sub products?

Answer: When a manufacturing entry is made for a stockable composite product, stock transactions for the sub products are created automatically and the sub products are reduced from stock in the same proportion as defined in the composite product structure.

Question: How does the sale of a virtual composite product affect stock?

Answer: No separate stock entry is made for a virtual composite product. Instead, at the time of the sales transaction, reducing stock transactions are created for the sub products in the stock information of the sales order or sales invoice.

Question: Where can you see the composite product's sub product structure and stock information?

Answer: The composite product structure is shown in the product register's product listing as a sub product diagram and on the composite product's product card in the product view and the Sub products tab. The sub product diagram shows the sub product structure, price and stock information, and the quantity that can be composed.

Keywords: composite product, sub product, stock, stock management, extended product management, model, virtual product

This article has been translated using an AI-based translation tool. The contents or wording of these instructions may differ from those in other instructions or in the software.

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