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Never Diminishing Products

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About Never Diminishing Products

Never Diminishing Products (NDP) are products in Unleashed that do not require physical inventory to be stocked and managed. These are used for commonly incurred charges such as freight, taxes, or shipping fees that have a cost or charge impact on your transactions but do not hold any stock on hand.

  • You can mark existing products as 'never diminishing.' This can be done if the product has no stock on hand (e.g. after you have sold all on-hand quantity, or completed a stock adjustment to remove all quantity and value for that product code).
  • You can add NDP's to your Sales Orders, Quotes and Purchase Orders, just like any other product. 
  • You can assign a specific Sales, Expense and Purchase account codes for the NDP's, if integrated with an accounting provider. By doing this your Accounting Provider Profit and Loss Statement will be accurate.

Creating a Never Diminishing Product

Creating an NDP follows the same process as creating any standard diminishing product, the main difference being toggling on the "Never Diminishing" setting and there will be no option to review Inventory or allocate Batch or Serial tracking. 

  1. From the main menu, go to Inventory, Products and select Add Product

  2. Advise the product's unique code and description, specific to the charge or costs purpose.

  3. In the Details tab, under Type, toggle on Never Diminishing.

  4. If you have integrated with an accounting provider, the Sales Account, Expense Account and Purchase Account drop-down fields will be displayed. Allocate as necessary:

    • Sales Account: The NDP's sell price will update the allocated Sales Account.
    • Expense Account: The NDP's cost value will be exported to the Expense account when used in an Assembly or Sales Order.
    • Purchase Account: The NDP's cost or purchase price will be exported to the Expense account when used in a Purchase Order

  5. If you add NDPs on a Bill of Materials, Assembly, or Disassembly, you must select a value from the Expense Account drop-down list.

  6. Use the Purchase and Sale tabs to allocate default sell and purchase prices as required, though they can be left blank if the prices are subject to change per transaction. 

  7. In the Sale tab, allocate a value in the Cost field to provide a default value that your business needs to account for when including the NDP charge to a transaction. 
 For more details on creating a product, see Create Products.

Assemblies with Never Diminishing Products

Use NDP's in your production processes to account for any charges that have been incurred during the assembly or disassembly, which will impact the overall stock value of your inventory.

  • The Cost advised in an NDP's Sale tab will populate the NDP's component Unit Cost value, but this value can be amended per BOM. A blue i icon will show on the component's line if the BOM's Unit Cost differs from the NDP's Cost value. 
  • If integrated with an accounting provider, the Expense Account for the NDP's component line will populate the Expense Account provided in the NDP's record, but this can be amended per BOM as required.
  • If integrated with an accounting provider, the Total Cost from the NDP's component line will export as a stock journal to increase your Stock on Hand value and debit your Expense account. 

Never Diminishing Products on Bill of Materials Tutorial Video

For more details, see:

Sales Margins for Never Diminishing Products

If there is a cost involved in providing a Never Diminishing product (e.g. labor costs), but you do not not want a 100% margin displayed on your Sales Orders, you can edit the Cost of the product in the Sale tab which is what the margin will be calculated with. 

The margin is calculated as the Sell Price minus the current Cost, divided by the Sell Price. The margin that's calculated is locked in on the order as soon as the Sales Order is completed. It is therefore worth noting that if the Cost is updated in the NDP whilst a Sales Order is open, it's margin will update to include the new Cost. 

 

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