Inventory Management Series
Using lot matrix items
In Microsoft Dynamics Retail Management System (RMS), a lot matrix item is an item that is ordered or sold in more than one lot or package size. For example, a carbonated beverage might be sold individually, in a six-pack or 12-pack, or by the case. Lot matrix items can also be used for items that are ordered by the case or carton but sold individually.
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Useful terminology
Here are some terms and definitions that you will need to understand as you read about lot matrix items in Microsoft Dynamics RMS.
| • | lot matrix item – An item that represents a group of lots or package sizes for a particular product. It is used to view and manage all of these related items in one place. |
| • | component items – The items included in the matrix, such as single, six-pack, 12-pack, and case. |
| • | attributes – The properties of the component items, such as prices, quantities, and so on. (Note that the definition of “attribute” is broader for lot matrix items than it is for matrix items, where an attribute is a specific item characteristic, such as size, color, or style.) |
| • | parent item – A component item for a larger package size—such as a box, case, or carton—that can be opened to create stock of individual items. A lot matrix can contain one, several, or no parent items, as you choose. |
| • | child item – An item that is stocked by breaking down a larger package size. A lot matrix can contain one, several, or no child items, as you choose. |
| • | child quantity – The number of child items contained in a parent item. |
Creating lot matrix items
When you create a lot matrix item, you create both the master item and the component items it contains.
There are two ways to create a lot matrix item: by using the New Item Wizard or by creating the lot matrix manually. If you want to create the component items at the same time as the lot matrix item, we recommend using the New Item Wizard. If the component items already exist, we recommend creating the item manually.
To create a lot matrix item and its component items by using the New Item Wizard
1. | On the Wizards menu in Store Operations Manager, click New Item Wizard, and then click Next on the first page of the wizard. |
2. | In the Type box, select Lot Matrix. |
3. | Type a lookup code and description for the item, specify any other desired settings, and then click Next. |
4. | In the table, type information about each of the component items in the lot matrix. The title of each component item is a description of the lot or package; it will be visible to cashiers when they ring up the lot matrix item. The lot price is the price charged for that size package. The lot quantity is the number of units that are contained in that size package. For example, the following image shows the settings you might enter for a lot matrix item for a carbonated beverage. 
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5. | When you have finished entering the component item information, click Next. |
6. | Enter the current stock on hand for each package size, click Next, and then click Finish to complete the wizard. The lot matrix item and all its component items are added to inventory. |
To create a lot matrix item when its component items already exist
1. | On the Database menu in Store Operations Manager, click Items. |
2. | Click New, select Lot Matrix Item, and then click OK. |
3. | Type a lot matrix lookup code and description for the item. Cashiers will use this information to look up the lot matrix item itself and then select a specific component item. |
4. | Click Add, select Select an existing item to add, and then click OK. |
5. | In the Items (All) list, select an item that you want to include as a component item for this lot matrix item, and then click OK. |
6. | Repeat Steps 4 and 5 for any additional component items. |
7. | When you are done adding component items, type a Name and Quantity for each component item. The name of each component item is a description of the lot or package; it will be visible to cashiers when they ring up the lot matrix item. The quantity is the number of units contained in that size package, such as “6” for a six-pack.  Note The price of each lot is taken from the price that was already set for the component item. |
Managing component items in a lot matrix item
You can manage the component items from within the lot matrix item. You can add or remove component items, or modify the attributes (item properties) of the component items.
To add or remove component items in a lot matrix item
1. | On the Database menu in Store Operations Manager, click Items. |
2. | Select the lot matrix item, and then click Properties. |
3. | To remove a component item, select it, and then click Remove. The item will be removed from the matrix but will remain in the store database. |
4. | To add a component item to the lot matrix, click Add. | • | If the component item already exists, select Select an existing item to add, click OK, select the item, and then click OK again. | | • | If the component item does not exist yet, select Create a new item to add, enter detailed information about the item, and then click OK. |
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5. | Enter a name (description) and unit quantity (not in-stock quantity) for any new component items. |
6. | Click OK to save your changes. |
To view or modify the attributes of the component items in a lot matrix
1. | On the Database menu in Store Operations Manager, click Items. |
2. | Select the lot matrix item, and then click Properties. |
3. | Click Attributes. |
4. | Make changes to the attributes as desired. |
5. | Click OK to save your attribute changes, and then click OK to save the lot matrix item. |
Setting options for ordering and selling
Suppose you want to order an item only by the case or sell it only in smaller lots. Both of these are easy to arrange in Microsoft Dynamics RMS.
To prevent ordering of smaller lots
1. | On the Database menu in Store Operations Manager, click Items. |
2. | Select the component item for the smaller lot, and then click Properties. |
3. | On the Options tab, select the May not be placed on purchase orders check box, and then click OK to save your changes. |
To restrict case sales
1. | On the Database menu in Store Operations Manager, click Items. |
2. | Select the component item for the case, and then click Properties. |
3. | On the Options tab, select the Block the sales of this item check box, and then enter dates or select a schedule as desired Tip: To restrict case sales from now on, select the check box for today’s date in the Block after box. |
4. | Click OK to save your changes. |
Note
Cashiers have the option of overriding the block.
Automatically stocking child items
If you sell an item both individually and by the case, you can use Microsoft Dynamics RMS to automatically “break open” case units to create your stock of individual item units. You set this up by making the case item the parent item and the individual item the child item.
Suppose you sell a type of motor oil, and the in-stock quantity of individual quarts (the child items) has fallen to zero. If a customer wants to purchase a single quart of oil, Microsoft Dynamics RMS will automatically break open a case (the parent item) to create the loose stock to fulfill the request.
Example:
Quantities before the transaction: 35 12-quart cases and zero individual quarts
Customer wants to purchase: one quart
Quantities after the transaction is complete: 34 cases and 11 individual quarts
To set up a parent-child relationship
1. | On the Database menu in Store Operations Manager, click Items. |
2. | Select the individual item that should be the child item (such as the quart of motor oil), and then click Properties. |
3. | Click the Special tab. |
4. | Next to the Parent item box, click the magnifying glass, select the parent item (such as the case of motor oil), and then click OK. |
5. | In the Child quantity box, type the number of individual items that are contained in the parent item (such as “12” for the number of bottles in a case of motor oil). |
6. | Click OK to save your changes to the child item. |
If you have multiple component items in a lot matrix, you can create a series of parent-child links. For example, you can have a case of soda break down into 12-packs, with the 12-packs breaking down into six-packs and the six-packs breaking down into single cans.
Alternatively, you can use the case as the parent for all three child items, setting a different child quantity on each component item. For our soda example, you might set a child quantity of 2 for the 12-pack, 4 for the six-pack, and 24 for the single can, with the case item set as the parent item for all three.
Note
A parent-child relationship can be set up between any two items. The items do not need to be part of a lot matrix.
Selling lot matrix items
You can sell lot matrix items in two ways: by ringing up a component item just like any other item, or by ringing up the lot matrix itself. For the second method, cashiers will see a dialog box where they can select the specific component item that is being sold. For example, the following image shows the dialog box that might appear when a customer is purchasing motor oil from a lot matrix.
Once the cashier makes her selection, the transaction can be completed as usual.
What’s Next
The next article in this series, Using kit and assembly items, provides some tips for managing items that are sold bundled together.
