Create an Item

In eTIMS, organizations are required to configure all products and services they intend to sell for tracking and reporting purposes. These are collectively referred to as "items" within the eTIMS system and Product on Slade360 eTIMS APIs.

Each item within eTIMS system must have a unique identifier, which serves as the key to tracking that item across all processes such as sales, purchases, and inventory management. This unique code follows a specific structure, designed to ensure every item is identifiable across the entire organization.

The structure of this item code is as follows:

Example Code: KE2NTBA0000012

Below is a detailed explanation of the code above:

1. KE
   It is the country of origin. It specifies where the product originates from (e.g., Kenya).
2. 2
   It is the product type .It indicates whether the product is a finished good, raw material, or other (in this case, a finished product).
3. NT
   It is the packaging unit. It describes how the product is packaged (e.g., NET weight).
4. BA
   It is the quantity unit. It represents the measurement unit for the quantity (e.g., Barrel).
5. 0000012
   It is a unique identifier. This section sequentially increments from 0000001 onward, ensuring uniqueness for every item.

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What is the purpose of this code?

This code is vital because it is referenced in all transactions involving the item, whether in sales, purchasing, or stock management.

This setup process must be performed accurately to avoid any discrepancies that might affect financial or inventory records.

Detailed Breakdown of the Item Setup Process

When setting up an item via Slade360 eTIMS APIs, several specific fields need to be filled out to ensure the item is configured correctly.

These fields are mandatory for accurate tracking, proper categorization, and compliance with regulatory requirements.

1. Item Name

   A clear and descriptive string that represents the name of the product or service.
   Example
   For a product, this could be an Office Chair Model X or 12V Car Battery. For services, it could be Consulting Services or Delivery Services.

2. Item Classification

   This is a general categorization that places the item into a specific industry or sector.
   Example
   Common classifications include:
   1. Furniture (e.g., Office Desk, Sofa Set)
   2. Electronics (e.g., Television, Laptop)
   3. Food Products (e.g., Frozen Vegetables, Bottled Water)
      Importance
      Classification helps segment items for reporting, inventory management, and financial analysis. Correct classification ensures that products are handled according to the regulatory and operational rules of their sector.

3. Item Type

   It specifies whether the item is a raw material, finished product, or service.
   Example
   1. Raw Material
      It is used in production or manufacturing (e.g., Steel Rods, Fabric Rolls)
   2. Finished Product
      It is a completed item ready for sale (e.g., Wooden Table, Smartphone).
   3. Service
      It is an offering that does not involve physical goods (e.g., IT Consulting, Maintenance Services).
      Importance
      Properly identifying the item type is critical for inventory management and financial processing.
      Raw materials are typically tracked differently from finished products, especially in manufacturing industries.
      Services are not tracked as part of inventory but are recorded for sales and revenue purposes.

4. Packaging Unit

   This is the physical form in which the item is packaged or stored.
   Example
   Some common packaging units include:
   1. Box
      Products are stored in boxes (e.g., Shoes, Electronic Devices).
   2. Tray
      Items such as eggs or bakery goods are packed in trays.
   3. Bottle
      Liquids or beverages are typically stored in bottles.
      Importance
      The packaging unit affects how items are handled in logistics, inventory, and sales. It also impacts shipping, storage, and price calculations for bulk items.

5. Units of Measure

   This is the standard unit by which the item’s quantity is measured, ensuring consistency in transactions.
   Example
   Some common units of measure include:
   1. Liters
      For liquids such as oil or beverages.
   2. Kilograms
      For weight-based items like produce or raw materials.
   3. Items
      For countable goods such as pieces of furniture or electronic devices.
      Importance
      Units of measure provide consistency when dealing with quantities in sales, purchasing, and inventory tracking.
      Accurate unit selection is essential to ensure proper stock levels and financial reconciliation.

6. Tax Category

   This is the applicable tax category or rate for the item, in line with the KRA (Kenya Revenue Authority) guidelines.
   Example
   The currently available tax categories typically include:
   1. VAT 16%
      This is the standard VAT rate for most goods and services.
   2. Exempt
      These are items or products that are exempt from VAT.
   3. Non-VAT
      These are items or products not subject to VAT.
   4. 0% VAT
      These are items or products that are zero-rated for VAT purposes.
   5. 8% VAT
      This is the reduced VAT rate (currently inactive).
      Importance
      Assigning the correct tax category ensures that the appropriate taxes are applied to sales and that the organization remains compliant with national tax laws.
      This is critical for monthly or quarterly tax filings.
7. Country
   It indicates the country of origin of the item or product.
   Example
   Kenya, China, Germany, etc.
   Importance
   Specifying the country of origin is important for compliance with international trade regulations, customs duties, and origin-based reporting.
8. Unit Price
   This is the price at which the item or product is sold to customers or other organizations.
   Example
   If an item is an office chair, the unit price might be KES 10,000. For services, the unit price could be KES 2,000 per hour.
   Importance
   The unit price is essential for sales, invoicing, and revenue calculation. It directly affects profit margins and is often used in combination with volume-based discounts or promotional pricing.