In many businesses, customers often request a sample of the product they are interested in before making a purchase decision. To attract prospective customers, companies maintain a sample inventory of these products. It is crucial to categorize and manage the sample stock separately from other saleable products within the ERP system.
How to do FOC Test Inventory management in Sage X3
Sage X3 provides functionality to manage a distinct sample stock, allowing for separate management of inventory locations, costing, and accounting for these samples. This ensures that the sample stock is properly accounted for and does not interfere with the management of regular
saleable products.
→Firstly, we can categorize the sample product either as a separate product category or by assigning it to a specific location. A dedicated product category for sample products can be created, and any products produced for sampling purposes can be stored under this category.
The products in the Sample category can be identical to the saleable products but are assigned a separate category for reporting purposes.
→Similarly, we can create a separate location to store the sample products.
Products categorized under the sampling category can be automatically stored in and picked from a designated location during any transaction. →Now, let’s discuss the accounting process for sample products. Although sample products have a production cost, they do not generate revenue since they are not actually sold.
⇒ In Sage X3, this can be managed by creating a sales transaction with a zero amount.
For example, you can create a Sales Order for the sample product without assigning any price to it.
When we make a shipment against this SO, then the following accounting impact will take place :- 
Finally, when we bill the invoice against the shipment, then the system will generate the
following accounting impact :-
But as the amount entered is nil, the revenue account will be impacted by 0.
• Which means the product will be accounted only for it’s inventory costs and it wont impact the customer in any way.
Thus, Sage X3 offers the functionality to manage an inventory of sample products on the basis of category and location as well as handle their accounting separately.
