2.3.1. How to create new product


Before proceeding to the regular purchase process, we need to learn how to create new products in Kiu BMP. There are many ways to create a new product. You just need to go to Purchase Module/ Purchase/ Products or Sales Module/ Sales/ Products or Inventory Module/ Inventory Control/ Products then select Create to create new products.

Fill in the Product Name then select “Can be sold” or “Can be purchased” or  “Can be expensed”. 

  • Can Be Sold” indicates a product that your company sells.
  • Can Be Purchased” denotes a product that your company can buy
  • Can Be Expensed” is for items which can be attached to employees’ payroll for reimbursement purposes. Examples of items which can be expensed are hotel bookings, conference fees, or airline tickets.

Under General Information in the product tab, there are 3 types of products:  Consumable, Stock Product, Service and Digital product

“Consumable products” are physical products which are treated as a stockable product, with the exception that stock management is not tracked by the BMP System. This means that there are no minimum stock rules or automatic procurement rules. 

Example: Stationary for employees or cleaning supplies for your office. These are typically not the main products that your company sells or the raw materials to manufacture the products you sell. 

You can buy consumable products, deliver them or produce them but Kiu BMP system will always assume that there is enough in stock and there is no Journal Entry for your related Stock move.

Stockable Products: are physical products which your company maintains stock management rules to ensure they are in your inventory. They are the product that you will sell to customers, or the raw materials for your manufactured products. In stockable product, Kiu BMP will create shipment transaction against purchase order and delivery order against sales order by choosing the shipment icon on the top right hand side, before vendor bills/ customer invoices in purchase order or sales order.

The shipment tracking transaction is created in accordance with the purchase order or sales order.

“Service” is a type of product that is intangible and not applied in any stock operation. Examples of “Services” are accounting, cleaning, insurance, or transportation. There is a special feature to track Services in the “Invoicing” tab.

“Digital product” can be sold on Kiu BMP’s e-commerce module and can be downloaded by customers.

You can set Internal Reference for the internal control of the products. Alternatively, you can also set a Barcode which allows you to enter a barcode number to track your products. You can also type the barcode, or use a barcode scanning application to enter the product’s barcode. 

And HS code which stands for the Harmonized System Code is a set of standardized names and numbers to classify traded products for international shipping and goods declaration.

In the “Sales Price” field  you can set a price for your product if you will sell that product at a fixed price. Or leave it blank if you will follow a variable pricing strategy – where you change the price depending on the customer, the time, sale quantity, or other variables. This can also be affected by the price list that you use for different customers or sales orders. For unit cost, The “Cost” field refers to either the purchase cost, or the cost to produce a product. If the product follows standard price costing method, the value entered here, normally once per year, is also the cost price of the product. However, if it applies the average or real price costing method, this value will vary and automatically update according to the actual purchase or production costs. If the cost of the products are set in the product form, this cost will be displayed automatically in the purchase order and can be used to calculate inventory valuation in Inventory module.

Unit of measure is the selling unit of measure used while purchase unit of measure is used in purchase order. Selling unit of measure can be different with purchase unit of measure, for example the company can buy products with unit of measure like ton(s) then sell to the customer with another unit of measure like kg or g. However, the purchase unit of measure must be in the same category as the unit of measure.

The Control Purchase Bill is based on the ordered quantities or the received quantities.  If you would like to create a vendor bill before receiving shipments from a supplier, select “On Ordered Quantity” in the “Control Purchase Bills” section. The draft bill will be automatically created with the ordered quantity when you click on create bill. If you select Bill “On Received Quantity” you can bill based on the amount your vendor has delivered to you. After you receive the products, only then will you be able to create a vendor bill. If you only received part or all of the shipment, the draft bill will reflect the corresponding amount.

The Inventory Tab in the product form is where you can set the route for a product: (1) Buy, (2) Drop-shipping, (3) Manufacture, (4) Made-to-Order. These routes can be configured specifically in Inventory/Configuration/Routes. Routes in Kiu BMP depict the journey of the product whether the product will go from your vendor directly to your customer, as a “Drop Ship” product, be delivered to you and be stored in your warehouse as a “Buy” product, or manufactured by your company as “Manufacture”.

Made-to-Order” is a route used in combination with “Buy” or “Manufacture”, meaning you don’t store this product in your company’s warehouse. Instead you will “Buy” or “Manufacture” when there is a sales order for it. You can choose more than one option depending on the product you are creating, however, these options will not be available if the product type you selected earlier was “Service”.


“Procurement” controls what kind of purchase order will be created.  When automated procurement is triggered, you can select either “Create a Draft Purchase Order” or “Propose a Call for Tenders”.

The Internal Category defines how transactions, such as Sold, Purchased, Stock Input, Stock Output, Manufactured or Costing, Inventory Valuation, Bookkeeping and Stock Removal methods for the product will be recorded in accounting and inventory modules.

The weight of a product in kilograms and the volume in cubic meters can be entered in these fields. You will need these details when calculating shipping costs.

The three options for “Tracking” will allow you to decide if you will track an item by “Unique Serial Number”, where you will need to assign a unique serial number to each product unit, “By Lots”, where you will assign an identification number to each lot, or “With No Tracking”, where all products will be treated the same.

The Procurement Location, Production Location, and Inventory Location are set by default. Procurement Location is the source location used for stock movement generated by procurement, Production Location is the source location used for stock movement generated by manufacturing order and Inventory Location is the source location used for stock movement generated by you when you do an inventory.

  • Product Alert Time is when a generic alert about product age is issued.
  • Product Removal Time it is when a product should be removed from stock.
  • Product Use Time is when a product begins to deteriorate and is no longer useful.
  • Product Life Time is the amount of time after which the product is no longer safe to use.


Vendors section allows you to select a contact for stockable products, to enable automated procurement. Vendor’s information is a prerequisite if you want to run automated procurement. Otherwise, the system will not know which vendor should be included in the draft Request For Quotation. By default, the first vendor listed will be selected for your draft Request For Quotation.

When you click Add an Item there will be a pop up window where you will need to enter additional information about the item.

In the Vendor field, select an existing vendor who can provide the product, or create a new one. In the Vendor Product Name and Vendor Product Code fields, you can provide the vendor’s internal reference if you have, or just leave it blank. The Delivery Lead Time is the time it takes from when your purchase order is confirmed with the supplier until you receive the product from them. In the Price List section, you can enter the Minimum Quantity if applicable, as well as the Price and Currency where you can define the period of time the price is valid. You can also add more than one vendor by simply adding more lines. 

In the “Packaging” section, you can define how you combine multiple product units into larger packages. For example, six “Units” may be defined as a “Case”.


Now that we’ve completed all the items in the Inventory Tab, let’s move to the Sales Tab. The Point of Sale section can be utilized to control how a product interacts with the “Point of Sale” module. If you want the product to be visible for purchase, check the first box. You can also create categories for your items within the Point of Sale system, or require the product be weighed at the time of purchase.

In the Sales Condition section, there are two options to control lead times. 

  • Customer Lead Time is the number of days from a sales order confirmation until the delivery of a product, or it could also be the delivery time you promised to your customers. 
  • Manufacturing Lead Time is the number of days required to produce a product.

Now that we’ve completed the Sales tab, let’s move to the Variants TabProduct Variants can be used to manage products that have different variations, like size, color, etc. This allows you to manage all variations of a product at the product level and to set other controls for specific attributes at the variant level. For example, if you are selling an iPhone as a product, you will have different variants for size and color.

You can set the price for an attribute value by clicking Variant Prices included in the sale price of the different products.

Let’s now switch to the Invoicing Tab. The fields here are very similar to the “Internal Category” in the Inventory Tab. Using the “Income Account” and “Expense Account” fields, you can select the line from your “Chart of Accounts” which will be credited or debited for purchasing or selling the product.

If you fill in the fields, then the rules for the product will override the rules in the Internal Category. However, if you leave a field blank, account settings set in the Internal Category will apply.

Asset Type field is when the item is treated as an asset from a particular category when purchased, including depreciation rules from the category.

Customer Taxes field is used to apply the tax to use when you are selling to your customers.

Vendor Taxes field will be the tax to use for your suppliers, when you are buying from them. Both of these fields, Customer taxes and Vendor taxes can be set for all products, but we can change these fields when we create a separate Sales Order or Purchase Order”

Price Difference Account is used to track cost price changes when working with multiple currencies. If you track costs in one currency, and issue an invoice in another, the receivable journal entry will be created using the currency conversion rate on the day it was entered. If the exchange rate between the two currencies changes by the time the payment is made, then the payment in the bank journal will not match. The Price Difference Account tracks those changes.

Stock Input Account and Stock Output Account are used to track the real time inventory valuation. Incoming stock is tracked in the first account, and outgoing stock in the second. If you leave these fields blank, the category values will apply. 

Landed Costs are all costs above the purchase price of the product, to get the product delivered to your warehouse. If you check this box, you can define one of several methods by which the landed costs on products in a shipment should be divided. How to set up and allocate landed costs will be discussed further in the Inventory module.

In the Invoicing Policy section, if you see the check box for Event Registration you can check it if this product is related to a ticketing of an event. This is a feature enabled when you use the Events module in Kiu BMP. You can choose to bill your customer before the delivery, “On Ordered Quantity” or after delivery “On Delivered Quantity” using the “Invoicing Policy” radio buttons.

On the Notes tab, you can add descriptions to be displayed on your quotations or request for quotation for this product.

And finally, you can add photos or graphics associated with your products in the image icon on the top right hand side

When you have completed filling in all the information across all of the tabs, you can click the Save button at the top of the screen to create your product.

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