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Understanding Purchase Order Item Types

Understanding Purchase Order Item Types

When adding items to a purchase order, BarSight offers different item types to match how you track your purchases. Choosing the right type ensures your inventory stays accurate and your expenses are categorized correctly.

The Three Item Types

1. Unmanaged Items (Most Common)

Unmanaged items are purchases that you want to track for accounting purposes but don't need to count as inventory. Each unmanaged item is linked to a GL (General Ledger) account for expense categorization.

Best for:

  • Office supplies (paper, pens, printer ink)
  • Cleaning products and chemicals
  • Disposable items (to-go containers, napkins)
  • Small equipment and tools
  • Marketing materials
  • Anything you don't need to count in inventory

What happens when you receive:

  • The expense is recorded against the GL account
  • The purchase history is saved for reporting
  • No inventory counts are updated

2. Tracked Items (Kitchen/Brewery)

If you have the Kitchen or Brewery module activated, you can purchase items that are tracked in your inventory. These items have stock levels that update automatically when you receive deliveries or use ingredients.

Kitchen Items are best for:

  • Food ingredients (produce, proteins, dairy)
  • Prep items and components
  • Anything used in Kitchen recipes

Brewery Items are best for:

  • Raw materials (grains, hops, yeast)
  • Packaging materials (cans, bottles, labels)
  • Anything used in batch production

What happens when you receive:

  • Inventory quantities increase automatically
  • Stock records are created with lot numbers
  • Cost-per-unit is recalculated
  • The expense is still recorded for accounting

3. Costs (GL Account Only)

Costs are line items that record an expense without any associated product. They're linked directly to a GL account.

Best for:

  • Shipping and freight charges
  • Handling fees
  • Rush order surcharges
  • Fuel surcharges
  • Service fees
  • Any expense that isn't tied to a physical product

What happens when you receive:

  • The expense is recorded against the GL account
  • No product or inventory is affected

How to Add Each Type

Adding an Unmanaged Item

  1. On your purchase order, click Add Item
  2. Search for an existing item or type a new name to create one
  3. If creating new: the item will be saved for future orders
  4. Select the GL Account for expense categorization
  5. Enter Quantity, UOM, and Price
  6. Click Add Item

[SCREENSHOT: Add Item form showing an unmanaged item with GL Account selection]

Adding a Tracked Item

  1. Click Add Item
  2. Search for the Kitchen or Brewery inventory item by name
  3. The system shows the item type (Kitchen or Brewery) in the form
  4. Select a Variation if applicable (Brewery items only)
  5. The GL Account is pre-filled from the item's settings
  6. Enter Quantity in the item's purchase UOM
  7. Enter Price and what it's Per
  8. Optionally add a Lot Number for traceability
  9. Click Add Item

[SCREENSHOT: Add Item form showing a tracked Brewery item with Variation dropdown]

Adding a Cost

  1. Click Add Cost
  2. Select the GL Account (e.g., "Shipping Expense", "Freight")
  3. Enter the Total amount
  4. Optionally select a Tax Code if the cost is taxable
  5. Click Add Cost

[SCREENSHOT: Add Cost form showing GL Account and Total fields]

Setting Up Items in Advance

For items you order regularly, set them up in advance:

For Unmanaged Items

  1. Go to Accounting → Items
  2. Click New Item
  3. Enter the item name and assign a GL Account
  4. Optionally add vendor-specific SKUs and pricing
  5. Save the item

For Tracked Items

  1. Go to Kitchen → Inventory or Brewery → Inventory
  2. Create or edit the inventory item
  3. Set the Purchase UOM (how you buy it)
  4. Set the default Price and GL Account
  5. Link it to vendors with specific pricing

Choosing the Right Type

Ask yourself these questions:

  1. Do I need to count how much I have on hand?
    • Yes → Use a tracked item (Kitchen or Brewery)
    • No → Use an unmanaged item
  2. Is this used in recipes or production?
    • Yes → Use a tracked item
    • No → Use an unmanaged item
  3. Is this a fee or service, not a product?
    • Yes → Use a cost
    • No → Use an item (tracked or unmanaged)

Common Examples

Purchase Item Type Why
50 lbs of malt Brewery Item Used in recipes, need to track quantity
Case of chicken breast Kitchen Item Used in recipes, need to track quantity
Box of to-go containers Unmanaged Item Don't need to count, just expense it
Printer paper Unmanaged Item Office supply, no inventory tracking needed
UPS shipping charge Cost Not a product, just a fee
Fuel surcharge Cost Additional fee, not a product

Tips

  • Set up GL accounts properly - Create accounts like "Shipping", "Office Supplies", "Cleaning Supplies" to categorize expenses clearly
  • Use costs for fees - Don't create fake items for shipping charges; use the "Add Cost" feature instead
  • Link items to vendors - Pre-configure vendor-specific pricing so orders are faster to create
  • Use lot numbers for tracked items to maintain traceability through production

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