Items — Raw Materials, Finished Goods & More

The Item master is the central catalog of everything your business buys, makes, stocks, and sells. Every transaction in Udyamo ERP Lite — purchase orders, production orders, invoices, stock movements — references an item from this catalog. A well-structured item master is the foundation of reliable inventory, accurate costing, and compliant GST filing.

This chapter covers how to create and manage items in Udyamo ERP Lite, including the different item types, HSN and GST configuration, specifications, and stock tracking options.

What You Will Learn

• The concept of an item master and why it matters
• The five item types supported in Udyamo ERP Lite
• How to assign HSN codes and GST rates for Indian tax compliance
• How to configure units of measurement, specifications, and tracking options
• Step-by-step instructions for creating items of each type
• Field reference for the Item form

Prerequisites

• Udyamo ERP Lite is set up with your organization details (Chapter 5)
• At least one Unit of Measurement exists in the system (Chapter 8 covers creating units — you may set up basic units first)
• You have Owner or Admin role access

The Item Master Concept

Think of the item master as your business's product and material dictionary. Every distinct thing you deal with gets a single entry here. When a purchase officer creates a purchase order for "MS Plate 6mm", they select it from the item master. When the production team consumes that plate, the same item record is referenced. When the accountant reviews stock valuation, the same item and its transactions appear.

This single-source-of-truth approach eliminates a common problem in manual systems: the same material being recorded as "MS Plate 6mm", "Mild Steel Plate 6 mm", and "M.S. Plate 6MM" in different registers, making consolidation impossible.

Item Types

Udyamo ERP Lite classifies items into five types. Choosing the correct type is important because it affects how the item appears in transactions and reports.

Tip: Use the service type for items that do not involve physical stock. Services are not tracked in the stock ledger, so the Track Stock option is typically disabled for them.

HSN Code and GST Rate

Every item in Udyamo ERP Lite carries an HSN Code (Harmonized System of Nomenclature) and a GST Rate. These fields are critical for Indian tax compliance.

HSN Code

The HSN code is a standardized numerical code that classifies goods for GST purposes. The code determines the applicable GST rate and is mandatory on invoices for businesses with turnover above the prescribed threshold.

Examples of common HSN codes in manufacturing:

Warning: HSN codes and GST rates are set by the government and may change. Always verify the current rate on the CBIC (Central Board of Indirect Taxes and Customs) website or consult your tax advisor before setting up items.

GST Rate

Enter the GST rate as a percentage. Common rates are 5%, 12%, 18%, and 28%. For items with 0% GST (exempted or nil-rated), enter 0. The GST rate you set on the item is used as the default when creating invoices and bills, ensuring consistent tax calculation.

Unit of Measurement

Each item is linked to a Unit — the standard measure in which you buy, stock, and sell that item. You select from the units you have already created in the system (see Chapter 8).

Common assignments:

Tip: Choose the unit that matches your primary procurement and consumption pattern. If you buy steel by the kilogram and consume it by the kilogram, use kg. If you buy bearings individually, use pcs.

Specifications (JSONB)

The Specifications field stores structured attribute data in JSON format. This is useful for recording technical details that vary between items but follow a consistent pattern within a category.

Example specifications for a bearing:

{
  "bore_diameter_mm": 25,
  "outer_diameter_mm": 52,
  "width_mm": 15,
  "type": "deep_groove_ball",
  "brand": "SKF",
  "load_rating_kn": 14.8
}

Example specifications for an MS plate:

{
  "thickness_mm": 6,
  "grade": "IS 2062 E250",
  "width_mm": 1250,
  "length_mm": 2500,
  "surface": "hot_rolled"
}

Specifications make it easy to filter and compare items without encoding every detail into the item name or code.

Stock Tracking and Expiry Tracking

Track Stock

When Track Stock is enabled (the default for physical items), every purchase, sale, production, and transfer updates the stock ledger and running balance for this item. Disable this only for services or items you intentionally do not want to track at the stock level.

Track Expiry

Enable Track Expiry for items that have a shelf life — chemicals, adhesives, rubber compounds, paints, and certain lubricants. When enabled, you can record the expiry date on each stock ledger entry, and the system can alert you to approaching expirations.

Reorder Level and Max Stock Level

• Reorder Level — The stock quantity at which the system generates a low-stock alert. Set this based on your average consumption and vendor lead time (see Chapter 11 for details).
• Max Stock Level — The upper bound for stock. Useful for items with storage constraints or shelf-life limitations.

Step-by-Step: Creating Items

Creating a Raw Material

1. Navigate to Inventory > Items
2. Click Add New
3. Fill in the fields:
   • Item Name: MS Plate 6mm
   • Item Code: RM-STL-MS-PLT-6MM
   • Item Type: Raw Material
   • HSN Code: 7208
   • GST Rate: 18
   • Unit: kg
   • Description: Mild steel hot-rolled plate, 6mm thickness, IS 2062 E250 grade
   • Specifications: {"thickness_mm": 6, "grade": "IS 2062 E250", "surface": "hot_rolled"}
   • Reorder Level: 500
   • Max Stock Level: 5000
   • Track Stock: Enabled
   • Track Expiry: Disabled
   • Active: Enabled
4. Click Save

Creating a Finished Good

1. Navigate to Inventory > Items
2. Click Add New
3. Fill in the fields:
   • Item Name: Hydraulic Cylinder HC-50
   • Item Code: FG-HYD-CYL-HC50
   • Item Type: Finished Good
   • HSN Code: 8412
   • GST Rate: 18
   • Unit: pcs
   • Description: 50-ton hydraulic cylinder, double-acting, 150mm bore
   • Specifications: {"bore_mm": 150, "stroke_mm": 300, "capacity_ton": 50, "type": "double_acting"}
   • Reorder Level: 5
   • Max Stock Level: 50
   • Track Stock: Enabled
   • Track Expiry: Disabled
4. Click Save

Creating a Consumable

1. Navigate to Inventory > Items
2. Click Add New
3. Fill in the fields:
   • Item Name: Hydraulic Oil ISO VG 68
   • Item Code: CON-OIL-HYD-VG68
   • Item Type: Consumable
   • HSN Code: 2710
   • GST Rate: 18
   • Unit: ltr
   • Description: Hydraulic oil, ISO VG 68 grade, for hydraulic press and cylinder testing
   • Reorder Level: 50
   • Max Stock Level: 500
   • Track Stock: Enabled
   • Track Expiry: Enabled
4. Click Save

Creating a Service Item

1. Navigate to Inventory > Items
2. Click Add New
3. Fill in the fields:
   • Item Name: CNC Machining Charges
   • Item Code: SVC-MCH-CNC
   • Item Type: Service
   • HSN Code: 9988
   • GST Rate: 18
   • Unit: hrs
   • Description: CNC machining service charges for job work
   • Track Stock: Disabled
   • Track Expiry: Disabled
4. Click Save

Tip: Service items do not appear in stock reports. Use them for service-based line items on invoices and bills.

Tips & Best Practices

Tip: Design a consistent item code structure before you start entering items. A common pattern is: [TYPE]-[CATEGORY]-[SUBCATEGORY]-[SPECIFICATION]. For example: RM-STL-MS-ROD-12MM (raw material, steel, mild steel, rod, 12mm).

Tip: If you are migrating from a legacy system or spreadsheets, prepare a clean spreadsheet with all item data first. Map each column to the corresponding Udyamo field. This avoids errors and omissions during data entry.

Warning: Do not create duplicate items for the same physical material. If the same MS plate is purchased from two different vendors, it is still one item. Vendor-specific details belong on the purchase order, not the item master.

Tip: Start with your most frequently transacted items — typically 50 to 100 items will cover 80% of your transactions. You can always add more items later. Do not let the quest for a complete catalog delay your ERP go-live.

Tip: Use the Active toggle to retire items you no longer deal in, rather than deleting them. Deactivated items are excluded from selection dropdowns but remain visible in historical transactions.

Quick Reference — Item Fields