floor stock items

["Chick Doe" <Cdoe@xxxxxxxxxxxxxxxxxxxxxx>]

how do different companies handle 'floor stock' or 'free stock' items. these 
are typically the low cost items such as fasteners, nuts, screws, washers, etc.

we currently have these items structured in our bills of materials and we need 
to keep them in the bill of materials for several reasons. we also currently 
consider these items as inventory item and try to maintain a stock balance on 
them. they are removed from inventory as part of the material content of cost 
of goods sold.

we are contemplating changing these parts to 'floor stock' items where we would 
not consider them as inventory. instead we would expense the purchase price of 
these items in the period that they were purchased. if we did this we would 
have to not roll up the cost of these items into the higher level units. we 
would also probably reclassify these parts as item type 6 (non-balance) items 
and zero out the inventory balance for all of these items.

has anybody had experience with these types of items? how do you code them 
within BPCS? is there anything to watch out for if we do this?

chick doe
barton instrument systems

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