Item Groups - Your Key to Profit Analysis
The Item Groups set up for you inside AutoFluent® are powerful, under-utilized tools that are versatile and allow you to better analyze your sales. Item Groups are important because they allow you to track the exact amount of sales from any particular group of items such as Tire Fees and State Inspections in case you need to file reports. Moreover, you can use Item Groups to:
Categorize your items
Assign markups or profit margins
Set sales goals for particular target items
Separate your sales reports (in various reports)
Map Sales and Cost of Goods accounts (with Accounting Module)
What are Item Groups?
Item groups are categories that help you separate your items and their sales. Each item inside your inventory will have an Item Group. AutoFluent® has default item groups; however, you can create and name your own item groups. Item groups can be created on any basis you want - such as the manufacturer or vendor, the item (batteries, air filters, oil filters, passenger tires), or just our general default groups (parts, labor, outside parts, outside labor, fees).
How and where can I set up new Item Groups?
You can create item groups by clicking the gear icon from the homepage of AutoFluent®, then under Inventory, click open the Item Group window. In this window you can create new Item Groups, rename existing ones, or merge item groups together. You can also view all the items inside a particular item group, and switch the item’s Item Group if needed. Each Item Group has a Group Code for reporting purposes, and a description. You can specify what Type of items should or should not be allowed in that particular item group. Allowing an Item Group to be Costed means that items inside that group are able to have a cost, such as parts.
How can I assign an item to an Item Group?
When creating a new item inside Inventory Entry, you will be prompted to select an Item Group before being able to save that new item. You can also do that for an existing item in the Inventory Entry window by selecting the item, then clicking in the Item Group’s dropdown menu to select a new Item Group. Make sure to always Save after you make a change to an item before moving onto the next item. You’re also able to reassign an existing item to a different Item Group inside the Item Group window by viewing the items inside an Item Group, then clicking “Change Grp.”
How do I set prices based on mark ups or profit margins?
Each Item Group can have it’s own Markups (or Margins if that’s what you prefer). Because you’re able to put Stocked Items and Outside Items in the same Item Group, AutoFluent® allows you to have separate markups for each. If your Item Groups do not have any markup information filled out, it will use the System Default Markups / Margins. Stocked Items will have markups based on Price Levels. Input the percentage of your markup in each of the price level fields.
Outside Parts will have markups based on the cost of the item. Let’s learn how to read and utilize the Outside Parts Matrix. Take a look at the System Default Markup / Margins. It reads that any Outside Part that has a cost of $0 - $3 will be marked up 250%. Any Outside Part that has a cost between $3 - $6 will be marked up 200%, and so on. If you would like help and setting up Markups for Item Groups, please contact AutoFluent® Support during our hours!
What are Item Group Subtotals?
Item Groups themselves provide a wider range of critical analysis to evaluate your business. Item Group Subtotals simply help with grouping your Item Groups together for reports to help you analyze your sales performances on a more general basis. Like the Item Groups, AutoFluent® has default Item Group Subtotals that you can use such as Labor, Parts, Tires, Wheels, Misc. For example, if you have 10 Item Groups that are named for particular tire manufacturers, you can put all 10 into the Item Group Subtotal called Tires. You can manage your Item Group Subtotal in the two right tabs inside the Item Group Window.
What are the added benefits in my Daily Reports?
When you run your Daily Report, the Item Group Summary and Item Group Subtotal reports are included. These reports show a breakdown of your Groups and Group Subtotals arranged by Today’s sales, the Current Month’s running total, Last Month’s, and This Year’s sales. You can see the number of units sold in that particular Item Group or Group Subtotal, along with the dollar amounts of sales and profits. This saves you time because it is automatically run when you run and post your Daily Report - instead of running different reports for the same information! It is important to note that the Month and Year accuracy depends on your Daily Reports being run consistently.
How would I set sales goals for particular target items?
AutoFluent® can help you set a sales goal for particular Item Groups, or an accumulation of Item Groups. To do so, use the Comprehensive Group Report! The Comprehensive Reports allow you to set sales goals, and track your progress to see how much you are above or below these goals. Please see our previous blog article here for in depth detail of what the Comprehensive Group Report has to offer, and how to use it.
How do I place certain Item Group Sales into specific accounts in my QuickBooks (or Sage 50)?
If you have the AutoFluent® Accounting Module, you’re able to map a Sales, Asset, and Cost of Goods account to each Item Group on the bottom left corner of the Item Groups window. If the integration between AutoFluent® and your accounting software has already been done, these accounts will have already been set up by AutoFluent® Support. If you would like to change the accounts already mapped to them, make sure you first “Refresh Accounts from Accounting Software” inside the General Ledger window. Then, you can click into the name of the existing account to receive your entire Chart of Account simply choose the new account you would like that Item Group to use.