Understanding Segmented Items

Many industries have base products that differ from other base products because of packaging components, packaging processes, other attributes, or other differences that can cause costing structures to differ. Each variation of the product is usually a unit that is used for order entry, and it may have:

• Manufacturing data

• Inventory management information

• Forecasts

• Pricing rules

• Preferences

You can use segments to accommodate these types of items, for example:

• Polo shirts with segments of size and color.

• Fruit drinks with segments of flavor, packaging, and type.

A segmented item can have up to 10 identifying characteristics or attributes.