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What are SKUs?

Inventory SKUs are a way to describe a group of Inventory Items that share similar characteristics such as name, quantity or units, and sometimes a shared UPC. They enable you to easily manage and track multiple Inventory Items with similar attributes, as well as quickly identify them for ordering or restocking purposes. You can create your own Custom Fields to store values that aren't unique for each physical Inventory Item in Knowledge ERP. SKUs are assigned to Inventory Categories.

Here's where they fit in the structure (Inventory SKU are in bold)

  • Parent Inventory Category A
    • Child Inventory Category A
    • Child Inventory Category B
      • Inventory SKU A
      • Inventory SKU B
        • Inventory Item A
        • Inventory Item B
        • Inventory Item C
        • Inventory Item D
      • Inventory SKU C
    • Child Inventory Category C
  • Parent Inventory Category B

As you can see, Inventory SKU are assigned to Inventory Categories and Inventory Items are assigned to an Inventory SKU.

Here's another example of how a video game store might organize their inventory: (Inventory SKUs are in bold)

  • Console Games
    • XBox Games
    • Playstation 4 Games
      • Destiny 2; UPC 0123456789012346
      • Uncharted: The Lost Legacy; UPC 0123456789012345
        • added into system on 6/30/2024; 2/5 boxes remaining
        • added into system on 7/7/2024; 5/5 boxes remaining
        • added into system on 7/12/2024; 5/5 boxes remaining
      • Middle-Earth: Shadow of War; UPC 0123456789012347
    • Nintendo Switch Games
  • Console Systems
  • Accessories

In the above example the video game store choose to have a parent Inventory Category of "Console Games" and then subdivide those into console games for various gaming systems. The Inventory SKU "Uncharted: The Lost Legacy" is a Playstation 4 game, and so they assigned it to the Inventory Category "Playstation 4 Games". Each Inventory SKU has a unique barcode, either from the UPC barcode already on the product or auto generated from Knowledge ERP. Each Inventory Item that is assigned to an Inventory SKU represents the physical item on the shelf.


The following are fields that you might see on an Inventory SKU edit page. Some of the following fields are optional, so they might not display depending on your account configuration.

Usage Type

The Usage Type of a SKU describes how Inventory Items of this SKU are used within Knowledge ERP.

  • Usage Type of "Use/Sell" indicates that the Inventory Item is either used by removing all or some of it from inventory on the Inventory Item page, or it can be sold through a Sales Order.
  • Usage Type of "Check Out/Rent" indicates that the Inventory Item can be checked out from the Inventory Item page or rented through a Sales Order.

Pre-Assembled Kits (Assembled Inventory Items)

Our Pre-Assembled Kit feature allows you to effortlessly create new inventory items by combining multiple component SKUs. Configure a single SKU to use specific SKUs or SKU categories, along with desired quantities. On the dedicated assembly page, fine-tune your selections for precise tracking. Each batch of assembled item is assigned a unique lot number for easy traceability. If cost tracking is crucial, the system calculates the cost of assembled items based on component costs. With barcodes and sales orders, trace inventory items back to their origin, ensuring comprehensive tracking and traceability. Knowledge ERP captures the complete journey of an inventory item, offering unparalleled transparency in your inventory management process.

Discontinued SKUs (Discontinued Inventory Items)

SKUs that are discontinued will still retain their historical information but won't show up in SKU search fields. Discontinuing old SKUs that you no longer carry helps keep your list of SKUs tidy. It's recommended that you mark SKUs as discontinued when you no longer plan to carry the SKU anymore. You can always edit the SKU later to bring it back into the SKU search results.