The Devil in the Dump SKU

The Devil in the Dump SKU paladin pos systemWe haven’t brought up this topic in a while! We have a lot of customers who work with the SKU numbers of their products, especially the Dump SKU’s that they import into their inventories.

What’s a Dump SKU?

What is a “Dump SKU?” Basically, it’s a “catch all” inventory item entry that is primarily used for two specific reasons. One: as a rollup SKU for bulk commodity items like fasteners or nuts & bolts. Two: new items that have not yet been added to the inventory system. For example: If you have a new item that was not added to the inventory and it doesn’t scan at point of sale, you can either rapidly enter it into the inventory database, or enter a Dump SKU item with a part number such as “MISC TOOLS” and then manually enter a price.

Dump SKU’s definitely have a place in your inventory. However, they can also be abused and potentially cause havoc on things like your daily sales reports, margins, stock replenishment and price controlling. In other words, there is a right way and a wrong way to input these Dump SKU’s into your inventory.

The Right Way

When considering your Dump SKU strategy, it is important to know and recognize how these items may affect your back-end sales and reporting operations. When adding Dump SKU’s to your inventory, you’ll want to understand the required fields and data elements that will enable you to achieve maximum benefit from these entries. Following are the required fields and suggested input:

Part Number – invent a part number that is short and easy to remember.

Alternate Part Number – associate other codes or names that may apply or be easily recognized or recalled by your cashiers.

Description – create a description that makes sense to you and your customers as it will appear on reports and the customer receipt.

Cost – enter a cost of zero.

Retail Price – enter your sell price or zero. (As an option you may consider entering a large figure here. This way it will be less likely that the item will leave your store without a price as the customer will most certainly notice the large price if your cashier forgets to change the price).

Department – A department is required and should be relevant to the intended Dump SKU item. It is customary to create a different Dump SKU for each department.

Reference Margin – A reference margin is recommended when no cost or price is entered to the inventory SKU. Enter the expected or anticipated margin for each Dump SKU. The reference margin calculates a fixed margin when a price is entered at point of sale. This will keep your margins intact even when using Dump SKU’s.

Do It Right!

Dump SKU’s have a place in your inventory. If they’re imported correctly, everything moves along according to plan. However, if they’re input incorrectly . . . well, it can get devilish real fast. Be sure you are importing your Dump SKU’s correctly through your Paladin POS system!

If you would like to talk to our customer service representatives about this matter, give us a call at 1-800-725-2346. We’d love to hear from you.

Leave a Reply

Your email address will not be published. Required fields are marked *