MANUFACTURING

Let you group multiple inventory items into another item or on an invoice.

The Bill of Materials add-on module gives you access to two related functions that let you group multiple inventory items into another item or on an invoice:

 

Bill of Materials                This lets you build, assemble, or manufacture an inventory item using other inventory items as parts or components.

Kit Item Codes                  This lets you specify one code on an invoice, and the system loads multiple invoice lines that can include inventory items and remarks lines.

 

Bills of Materials

What does manufacturing do for you? It lets you build an inventory item out of other inventory items. For example:

You specify a recipe for pizzas, which would consist of the dough, cheese, tomato paste, and so on. You specify what quantity of each of the components is required to make one pizza. When you manufacture, you specify how many pizzas you are making. The system removes the requisite quantity from each component item and creates the specified number of pizza items.

You specify how you will assemble a computer, which would consist of motherboard, screen, keyboard, memory, and so on. You can use service items that have costs to represent labour and other costs, or you can use three additional manufacturing costs that you link to general ledger codes.

The manufacturing process is as follows:

You specify the components or the raw materials that you require to manufacture the item. You do this by creating a bill of materials for the manufactured item. The bill of materials contains a list of the component item codes. You also specify the quantity of these components required to make one manufactured item. You can create as many bills of materials as you like. We abbreviate “bill of materials” as BOM.

You perform the manufacturing process, which uses the BOM to decrease quantities of the component items and increase the quantity of the manufactured item. The cost of the manufactured item is the total of the costs in the BOM.

You may need to reverse manufacture (or unmanufacture) some or all of the manufactured items. The system then decreases the quantity of the manufactured item and increases the quantities of the component items.

Manufacturing while Processing Customer Sales

If an operator is processing a sales order or invoice for a customer, and there is insufficient quantity on hand of a manufactured item, the operator can manufacture the item from there. For details about this, click here. To do this, the operator needs access permission to manufacture.

This option only becomes available if you disallow negative quantities. Therefore, there has to be sufficient quantities of the components on hand in order to manufacture.

Kit Item Codes

When you invoice a manufactured item, you treat it like any other inventory item. Your customer does not usually see the component items. This module contains a separate facility called kit item codes. Kit Item Codes speed up invoicing, as you are able to create multiple invoice lines by entering one code only. Some uses of this facility are:

Kitting  You can invoice complex items that consist of multiple invoice lines as well as remark lines. For example, if you are a dentist, you can create a kit item code for a filling procedure that will invoice out the fee for the filling, gloves, materials, and so on.

Long Item Descriptions Inventory items have descriptions of up to 40 characters. If this is insufficient, you can create a kit item code for the item and add as many additional description lines as you require. You could combine this with a manufacturing process. For example, if you manufacture computers, you can detail the memory, hard disk, processor, and so on.

Replace Unavailable Items          You can use the same code for a kit item code and an inventory item. When an operator enters the item code in sales documents, there is an option All Above that will use the kit item in preference to the inventory item. This is useful for the previous feature of long item descriptions, but it also has another use.

If an item is temporarily unavailable or obsolete, create a kit item code with same code as the unavailable item, and enter a replacement item code in the kit lines. Operators can then continue to use the code. They can of course use the new item code directly at any time.

You access Kit Item Codes in invoices in one of two ways:

You can specify on an invoice line that you are entering a Kit Item Code. This then lets you enter a kit item code or Zoom to a list of Kit Item Codes.

You can specify that the system must search abbreviations, kit item codes, and barcodes when you enter a code, prior to searching the inventory file. This means that operators do not have to know whether an item is a kit item code or not. The Zoom on this code field, however, will be an inventory item zoom.

Note  You can specify per bill of materials whether the component lines should display on the invoice. The difference is that you cannot edit the bill of material lines, whereas you can edit the kit item lines. Most of the time, you do not display manufactured item lines.

Manufacturing and Serial Numbers

If you use the Serial Number Tracking add-on module, you can use serialised inventory items in manufacturing:

You can manufacture serialised items. You provide the serial numbers when you manufacture the items.

You can use components that have serial numbers. Note that once you manufacture using a component, the system does not continue to track that serial number further.

BOM Setup:

If you use the Bill of Materials add-on module, you have the following maintenance functions available:

Setup Inventory               You set up bill of materials in the Bills of Materials tab of this function.

Bill of Materials - You use this option to maintain bills of materials. These tell you how to manufacture or assemble an item.

Kit Item Codes - You use this option to maintain kit item codes. These let you enter one code on an invoice, which then displays multiple item code lines.

Copy BOM / Kit Item Code          

This function lets you create a new bill of materials or kit item code as a copy of another, existing record.

Replace Components - This function lets you replace bill of material and kit item components in every bill of materials and every kit item code.

BOM Processing:

If you use the Bill of Materials add-on module, you use this option to manufacture or assemble items.

Once you manufacture the item, you can sell it as a normal inventory item.

To access this function

Select the Process…Manufacture menu option.

You can also use the System Navigator to navigate to this function.

You use this function to assemble of manufacture items using a bill of materials. Once you manufacture, you have the option of unmanufacturing, i.e. reversing the process. Note that this reversal may not always be applicable. For example, if you assemble a computer, you can physically disassemble it easily. If you manufacture pizza, you cannot physically disassemble it.

To manufacture items

Choose the Manufacture option.

Set the period and date on which the transaction occurs:

In the Period Selection for This Year list box, select the period. If you are a single period processing user, the system sets the period and you cannot change it.

In the Date field, enter the date. The system defaults to a date in the current period. If you are a single period processing user, the system does not allow you to use a date outside the current period.

In the Bill of Materials Code field, enter the bill of materials you wish to manufacture. This is a standard database entry field. You can enter the code to select a record. In addition, you can use the Zoom facility to select or edit records, and the Add facility to create records. Once you select the bill of materials, the system fills the component table with a list of the components of the bill.

For each bill of materials, you specify rules about the item into which you manufacture. You have the following options:

You can force the BOM to manufacture exclusively into an inventory item you specify on the bill of materials. In this case, you cannot enter an inventory code here.

You can set a default manufactured item inventory code to manufacture into, which you can change, or you can leave the manufactured item inventory code blank on the bill of materials, and you must therefore enter it here. If you can enter the item to manufacture into, enter it in the Inventory Code field. This is a standard database entry field. You can enter the code to select a record. In addition, you can use the Zoom facility to select or edit records, and the Add facility to create records. If you use the Multi-Store add-on module, choose the store you are manufacturing into in the Store field. You can enter the code or Zoom to select the item.

The system displays the item description as well as its quantity on hand.

In the Quantity field, specify how many items you wish to manufacture. As you do so, the system updates the component table at the bottom, showing the on-hand and required quantities for each component. If there are insufficient component quantities to manufacture this quantity, or if the manufacturing process will reduce the quantity on hand to zero, the quantity displays in red.

If the quantities will go below zero, one of two things can happen:

If you allow negative quantities, the system warns you that some component items will have negative quantities but you can still manufacture.

If you do not allow negative quantities, the system issues an error message and you cannot manufacture.

If you wish to print a picking slip of items you require for the manufacturing process, click the Print Picking Slip button. You set up the picking slip document in the Bill of Materials tab of the Inventory Setup function. You can use the Forms Designer to customise the picking slip.

In the Description field, enter a description that appears on your manufacturing audit trail. It defaults to the description of the manufactured item, but you can change it.

If you use the Serial Number Tracking add-on module:

If you are working with a serialised manufactured item, you need to create serial numbers. To do this, Zoom on the field to the right of the Quantity field. For details about this, click here.

If you have serialised components, you need to select the serial numbers to manufacture. You do this by Zooming in the Selected column in the components table. If the manufactured item is also serialised, you have the option of matching component serial numbers to manufactured item serial numbers.

Click the Manufacture button to perform the manufacturing process. You have option of performing a backup prior to manufacturing.

You can print the Bill of Materials Audit Trail report for details about the manufacturing transactions.

Once you manufacture, you can unmanufacture if you need to. To do this, the system uses the reference number it generates when manufacturing. The reason is that you may change the bill of materials after you manufacture. Even if the bill of materials does not change in the interim, the costs may have changed.

To unmanufacture

Choose the unmanufacture option.

Set the period and date on which the transaction occurs:

In the Period Selection for This Year list box, select the period. If you are a single period processing user, the system sets the period and you cannot change it.

In the Date field, enter the date. The system defaults to a date in the current period. If you are a single period processing user, the system does not allow you to use a date outside the current period.

In the Code field, enter the item code of the manufactured item. This is a standard database entry field. You can enter the code to select a record. In addition, you can use the Zoom facility to select or edit records, and the Add facility to create records.

The system verifies that there is at least one manufacturing process available to unmanufacture. If there is none, the system issues an error message. If there is, the system displays a list of transactions in the table, and the quantity that is available to unmanufacture.

Click the reference in the table that you would like to unmanufacture. The system displays the components from that manufacturing process in the table on the right.

Enter the quantity of items to unmanufacture. You cannot enter more than the Available Quantity in the table. The available quantity is the number of items you manufactured minus the number of items you previously unmanufactured, if any.

In the Description field, enter a description that appears on your manufacturing audit trail. It defaults to the description of the manufactured item, but you can change it.

If you use the Serial Number Tracking add-on module:

If you are working with a serialised manufactured item, you need to select serial numbers to unmanufacture. To do this, Zoom on the field to the right of the Quantity field. For details about this, click here.

If you  have serialised components, you need to select the serial numbers to unmanufacture. You do this by Zooming in the Selected column in the components table. For details about selecting serial numbers, click here.

If both the manufactured item and components have serial numbers, and you matched component serial numbers to manufactured item serial numbers when you manufactured, you do not have to choose component serial numbers to unmanufacture – the system knows which serial numbers to use.

Click the Unmanufacture button to perform the manufacturing process. You have option of performing a backup prior to unmanufacturing.

In this section, we look at bill of materials reports.

To access this function

Choose the View…Manufacturing menu option and select the report you require.

You can also use the System Navigator to navigate to these functions.

You produce bill of materials reports using standard reporting methods. For details about these methods, as well as for details on setting print destinations and defaults, click here.

You have the following reports available:

Audit Trail - This is an audit trail of your manufacturing. It shows the manufactured item’s details. You can also select to see component details.

Bills of Materials - This reports shows information about bills of materials including components and additional costs.

Components Used in BOMs / Kit Item Codes     

This report shows where you use a specified component in your manufacturing. You can search through bills of materials, Kit Item Codes, or both. You must specify the inventory code of the component you are looking for.

Kit Item Codes - This prints out all the Kit Item Code information, including the components. You can select a range of codes.

Material Requirements – MRP  

This report helps you to determine whether you have sufficient bill of materials components on hand to manufacture a specified number of manufactured items.