Manufacturing Orders are used to build a product.
Set up a Manufactured Product
To set up a manufactured product is similar to setting up a kit (see Kit Product Setup for more detail). First, create the manufactured product and then set product arts as the raw materials or purchased products with the quantity you wish to consume while manufacturing.
Note: A Manufactured product can have up to 100 parts.
Create a Manufacturing Order
A manufacturing order can be created by navigating to the product record and clicking Create Manufacturing Order. This will create a project with the product parts as materials and the manufacturing project template as the project tasks.
Allocate Raw Materials
Allocating raw materials from stock is a simple process in AS. When a product part is allocated, an outbound Manufacturing Inventory Movement is created which removes the product parts from available inventory. A debit to the Work In Process GL Account in the Default GL Accounts is created, and a credit to the product part Inventory GL Account is also created in the General Ledger. The steps to allocate raw materials are as follows:
- Navigate to the Project page.
- Click Allocate.
- Take the respective raw materials out of available stock on the Allocate screen and click Save.
Materials for a specific project or group of projects can be created in AS. When purchase orders are created from material lines in a project, the relationship between PO line and Material line is preserved. This provides full traceability back to purchase order line from a manufacturing work order if needed. Steps to purchase materials for a project are as follows:
- Navigate to the Projects List View.
- Select the project for which to create purchase orders.
- Click Purchase Order Fulfill on the List View.
- Create draft purchase orders by vendor.
- Review draft purchase orders and click Save.
Build Finished Goods
Building finished goods creates an Inbound Inventory Movement that relieves work in process inventory and creates a finished goods inventory record. To build a finished good the manufactured product field on the work order must be populated. The steps to build are:
- Make sure the Manufactured Product field on the work order is populated.
- Click Build on the project.
- Indicate the quantity to build and the warehouse location to place the finished goods.
- Click Save.
- An inbound inventory movement related to the work order will be created.
Note: There is a build limit of 100 for serialized products. There is no build limit on non-serialized products.
Do you have a recommended process for building custom products?
Do you need to create a new product (and inventory balance) for every custom build you do? or is there some more nimble way to manage the customizations based on a single product?
Each finished good that is being sold should be setup as a separate product. Once setup, multiple manufacturing orders can be generated per product.
Most companies building custom products use project accounting versus "Product accounting". The projects are really the tool to build whatever they want. Using the completed contract methodology they can code all the transactions to a "Work in process" GL account on the balance sheet. They can simply recognize expense and revenue when they sell the item.
Thanks Tony, That's helpful! Can you tell me more? Or do you have any examples of how that would work in practice? I theoretically understand how that would work, but I'm a little fuzzy on the specifics of how things flow.
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