Manufactured Products are inventoried Products that must be built utilizing other inventoried Products. These Product Parts can be either Purchased Inventory Products or Manufactured Inventory Products. The sale of Manufactured Products can originate either in an Opportunity, from which the Sales Order is created, or it can be added to a manually created Sales Order. Building the Manufactured Product, though, is a completely separate process and does not require or link to a Sales Order. In fact, the Build process button is only available from the Manufactured Product record itself.
There are only two (2) prerequisites to build a Manufactured Product:
- The Manufactured Product record must be created and its Product Parts assigned.
- There are sufficient component Product Parts available in inventory. All of the product parts that are required to build a Manufactured Product must be available; partly building a Manufactured Product is not allowed. For example, you need one (1) part A and one (1) part B to build Manufactured Product X. There are two (2) part A’s and one (1) part B available in inventory. Only one (1) Manufactured Product X can be built. You cannot partly build a second Manufactured Product X using the second part A.
The first step in Building Manufactured Products is creating the Manufactured Product record and assigning its Product Parts. Product Parts can consist of purchased products and/or other manufactured products (e.g. sub-assemblies). The inclusion of other Manufactured Products supports a multi-level Bill of Materials (“BOM”).
The actual Build process is covered in Build Manufactured Product article.
Create a Manufactured Product
To create a Manufactured Product record, all of its Product Parts should already be set up as Products. (The process is documented in the Inventoried Product Setup article.) Currently, a Manufactured Product has a product part limit of 100 product parts. The build process will not enforce a limit to the quantity of products built. Once all of the Manufactured Product’s components have been created, follow these steps to set up the Manufactured Product.
- Navigate to Accounting Home and click the Setup tab. Then, under the Master menu, click Products.
- Click New to create a new Manufactured Product.
- Required fields are:
- Product Name.
- The Active checkbox must be checked for the Manufactured Product to be Active.
- Product Currency
- Average Cost System - Product Currency is not used and therefore can set to any value.
- The Inventory Product checkbox must be checked.
- Inventory Type - this must be set to “Manufactured.”
- Recommended fields are:
- Revenue GL Account - The Revenue GL Account for the product will automatically populate on the Billing Line if it is set on the Product record.
- Expense GL Account - The Expense GL Account is debited when the product is allocated on a Sales Order. For more information on the debits and credits behind product transactions, please see Debit & Credit Entries Created When Posting.
- Inventory GL Account - The Inventory GL Account is used in the accounting of all inventory movements in Accounting Seed ERP. The inventory GL account is credited when the product is allocated on the sales order. For more information on the debits and credits behind product transactions, please see Debit & Credit Entries Created When Posting.
- Building Serialized Manufactured Products is currently not supported. Do not check the Serialized checkbox.
- When complete, click Save.
- Next, the Products Parts that make up the Manufactured Product need to be assigned to it. Product Parts are listed on the related lists tab. Click on the Related tab on the Manufactured Product.
- Locate the Product Parts related list. To assign Product Parts click New in the Product Parts related list.
- On the New Product Part screen:
- Select the Product Part that is to be included in the Manufactured Product. (This Product should already be a defined Product, but can be created here by selecting + New Product.)
- The amount entered into Quantity should be the number of Product Part units required to build one (1) Manufactured Product. For example, if only one (1) widget is needed for one (1) Manufactured Product, the Quantity is 1. If four (4) widgets are required for one (1) Manufactured Product, the Quantity is 4.
Note: Negative Quantities are NOT allowed.
- The Currency should be the same Currency as the Manufactured Product. When complete, click Save.
- Repeat the above step for all of the Product Parts required.
- A Manufactured Product can have up to 100 product parts.
- The Product Part selected can be either a Purchased Product or another Manufactured Product. This allows for a multi-layer Bill of Materials (“BOM”).
- All Product Parts assigned to the Manufactured Product will be shown in the Product Part related list.
- In addition to the Product Parts being shown on the Manufactured Product, the Manufactured Product will also be listed in the Parent Product related list of the individual Product Part record(s). Below is an example.
Note: A Product Part can be assigned to more than one (1) Manufactured Product and also to Product Kits.