Finishing Inventory Using the Produce Assemblies form

The Produce Assemblies transaction allows users to produce manufactured items without creating a Job, a Bill of Materials, or accumulating Job costs. The word "assembly" refers to any item or material that will be produced. The transaction covers a wide variety of scenarios including the creation of simple assemblies or components from multiple raw materials to the packaging of finished goods using a different package type. This transaction should only be used for specific scenarios outside of normal production processes. The cost of the item(s) produced is calculated based on the selection in the "Produce Assembly Allocation" field in Inventory > Options, described in more detail in the Configuration section below. The security setting "Inventory -- Produce Assemblies" controls access to this area. For additional information on the form, refer to the Produce Assemblies page.

Configuration

Prior to using the Produce Assemblies form, determine how the item costs should be calculated.

  1. Navigate to Inventory > Options.
  2. On the Inventory tab, make a selection from the "Produce Assembly Allocation" pick list. This selection comes into play when multiple items are being produced using the Produce Assemblies form and is used to specify how costs will be allocated to the items being produced.
    1. Quantity - if the cost of each item produced should be calculated as the total cost of all material being relieved divided by the total quantity of items produced.
    2. Standard Cost - if the cost of each item produced should be calculated as the total cost of all material being relieved, multiplied by the standard cost of the item produced, and divided by the standard cost of all materials being produced. This option requires that "Accounting Standard Cost" fields be populated on the Item Masters, even though they would not otherwise be used in Average or FIFO Cost modes. In Standard Cost mode, all items produced are added to inventory at standard cost, and any difference between the total value of material relieved and total value of material produced is posted to the Inventory Adjustment account specified on the Accounting > Options > Costing tab.
    3. Weight - if the cost of each item produced is the total cost of all material being relieved, multiplied by the unit weight of the item produced, and divided by the total weight of all materials being produced. This option requires that "Unit Weight" field be populated on the Item Masters.
    4. Volume - if the cost of each item produced is the total cost of all material being relieved, multiplied by the unit volume of the item produced, and divided by the total volume of all materials being produced. This option requires that the "Unit Volume" field be populated on the Item Masters.

Process

  1. Navigate to Inventory > Produce Assemblies.
  2. Select the Date and the Facility for which the assembly or product will be created.
  3. Click the "Add" button on the left-hand, or "Parts to Consume", side of the form.
  4. On the Edit Part to Consume form, indicate the Part Number and Quantity required for the first Part that will be consumed by the production Part.
  5. Determine whether a specific lot will be selected from inventory or the system is allowed to select the oldest lot available. Additional fields such as "Attributes" and "Expiration Date" may also be entered. Note: The "Lot" field will contain a default value of "System". This indicates that the oldest lot in the On Hand inventory segment will be used unless a specific lot is specified by the user via the "Select Lots" button.
  6. Once all information has been entered, click the "Save" and "Exit" buttons to complete the selection of the first item to consume. Repeat steps 3-5 for any additional Parts that will be used to make the production Part.
  7. Once all Parts to Consume have been entered, click the "Add" button on the right-hand, or "Parts to Produce", side of the form.
  8. On the Edit Part to Produce form, indicate the Part Number and Quantity that will be produced.
  9. Determine whether a specific lot will be selected from inventory or the system is allowed to choose one. Note: The "Lot" field will contain a default value of "System". This indicates that the system will assign a sequential lot number unless a specific lot is specified by the user.
  10. If desired, change the "Lot Date", which defaults to today's date, and also contributes to recalculation of the Expiration Date. The Expiration Date will default to the Lot Date plus the part's shelf life days, unless the part has a shelf life of 0, in which case the Expiration Date defaults to being blank.
  11. Fill in additional information as necessary, such as Attributes, a new Location, or an Expiration Date.
  12. Once all information has been entered, click the "Save" and "Exit" buttons to complete the selection of the first Part that will be produced. Repeat steps 7-11 for any additional Parts that will be produced.
  13. If any of the Parts on the "Parts to Produce" side require Catch Weights, click the "Catch Wgt" button.
  14. Users can either confirm that the actual Catch Weight is the same as the Default Catch Weight or, if the actual Catch Weight is different from the Default, enter in the correct value. To change an Actual Catch Weight:
    1. Select the desired record and click "Modify".
    2. On the Edit Catch Weight form, enter in the correct value in the "Actual" field.
    3. Click "Save" and "Exit" if only one record needs modification or click "Next" to enter the Actual Catch Weight for the next Part.
  15. Once all Catch Weights are confirmed, click "Save" on the Edit Catch Weights form.
  16. Once all information has been entered, check off the "Print Lot Labels" flag, if desired, then click the "Save" button to complete the process. For Parts marked with "Unit serialization", the Serial Numbers entry screen will be presented. For more information on Serialization, refer to the Utilizing Serialization page. The system will display a posting number. Users may check the Inventory Lots report in Inventory Reporting to confirm that that the items produced are now available in On Hand inventory.

Notes:

  • At-Risk inventory cannot be used when producing assemblies.
  • The "Unit of Measure" column is displayed on the "Parts to Consume" side of the Produce Assemblies grid. In addition, the Edit Parts to Produce form also contains a read-only field at the bottom to show the Unit of Measure being added. This helps users verify the "from" and "to" Units of Measure involved in the Produce Assemblies transaction.
  • The assembly created through the Produce Assemblies transaction inherits the QC results of the components (Parts to Consume) used. Thus, if a regulatory document is printed with the QCINFO block attached for the assembly in the future, the regulatory document is able to display the QC results from the components.