Additional Options When Managing Formula Revisions

Companies can configure the system setup to Overissue and Propagate Lot Numbers, Expiration Date, and/or Attributes. The Overissue amount is a percentage that will be added to the "required" and "to issue" amount when issuing material to jobs, but not be relieved when backflushing the BOM of the finished item. This option can be used together with scrap factors as the "required" and "to issue" amount will include both the scrap factor amount and the over-issue% amount. During job finish, the quantity backflushed will only include the scrap factor, leaving the over-issue amount in WIP to be handled manually. Any amount left in WIP will be relieved during job close. If not issuing, then the over-issue% will have no effect.

The Propagation flags on the Edit BOM Line form allow users to specify that lot numbers, expiration dates, and attributes from the bulk materials used on BOM revisions be carried over to the finished good(s) when finishing production. This is useful when inputs dictate the characteristics of outputs and when the same user lot will be used for both the subassembly/raw material and finished good.

Configuration

Using these additional options requires the same configuration as defined on the Adding and Modifying BOM Revisions Best Practice page.

Process

Configuring Overissue amounts

  1. Navigate to Inventory > Item Master > fill in pre-filter as desired > click "View".
  2. Select a Part from the list and click "Modify".
  3. Navigate to the General 1 tab and input a value as a percent in the "Over issue %" field.
  4. Click "Save" and "Exit" to commit the changes and close the form.

It is important to note that the Facilities tab on the Item Master also contains an "Over issue %" field. If this field is populated and the "Use Scrap and Over Issue" flag is checked for the Facility, the system will use this value when issuing inventory on jobs for this part in the specified Facility, both in terms of costs and inventory issued. If the Part in question has one or more Facilities specified on the Facilities tab and the Scrap and Over issue factors will be unique:

  1. From the Part's Item Master, select a Facility and click "Modify".
  2. On the General tab, check off the "Use Scrap and Over Issue" flag, which makes the fields below modifiable.
  3. Enter an amount in the "Over issue %" field.
  4. Click "Save" and "Exit" to commit the changes and close the form.

Example - Over-Issue Percentage Used on a Job

  1. Find a finished good that has a BOM containing, among other items, a quantity of 1 raw material. The quantity of the raw material required to make one of the finished good should be a 1 to 1 ratio.
  2. Set the raw material to have an over-issue percentage of 5% on the item master (set the scrap % to 0.00 to avoid confusion) and clear the property checkbox “Don’t include for job issuing” so that it will be issued to the job.
  3. Set the finished good to “Backflush BOM at job finish” on the item master property tab.
  4. Create a job for 100 qty of finished good
  5. Issue materials to the job. The issue list should include 105 Raw Material: (100 Finished Good * 1 Raw Material per Finished Good) + (100 * 5% overissue).
  6. Finish a quantity of 100 off the job, but don’t close the job.
  7. 5 of the Raw Material should be left in WIP, with 100 removed by the backflush on finish of the finished good. If all of those 5 were actually used, the job can be closed and they will be relieved. If any of those 5 are still unused, they can be de-issued before job closing to more accurately manage inventory. This can be verified by running the Inventory History report with a view type of “All” for the raw material. The report will show the 105 qty going out into WIP inventory during the issue inventory step and 100 going out of WIP during the relieve job step.

Configuring Propagation flags

  • Propagating User Lot - This option works in conjunction with the CHILDLOT function, which is available to the "Lot # Expression" field in Inventory Options, and supports the ability to have the User Lot number from the bulk material used in production carry over to the Finished Good when finishing production.
    • Note: Simply checking this flag will not propagate the bulk material User Lot number to the Finished Good User Lot number. For the process to work, the CHILDLOT() function must be used in the "Lot # Expression" field.
  • Propagating Expiration Date - The Expiration Date from a Subassembly may be transferred to the Finished Goods produced from that Subassembly. If option is used, DEACOM will check the relieving Lots for this BOM line. It will do this for each of the BOM for the specific BOM parent. If any of these relieving Lots have an expiration date, the earliest date will be used for the finished product's expiration date. Expiration dates trump Shelf Life.
  • Propagating Lot Attributes - Option to have the lot attributes from a Subassembly or Raw Material transfer to the Finished Goods produced from that Subassembly or Raw Material. Only one BOM line can have this flag checked within a revision. If a Job has issued materials and the BOM has a line with this flag checked, users will be able to see the attributes populated on the Finished Good Lot. Otherwise, if there is nothing issued and the Finished Good is marked with backflush, and this flag is checked, the attributes will be copied from the first Lot relieved.

When adding or modifying BOM Revisions:

  1. On the Edit BOM Line form, navigate to the General tab.
  2. If the Part on the BOM Line being added:
  • Has an expiration date and that expiration date will be the same for the finished good, check off the "Propagate Expiration Date" flag.
  • Is assigned to a user lot and the same user lot will be used for the finished good, check off the "Propagate User Lot" flag. This field works in conjunction with the CHILDLOT function, which is available to the "Lot # Expression" field in Inventory Options, and supports the ability to have the user lot number from the bulk material used in production carry over to the finished good when finishing production. Additional details regarding this option, together with examples, are included in the "Lot # Expression" field explanation in Inventory Options.
    • Note: Simply checking this flag will not propagate the bulk material user lot number to the finished good user lot number. In order for the process to work, the CHILDLOT() function must be used in the "Lot # Expression" field.
  • Contains attributes that will transfer to the finished good when finishing production, check off the "Propagate Lot Attributes" flag. Note that only one BOM line can have this checked within a Revision. If a job has issued materials and the BOM has a line with this checkbox checked, users will be able to see the attributes populated on the finished good lot. Otherwise, if there is nothing issued and the finished good is marked with backflush, and this box is checked, the attributes will be copied from the first lot relieved.

Example - Propagating Lot Number on a BOM Line

The "CHILDLOT()" function is available for use in the "Lot # Expression" field in Inventory Options. This function works in conjunction with the "Propagate user lot" flag on the Edit BOM Line form when editing a bill of materials. The purpose of this feature is to allow the user lot number from the bulk material used in production to carry over to the finished good when finishing production. For example, let's assume we have a finished good of a 5 gallon can of paint. The bill of materials for this 5 gallon can of paint includes the can, lid, label and finally, the paint itself which is the bulk material. Assume we want to have the user lot of the paint which was consumed in the production process (either via issuing or backflushing) carry over to the final product, namely the 5 gallon of paint.

To accomplish this:

  1. Check the "Propagate User Lot" flag on the bulk material (paint) on the BOM for the finished good (5 gallon can of paint).
  2. Place, at a minimum, the following value in this field, CHILDLOT(). When quantities of the finished good are produced and placed into inventory or QC, the user lot number of the finished lot will be the same as the user lot number of the bulk material that was consumed by or issued to the job. Additional fields and/or expressions can be used within the brackets of the CHILDLOT() statement.
    • Note: The CHILDLOT feature is designed to be used in situations where bulk materials or subassemblies are made on jobs separate than the finished goods. In this way, the bulk material or subassembly will already be available in inventory with a lot number. When this lot is issued to the finished good job or a lot is consumed, via backflushing, to the finished good job, then the lot number will be carried over to the finished goods that are placed in inventory.