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[Music] hello and thanks for watching this Cloud9 Erp solution video and subscribing to our YouTube channel in this video we're going to talk about the basics of manufacturing how to get an item together so that you can produce it into a finished good so in manufacturing we have many different methods to produce an item what we're talking about is a raw material some piece of item that we're going to take and make it into something finished and typically the challenge there is with systems that don't have manufacturing or any ability to do this is you want to take multiple quantities of different items and produce a single finished good so for example let's say I am building a table I need one piece of wood and maybe four legs and maybe I need you know four brackets and four screws to put all that together I have to deduct all those quantities of all the raw materials and come out with a finished good a finished table that I can then sell so the process involved in that of course is all the materials that cost up to making that table and any given labor now of course in academatica we have the ability to do kit assembly and that's a very simple approach to doing it but today we're going to talk about our manufacturing Edition and we're going to talk about creating a raw material item creating a finished good item creating a bill of material that's our recipe for making this item and then we're gonna sell it and actually produce it so let's get started [Music] so the first thing we're going to do is we're going to go to inventory and we'll go to stock items and I'm not going to create the whole item I am going to show you what I created and some of the important configuration areas that you need to check and make sure they're set up otherwise it won't function correctly so in this scenario we have a stone manufacturer the manufacturer buys slabs of stone and makes thin Stone kind of stone that you put on a house for example very thin but they take that big amount of stone and they break it down and they have a saw that cuts it into thin Stone so one of the challenges there is they buy in tons and they sell in square feet so the first part is we go to our raw material we'll create an item here and of course we'll give it a inventory ID we'll give it a description well pick an item class keep in mind your item class does a lot of leg work for you in acumatica it pulls in a lot of the defaults that are important to you such as in this case the fact that of course it's a stock item but the fact that it's a component that's important to note all of the valuation and tax settings and the GL posting settings and all that stuff will come in it does bring in the base unit of measure and all that stuff of course we change that and then Additionally you can go in and there could be some replenishment things like that we're not going to talk about any of that today but all of those settings come in from your item class as a default so we have our item class it's a component part the valuation method all of that stuff we're gonna when we make it we're gonna put it into our default Warehouse the base unit of measure is ton and the sales unit is ton and the purchase unit is ton as well so we do purchase this but we don't necessarily sell it we finish it before we sell it so you'll notice there's no conversion here it's not really necessary because we don't convert this directly we use our production order to do that for us so if we go into our price we can put a price on this as the last cost we paid for it we go to Manufacturing over here we have a default bill of material planning and configuration we don't need these because they're raw materials we're not manufacturing this item we're taking this item to use to manufacture something else so we put that in there and that's pretty much it for the raw material for now we're good now the next thing we want to do is configure our thin Stone so once again that is a finished good not a component and our sales and purchase unit are square foot that's how we sell it to customers we have a price per square foot here and under manufacturing we do have a default bill of material we'll take a look at that in a second Additionally you can check off this or make to order item so this allows you to say that when you put it on a sales order a manufacturing production order can automatically get created and directly related to that sales order it'll be a link between them so you can do that you can check that off and then the system will automatically check it in the sales order that's an option but now back to our bill of material let's take a look at that we have our raw material that's the slab and we have our thin Stone so let's look at our bill of material the bill of material is a recipe for producing this finished good item finished good item being within Stone so when we make this item we make it in the wholesale warehouse you can see that there so once it's created we're going to inventory receipts create an inventory receipt transaction automatically in the background into that warehouse [Music] the top area here is your operational steps for producing this item now this particular item to make it requires a couple of steps we've simplified it here but essentially we're just showing the cutting step but there's actually one other step there but the idea here is that in order to produce 75 of these units it'll take us one hour so what does that mean well 75 is 75 square feet remember that was our unit of measure so every hour we can produce 75 square feet that's what we put here we've also added an hour of machine time so we can track the machine time the machine that we're using the machine itself is part of our work center additionally there's a check box here for back flush the concept of back flush is that we automatically use our labor or our materials we don't physically clock in and clock out for our labor and we don't physically attach materials to each production order we assume these numbers and the system will back flush that in it's a very simple way of producing but it's also very beneficial to many companies that don't want to look at every single detail of their process or track every single detail of their process in terms of time and materials the work center is our basis for capacity so our standard cost is 75 per unit and our crew size is the basis right here and if we go over to our shifts you can see we have approved essentially one here and you can go in here you can change your labor rates you can change your your calendar shift and how long that shift is later if you get more advanced you can optimize your shifts or to get to the production you need to fulfill the quantities you have outstanding and of course you can track overhead you can use a percentage here of overhead and your machine costs there's accounts here for that and when you're looking at the work center without bringing it up from a bill of material when you're looking at the work center you can see all the different billing materials or bombs that are using this work center this is beneficial so that you can know how making a change here can impact all these different production items [Music] and that's what we're doing here we're using this Fieldstone slab so in order to produce 75 units this is the amount of tons we require keep in mind there's four decimal places here that's a change you can make in the company profile in accumatica otherwise the default is two decimal places I needed four so it's going to cost us 60 dollars our plan cost is here based on what we're trying to produce and additionally in the Bill of material you can actually calculate your filler material cost so for example if you said all right well I need to make a thousand square feet and I click OK here academic will tell you what your labor and materials will essentially be so now we have our bill of material our recipe it's not on hold we took it off hold it's currently active make sure you attend to that and if we go to production orders [Music] and we do a brand new one we scroll down we tell it how many square feet we're going to create maybe we're creating 1560 square feet we're gonna start it right now the references tab gives you the ability to link it to a customer or an order we're not going to do that right now we don't need to but it had we created this production order from a sales order then of course you'd have a link to order here and the source or the recipe is coming from the bill of material however you have other options here you have an estimate or configuration these are Advanced topics that we'll cover later in another video so now if I save this and I release the order in releasing the order I'm essentially releasing it to the shop floor so they can get started on it so status released means it's ready to go start working on it so there's a few options here the first one is if you look at the production detail it actually gives you the information about how to make this remember the person creating the bill of material is not the same person that is on the shop floor creating this so while the bill of material is your template your recipe this is actually how we're making it and when it's not in the release status you can make changes for each production order if you need to but we have options here if we take a look at are for example critical material acumatica will tell you if you need anything any items that you might need in order to get this job done I'm clicking show all items but quantity remaining and quantity on hand we have plenty of quantity for what we need so that's not necessary in order to do what we need to do notice it's telling us it's 22 tons is what we need but again we have it available having said that if you did need materials you could check off the items that you need and either purchase them manufacture them or transfer them from other warehouses so you can do all that right from the screen and manufacture the option there is that perhaps in order to get this stone slab maybe I'm manufacturing it in a different bill of material a different type of production order to get this raw material in many cases you may produce your own component items out of other raw materials so using raw materials you'll produce components those components will later be needed for your total finished good which is why we have the manufacture button here but if we go back to production order details you can see what's required to do here and if we go back to our production order pencil under the maintenance screen again there's a maintenance and a detail screen we just left you have all your options here so plan order brings it back to the ability to change it of course we can cancel the order if we need to [Music] we talked about replenishment the ability to create purchase orders or production orders if they're out there skipping over creating a move transaction we'll do that in a second production detail we went to critical material we went to and you have a number of inquiry screens to learn about where your raw materials are and your allocation details would give you that any transactions that you produced any attributes custom attributes if there's a schedule involved we're not getting in that today but here's our production ticket so our production ticket is often referred to as a traveler and that traveler can be printed out and handed to your production worker so they know what to do now you notice this is barcoded that works with our automated barcode reading system where a worker can scan what they're working on what work center they're tied to what their badge number is so you can get their labor what production number they're working on and the item and so now you'll have complete barcode scanning to move this item around and update its status and progress throughout the production order [Music] so while we can always attach materials and things like that to this production order because we back flush everything we can come over here and create our move transaction so if I move over a little bit just to show what we're doing here we only have one operational ID as you know so accumatica is creating a move transaction with that one operational ID but if you have different steps then you can proceed further or you can do each step just to show your progress again as a production worker you can tell the system how far along you are and what your quantities are throughout the progress of this production order so to finish this finish the entire quantity and all the steps involved I can use the last operational ID again there's only one and the quantity the total quantity that I'm looking for 1560 which is on my production order maintenance and I can take off the hold and release it now there's preferences too for producing more or less you can give yourself options based on the order type here so there's preferences in the order type but in this case I'm going to produce everything I need I'm going to hit release Here and now that I created my move transaction if I close this I'm back in my production order maintenance if I go over to my events tab the events tab tells you everything that's happening earlier you know that we released the production order and there's the time date stamp and who did it this admin I printed a report I did my move transaction which in turn did my material and cost transaction and of course because I did the full quantity in my move transaction accumatica has shown this is completed [Music] so and you see it's still released here but if I refresh you see it's completed and all my menu items have changed if you need to get into any of these transactions you can click on them just to see for example the detail so the material transaction took those 22.8 and so tons and attached to the production order with all the costs this is the total cost you can get into all of that and then my labor cost is here as well we back flush that as well so our operational steps our work center had all that labor in it and then finally our move transaction but we saw that already the last step in this is you have the ability to close the order so this is your final step in closing the order and getting it 100 done click on that you can see acumatica brings us to our close order screen it's automatically checking the one we're in and if we click process that'll finalize it now if we go into thinstone we just click on that item that brings up the inventory item profile and one of our previous videos not too long ago we have these new side panels that show us what's going on item pricing for sales for vendors inventory summary how much do I have and what areas but if I go to inventory transaction history and I move this over a little bit what you can see here is a complete history of this item right from the time that it was created over here on the ninth had zero quantity but quantity in was 102. and if you need to see more details you can click on that particular document number it'll open it up so you can see that right here if we make it maximized 102 quantity square feet and if we go to our manufacturing notice there's a batch number typically an inventory receipt is for purchase orders where you receive them but in this case this is a production transaction and our manufacturing system uses that inventory receipt to put those items into stock which is what we see here when we click on inventory transaction history we could see the transaction we just did which is the 1560 quantity in so we had 1240 we're adding 1560 to it and now we have 2 800 and our unit cost is now 1.88 so that's it that's a quick production order of course you can create this through a sales order there's a check box in the sales order line that says Mark for production if you do that it can automatically create the production order for you and then once it's done it can communicate to the sales order and let that sales order know that it can ship out keep in mind that if you do create a production order from a sales order if that sales order cannot ship out even if you have stock until your production order that is linked has been completed just keep that in mind in case you have a an order that won't ship because the system says there's no items to ship well that's because it may be linked to a production order that's not completed same thing holds true with sales orders that are linked to purchase orders the purchase order didn't come in yet you're not going to be able to ship that sales order unless you de-couple that link between the PO and the sales order but that's it that's manufacturing 101 taking some components or raw materials and making a single item a finished good out of it if you have any questions about this or anything else acumatica feel free to reach out to us we'd love to hear from you if you liked the video please click the like button down at the corner YouTube and thanks again for watching