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Bill making format for Manufacturing

hello and welcome to the first in our series entitled overview of the production module in s AP Business one in this session we will cover the basics namely creating a bill of materials and executing a simple production run now that I've logged into s AP Business one I will proceed to create a bill of materials I'll do that by opening my menu moving to production Bill of Materials think of Bill of Materials as a cookbook recipe for what you are about to make the item that you are about to produce will switch to add mode and we'll enter our finish good in this case we will say that we will be creating a recipe for finish good 100 and this recipe to continue my metaphor will yield two units my builder material type for use in the production module must be production the other types of assembly sales and template are used elsewhere in business one I will now add the components to the little material and I will start by saying that the first component is component 100 and we'll need four of those and then we'll say component 200 we'll need two of those and then lastly we'll say that we'll need one quart of blue paint all of these inventory items will be pulled from warehouse 0 1 they don't need to be they can be pulled from any warehouse they don't need to be all pulled from the same warehouse so one could be pulled from warehouse 1 and I know they could be pulled from warehouse 2 for example and they don't need to necessarily be sourced from the same warehouse that the finished good will be placed into just for convenience I will let that be the case in our example also a bill of materials can include things other than inventory items very often we will see that laborer for example is used in our Billa material so that the cost of labour would be included in the cost of the finished item we are going to go ahead and add two types of labour we're going to add a senior technician and a pain specialist will say that the pain specialist requires 45 minutes to create two of these items so we'll enter 0.75 and we'll say that our senior specialist requires our senior technician requires two hours some other fields that I'll talk about the planned average production size is not needed for the production module it would be used in MRP for the MRP forecast so for example if the MRP forecast indicated that FG 100 needed to be manufactured it would recommend that the manufacturer quantity would be in the amount of the planned average production size in this case we're just going to go ahead and match the quantity that this bill of material would yield at - we could also set the product price for the price list indicated here of base price we will not do that alternatively had the components be set with prices in the base price price list we could set the price of the finish good to be the sum of the component prices by clicking on this arrow two more fields that you see are the distribution rule that would be used in the event that we were using cost accounting and project in the event that we were using project accounting neither of which we're using in our simple example so I will go ahead now and add the pillow materials now that we have bill of materials I will execute a simple production or to run I'll do that by opening up the production order screen and entering in the item code for what we just created the Bill of material form you'll notice that the components come in as we specified in the bill the planned quantity is defaulted to one so therefore it is calculating the necessary quantity for one of the finished good items or half of the bill of material because you will recall the Bill of material was set for a yield of two units we're going to change the plan quantity and make this production run for four units that in effect changes it so that the plan quantity is now twice what is called for in the Bill of Materials just as a cross-reference will drill back into the Bill of Materials and you can see for two 1.75 and two became eight four to one and a half and four you can set a different order date a different start date a different due date as necessary those are used in ing in ance with planning and the production floor it would also have an effect on your delivery schedule and available to promise if you were using those functions we're going to go ahead and leave it at the current date and I'm going to go ahead and add my production order you'll notice that I could have chosen to change any of the quantities I could have added more component items I could actually have also deleted rows if necessary from the production order the Bill of material is a recipe but as any good chef knows the recipe is a is a guideline and can be changed if necessary I will then go ahead and add it the status is planned it's my only choice but once I add the production order and am ready to actually commenced production I can come back to the production order and change the status to released and update when word comes back from the production floor that production order number 163 has been completed I change to find mode I call up 163 again if in the actual production any assign component quantities changed I could reflect that here these fields are all active and editable I will just go ahead right-click and report completion I will say that this actually took until the next day to complete so I will change the date I will advance it and say 163 for our finish good is going to be marked as complete for a quantity of 4 and I'm going to go ahead and add the receipt is now completed to indicate what happened to all of the inventory I will move to the inventory audit report for the day that I rip just for convenience the for the date that I reported completion I will expand to make it easy to see and you'll see that I have four items remember that the labor items are non inventory so they are not reflected on the inventory auto report I have the finished good coming in at four units and I had my three back flush components automatically decremented ingly you will notice that the cost of the finished good that was brought into inventory for the four units was a total of one thousand four hundred eighty eight dollars or three hundred and seventy two dollars a unit that does not equal the inventory components that were decremented for the components of 1228 1358 dollars the difference of course is the labor to illustrate that we see we had these components in these amounts their costs individual costs one twenty-five fifty seven and sixty five and then we had twenty five dollars for our senior specialist twenty dollars for our paint specialist for a total of one thousand four hundred eighty-eight dollars in total or three hundred and seventy two that concludes this session we hope that you found it worthwhile and we hope that you visit and view the other sessions in this series on overview of the production module in s AP Business one