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[Austin Winkler]

?Hi All,

Interesting scenario here; I have a food manufacturing company that is set up correctly to use phantom BOM’s as they do not stock their Bulk material.

However, occasionally, before the Bulk material can be packaged and the Finished Good inventory can be registered, they realize that material needs to be reworked or scrapped, so they leave it in a tote or in barrels, and the weight is measured in kilograms.

The issue is, since that Bulk material is set up as a phantom, the production order is set up to produce the Finished Good item in the inventory unit of ‘cases’ rather than kilograms.

What is the best way to register the Bulk material in order for it to be reused, if:

1.  I cannot stock the Bulk product?
2.  The inventory unit of the physical material (KGS) is measured differently that what the system is expecting me to register (cases) ?

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Thanks,
Austin

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[Jonathan Anderson]

Austin,

Are you using formulas?  If so could you set up another part number that is the Bulk item waiting rework in the UOM of KGs and set it as a co-product?  Then you could set co-product Co-product variations on the formula version without adding the co-product as a planned co-product.  Then when this happens you RAF the co-product against the production order instead of the finished good.  Then you’d have to create a new batch order to consume that co-product into the Finished good along with any extra product and labor you added during re-work.

Thanks,

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Jonathan Anderson
Senior Managing Consultant
BKD, LLP
Denver CO
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[MICHAEL MILLS]

Hi All,
Completely agree with Jonathan.  The only other issue is cost of the co-product and how is cost allocated which probably should be TCA.

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Michael Mills
AX D365 Sr. Enterprise Consultant Operations
Blue Horseshoe Solutions
Carmel, IN
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[Austin Winkler]

?Hi Jonathan and Michael,

Looks like this will work for this situation.

I appreciate you guys taking the time to respond.

Thanks,
Austin

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Austin Winkler
Griffith Foods
Alsip IL
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