Moving Cost/Demand Between Multiple Manufacturing Orders

  • Moving Cost/Demand Between Multiple Manufacturing Orders

    Posted by sshankel@woodings.com on March 2, 2021 at 3:58 pm
    • Scott Shankel

      Member

      March 2, 2021 at 3:58 PM

      Our company does a lot of repairs.Ā  For simplicity, I will use an automobile repair as an example.Ā 

      Three automobiles come in for repair.Ā  Ā In GP, three sales orders are created with different sales prices based on what parts/labor are needed to fix each Automobile.Ā  A manufacturing order is also created for each automobile.

      Scenario:Ā  Automobile A (Mfg Order A) only needs a new alternator to fix.Ā  Manufacturing will install the good alternator from Automobile B (Mfg Order B) in Automobile A so it can ship to the customer right away.Ā  A new alternator for Automobile B will be bought or made at a later date.

      Question:Ā  How do we transfer the cost of the alternator from Automobile B to Automobile A and leave a demand for a new alternator on Automobile B? Ā Ā 

      Thanks in advance for your help,Ā  Ā 

      ——————————
      Scott Shankel
      Controller
      Woodings Industrial Corp.
      Mars PA
      ——————————

    • Wally Dodds

      Member

      March 3, 2021 at 9:04 AM

      Scott,

      I’m going to assume that you are using “Actual Costing” (i.e. FIFO Perpetual or LIFO Perpetual).Ā  In your example are you actually disassembling Automobile B and removing it’s Alternator and then installing the Alternator onto Auto A?Ā  If that is the case Mfg is not the right tool since Mfg wants to create finished goods by consuming raw materials.Ā  Mfg does support a concept called “Bi Products” but that is not likely what I see happening here.Ā  This overall process can get rather nasty or be relatively simple but in the end it really depends on how you have your Mfg items/BOM’s setup.Ā 

      I’m going to assume that the Alternator is an Item on the BOM for Auto A, Auto B and in this case both Auto’s need an Alternator.Ā  The Alternator was issued using the Component Trx Entry to Auto B and now instead you want to issue it to Auto A.Ā  You can simply process a Component Trx “Reverse Issue” to put the Alternator back into Stock from Auto B and then create a Component Trx “Issue” to consume the Alternator onto Auto A.Ā  Basically you can’t just transfer it from 1 MO to another you have to put it back into inventory first and then you consume it to the desired MO.Ā  Auto B will still show demand for an Alternator in this example.

      Again assumes a straight forward MO process based on your example and several unknowns.

      ——————————
      Wally Dodds
      Dorado Solutions
      West Chester PA
      ——————————
      ——————————————-

    sshankel@woodings.com replied 5 years, 6 months ago 1 Member · 0 Replies
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