This module adds manufacturing facilities. Manufacturing lets you combine raw material inventory items into another inventory item and track their costs.

A bill of materials is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, components, parts and the quantities of each needed to manufacture an end product.

The cost of the manufactured item is the sum cost of the costs in the Bill Of Materials.

 

Before you start, check if the following settings are correct.

Go to Stock > Stock Options.

 


Select Allow Negative Stock if you want to manufacture an item, even if you don't have stock on hand. .

 

This practice is not recommended

Select Strict BOM. This will prevent you from changing the Bill of Materials items as well as the quantities while you still have stock on hand. You won't be able to change the Bill Of Materials before SOH = 0. .

This is highly recommended

 

 

Go to: Stock > Stock Extra > Bill of Material

Step 1. (Bill of Material Look up Form)

Right click on the item you want to manufacture and select Open this BOM

Stock Addition Info TabBill Of Material numberEdit filterSearch rowPrevious production runsRefresh button
Bill of Material lookup

Bill of Material lookup

 

 

Step 2. (Bill of Material Form > Components Tab)

Add all the components with their quantities that make up this item (see explanation of quantities below).

SaveBreakup Component Cost
Add components to the Bill of Material

Add components to the Bill of Material

 

How to use the Quantity on the components tab (this is not the manufactured quantity)

 

Example 1 - Manufacturing a bike consisting of Item 1 (40) and Item 2 (60)


Qty = 1







Qty Raw

Shrinkage

Final Qty

The manufactured item will consists out of:

To manufacture 5 bikes you will need:

(the 5 is entered on the Process Production Run tab)

Item 1

40

0

40

40/1 = 40

200

Item 2

60

0

60

60/1 = 60

300

Butcher Example






This is handy if you have a butchery and bought some sheep and know you want to break it up in its different components, using percentages to specify each component

Qty=100 (working in percentages know)


Quantity to break up = 20 kg (e.g a lamb). This quantity is entered on the Process Production Run tab.

The break up item will consists out of:


Qty Raw

Shrinkage

Final Qty



Item 1

40

0

40

40/100=0.4 x 20 =  8 kg


Item 2

60

0

60

60/100=0.6 x 20 =12 kg


 

Shrinkage %

If shrinkage is involved fill in the Final Qty first and the shrinkage %.

Example: Qty Final = 40, Shrinkage = 10% the Qty Raw = 44

This means that while you only use 40 units due to shrinkage / wastage you need to start with 44 units.

 

Please note:

If you type in the Raw Qty first and Shrinkage = 10% then the Final Quantity will be decreased to 36.

 

You may need to reverse manufacture (break up) some or all of the manufactured items. SI+ then decreases the quantity of the manufactured item and increases the quantities of the raw material items.

When you invoice a manufactured item, you treat it like any other inventory item. Your customer does not see the component items.

 

Step 3. (Bill of Material Form > Process Production Run Tab)

Select Process Production Run to Manufacture or Break Up a previously manufactured items.

Add the Quantity to Manufacture.

Check that you have enough stock on hand to manufacture that quantity.

Add all serial numbers, if necessary.

SavePrintDocument NumberQuantity to ...Manufacture or Break Up
Process Production Run

Process Production Run

 

Field

Description

Quantity to manufacture

Enter the quantity to manufacture or break up.

In Stock / Qty available to break up

This is the previously manufactured items that is still in stock and available for breakup.

Quantity that can be made

This is the maximum quantity that can be manufactured.

Component Cost Total

This is the cost of the manufactured item.

 

QCBM: Quantity that can be made. In the example above there are 3 cranks available but because you are using 2 cranks to manufacture a bike the QCBM is 3 (available) / 2 (quantity needed) = 1.5

 

If you manufacture 1 the manufactured item will consists out of 40 units of item 1 and 60 units of item 2.

If the Quantity was for example 100 the manufactured item will consists out of 40/100 = 0.4 units of item 1 and 60/100 = 0.6 of item 2.