Microsoft Word - White Paper for Production Item
Processing.docxPrepared By:
Charles Magee
1 Place Alexis Nihon, Suite 800 Montreal, QC H3Z 3B8 Telephone:
(514) 866-0001 Fax: (514) 866-1805 Email:
[email protected]
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Production Item Processing Flow
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Product
Master.......................................................................................................................................................................................................
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Planned Purchase Order Preparation
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Purchase Orders Generated
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Warehouse Quantities at this point
............................................................................................................................................................
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Receiving the Purchase Orders
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Warehouse Quantities at this point
............................................................................................................................................................
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Building the Assembled Items
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Customer Sales Order at this point
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Posting the Inventory Assembly Transactions
........................................................................................................................................
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Warehouse Quantities at this point
............................................................................................................................................................
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Invoicing the Customer Sales Order
...........................................................................................................................................................
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Warehouse Quantities at this point
............................................................................................................................................................
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Transaction History at this point
..................................................................................................................................................................
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Quick Overview
The general reason behind using production tickets is to generate
an internal document that will trigger the build of an assembled
kits and track raw materials requirements for it. This can be
requirements for a customer’s order, or to keep enough of the
Assembled item stocked on the shelf to meet min max or ROP/EOQ
requirements.
To understand the need for Production Item Processing, the user
must understand the differences between the types of kits
(A-Assembled and B-Built to Order) that can be created in Visual
Streamline.
Quoting from a previous FAQ: A 'B' or Built to Order kit can never
be stocked as the kit. It is intended to be built when it is on a
sales order. It will write a backorder record for the entered qty
required to fill the kit backorder. So if your order was for 15 of
KitA, and you have 2 of material A and 10 of material B available,
the it will take 2 of each and back order 13 for each. So if you
order based on the backorder links in PPP the system will want to
order 13 of material B and you only really need another 3 to make
15 of KitA. So linking doesn't work great for B items. However the
raw materials needed are committed and if they are products that
are purchased for stock they will purchase to fill the kits
also.
Assembled Items are stocked, the raw materials are not committed
when a sales order is entered, they will write a back order to PPP
file for the total backordered of the kit on the sales order also,
but only if the kit inventory details flag for purchase method is
set to Raw Materials. To get these to purchase enough raw materials
to build the kits, you must manually adjust your stocking
requirements on the raw materials.
Also for Assembled Items there is a Production Ticket business rule
that allows you to commit the requirement for the raw materials and
relieve it when you build the item. This requires training to use
and the BR should not be turned on and off as data corruption can
result.
If you would like to book consulting or training time to better
understand what is available and how to use it please let us know
or email George Toor.
Setup Requirements for Production Items
To enable Production Item Processing, the following requirements
must be met:
Business Rule INV52 (Production Bill of Materials) must be enabled;
any Assembled item have its Purchase Method set to ‘Raw Material’;
any Assembled item must have its Production Item flag enabled; any
Assembled item must be linked to an INTERNAL supplier (so
designated via the Internal Supplier flag in the
supplier master file).
Product Master
There are 2 assembled production items used for demonstration
purposes in this document:
PAI-1 (Production Assembly Item-1) whose bill of material consists
of the following: 1 EA of PAI-RM-1 (cost of $10.00EA, list of
$15.00EA); 2 EA of PAI-RM-2 (cost of $20.00EA, list of $30.00EA); 3
EA of PAI-RM-3 (cost of $30.00EA, list of $45.00EA).;
PAI-1 (Production Assembly Item-2) whose bill of material consists
of the following: 4 EA of PAI-RM-4 (cost of $40.00EA, list of
$60.00EA); 5 EA of PAI-RM-5 (cost of $50.00EA, list of
$75.00EA).
Item PAI-1 is shown in the screenshot below.
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Customer Sales Order
This white paper will take you through the creation of both a
production ticket and a raw material purchase order, the receiving
of the purchase order and the building of the production items, in
order to fulfill a Customer order for a production item.
The first step is to create a sales order for the production items
as shown in the screenshot below.
The order has been created for 10 of production item PAI-1 and 20
of product item PAI-2.
There are zero on hand for both production items, so both have been
backordered in their entirety
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Warehouse Quantities at this point
Even though the customer order that was created was for two
different productions items (PAI-1 and PAI-2), from this point
forward, the document will only be dealing with the productions
PAI-1 and its raw materials.
Shown below are the warehouse quantities for the production item
PAI-1 at this point in the Production Item pro
At this point the key warehouse quantities for the Production
Assembled Item PAI-1 are as follows:
OnHand ................................ 0 since PAI-1 is a new
production item never yet built;
Committed ................. 10 based on customer quantity
ordered;
ProductionRequired ........ 0
OnOrder................................ 0
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Shown below are the warehouse quantities for the first raw material
PAI-RM-1 of production item PAI-1 at this point in the Production
Item processing.
Note that even though an assembled item requiring this raw material
has been committed to an order as shown on the previous page, the
raw materials have not been committed.
At this point the key warehouse quantities for the first raw
material PAI-RM-1 of Production Assembled Item PAI-1 are as
follows:
OnHand ................................. 0 since PAI-1 is a new
production item never yet built, therefore raw materials have never
been ordered;
Committed ........................... 0
ProductionRequired ........ 0
OnOrder ................................ 0
Planned Purchase Order Preparation
After creating a sales order for production items that are not
currently on hand, the next step is to run Planned Purchase Order
Preparation. Its purpose is twofold:
to create purchase orders for the required raw materials; to create
a production ticket for the assembly of the production item.
The screenshots below show the required steps.
To create Production Ticket for Customer orders:
If you want the system to pick up the requirements based on the
sales order that was entered into the system, you need to run PPP
with the settings indicated.
NOTE running PPP for Production items only will not trigger system
to pick up requirements for order. You need to include both
Production Items and Include Back orders.
Assembled item
Raw materials
To check for additional raw material requirements outside of
Production Items:
The Include Raw Materials in Run will pick up any additional
requirements for the raw materials in the Productions Items that
have been found. This option is only available when the Production
Items box is checked.
You can reserve stock qty’s on hand to the production ticket also.
This can be done by using the auto link with Open P/Os
button.
Upon clicking on the Generate Button the above Generate Options
will appear:
A Creates a production ticket only with NO raw materials
requirement
B Creates a production ticket and also creates the raw materials
requirement as requisition
C Creates a production ticket and also creates raw materials
requirements as a Purchase Order.
To create Production Ticket for Stock levels for Assembled
item
If you want to have the system create a Production Ticket for the
min/max or ROP/EOQ quantities on an Assembled item, you must check
the Production Items flag, as well as the Include Items for
Stock.
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Purchase Orders Generated
After running the Planned Purchase Order Preparation for the
backordered production items, performing the validation and
generation, we can invoke the Purchase Order Maintenance screen to
see the generated purchase order and production ticket.
The screenshot below shows the generated documents.
The purchase order that was generated for the raw materials is
displayed as a normal purchase order.
The production ticket that was generated for the production items
is displayed in green.
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Assembled Items Production Ticket
Shown below is the Production Ticket that was generated as a result
of the backordered production items.
This screen was launched from the folder icon beside the quantity
field on the production ticket.
Note that the line type is Back Order and the original customer
order number is referenced.
This screen was launched from the folder icon beside the Production
Item.
Note that the raw materials are extended requirements based on the
quantity of the Production Item.
Note the reference to ‘Production Ticket’.
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Shown below is the printed copy of the Production Ticket that was
generated as a result of the backordered assembled items.
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Raw Materials Purchase Order
Shown below is the Purchase Order for production item raw materials
that was generated as a result of the backordered production
items.
This screen was launched from the folder icon beside the quantity
field on the production ticket.
Note that the line type is Work in Process and the production
ticket number is referenced.
Note the reference to the production ticket number.
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Warehouse Quantities at this point
Shown below are the warehouse quantities for the production item
PAI-1 at this point in the Production Item processing
At this point the key warehouse quantities for the Production
Assembled Item PAI-1 are as follows:
OnHand ................................ 0 since PAI-1 is a new
production item never yet built;
Committed ........................ 10 based on customer quantity
ordered;
ProductionRequired ........ 0
OnOrder ............................... 0
ProductionReserved........ 0
InProduction ..............10 based on the creation of a production
ticket.
This screen was launched by zooming (F5) on the In Production
quantity.
Note that the production ticket number is referenced.
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Note that even though an assembled item requiring this raw material
has been committed to an order as shown on the previous page, the
raw materials have not been committed to the order, but rather the
raw materials have been designated as required for production and
linked to the appropriate Production Ticket, thus reducing the
availability.
At this point the key warehouse quantities for the first raw
material PAI-RM-1 of Production Assembled Item PAI-1 are as
follows:
OnHand ................................ 0 since PAI-1 is a new
production item never yet built, therefore raw materials have never
been ordered;
Committed .......................... 0
ProductionRequired . 10 based on the creation of a production
ticket;
Available ...................-10 based on OnHand – Committed –
ProductionRequired;
OnOrder ..................... 10 based on the creation of the
purchase order;
BackOrder ............................ 0
ProductionReserved ........ 0
InProduction ....................... 0
This screen was launched by zooming (F5) on the Production Required
quantity.
Note that the production ticket number is referenced.
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Shown below is an attempt to receive the Production Ticket.
So let’s receive the purchase order for the raw materials.
Production Tickets cannot be received. They must be processed as a
Build Assembled Items transaction.
We can however receive the purchase order for the production item’s
raw materials.
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Shown below are the reports generated after receiving the purchase
order for the raw materials: the Backorder Flush Report; and the
Stocking Report.
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Warehouse Quantities at this point
Shown below are the warehouse raw material quantities after
receiving the raw materials purchase order.
At this point the key warehouse quantities for the first raw
material PAI-RM-1 of Production Assembled Item PAI-1 are as
follows:
OnHand ...................... 10 since purchase order for raw
materials was received;
Committed ........................... 0
ProductionRequired ..... 10 based on the creation of a production
ticket;
Available ...................... 0 based on OnHand – Committed –
ProductionRequired;
OnOrder ....................... 0 since the purchase order for raw
materials was received;
BackOrder............................. 0
ProductionReserved . 10 since purchase order for raw materials was
received;
InProduction ....................... 0
This screen was launched by zooming (F5) on the Production Reserved
quantity.
Note that the production ticket number is referenced.
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Building the Assembled Items
The actual building of the production item is accomplished via
Inventory > Processing… > Inventory Transactions (Build
Assembled Items).
Upon identifying the Production Ticket, the transaction is
auto-populated with the production items that need to be
built.
Processing the transaction will flush the production items to the
appropriate customer order(s).
Once the Production Ticket was identified the transaction details
were auto-populated with the production items.
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Customer Sales Order at this point
After processing the Building of the Assembled Items from the
Production Ticket, the order for which the Production Ticket was
generated has been flushed (as shown below).
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Shown is the Inventory Transaction Register.
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Warehouse Quantities at this point
Shown below are the warehouse production item and raw material
quantities after building the production items on the production
ticket.
At this point the key warehouse quantities for the first raw
material PAI-RM-1 of Production Assembled Item PAI-1 are as
follows:
OnHand ........................ 0 since building of PAI-1 used up
the raw material;
Committed........................... 0
ProductionRequired ... 0 no longer required once production ticket
was built;
Available ............................... 0 based on OnHand –
Committed – ProductionRequired;
OnOrder ................................ 0
BackOrder ............................ 0
ProductionReserved ... 0 no longer reserved once production ticket
was built;
InProduction ....................... 0
At this point the key warehouse quantities for the Production
Assembled Item PAI-1 are as follows:
OnHand ...................... 10 since PAI-1 was just built;
Committed ........................ 10 based on customer quantity
ordered;
ProductionRequired.........0
OnOrder ................................0
BackOrder ..................... 0 no longer backordered as building
against the production ticket flushed the backorder;
ProductionReserved ........0
InProduction ................ 0 no longer in production, as we just
built it.
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Shown is the Sales Order Invoice Register.
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Warehouse Quantities at this point
Shown below are the warehouse production item quantities after
invoicing the customer sales order for the production items. The
raw material quantities are not shown as they were not affected in
any way.
At this point the key warehouse quantities for the Production
Assembled Item PAI-1 are as follows:
OnHand ........................ 0 since the order was
invoiced;
Committed ................... 0 since the order was invoiced;
ProductionRequired.........0
OnOrder ................................0
BackOrder .............................0
ProductionReserved ........0
The screenshots below show the transactions for the production
item.
Both screenshots show the same transactions, however, in the first
screenshot, the footer section shows details for the first
transaction,
In the second screenshot, the footer section shows details for the
second transaction.
The first transaction for the production item is the building of
the assembled item.
The Source details reflect the production ticket number and the
reference number entered in the transaction
The second transaction for the production item is the shipment
confirmation.
The Source details reflect the customer order number.
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The screenshots below show the transactions for one of the raw
materials from the production item.
Both screenshots show the same transactions, however, in the first
screenshot, the footer section shows details for the first
transaction,
In the second screenshot, the footer section shows details for the
second transaction.
The first transaction for the raw material is the stock receipt for
the purchase order generated by the order for the production
item.
The Source details reflect the purchase order number.
The second transaction for the raw material is the removal of raw
material for the building of the production item.