• From: Mauritius, Zimbabwe
  • Registered: 03/03/2013
  • Posts: 107

Topic: Error in Work Order

Using advanced manufacture I've noticed bugs:

BUG 1 Partial Issue of Component Requirement
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I issued 3 units of component to production that requires 5 units of component to produce.
Components issued are not recorded on the work order when viewed or printed.
Conclusion: in this circumstance a work order printed or viewed from Front is not reliable
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BUG 2 Incorrect Unit Cost     
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The advanced manufacture process takes place in the following steps after making a work order:
a) Release the work order
b) Issue the stock
c) Produce the manufactured item
d) Costs (other than inventory) to be allocated to manufactured item

The process of issuing the stock is duplicated in the process of manufacturing the item.
As a result the cost of the material component of the manufactured item is accounted for twice.
The result of this are

i) An incorrect unit cost is shown in the Inventory Valuation Report.

ii) The value of component stock in the GL is understated (as components are removed x2 from the GL but only once in reality on the shop floor)

iii) The value of the finished item stock in the GL is overstated (as components are included x2 in the GL but only once in reality on the shop floor)

Conclusion:  Advanced manufacturing overstates unit costs
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BUG 3 Incorrect Jnl entries to account for incomplete manufacture (Work in Progress) in advanced manufacturing
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The advanced manufacture process takes place in the following steps after making a work order:
a) Release the work order
b) Issue the stock
c) Produce the manufactured item
d) Costs (other than inventory) to be allocated to manufactured item

The journal entry passed to issue the stock sends it to GL for finished goods stock instead of GL for work in progress.
If the manufacturing process is not complete finished goods stock can't be updated.

Conclusion:  Front does not reliably show the value of finished goods stock in the GL if there are incomplete work orders.

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BUG 4 to come - also has to do with partial issue of component stock...the system updates the GL account inventory adjustment (P&L) instead of work in Progress (B/S).

....

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Error in Work Order

Hello Mark,

You do not need to issue stock if you are satisfied with the BOM. These stocks are automatically allocated when producing.

Joe

  • From: Mauritius, Zimbabwe
  • Registered: 03/03/2013
  • Posts: 107

Re: Error in Work Order

Thanks Joe
Does this mean that Manufacturing can't keep track of Work in Progress?
Meaning I can only update Front when the job is done and I can't issue 3 units of component to an assembly that needs 5 units today and the other 2 tomorrow?  It has to be all 5 at once? 
If I use advance manufacture then I don't issue the stock  and produce the manufactured item if I have a BOM?  I just produce the manufactured item, leaving out the issue of stock?

  • joe
  • Administrator
  • Offline
  • Registered: 03/15/2007
  • Posts: 5,107

Re: Error in Work Order

You should be able to issue further stocks during the productions.

Joe

  • From: India, Chennai
  • Registered: 12/23/2017
  • Posts: 56

Re: Error in Work Order

joe wrote:

Hello Mark,

You do not need to issue stock if you are satisfied with the BOM. These stocks are automatically allocated when producing.

Joe

@Joe,
Confused with your suggestion. Please clarify the following points
Consider, we have created BoM for a product with 50 No's Raw Materials (50 - stock id) and Clear BoM is avaliable for a Manufacturable item.
But Store has only 15 items in stock with full qty.. Rest of the materials will be received with different delivery dates.
We have decided to start  the production with available items for the days. We will get some more materials tomorrow Morning or Today Evening. Those Materials will be used for next day's production on the same product.
Store has to issue the materials for every day production. Kindly note that store can not issue item with making an entry in ERP, because stocks should get deducted from store immedialtely after issuing the materials to production shop floor.
Hope, We have to use Advanced Manufacturing method here. So that we can produce item in multiple stages of production and multiple partial issue of raw materials from store. This is standard production method in any manufacturing firm. Many company doest keep all the items in stock before manufacturing. If they wait to receive all the items at storeand the to start the production, After receipt all materials their timely delivery to the client will be sake. Best way to start the production with available raw materials. Stage by stage materials issue is only invitable solution.
As per your point, If these stocks automatically allocated when producing.
What is the solution for my above said requirment?
Please clarify!

Regards,
Bharathiraja Kaliyamoorthy

geesyscare's Website

  • From: India, Chennai
  • Registered: 12/23/2017
  • Posts: 56

Re: Error in Work Order

MarkAndrew wrote:

Thanks Joe
Does this mean that Manufacturing can't keep track of Work in Progress?
Meaning I can only update Front when the job is done and I can't issue 3 units of component to an assembly that needs 5 units today and the other 2 tomorrow?  It has to be all 5 at once? 
If I use advance manufacture then I don't issue the stock  and produce the manufactured item if I have a BOM?  I just produce the manufactured item, leaving out the issue of stock?

@MarkAndrew
Did you find a solution to your problems?
Please clarify.
It will be very helpful to many users.

Regards,
Bharathiraja Kaliyamoorthy

geesyscare's Website