1 Topic by aleifuuwork (edited by aleifuuwork 05/31/2018 07:30:51 am)

  • From: Indonesia
  • Registered: 05/30/2018
  • Posts: 61

Topic: Easy FA for manufacturing, skipping BOM / Work Order

Hi guys,



Following is discussion for FA team, or, I guess for accountants in general

We are loving FA as a whole system. A whole, because it's the only few open-source software that
covers all aspect of business that we have ( We are in manufacturing ! ). kinda like SAP level, but
very much less daunting and looks like way more flexible

Speaking of flexibility, is there a way to 'skip' the usual Manufacturing process like setting up Bill
of Material/Work Order of the day etc to determine the COST OF GOODS SOLD / Inventory costing ?

This is, just because there are many factors that goes into manufacturing process that software may/may not
able to reflect real data like how we want it to be. Sure, we can have assumption and the likes but We would
love to know if we can 'skip' altogether it and use other way to determine COGS/Inventory part ?
( via daily inventory adjustment ... For example )


Many many thanks team
Keep up the good work

Cheers,

innovation-driven technology
  • From: Vietnam
  • Registered: 09/28/2016
  • Posts: 349

Re: Easy FA for manufacturing, skipping BOM / Work Order

You seem to be talking about single-unit production, which has variable BOM per unit ?

Phuong

notrinos's Website

3 Reply by aleifuuwork (edited by aleifuuwork 05/31/2018 08:36:14 am)

  • From: Indonesia
  • Registered: 05/30/2018
  • Posts: 61

Re: Easy FA for manufacturing, skipping BOM / Work Order

Hi notrinos, thanks for your reply. But I was looking at the bigger picture


Scenario :
------------
we are producing an item called candy and sell them all over the world. now, the component to make a candy consist of many things.
let's say, in this case there are only 3 components : sugar, malt, and coloring


Option A) to go with Manufacturing process
Define work centers, create bill material (BOM): [component] sugar, malt, coloring => candy [finished goods]
for every single day your production unit produce candy

Option B) journal it other way
Is there a way in FA to do it skipping the normal Manufacturing process in Option A ?
Ok, now, why would you do that ?

The motivation behind this is that : for now, let's just say there are myriad factors to consider apart from
those 3 components and it's not easy to identify them and the effort to identify them completely would just
set us back for months. How would we go to address this scenario ? Is there a way where we can achieve the
result of Option A, like Inventory/C.O.G.S/labor cost etc but just skipping the Manufacturing process in FA ?

innovation-driven technology

4 Reply by stefan (edited by stefan 05/31/2018 11:45:32 am)

  • stefan
  • Senior Member
  • Offline
  • From: Bulgaria
  • Registered: 01/14/2015
  • Posts: 64

Re: Easy FA for manufacturing, skipping BOM / Work Order

As you mentioned inventory adjustments - it can be an easy solution, if you really know what are you doing, including pricing calculations. In this case all production will be in the same stock location, like the used materials.
You have to decrease used materials items and increase manufactured items, all with corresponding prices.