Microsoft Dynamics GP

Manufacturing Production Functions

Copyright Copyright © 2010 Microsoft. All rights reserved.

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Publication date May 2010

Contents
Introduction ................................................................................................................................................. 2
Manufacturing documentation...................................................................................................................2
What’s in this manual...................................................................................................................................2
Symbols and conventions ............................................................................................................................3
Resources available from the Help menu..................................................................................................4
Send us your documentation comments ...................................................................................................5

Part 1: Routings ...................................................................................................................................... 8

Chapter 1: Routings overview .................................................................................................. 9
Routing terms ................................................................................................................................................9
Types of routings.........................................................................................................................................10
Before you begin ......................................................................................................................................... 11

Chapter 2: Routing entry ............................................................................................................ 13

Overview of Routing Sequence Entry window......................................................................................13
Creating a routing header record .............................................................................................................14
Creating routing sequences .......................................................................................................................15
Parallel routing sequences .........................................................................................................................18
Verifying parallel routing sequences........................................................................................................19
Attaching a drawing to a sequence ..........................................................................................................19
Viewing a drawing linked to a routing....................................................................................................20
Types of routing modifications .................................................................................................................20
How routing records are updated ............................................................................................................21
Changing routing sequence information.................................................................................................21
Deleting a single sequence from a routing..............................................................................................23
How routings are scheduled .....................................................................................................................23
Viewing a routing .......................................................................................................................................24

Chapter 3: Links to bills of materials ............................................................................. 27

Linking a routing sequence to component usage .................................................................................. 27
Modifying links ...........................................................................................................................................29
Unlinking routing sequences and components......................................................................................30
Viewing link information...........................................................................................................................31

Chapter 4: Routing queries and utilities ...................................................................... 33

Query types..................................................................................................................................................33
Generating a routing query .......................................................................................................................33
Copying a range of routing sequences ....................................................................................................35
Deleting a range of sequences from a routing ........................................................................................36
Deleting an entire routing..........................................................................................................................37
Copying an entire routing .........................................................................................................................37
Modifying a routing header record..........................................................................................................38
Renumbering routing sequences ..............................................................................................................38

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Chapter 5: Pointer routings...................................................................................................... 41

Pointer routings...........................................................................................................................................41
Creating a pointer routing .........................................................................................................................41
Modifying a pointer routing......................................................................................................................43
Adding a pointer routing to a routing .....................................................................................................43
Copying pointer routings ..........................................................................................................................44

Part 2: Manufacturing Order Processing ......................................................... 48

Chapter 6: Manufacturing order overview ................................................................. 49
Manufacturing Order Processing tasks ...................................................................................................49
Manufacturing order terms .......................................................................................................................50
Manufacturing order statuses ...................................................................................................................51
How statuses limit activities .....................................................................................................................52
Scheduling methods ...................................................................................................................................52
How required dates are calculated...........................................................................................................53
How required quantities are calculated...................................................................................................53
How multiple bins affect manufacturing orders....................................................................................54

Chapter 7: Manufacturing order entry ........................................................................... 57

How manufacturing orders are created...................................................................................................57
Entering a manufacturing order ...............................................................................................................57
Entering serial numbers when entering a manufacturing order .........................................................60
Changing a manufacturing order .............................................................................................................61
Rules for changing manufacturing order statuses .................................................................................62
Component shortages and automatic allocations ..................................................................................64
Changing the status of multiple manufacturing orders........................................................................65
Updating CRP for MRP–planned manufacturing orders .....................................................................67
Deleting a manufacturing order ...............................................................................................................68

Chapter 8: Component transactions................................................................................ 69

Component transaction types ...................................................................................................................70
Picklists, pick documents, and component transactions.......................................................................71
Component transactions and accounting................................................................................................71
Viewing a picklist........................................................................................................................................72
Allocating components ..............................................................................................................................72
Entering component transactions.............................................................................................................73
Adding a component to a picklist ............................................................................................................75
Modifying bin selections for a component..............................................................................................77
Specifying lot numbers for a component transaction............................................................................79
Specifying serial numbers for a component transaction.......................................................................81
How lot quantities are consolidated ........................................................................................................83
Modifying a component transaction line ................................................................................................83
How item values are calculated for transactions ...................................................................................84
Using an alternate item ..............................................................................................................................87
Printing a picking report............................................................................................................................87
Deleting a pending component transaction............................................................................................88

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Changing dates for a pick document .......................................................................................................89

Specifying components in the picklist to backflush...............................................................................90
Using a pick document as a template ......................................................................................................91
Adding items to a picklist..........................................................................................................................92
Picklist reports.............................................................................................................................................93
Removing a component from a picklist...................................................................................................94
Deleting a picklist .......................................................................................................................................94

Chapter 9: Routings and rescheduling........................................................................... 97

Viewing a manufacturing order routing .................................................................................................97
Modifying a manufacturing order routing .............................................................................................98
Changing user-defined field information ...............................................................................................99
Comparing actual and estimated sequence times................................................................................100
Rescheduling manufacturing order sequences ....................................................................................100
Rescheduling an entire manufacturing order.......................................................................................101

Chapter 10: Quick manufacturing orders ................................................................ 103

Quick manufacturing orders ...................................................................................................................103
Creating a quick manufacturing order ..................................................................................................104
Adding a component to a quick manufacturing order .......................................................................106
Closing a quick manufacturing order ....................................................................................................108

Chapter 11: Manufacturing/sales order link .......................................................... 109

Demand terms ...........................................................................................................................................109
Working with MRP-planned manufacturing orders ...........................................................................109
Applying an existing manufacturing order to demand ...................................................................... 111
Applying a new manufacturing order to demand............................................................................... 111
Removing sales order-manufacturing order links ............................................................................... 112

Chapter 12: Manufacturing order inquiries............................................................. 115

Viewing manufacturing order entry information ................................................................................ 115
Viewing the manufacturing order calendar.......................................................................................... 116
Viewing manufacturing order activity .................................................................................................. 117
Interpreting manufacturing order reason codes .................................................................................. 118
Viewing component transaction information.......................................................................................122
Viewing manufacturing order receipts..................................................................................................123
Viewing manufacturing order receipt details.......................................................................................124
Viewing manufacturing order summary information ........................................................................126
Viewing serial and lot number component information.....................................................................128
Viewing manufacturing order costs per sequence...............................................................................129
Viewing manufacturing order variances...............................................................................................130
Viewing manufacturing picklist quantities...........................................................................................132
Interpreting the Manufacturing Order Variance window ..................................................................132
Setup labor costs .......................................................................................................................................134
Labor costs .................................................................................................................................................134
Machine costs ............................................................................................................................................135
Item costs for a picklist item....................................................................................................................136
Viewing item transaction information ...................................................................................................136

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Chapter 13: Receipts and closing .................................................................................... 139

Manufacturing order receipts .................................................................................................................139
Entering a manufacturing order receipt ................................................................................................140
Modifying bin information for a finished item ....................................................................................143
Serial number assignments for finished goods ....................................................................................144
Manually entering serial numbers for finished goods ........................................................................145
Generating serial numbers for finished goods .....................................................................................146
Applying pre-entered serial numbers to finished goods ....................................................................147
Assigning lot numbers for finished goods ............................................................................................148
Linking finished good and component lot and serial numbers.........................................................149
Changing dates for a manufacturing order receipt .............................................................................152
Adding an item to a manufacturing order receipt ...............................................................................152
Entering labor and machine costs for receipts......................................................................................154
Manufacturing order receipts with by-products..................................................................................156
How receipts affect linked sales orders and invoices ..........................................................................156
Effects of posting a manufacturing order receipt.................................................................................157
Reversing a manufacturing order receipt..............................................................................................158
Effects of posting a reversing manufacturing order receipt ...............................................................158
Prerequisites for closing manufacturing orders ...................................................................................160
Closing a manufacturing order...............................................................................................................160
Effects of closing a manufacturing order...............................................................................................162
How backflushed item quantities are calculated .................................................................................163
How backflushed machine and labor amounts are calculated ..........................................................164
Changing the posting date for closing a manufacturing order..........................................................165
Causes of variances...................................................................................................................................166
Understanding posting for standard-cost items ..................................................................................167

Chapter 14: Manufacturing order removal ............................................................. 169

About removing manufacturing order records ....................................................................................169
Removing manufacturing orders ...........................................................................................................170
Restricting manufacturing order removal.............................................................................................170
Removing manufacturing order transaction logs ................................................................................171

Part 3: Outsourcing .................................................................................................................... 174

Chapter 15: Outsourcing overview ................................................................................ 175
Outsourcing terms ....................................................................................................................................175
Outsourcing workflow .............................................................................................................................176
Outsourcing cost buckets.........................................................................................................................176
Outsourcing routings ...............................................................................................................................177
Types of manufacturing shipments........................................................................................................178
Outsourcing vendors................................................................................................................................178

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Chapter 16: Outsourcing setup ......................................................................................... 179

Outsourcing setup overview...................................................................................................................179
Rules for outsourcing routing sequences ..............................................................................................180
Creating a routing sequence for outsourcing .......................................................................................180
Entering work in process output for outsourcing................................................................................ 182

Chapter 17: Purchase orders and shipments ........................................................ 185

Effects of scheduling outsourcing manufacturing orders...................................................................185
Creating a purchase order for outsourced services .............................................................................186
Changing the vendor for outsourced purchase orders .......................................................................189
Voiding a manufacturing order/purchase order link .........................................................................190
Recording a manufacturing shipment ...................................................................................................191
Specifying lot numbers for a shipment..................................................................................................193
Specifying serial numbers for a shipment.............................................................................................194
Voiding a manufacturing shipment .......................................................................................................195
Receipts of outsourced items...................................................................................................................196
Distributing additional outsourcing costs.............................................................................................197
Invoicing for outsourced services...........................................................................................................198

Chapter 18: Outsourcing and manufacturing orders .................................... 199

Rescheduling outsourcing manufacturing orders ...............................................................................199
Purchase orders and outsourcing manufacturing orders ...................................................................200
Shipment rules for changes to outsourcing manufacturing orders...................................................201
Changing the status of an outsourcing manufacturing order ............................................................203
Effects of removing history of outsourcing orders...............................................................................204

Chapter 19: Outsourcing inquiries ................................................................................. 205

Viewing outsourcing purchase order information...............................................................................205
Viewing manufacturing shipment information ...................................................................................207
Viewing lot number information for shipments ..................................................................................208
Viewing serial numbers for shipments ..................................................................................................209
Viewing distributions of additional outsourcing costs .......................................................................210

Part 4: Work In Process ........................................................................................................ 214

Chapter 20: Work in Process overview ...................................................................... 215
Why use Work in Process?.......................................................................................................................215
Work in Process terms ..............................................................................................................................216
Data collection methods...........................................................................................................................216
Work in Process transactions...................................................................................................................217
Using Work in Process options to track progress.................................................................................217

Chapter 21: Manual data entry .......................................................................................... 219

Entering direct labor information...........................................................................................................219
Entering indirect labor information .......................................................................................................220
Entering machine-cost information........................................................................................................221
Entering a reversing entry .......................................................................................................................222

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Chapter 22: Time card entry ................................................................................................ 225

Entering labor information from a time card........................................................................................225
Removing a time card entry line.............................................................................................................226
Posting batches of time card entries.......................................................................................................227
Viewing details about a time card entry................................................................................................228

Chapter 23: Automated data collection .................................................................... 229

How automated data collection works..................................................................................................229
Designating a workstation as an ADC processor.................................................................................230
Generating the ADC Transactions report ..............................................................................................230
Correcting automated data collection entries.......................................................................................231
Correcting posted data collection transactions.....................................................................................232

Chapter 24: Outsourcing and Work in Process ................................................... 233

Direct labor and machine data collection ..............................................................................................233
Component transactions for outsourcing..............................................................................................233
Data collection records for outsourcing.................................................................................................233
Completed sequences and outsourcing data collection ......................................................................234

Chapter 25: Work in Process data uses ..................................................................... 235

Viewing a manufacturing-order data summary...................................................................................235
Viewing data-collection summary details.............................................................................................236
Data collection and Payroll......................................................................................................................238
Entering a data collection payroll transaction ......................................................................................238
Verifying and viewing data collection transactions.............................................................................239
Viewing an employee’s indirect labor information .............................................................................241

Glossary ..................................................................................................................................................... 243

Index ............................................................................................................................................................... 251

vi M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
INTRODUCTION
 Introduction
You can use Manufacturing to organize and track the daily workings of the
manufacturing process, such as taking orders, purchasing raw materials, building
finished goods, fulfilling orders, and selling the finished goods.

This introduction is divided into the following sections:

• Manufacturing documentation
• What’s in this manual
• Symbols and conventions
• Resources available from the Help menu
• Send us your documentation comments

Manufacturing documentation
Manufacturing documentation is divided into five manuals. Refer to the following
table for an overview of what is included in each of the manuals.

Manual Modules or other major pieces

Manufacturing Setup manual System setup
User setup
Manufacturing Core Manufacturing Cards
Functions manual Extensions to Inventory Control
Bills of Materials
Extensions to Sales Order Processing
Sales Configurator
Manufacturing Reports
Manufacturing Production Routings
Functions manual Manufacturing Orders
Outsourcing
Work in Process
Manufacturing Management Quality Assurance
Functions manual Engineering Change Management
Job Costing
Manufacturing Planning Sales Forecasting
Functions manual Master Production Scheduling
Capacity Requirements Planning (CRP)
Material Requirements Planning (MRP)

The online help file includes all of the information in the manuals, except
installation information. The online help also includes field-by-field descriptions of
the windows. You can access online help by pressing F1 whenever a Manufacturing
window is active, or by choosing Help >> About this window.

If a Microsoft Dynamics® GP window—such as the Sales Transaction Entry window—is

the active window when you access help, online help for Microsoft Dynamics GP will be
displayed. You can close that help, open any Manufacturing window, and try again to access
Manufacturing-specific help.

What’s in this manual

This manual is designed to give you an understanding of how to use the features of
Manufacturing, and how it integrates with the Microsoft Dynamics GP system.

2 M A N U FA C TU R IN G PR O DU C T I O N F U N C TI O N S
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To make best use of Manufacturing, you should be familiar with systemwide

features described in the System User’s Guide, the System Setup Guide, and the
System Administrator’s Guide.

Some features described in the documentation are optional and can be purchased
through your Microsoft Dynamics GP partner.

To view information about the release of Microsoft Dynamics GP that you’re using
and which modules or features you are registered to use, choose Help >> About
Microsoft Dynamics GP.

The manual is divided into the following parts:

• Part 1, Routings, includes information about setting up and using routings to

describe the production tasks that must be done to build your products.

• Part 2, Manufacturing Order Processing, describes how you can create,

schedule, and close manufacturing orders. Information about rescheduling
single orders or batches of orders also is included.

• Part 3, Outsourcing, describes how to create and work with manufacturing

orders that include outsourced sequences. Information about special rules that
apply with outsourced manufacturing orders is included, along with
information about entering shipping and purchasing information.

• Part 4, Work In Process includes information about entering information about

machine and labor time for manufacturing orders.

Symbols and conventions

For definitions of unfamiliar terms, see the glossary in the manual or refer to the
glossary in Help.

Symbol Description
The light bulb symbol indicates helpful tips, shortcuts and
suggestions.

The warning symbol indicates situations you should be especially

aware of when completing tasks.

This manual uses the following conventions to refer to sections, navigation and
other information.

Convention Description
Creating a batch Italicized type indicates the name of a section or procedure.
File >> Print or File > The (>>) or (>) symbol indicates a sequence of actions, such as
Print selecting items from a menu or toolbar, or pressing buttons in a
window. This example directs you to go to the File menu and choose
Print.
TAB or ENTER All capital letters indicate a key or a key sequence.

MANUFACTURING PRODUCTION FUNCTIONS 3

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Resources available from the Help menu

The Microsoft Dynamics GP Help menu gives you access to user assistance
resources on your computer, as well as on the Web.

Contents
Opens the Help file for the active Microsoft Dynamics GP component, and displays
the main “contents” topic. To browse a more detailed table of contents, click the
Contents tab above the Help navigation pane. Items in the contents topic and tab
are arranged by module. If the contents for the active component includes an
“Additional Help files” topic, click the links to view separate Help files that
describe additional components.

To find information in Help by using the index or full-text search, click the
appropriate tab above the navigation pane, and type the keyword to find.

To save the link to a topic in the Help, select a topic and then select the Favorites tab.
Click Add.

Index
Opens the Help file for the active Microsoft Dynamics GP component, with the
Index tab active. To find information about a window that’s not currently displayed,
type the name of the window, and click Display.

About this window

Displays overview information about the current window. To view related topics
and descriptions of the fields, buttons, and menus for the window, choose the
appropriate link in the topic. You also can press F1 to display Help about the current
window.

Lookup
Opens a lookup window, if a window that you are viewing has a lookup window.
For example, if the Checkbook Maintenance window is open, you can choose this
item to open the Checkbooks lookup window.

Show Required Fields

Highlights fields that are required to have entries. Required fields must contain
information before you can save the record and close the window. You can change
the font color and style used to highlight required fields. On the Microsoft
Dynamics GP menu, choose User Preferences, and then choose Display.

Printable Manuals
Displays a list of manuals in Adobe Acrobat .pdf format, which you can print or
view.

What’s New
Provides information about enhancements that were added to Microsoft Dynamics
GP since the last major release.

Microsoft Dynamics GP Online

Opens a Web page that provides links to a variety of Web-based user assistance
resources. Access to some items requires registration for a paid support plan.

4 M A N U FA C TU R IN G PR O DU C T I O N F U N C TI O N S
 IN T RO D U C T IO N

Customer Feedback Options

Provides information about how you can join the Customer Experience
Improvement Program to improve the quality, reliability, and performance of
Microsoft® software and services.

Send us your documentation comments

We welcome comments regarding the usefulness of the Microsoft Dynamics GP
documentation. If you have specific suggestions or find any errors in this manual,
send your comments by e-mail to the following address: [email protected].

To send comments about specific topics from within Help, click the Documentation
Feedback link, which is located at the bottom of each Help topic.

Note: By offering any suggestions to Microsoft, you give Microsoft full permission to use
them freely.

MANUFACTURING PRODUCTION FUNCTIONS 5

6 M A N U FA C TU R IN G PR O DU C T I O N F U N C TI O N S
PART 1: ROUTINGS
 Part 1: Routings
This part of the documentation includes information that will help you create and
maintain routings. You can refer to this information for instructions on modifying or
viewing existing entries.

You need to define at least one routing for a manufactured item before you can
begin work with manufacturing orders for the item.

The following information is discussed:

• Chapter 1, “Routings overview,” provides basic information about routings,

such as common terms and concepts.

• Chapter 2, “Routing entry,” describes how to create routings. Information about

special situations and uses—such as pointer routings and parallel routing
sequences—also is included.

• Chapter 3, “Links to bills of materials,” contains information about linking

routing sequences and bills of materials requirements.

• Chapter 4, “Routing queries and utilities,” includes information about how you
can search through routing records.

• Chapter 5, “Pointer routings,” describes pointer routings and explains how you
can use them in your business.

8 M A N U FA C TU R IN G PR O DU C T I O N F U N C TI O N S
Chapter 1: Routings overview
Bills of materials are lists of items and parts required for creating a product, and
routings are the instructions that tell you how to combine those items. Routings
provide information about how a product moves through your manufacturing
plant, from raw materials through the initial, intermediate, and final processes.

Manufacturing provides many ways to work with routings and includes features
for dealing with special cases. You can create, copy, change, and delete routings, link
them to bills of materials, and print them in various formats for distribution among
employees. New routings can be created by copying sequences from existing
routings—or by deleting sequences from existing routings. You also can search
through routing information to perform analyses of production requirements.

This information is divided into the following sections:

• Routing terms
• Types of routings
• Before you begin

Routing terms
Several terms specific to routings are used to describe applications in
Manufacturing. You can use the following information for reference.

Routing A routing is a complete set of instructions describing how to create a

particular item and include operations to be performed, the scheduling sequence,
the machines, and work centers involved, and the hours required for setup and
cycle times. In some companies, routings also include information such as tooling,
operator skill levels, inspection needs, and testing requirements. Routings are also
known as bills of operations, instruction sheets, manufacturing data sheets,
operation charts, operation lists, operations sheets, and routing sheets.

Sequence number An alphanumeric sequence number is assigned to each step

in the routing and controls the order in which steps are completed. Each step
represents an operation or task in the manufacturing process. Assigning sequence
numbers in large increments lets you add new steps without renumbering the
sequences. Common increments would be ten units or 100 units, such as 10, 20, 30,
or 100, 200, 300. However, you can renumber routings, as needed.

Operation code An operation code—or “op code”—is a code assigned to a

particular task within the manufacturing process. For example, if a company makes
electrical components, the operation code for testing a certain characteristic might
be 110. In all routings that include the test for that characteristic, 110 would appear
as the operation code for the test.

Refer to Chapter 3, “Operations,” in the Manufacturing Core Functions

documentation for more information about operation codes.

Header record A header record is the information that links the sequences of a
routing together. That information can include the routing name and type, and its
status as a primary or alternate routing.

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Parallel routing sequences Parallel routing sequences are sequences that can
happen concurrently. For example, a manufacturer might have one production line
that produces small engines and another that produces the chassis that the engines
are put into. The manufacturing processes for the two lines can run concurrently to
the point when the engines are placed in the chassis, shortening the overall
manufacturing lead time.

Types of routings
There are several types of routings you can define for your organization. Some
routing types are based on the status of the routing—whether or not the routing can
be used in production. Other types are based on special attributes, such as whether
or not a routing is the primary routing for a manufactured item. Still other types
refer to special kinds of routings that can help you define routings for complex
procedures.

Routing types
You can define planning routings that become manufacturing (or “active” or
“working”) routings as you use them in manufacturing orders.

Planning routing When you define a routing to estimate resource requirements,

you’re creating planning routings. A planning routing isn’t tied to a specific
manufacturing order. Each item number can have several planning routings.

Manufacturing (or “active” or “working”) routing When you’re ready to

build products, you can specify the planning routing to use for each manufacturing
order. A manufacturing routing is a copy of a planning routing made when you
create the manufacturing order. (This will become more important later, when you
need to update routings. Then you’ll need to determine if you need to update the
planning routing, the manufacturing routing—or both.) You might use several
manufacturing routings to build the same product, but there can be only one
manufacturing routing for each manufacturing order.

Refer to Chapter 9, “Routings and rescheduling,” for more information about working with
manufacturing order routings.

Planning routing status types

When you define a planning routing, you can assign it a routing type. You must
assign a Released type to a routing to use the routing in production. The other
routing types—Archived, Not Released, and On Hold—are only informational.

Archived You might set the routing type to Archived when a routing becomes
obsolete. That way, you can save the information in the routing but are ensured that
the routing won’t be used in production.

Not Released You might set the type of a routing to Not Released when the
routing is still being created. Prototype projects might use the Not Released routing
type.

On Hold If you need to temporarily suspend the use of a routing, set the routing
type to On Hold.

Released Choose Released for all routings that might be used in production.

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 C H A P T E R 1 R O U T I N G S O V E R V I E W

Specially designated routings

All planning routings are either primary routings or alternate routings. Each
manufactured item can have only one primary routing, but you can define as many
alternate routings for each item as you like.

Primary routing If you define multiple planning routings for an item, one of
them must be the primary routing. Information from the primary planning routing
is used for scheduling and resource requirements calculations. The primary
planning routing also determines the manufacturing lead time for an item. Each
item number can have only one primary routing.

Alternate routing If you define multiple planning routings for an item, all the
routings except the primary routing are alternate routings. You can use alternate
routings for manufacturing routings. Each item number can have multiple alternate
routings.

Pointer routings
You can define pointer routings—series of sequences that are common to several
planning routings. A pointer routing describes how to complete processes that are
common to all items. For example, if each item requires a quality assurance
inspection and then packaging, you can create a pointer routing for these steps.

Refer to Chapter 4, “Routing queries and utilities,” for more information about creating and
using pointer routings.

Before you begin

Before you begin creating routings, be sure you’ve created work centers and
operation codes, and defined at least one made item.

MANUFACTURING PRODUCTION FUNCTIONS 11

12 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Chapter 2: Routing entry
Use the Routing Sequence Entry window to create routings that specify the steps
needed to build your products. You can create multiple routings for your products.
This makes it easy for you to choose the appropriate routing for different
manufacturing situations; for instance, you might use one routing for small
manufacturing orders and another routing for large manufacturing orders.

The routings you define are planning routings—they aren’t linked to specific
manufacturing orders, but are used to estimate resource requirements. Later on,
when you create manufacturing orders, you can specify the planning routing to use
for each manufacturing order. After a routing is linked to a manufacturing order, a
copy of that routing becomes your manufacturing routing.

This information is divided into the following sections:

• Overview of Routing Sequence Entry window

• Creating a routing header record
• Creating routing sequences
• Parallel routing sequences
• Verifying parallel routing sequences
• Attaching a drawing to a sequence
• Viewing a drawing linked to a routing
• Types of routing modifications
• How routing records are updated
• Changing routing sequence information
• Deleting a single sequence from a routing
• How routings are scheduled
• Viewing a routing

Overview of Routing Sequence Entry window

You’ll use the Routing Sequence Entry window to enter and modify the routing
sequences that comprise a routing. Depending on your business practices, you
might not need to use all the areas of the window.

The Routing View Closeup window is similar to the Routing Sequence Entry window,
except that you can use the Routing View Closeup window only to view information. You
can refer to this information for an overview of what is displayed.

Refer to the table for a summary of the areas of the window.

Region name Explanation Resources

Header Information Includes the Item Number and Creating a routing header record on
Routing Name fields. Required for page 14
all routings.
Sequence Includes fields for entering the Creating routing sequences on
Information Sequence Number and the Work page 15
Center ID, which are required for all
routing sequences.
Other fields are needed only if the Creating a routing sequence for
routing includes outsourcing outsourcing on page 180
sequences.

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Region name Explanation Resources

Time and Costing Includes fields used to calculate the Creating routing sequences on
cost of a manufacturing order. You page 15
can use them to estimate
manufacturing order costs.
These fields aren’t required unless
you’re creating a sequence for
outsourced services.
Scheduling Includes fields that you’ll need only Parallel routing sequences on page 18
Information if you’re using parallel sequences,
or if you need to ensure that a
certain sequence is the last
scheduled sequence for the day.
Other Includes fields—all optional—for Attaching a drawing to a sequence on
attaching an electronic file to a page 19
sequence, designating a sequence Viewing a drawing linked to a routing
as a QA sequence, or setting on page 20
backflushing options.
Update on Save Includes fields you can use to How routing records are updated on
Options determine how routing records are page 21
updated when changes are made.

Creating a routing header record

Each routing you create will have at least two parts—a header record, and one or
more sequences. You must first create a header routing, and then create the
sequences that are attached to it.

To create a routing header record:

1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

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 C H A P T E R 2 R O U TI N G E N T R Y

2. Click the Item Number link to open the Routing Header Creation window.

3. Enter or select an item number and routing name.

If you’re using Engineering Change Management, a message might appear if the item
record is being changed. Refer to Handling ECM notifications in other modules in
Chapter 10, “Engineering change inquiries,” in the Manufacturing Management
Functions documentation for more information about these notifications.

4. You can enter a revision level, if needed. The field is only informational and
won’t be updated automatically if you change the routing record.

5. If the routing will be the primary routing for the item, mark Primary Routing.
You must specify a primary routing to calculate manufacturing lead times,
MRP, and capacity requirements. Primary routings also are used to calculate the
standard cost of made items.

You can designate only one primary routing for each manufactured item. Any
routing that isn’t a primary routing automatically will be an alternate routing.

6. Select the routing type. Several options are available, but only released routings
can be used for manufacturing orders. Routing types include:

Archived Routings that are obsolete.

Not Released Routings that aren’t yet ready for use in production.

On Hold Routings that have been temporarily suspended.

Released Routings that might be used in production.

7. Choose Save and close the window.

Creating routing sequences

Use the Routing Sequence Entry window to define one or more sequences for a
routing.

You must define a routing header record before creating sequences. Refer to Creating a
routing header record on page 14 for more information.

You also can use the Routing Sequence Entry window to define sequences for
outsourced services. Refer to the following topics for more information about
sequences for outsourced services:

• Rules for outsourcing routing sequences on page 180

• Creating a routing sequence for outsourcing on page 180
• Entering work in process output for outsourcing on page 182

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To create routing sequences:

1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

2. Enter a sequence number.

To add descriptive information about a sequence, choose the note button.

3. Enter or select the work center where the sequence will take place.

Refer to Chapter 2, “Work centers,” in the Manufacturing Core Functions

documentation for information about work centers.

4. You can enter or select the operation code—or “op code”—for this sequence.
When you choose the lookup button on the Work Center Opcode field, only
operations that have been linked to the work center will be available.

Refer to Chapter 3, “Operations,” in the Manufacturing Core Functions

documentation for information about operations.

5. You can mark options to have machine and labor costs backflushed for this
sequence.

If you choose to backflush those costs, you won’t enter machine and labor data
collection information. Instead, machine and labor time based on entries in this
window automatically will be applied to the manufacturing order when you
receive finished goods or close the manufacturing order. Refer to How
backflushed machine and labor amounts are calculated on page 164 for more
information.

Backflushing options are particularly important if you’re using the routing for quick
manufacturing orders. Refer to Quick manufacturing orders on page 103 for more
information.

6. You can mark QA Sequence if the sequence is an inspection or testing step.

Marking the option is only informational and doesn’t affect any processing or
transactions.

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 C H A P T E R 2 R O U TI N G E N T R Y

7. Enter time and labor code information.

If you’re using outsourcing and are using one of the labor cost buckets to track
outsourcing costs, you must select an outsourcing labor code. Refer to Creating a
routing sequence for outsourcing on page 180.

8. Enter the number of employees or crews needed for the sequence. The number
is only informational, and isn’t used when manufacturing orders are scheduled
or when capacity requirements are calculated.

9. Enter or select the machine ID required for this sequence.

If you’re using outsourcing and are using one of the machine cost buckets to track
outsourcing costs, you must select a machine ID that has been set up for outsourcing.
Refer to Creating a routing sequence for outsourcing on page 180.

10. Enter information about the estimated time required for the sequence. Time
information includes:

Queue Time The number of hours the item must wait before work on the
sequence can begin.

Move Time The number of hours needed to move the item to the next work
center.

Cycle Time The number of hours needed to make one unit of the item, not
including setup time.

Refer to How routings are scheduled on page 23 for more information about how
manufacturing lead times are calculated.

11. If you choose to have the next sequence begin after a certain number of units or
a certain percentage of units are through the current sequence, enter either the
quantity or the percentage that must to be completed. If you leave this field
blank, the next sequence will begin when this sequence is complete for the
entire order quantity.

12. If another sequence can run simultaneously with this one, enter that sequence
number in the Concurrent Sequence field. Refer to Parallel routing sequences on
page 18 for more information about parallel routing sequences.

13. Enter the number of the next sequence, if needed. Each routing must have at
least one sequence, but you can add as many sequences to a routing as you like.

14. Mark the Last sequence scheduled for a day option if, at the end of the day, no
other sequences should be completed.

15. Choose Save.

16. To continue adding sequences to the routing until all the sequences needed to
complete the product have been entered, repeat steps 2 through 15, as needed,
and save each sequence.

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After you’ve added all the sequences for a routing, you can use the MFG/Lead
Times window to calculate the amount of time needed to build one unit of the
finished good, or you can use the Calculate Manufacturing Lead Times window
to calculate the amount of time needed to build the average quantity of the
finished good. Refer to Calculating lead time for an item unit and Calculating lead
time for quantities, both in Chapter 8, “Item engineering data,” in the
Manufacturing Core Functions documentation.

If any of the sequences in the routing are for outsourced services, refer to
Creating a routing sequence for outsourcing on page 180 for more information.

Parallel routing sequences

You can create routings so sequences run concurrently. Following is an example of
how you can use parallel routing sequences to set up product manufacturing to
make your organization run as efficiently as possible. For example, a simple routing
Sequence 20
Sequence 10 Sequence 30 Sequence 50
Sequence 40

might include three sequences that will run simultaneously. When you define these
sequences, use the following sequence setup:

Setup for sequence ... Concurrent sequence Next Run sequence

10 – 20 (default)
20 30 50
30 40 50
40 20 50
50 – –

This type of setup creates a closed loop in the three parallel sequences: Sequence 20
points to Sequence 30; Sequence 30 points to Sequence 40; and Sequence 40 points
back to Sequence 20. In this example, Sequence 50—sometimes called the exit
sequence—is the first sequence after the simultaneous sequences. This closed-loop
structure must be achieved whenever you use parallel routings.

When you use parallel routings, the entries you make in the Concurrent and Next Run
Sequence fields override the entries in the Percent Next Start or Quantity Next Start fields
in the Routing Entry window.

Here are some tips for creating parallel routings:

• Use the simplest routing structure you can.

• It’s a good idea to draw complex routings on paper and check for unclosed
loops or missing exit sequences.

• All parallel sequences must share an exit sequence. A sequence with a “0” cycle
time can be defined for this, if needed.

• Use the Parallel Routings Utility to check your simple parallel routings. Refer to
Verifying parallel routing sequences for more information.

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 C H A P T E R 2 R O U TI N G E N T R Y

Verifying parallel routing sequences

If you’ve created a routing that includes parallel routing sequences, you can use the
Parallel Utilities window to verify that the routing was properly defined.

To verify parallel routing sequences:

1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

2. Enter or select a routing that includes parallel sequences.

3. From the Go To button, choose Parallel Utilities to open the Parallel Utilities
window.

4. Choose Check Parallel Routing Setup. Information about the routing will be
displayed in the window. If problems with the routing were identified, you can
change the routing and then use this utility again to check the routing.

5. When you’ve finished reviewing information in the window, close the window.

Attaching a drawing to a sequence

You can attach electronic drawings, prints, or schematics to sequences. You can
attach CAD drawings that show dimensions, or even .AVI or .MPG movies of the
proper procedure for completing a task.

Before you attach a drawing to a sequence, use the Drawings window to define a drawing
group and its drawings. Refer to Chapter 4, “Drawings” in the Manufacturing Core
Functions documentation for more information.

To attach a drawing to a sequence:

1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

2. Choose the routing that includes the sequence you want to attach a drawing to.

3. Select the sequence.

4. Use the lookup button on the Drawing Group field to open the Drawing Group
Lookup window.

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5. Select the drawing group that includes the drawing.

6. Choose Save and close the window.

Viewing a drawing linked to a routing

If a drawing has been attached to a sequence, you can view it through the Routing
Sequence Entry window or the Routing View Closeup window. For more
information, refer to Viewing a drawing attached to a record in Chapter 4, “Drawings,”
in the Manufacturing Core Functions documentation.

Types of routing modifications

Most updates to planning routings can be made in the Routing Sequence Entry
window. However, you can change your routings in other ways. For example, you
can renumber routing sequences, copy, and delete ranges of routings sequences,
and create and use pointer routings. The following information describes which
Manufacturing window will work best for making changes to your routing records.

Header record changes To change header record information, refer to

Modifying a routing header record on page 38.

Routing sequence changes Use the Routing Sequence Entry window to

complete these changes:

• Header information
• Sequence description or notes
• Work center IDs
• Work center operation codes
• Drawing groups
• Percent or quantity before next start
• Concurrent or next-run sequences
• Setup, labor, machine, move, queue or cycle hours, or the labor codes or
machine IDs associated with them

For more information about completing these changes, refer to Changing routing
sequence information on page 21.

Special changes You can make special changes, such as renumbering

sequences, using the Routing Edit window. For more information, refer to Chapter
4, “Routing queries and utilities.”

Manufacturing order routing changes To change a routing for a current

manufacturing order routing without changing a planning routing first, you must
use the Manufacturing Order Routing Sequence Edit window. Refer to Chapter 9,
“Routings and rescheduling,” for more information.

Pointer routings You also can add a pointer routing to a routing for a
manufactured item. A pointer routing is a series of routing sequences that can be
easily added to any routing. For example, you could create a pointer routing for
final sequences in your manufacturing processes, such as inspecting, labeling, and
packaging products. Refer to Pointer routings on page 41 for more information. Refer
to Adding a pointer routing to a routing on page 43 for more information about adding
them to existing routings.

20 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 C H A P T E R 2 R O U TI N G E N T R Y

How routing records are updated

When you change routing sequence information, you should consider how the
changes should be reflected throughout your routing records. You can easily
determine which routings will—or will not—be affected by a change.

For example, suppose a manufacturer is producing an item that is finished with a

varnish coating. The manufacturer has had many complaints that the finish peels
and flakes after just a few uses of the product. Then the manufacturer learns that
baking the items in a curing oven for an hour solves the varnish problem.

The manufacturer can change the planning routings for the item, but then must
decide if all active routings should also be updated. The active routings are the
copies of the planning routing that are currently being used in production. In this
case, implementing this change quickly is important, so when the routing is
changed to add the baking process, the manufacturer can update all active routings.

However, you might not always want to update the active routings. Suppose you
plan to install a new piece of equipment next week that will significantly reduce the
amount of time needed to process items. You can update the planning routing now,
so that all manufacturing orders created from now on will have the new machine
time information, but you might not want the active routings to be updated because
current equipment—with its slower processes—is still being used for those
routings.

For information about how you specify if planning routings, active routings, or both
are to be updated, refer to Changing routing sequence information on page 21.

Changing routing sequence information

You can use the Routing Sequence Entry window to change the details in any
routing sequence. To make extensive changes—such as renumbering or deleting a
range of sequences, copying a routing, or changing a pointer routing—refer to
Chapter 4, “Routing queries and utilities.”

To change routing sequence information:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Routings list.

2. Mark an item.

3. Choose Edit to open the Routing Sequence Entry window.

4. Enter or select a routing and make your changes.

5. Mark the Planning Routings option if the changes should affect other planning
routings for the same sequence for the same manufactured item.

Marking this option generates a list of candidate routings that can be updated. Later,
you can remove routings that shouldn’t be updated from the list.

6. If the changes should affect manufacturing order (active) routings, mark the
Active Routing option in the Update on Save Options area.

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Marking this option generates a list of candidate routings that can be updated. Later,
you can remove routings that shouldn’t be updated from the list.

7. Choose Save.

8. If you marked the Planning Routing option, you must specify which planning
routings should be updated. The Update Routings window opens, and all
routings that are for the same manufactured item and that include the sequence
that was changed will be displayed.

• To remove a routing from the update list, highlight the routing to be

removed in the scrolling window and choose Remove.

• To add other routing sequences, choose the Add a Specific Sequence lookup
button. Select a routing that includes a sequence to be included, and then
select the sequence in that routing that should be updated. Repeat this step
as many times, as needed, until you’ve identified all routing sequences to
be updated. Choose OK.

When you use this method to choose other routing sequences to be updated, the routings
don’t have to be for the same manufactured item, and the sequences don’t have to have
the same sequence number.

22 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 C H A P T E R 2 R O U TI N G E N T R Y

9. If you marked the Active Routing option, you must specify which active
routings should be updated. The Update Mfg Orders window opens, and all
active routings will be displayed.

If your change will affect scheduling, be sure to use the Manufacturing Order Entry
window to open each affected manufacturing order and reschedule, as needed.

• To remove a routing from the update list, highlight the routing to be

removed in the scrolling window and choose Remove.

• To add other routing sequences, choose the Add a Specific Sequence lookup
button. Select a manufacturing order that includes a routing with a
sequence to be included, and then select the sequence in that routing.
Repeat this step as many times, as needed, until you’ve identified all
routing sequences to be updated. Choose OK.

10. When you’ve finished, close the window.

Deleting a single sequence from a routing

You can use the Routing Sequence Entry window to delete routing sequences.

To delete entire routings or to delete a range of sequences from a routing, use the Routing
Delete window. Refer to Deleting a range of sequences from a routing on page 36 and
Deleting an entire routing on page 37.

To delete a single sequence from a routing:

1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

2. Enter or select the routing that includes the sequence to delete.

3. Enter or select the sequence to delete.

4. Choose Delete. A message appears. Choose Yes to delete the routing sequence.

How routings are scheduled

The starting and ending times for a sequence are determined by the entries you
make in the Routing Sequence Entry window. The following formula is used:

Setup time + Queue time + (Cycle time x Quantity) + (Move time x Quantity) =
Total sequence time

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PA RT 1 R O U T I N G S

To calculate the manufacturing lead time for an item, use the MFG/Lead Times
window. Refer to Calculating lead time for an item unit in Chapter 8, “Item
engineering data,” in the Manufacturing Core Functions documentation for more
information.

Viewing a routing
To simply view a routing, use the Routing View window. You can view a summary
of information for any routing in your system, including each sequence in the
routing, where the sequence takes place, and the operation code associated with the
sequence.

To view more detailed information about a routing, use the Routing View Closeup
window, also described in this procedure.

To view a routing:
1. Open the Routing View window.
(Inquiry >> Manufacturing >> Routings >> View)

2. Enter or select the item number and routing name to view.

3. Review the information in the scrolling window, using the hide and show
button to adjust the amount of information displayed in the scrolling window.

24 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 C H A P T E R 2 R O U TI N G E N T R Y

4. To view more detailed information about a specific sequence, highlight the

sequence in the scrolling window and choose the zoom icon button. The
Routing View Closeup window opens, displaying detailed information about
the sequence.

If a drawing has been attached to the routing sequence, you can view it through the
Routing View Closeup window. Refer to Viewing a drawing attached to a record in
Chapter 4, “Drawings,” in the Manufacturing Core Functions documentation for more
information.

5. When you’ve finished reviewing the information, close the windows.

MANUFACTURING PRODUCTION FUNCTIONS 25

26 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Chapter 3: Links to bills of materials
The routings you define are like the instructions in a recipe, describing how to
combine and process ingredients. Bills of materials list the components—raw
materials and subassemblies—needed to produce finished goods. The components
and the routings are the only information you need to produce a finished item in a
manufacturing facility. With the BOM Routing Link window, you can create links
between the component requirements and routing sequences.

Linking bills of materials and routings can help you manage the delivery of your
component items. If you’re building a house, for example, you won’t want all the
nails delivered to the site the first day—you’ll want them delivered as they are
needed. If you link your bills of materials and routings, you can more closely match
the delivery of components to the work center when they are needed and where
they are needed.

MRP Linking bills of materials and routing sequences helps Material

Requirements Planning (MRP) and picklist operations indicate material use at the
exact step in the process where those materials are required. This facilitates Just-In-
Time (JIT) material planning.

Sales Configurator Links between bills of materials and routings are required
for using the Manufacturing Sales Configurator. Refer to Chapter 24, “Bills and
routings,” in the Manufacturing Core Functions documentation for more
information about using links with the Sales Configurator.

Outsourcing If you’re using outsourcing, it’s recommended that you use links
between bills of materials and routing sequences. This ensures that purchase orders
are released and shipments are suggested at the appropriate time.

To use the BOM Routing Link window, you also must be using Manufacturing Order
Processing, which includes routings windows.

This information is divided into the following sections:

• Linking a routing sequence to component usage

• Modifying links
• Unlinking routing sequences and components
• Viewing link information

Linking a routing sequence to component usage

You can use the BOM Routing Link window to link routing sequences in routings to
component requirements in bills of materials, which can help you plan delivery of
your materials to the production floor.

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PA RT 1 R O U T I N G S

To link a routing sequence to component usage:

1. Open the BOM Routing Link window.
(Transactions >> Manufacturing >> Bill of Materials >> BOM/Rtg Link)

2. Enter or select the parent part item with the bill of materials and routing to link.
If the parent part has more than one bill of materials, use the BOM Type and
Name fields to choose the appropriate bill of materials.

3. Enter or select the routing that includes the routing sequence to link to the bill
of materials.

4. In the Routing Sequence scrolling window, mark the sequence to link to the
component information. A black dot appears when you’ve marked a sequence.

5. In the Component Item Number scrolling window, mark the component

number to link to the marked sequence. A black dot appears when you’ve
marked a component.

6. Mark the option that determines what portion of the component quantity to
link to the routing sequence.

All Mark All to link the entire component quantity to the sequence.

Percent of Total Mark Percent of Total to specify the component quantity to

be linked as a percentage.

Number of Total Mark Number of Total to specify the component quantity

to be linked as a number of units.

7. If you marked Percent of Total or Number of Total, enter the percentage or

number of units.

You can change these amounts later, if needed. Refer to Modifying links on page 29 for
more information.

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 C H A P T E R 3 L IN K S T O B I L L S O F M A T E R IA L S

8. Choose Insert. The routing and component information and the amount of the
component tied to this sequence will be added to the lower scrolling window.
Your changes will be saved when they’re displayed in the lower scrolling
window.

When a manufacturing order is created, raw material shrinkage is reflected in

the picklist quantities if the manufacturing order uses a scheduling preference
that applies raw material shrinkage. If you’re linking component quantities that
have raw material shrinkage, link only the component quantity that would be
needed if there were no shrinkage; otherwise, your picklist quantities could be
greater than what is actually needed.

The position number also will be displayed. The position number for the items
in the lower scrolling window will be determined by the quantity of the item
linked in the upper scrolling window.

• If the Quantity Linked field is zero, the position number will be the position
number of the item for the selected bill of materials.

• If the Quantity Linked field is greater than zero, the position number will be
the next available position number on the bill of materials routing link
items for the selected bill of materials and routing.

If the position number would exceed the allowed limit, you must renumber components
and manually assign the position number before you can insert the item. Refer to
Position number guidelines on page 91 in the Manufacturing Core Functions
documentation for more information.

9. Repeat steps 4 through 8 to link other components and routing sequences, as

needed.

You can link a single component to multiple routing sequences, if you like.

10. When you’ve finished linking component requirements and sequences, close
the window.

Modifying links
You can use the BOM Routing Link window to change the amount of the
component usage linked to a particular sequence.

To modify links:
1. Open the BOM Routing Link window.
(Transactions >> Manufacturing >> Bill of Materials >> BOM/Rtg Link)

2. Enter or select the item with the bill of materials and routing link.

3. If the item has more than one bill of materials, use the BOM Type and Name
fields to choose the appropriate bill of materials.

4. Enter or select the routing that includes the routing sequence to link to this bill
of materials.

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5. In the lower scrolling window, locate the combination of component and

routing sequence to change. Choose the expansion button for the line to open
the Set Amount window.

6. Determine what portion of the component quantity to link to the routing

sequence.

All Mark All to link the entire component quantity to the sequence.

Percent of Total Mark Percent of Total to specify the component quantity to

be linked as a percentage.

Number of Total Mark Number of Total to specify the component quantity

to be linked as a number of units.

7. If you marked Percent of Total or Number of Total, enter the percentage or

number of units.

8. Choose OK. The routing and component information and the amount of the
component tied to this sequence will be added to the lower scrolling window in
the BOM Routing Link window. Your changes will be saved when they’re
displayed in the lower scrolling window.

9. Close the window.

Unlinking routing sequences and components

Use the BOM Routing Link window to unlink routing sequences and bill of
materials component requirements.

To unlink a sequence and components:

1. Open the BOM Routing Link window.
(Transactions >> Manufacturing >> Bill of Materials >> BOM/Rtg Link)

2. Enter or select the item with the bill of materials and routing link to remove. If
the item has more than one bill of materials, use the BOM Type and Name fields
to choose the appropriate bill of materials.

3. Enter or select the routing that includes the routing sequence to unlink from this
bill of materials.

4. In the lower scrolling window, highlight the link to delete. Choose the delete
icon button. Your changes automatically will be saved.

5. Close the window.

30 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 C H A P T E R 3 L IN K S T O B I L L S O F M A T E R IA L S

Viewing link information

You can use the drop-down list at the bottom of the BOM Routing Link window to
view more information about the links that have been created for a specific bill of
materials and routing. Refer to the tables for more information about how you can
use the drop-down list to learn more about the links.

Information in all tables assumes that an item number is displayed in the BOM
Routing Link window.

List selection is Item Number

Refer to the table for more information.

Routing Sequences Components Bottom scrolling window

will display:
None selected None selected None selected All linked sequences

List selection is Item & Routing

Refer to the table for more information.

Routing Sequences Components Bottom scrolling window

will display:
None selected None selected None selected Nothing
Selected None selected None selected Only linked sequences from the
selected routing

List selection is Item & Component Part

Refer to the table for more information.

Routing Sequences Components Bottom scrolling window

will display:
None selected None selected None selected Nothing
None selected None selected One or more is Only linked sequences for the
marked marked item

List selection is Item, Routing & Component Part

Refer to the table for more information.

Routing Sequences Components Bottom scrolling window

will display:
None selected None selected None selected Nothing
Selected None selected One or more is Only linked sequences in the
marked selected routing for the marked
item

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List selection is Item, Routing & Sequence

Refer to the table for more information.

Routing Sequences Components Bottom scrolling window

will display:
None selected None selected None selected Nothing
Selected One or more is None selected Only linked sequences in the
marked selected routing for the marked
sequence(s)

32 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Chapter 4: Routing queries and utilities
After you’ve created routings, you can create queries to find specific information,
and you can use any of several special windows to update routings.

You can use the Routing Query window to view routing information for any item
you manufacture. The window includes easy-to-use lists that help you set
guidelines for selecting information from your routings.

After you’ve entered a routing, you can edit or update its information. You can copy
an entire routing to use for another routing for the same parent part or a different
parent part. You can copy one or more sequences from several routings to create a
new routing.

This information is divided into the following sections:

• Query types
• Generating a routing query
• Copying a range of routing sequences
• Deleting a range of sequences from a routing
• Deleting an entire routing
• Copying an entire routing
• Modifying a routing header record
• Renumbering routing sequences

Query types
You can use the Routing Query window to get “where used” queries—quick
overviews of routing details including the components, labor codes, setup codes,
and machines required by the routing. You also can generate “field used” reports
that indicate every occurrence of a specific phrase or number in your routings and
bills of materials. You can limit the queries you generate to a single routing or to a
group of routings. The scrolling window will display the results of your inquiry.
You also can print queries.

Generating a routing query

Use the Routing Query window to complete this procedure.

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To generate a routing query:

1. Open the Routing Query window.
(Inquiry >> Manufacturing >> Routings >> Query)

2. Mark Where Used or Field Used to specify the kind of query.

Where Used Mark Where Used to search for routings with a specific value in
a specific field. For example, you would mark Where Used to generate a list of
all routings that have a sequence that occurs in work center 100.

Field Used Mark Field Used to search routings for all values used in a
specific field. For example, you would mark Field Used to generate a list of all
the machine IDs associated with routing sequences.

3. Choose the data to query from the Query list. Complete all applicable fields. For
example, to generate a list of all routings that include sequences performed in
work center 100, you must select “WC ID” for the Query, and then select the
identifier for work center 100.

4. Select a range for the query. Choices include:

All Mfg Routings Includes all manufacturing routings in the query.

All Routings Includes all routings—including both planning routings and

active manufacturing order routings—in the query.

All Rtg/Part Includes all routings for a specific manufactured item in the
query.

Single Mfg Routing Limits the query to a single manufacturing order

routing.

Single Routing Limits the query to a single planning routing.

5. If needed, enter or select information to complete associated fields. For

example, if you select Single Routing, you must enter or select the specific
routing record.

34 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 C H A P T E R 4 R O U T I N G Q U E R I E S A N D U T I L I T I E S

6. Decide how much detail the report should include. To generate a detailed
report, mark Detailed Report.

7. Choose Generate Report.

8. Remove any unwanted items from the scrolling window by marking them and
choosing Remove from Window.

9. To see more detailed information about any record in the scrolling window,
highlight the record and then choose Zoom. Another window with more
information about the record will open, displaying detailed information. The
window that opens depends on the routing type.

• If the routing is a planning routing, the Routing View window opens.

• If the routing is a manufacturing order routing, the Manufacturing Order

Closeup window opens.

10. To print the report, choose the print icon button.

11. When you’ve finished viewing information, close the windows.

Copying a range of routing sequences

You can copy sequences from one routing to another quickly and easily without
having to reenter each sequence.

A source routing contains one or more steps that you can use in a new routing. The
steps can be copied from the source routing to the new routing, which is known as
the destination routing.

To copy a range of routing sequences:

1. Open the Sequences Copy window.
(Transactions >> Manufacturing >> Routings >> Sequence Copy)

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2. Enter or select the source routing and the destination routing.

To create a new routing, you must first create a routing header. Choose the Create
Header button to open the Routing Header Creation window, and then refer to Creating
a routing header record on page 14 for more information.

3. In the Source Routing scrolling window, mark the first sequence in the range to
copy. Choose the upper Insert button in the Copy Range from Source Routing
section of the window. The sequence number will be displayed in the Start field.

4. In the Source Routing scrolling window, mark the last sequence in the range to
copy. Choose the lower Insert button in the Copy Range from Source Routing
section of the window. The sequence number will be displayed in the End field.

5. In the 1st New Sequence field, enter a sequence number that specifies where the
copied sequences should be inserted in the destination routing.

6. Choose Perform Copy. You’ll have the option to renumber sequences. If you
choose to do so, this will expand the sequence numbers by whatever increments
you have set up for sequence spacing.

Refer to Setting up sequence spacing, notes, and pointer usage in Chapter 4,

“Manufacturing production functions setup,” in the Manufacturing Setup
documentation for more information about setting the default spacing for routing
sequences.

7. When the copying process is complete, close the Sequences Copy window.

Deleting a range of sequences from a routing

You can use the Routing Delete window to delete a range of sequences from a
routing.

To delete a range of sequences from a routing:

1. Open the Routing Delete window.
(Transactions >> Manufacturing >> Routings >> Delete)

2. Enter or select an item number and routing name.

36 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
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3. In the scrolling window, mark the first sequence in the range to delete. Choose
the upper Insert button. The sequence number will appear in the Start field.

4. In the scrolling window, mark the last sequence in the range to delete. Choose
the lower Insert button. The sequence number will appear in the End field.

5. Choose Perform Delete.

6. A message will appear, asking if you’re sure you want to delete the sequences.
Choose Yes.

7. When the sequences have been deleted, close the window.

Deleting an entire routing

You can use the Routing Delete window to delete an entire routing.

To delete an entire routing:

1. Open the Routing Delete window.
(Transactions >> Manufacturing >> Routings >> Delete)

2. Enter or select an item number and routing name.

3. In the scrolling window, mark the first sequence in the routing. Choose the
upper Insert button. The sequence number will appear in the Start field.

4. In the scrolling window, mark the last sequence in the routing. Choose the
lower Insert button. The sequence number will appear in the End field.

5. Choose Perform Delete.

6. A message will appear, asking if you’re sure you want to delete the sequences.
Choose Yes.

7. Another message will appear, asking if you also want to delete the header
record for the routing. Choose Yes.

8. When you’ve finished, close the window.

Copying an entire routing

Use the Routing Duplicate window to copy an existing routing and save it with a
new name. This can be particularly helpful if you need to create many similar
routings.

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To copy an entire routing:

1. Open the Routing Duplicate window.
(Transactions >> Manufacturing >> Routings >> Duplicate)

2. Enter or select a source routing and a destination routing. You can select an
existing routing, or you can choose Create Header to create a new header record
for the routing you’re copying.

Refer to Creating a routing header record on page 14 for more information.

3. Choose Perform Copy.

4. When the routing has been copied, close the window.

Modifying a routing header record

A routing header record identifies individual routings. Header records include the
revision levels, types, and statuses—primary or alternate—of the routings. To
change any of the header information, use the Routing Header Edit window.

To modify a routing header record:

1. Open the Routing Header Edit window.
(Transactions >> Manufacturing >> Routing >> Header Edit)

2. Enter or select the item number and routing name.

3. To change the revision level, enter a new revision level in the Revision Level
field.

4. Select a routing type from the Routing Type list.

5. Choose Save and close the window.

Renumbering routing sequences

Sometimes operations within a routing need to be adjusted or the sequences need to
be renumbered. Use the Routing Renumber window to make these adjustments.

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To renumber routing sequences:

1. Open the Routing Renumber window.
(Transactions >> Manufacturing >> Routings >> Renumber)

2. Enter or select the item and routing with sequences to renumber.

3. In the scrolling window, highlight the first sequence in the range to renumber.
Choose the upper Insert button. The sequence number will appear in the Start
field.

4. Highlight the last sequence in the range to renumber. Choose the lower Insert
button. The sequence number will appear in the End field.

5. Set the Sequence Spacing—the increment use between sequence numbers.

6. In the 1st New Sequence field, enter the sequence number to use for the first of
the renumbered sequences.

7. Choose Renumber Range.

8. When the process is complete, close the window.

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40 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Chapter 5: Pointer routings
Refer to this document for information about creating and using pointer routings—
series of routing sequences that can be added to routings for manufactured items.

This information is divided into the following sections:

• Pointer routings
• Creating a pointer routing
• Modifying a pointer routing
• Adding a pointer routing to a routing
• Copying pointer routings

Pointer routings
Pointer routings are special routings that can be used within other routings. For
example, suppose the last procedures in your production processes are to label
items, inspect them, and package them. You can create a pointer routing that
includes these three sequences, and then add the pointer routing as the final
sequence to routings for all items that require these three final steps.

Pointer routings provide some special advantages. They can help you define
routings more quickly, and they can help to ensure that no final steps are
accidentally omitted. Pointer routings also can be helpful if you need to update
your processes: a change in a pointer routing can be reflected automatically in all
the routings that include the pointer routing.

You can create as many pointer routings as you like, so you can create various
pointer routings for various situations. For example, an electronics manufacturer
might use one pointer routing for items that are to be packaged in boxes, and
another pointer routing for items that are to be packaged in tape-and-reel
packaging.

Creating a pointer routing

Creating a pointer routing is a two-step process. First, you must use the Pointer
Routing Creation window to create a header record for the pointer routing. Then
you must use the Pointer Routing Edit window to add more sequences to the
pointer routing.

Before you can create a pointer routing, the work center and its associated operation
codes must be set up. Refer to Chapter 2, “Work centers,” and Chapter 3,
“Operations,”—both in the Manufacturing Core Functions documentation—for
more information.

The Use Pointer Routings option in the Routing Preference Defaults window must be
marked if you plan to use pointer routings. Refer to Setting up sequence spacing, notes, and
pointer usage in Chapter 4, “Manufacturing production functions setup,” in the
Manufacturing Setup documentation for more information.

Use the Pointer Routing Creation window and the Pointer Routing Edit window to
create a pointer routing.

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To create a pointer routing:

1. Open the Pointer Routing Creation window.
(Cards >> Manufacturing >> Routings >> Ptr Rtg Creation)

2. Enter a name for the pointer routing.

3. Enter or select the work center ID and operation code for the first sequence in
the pointer routing.

4. Choose Save and close the window.

Whenever you’re adding sequences to a routing and you choose the work center and
operation code combination you used here, the pointer routing sequences are added to
the routing.

5. Open the Pointer Routing Edit window.

(Transactions >> Manufacturing >> Routings >> Pointer Edit)

6. Enter or select the name of the pointer routing.

Information about the first sequence for the pointer routing—entered in the
Pointer Routing Creation window—is displayed in the first line of the scrolling
window.

7. Enter or select the work center ID and operation code for the next sequence in
the pointer routing.

8. Choose Insert to add the sequence to the scrolling window.

9. Repeat steps 7 and 8 until all of the pointer routing sequences have been added
to the scrolling window.

10. When you’ve finished, close the window.

42 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
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Modifying a pointer routing

You can add sequences only to the end of a pointer routing. To add a sequence in the
middle of a pointer routing, delete the pointer routing sequences that must follow
the added pointer routing sequence, add the new sequence, and then replace the
deleted sequences.

Use the Pointer Routing Edit window to update and edit pointer routings.

To modify a pointer routing:

1. Open the Pointer Routing Edit window.
(Transactions >> Manufacturing >> Routings >> Pointer Edit)

2. Enter or select the pointer routing to change.

3. Decide what changes to make.

• To add a sequence to a pointer routing, enter or select the work center ID

and operation code. Choose Insert.

• To remove a sequence from a pointer routing, highlight the sequence in the

scrolling window and choose Remove.

4. Changes automatically are saved when they appear in the scrolling window.
When you’ve finished modifying the pointer routing, close the window.

Adding a pointer routing to a routing

Use the Routing Sequence Entry window and the Pointer Routing Edit window to
add a pointer routing to a routing for a manufactured item.

The Use Pointer Routings option in the Routing Preference Defaults window must be
marked if you plan to use pointer routings. Refer to Setting up sequence spacing, notes, and
pointer usage in Chapter 4, “Manufacturing production functions setup,” in the
Manufacturing Setup documentation for more information.

To add a pointer routing to a routing:

1. Open the Pointer Routing Edit window.
(Transactions >> Manufacturing >> Routings >> Pointer Edit)

2. Enter or select the pointer routing to add to the routing for the manufactured
item.

3. Note the work center ID and opcode for the first sequence in the pointer
routing.

4. Open the Routing Sequence Entry window.

(Cards >> Manufacturing >> Routings >> Routing Entry)

5. Enter or select a routing.

6. Choose Clear at the top of the window to clear the sequence information in the
window.

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7. Enter an appropriate sequence number.

Sequence numbers determine the order of the sequences, so be sure to enter a sequence
number that is greater than the highest existing sequence number if the pointer routing
should be added to the end of the routing.

8. In the Work Center ID field, enter the work center of the first sequence in the
pointer routing.

9. In the Work Center Opcode field, enter the operation code of the first sequence
in the pointer routing. The Pointer Routing window opens, displaying
information about the pointer routing.

10. You can change the sequence number to be assigned to the first sequence in the
pointer routing when it is added to the routing for the manufactured item, if
needed. Enter the beginning sequence number in the Sequence Number field.

11. You can change the numerical spacing between the pointer routing sequences
as they will appear in the routing for the manufactured item. For example, the
pointer routing might use spacing of 10 for the sequences (010, 020, 030) and
you might want to use spacing of 100 for the sequences in the routing for the
manufactured item (0100, 0200, 0300). Enter the new spacing in the Increment
Sequence by field.

12. Choose OK in the Pointer Routing window to add the pointer routing
information to the routing for the manufactured item.

13. Choose Save in the Routing Sequence Entry window and then close the
windows.

Copying pointer routings

A pointer routing might have an application for more than one work center. After a
pointer routing has been defined, you can copy it to use in other work centers.

44 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
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To copy pointer routings:

1. Open the Pointer Routing Duplicate window.
(Transactions >> Manufacturing >> Routings >> Pointer Duplicate)

2. Select the source pointer routing to copy.

3. Enter a name for the pointer routing, and enter or select a work center ID and
work center operation code. The work center ID and operation code
combination will be the combination that you’ll use to add the new pointer
routing to a routing for a manufactured item.

4. Choose Save and close the window.

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46 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
PART 2: MANUFACTURING ORDER PROCESSING
 Part 2: Manufacturing Order
Processing
This part of the documentation includes information that will help you create,
maintain, and close manufacturing orders. Manufacturing Order Processing has
two main components: routings and manufacturing orders. For more information,
refer to Part 1, Routings.

The following information is discussed:

• Chapter 6, “Manufacturing order overview,” defines manufacturing order

terms and concepts.

• Chapter 7, “Manufacturing order entry,” describes how to create and modify

manufacturing orders.

• Chapter 8, “Component transactions,” includes information about picklists,

component transactions, and pick documents.

• Chapter 9, “Routings and rescheduling,” contains information about viewing

and modifying manufacturing order routings and describes how to adjust
production schedules.

• Chapter 10, “Quick manufacturing orders,” contains information about special

manufacturing orders that require fewer steps to close.

• Chapter 11, “Manufacturing/sales order link,” describes how you can link
manufacturing orders and sales orders.

• Chapter 12, “Manufacturing order inquiries,” contains information about

viewing manufacturing orders.

• Chapter 13, “Receipts and closing,” includes information about tasks required
to close a manufacturing order.

• Chapter 14, “Manufacturing order removal,” contains information about how

to remove manufacturing order records from your system.

48 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Chapter 6: Manufacturing order overview
A manufacturing order is a set of instructions you create to give your production
floor the authority to make goods in quantities you specify. Manufacturing orders
are also commonly called batch cards, job orders, production orders, run orders,
shop orders, or work orders.

This information is divided into the following sections:

• Manufacturing Order Processing tasks

• Manufacturing order terms
• Manufacturing order statuses
• How statuses limit activities
• Scheduling methods
• How required dates are calculated
• How required quantities are calculated
• How multiple bins affect manufacturing orders

Manufacturing Order Processing tasks

With Manufacturing Order Processing, you can:

• Create, change, and delete manufacturing orders.

• Enter component transactions to allocate, issue, and scrap components for a

manufacturing order. You also can reverse allocate, reverse issue, and reverse
scrap component quantities.

• Schedule manufacturing orders, and use manual rescheduling capabilities to

adjust the schedules, as needed.

• Link manufacturing orders to specific sales orders.

• Generate purchase orders for outsourced services for manufacturing orders.

• Receive finished goods into inventory and calculate the costs of the finished
goods.

• Close manufacturing orders, calculate associated costs, and, if needed, reconcile

material usage records.

• Remove old or canceled manufacturing orders from your system.

Manufacturing Order Processing actually includes two main parts—manufacturing

orders and routings. Refer to Chapter 1, “Routings overview,” for information about
routings. Manufacturing Order Processing also includes special windows you can
use if your manufacturing orders require outsourced services. Refer to Chapter 15,
“Outsourcing overview,” for more information about outsourcing.

Manufacturing Order Processing is linked to other modules in Manufacturing,

including Master Production Scheduling, Material Requirements Planning (MRP),
Bill of Materials, and Sales Orders. Manufacturing Order Processing is also closely
linked to Inventory Control.

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Manufacturing order terms

Before working with manufacturing orders, you should be familiar with terms
commonly associated with manufacturing orders.

Manufacturing order A manufacturing order is a set of instructions you create

to give your production floor the authority to make certain goods in quantities and
at times you specify. Manufacturing orders also are commonly called batch cards,
job orders, production orders, run orders, shop orders, or work orders.

Picklist After you’ve created a manufacturing order, a picklist is created for the
order. The picklist specifies the component items required to fill a manufacturing
order. It is a kind of shopping list for the materials needed for the manufacturing
order.

Position number Each component on a bill of materials and each component

item on a picklist has a position number. A position number is a number that
indicates the order in which components are used to build a product. All new
components and new picklist items will be assigned a position number. Because
you assign a position number to each component on a bill a materials and each
component item on a picklist, a component can be used more than once in the
process. For example, if a component is used at the beginning and at the end of the
process, you can add the component to the bill of materials twice, using a different
position number for each instance. The position number will be displayed in
windows where you can enter or view bill of materials and picklist information.

Allocating materials The process of reserving materials for a manufacturing

order is called “allocating.” You can set system preferences to automatically allocate
materials when the status of the manufacturing order is Released, or you can
allocate materials manually. Refer to Allocating components on page 72 for more
information.

Issuing materials When a manufacturing order is released—usually when it

has been scheduled—you can issue materials for the manufacturing order. Issuing is
an accounting procedure that removes component items from their issue-from sites
to the manufacturing order. Usually when materials are issued, they also are moved
from the issue-from site to the issue-to site.

Quick manufacturing orders Closing a manufacturing order typically requires

you to collect information about the labor, machine time, and material costs
associated with a particular manufacturing order. Some companies routinely have
manufacturing orders for items that don’t require such detailed information. For
example, a company that builds electronic components might have a machine that
automatically puts pins into bobbins. The company can create manufacturing
orders to build the bobbin assemblies, but not to track the costs associated with this
process because it is so simple and so routine. For those manufacturing orders, the
company can use quick manufacturing orders.

All costs for quick manufacturing orders are backflushed—that is, the
Manufacturing system will calculate costs for materials, labor, and machine time
based on the bill of materials and the routing. If you use a quick manufacturing
order, you can create and close a manufacturing order using just one window.

Refer to Chapter 10, “Quick manufacturing orders,” for more information.

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Manufacturing order receipt If you build large quantities of items from your
manufacturing orders, you can receive a portion or all of the finished goods
produced from the manufacturing order. You can add the completed items from the
manufacturing order to inventory as soon as they are completed, making them
available for sales. You can enter and post manufacturing order receipts for both
standard- and actual-cost items.

Cost variance After you’ve fully closed a manufacturing order, you can
compare the actual costs for materials, machine time, and labor, with the estimated
costs. The difference is the cost variance. The variance can be positive or negative.
Manufacturing calculates both the cost of the variance and the percentage of
variance for labor costs, labor hours, machine costs, machine hours, material costs,
and overhead amounts.

Manufacturing order statuses

Most manufacturing orders have a lifecycle that includes two or more phases called
“statuses.” You’ll assign some statuses to manufacturing orders; other statuses are
assigned as certain tasks are completed.

Refer to Rules for changing manufacturing order statuses on page 62 and Changing the
status of multiple manufacturing orders on page 65 for more information.

Manufacturing includes these manufacturing order statuses:

Quote/Estimate A manufacturing order might have Quote/Estimate status if

you’re not certain the order will be produced. For example, some companies might
create quote/estimate manufacturing orders so work can begin immediately if a
customer decides to buy the order quantities. This is the default status that will be
assigned to all manufacturing orders when you create them.

Open A manufacturing order might have Open status if you’re reasonably sure
the manufacturing order will be produced. Depending on your system settings,
manufacturing orders generated by sales orders might have this status. You can
allocate materials to a manufacturing order with Open status.

Released A manufacturing order has Released status when you’re ready to begin
work on the order, such as allocating or issuing materials, or beginning work on the
first routing sequence. A manufacturing order must have Released status before
you can issue materials to it, or enter data collection transactions for labor or
machine costs.

Hold You can assign Hold status to a manufacturing order if the order must be
temporarily stopped. You must enter information in all required fields in the
Manufacturing Order Entry window before you can select Hold status for a
manufacturing order.

Canceled You can assign Canceled status to a manufacturing order if the order
must be permanently suspended. You must enter information in all required fields
in the Manufacturing Order Entry window before you can select Canceled status for
a manufacturing order.

Complete If all the tasks for a manufacturing order are complete, the status of the
manufacturing order might be Complete. You can’t select this option when creating
a new order because the work can’t be completed before the order is defined.

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Partially Received If a portion of the finished goods from a manufacturing

order has been received, the status of the manufacturing order will be changed to
Partially Received. This option won’t be available when you create a new order
because the items can’t be posted before you define the manufacturing order.

Closed If all accounting tasks associated with tracking the costs of a

manufacturing order are complete—if all the material, machine, and labor costs
have been posted and all the finished items have been posted—the manufacturing
order status automatically will be changed to Closed.

How statuses limit activities

The status of a manufacturing order often determines whether you can perform
certain tasks. For example, you can’t issue components for a manufacturing order
with Quote/Estimate or Open status.

The following table illustrates the lifecycle of a simple manufacturing order—one

that doesn’t include backflushed or phantom component items.

Status Schedule Picklist Allocate Issue Receive Close

Quote/ The manufacturing No No No No
Estimate order is scheduled and
the picklist is built when
Open Yes No No No
you save a
manufacturing order
with these statuses.
Released No No Yes Yes Yes Yes
Complete No No Yes Yes Yes Yes
Partially No No Yes Yes Yes Yes
Received
Closed No No No No No No
Hold No No No No No No
Canceled No No No No No No

There also are rules that determine when you can change the status of a
manufacturing order. For more information, refer to Rules for changing manufacturing
order statuses on page 62.

More specific rules apply if the manufacturing order includes outsourcing

sequences. Refer to Changing the status of an outsourcing manufacturing order on
page 203 for more information about those situations.

Refer to Changing the status of multiple manufacturing orders on page 65 for information
about changing several manufacturing orders at the same time.

Scheduling methods
Manufacturing includes two options for scheduling methods: forward infinite and
backward infinite.

Forward infinite Assumes that you’ll supply a start date for the manufacturing
order and that you have unlimited resources to complete the work.

Backward infinite Assumes that you’ll supply a due date for the manufacturing
order and that you have unlimited resources to complete the work.

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How required dates are calculated

When a picklist is generated for a manufacturing order, component quantities are
calculated. Required dates—the dates when individual components are needed in
production—also are calculated.

The required dates for most components depend on two factors: whether the bill of
materials component has been linked to a routing sequence, and whether a lead
time offset has been entered for the component item. (The required date for by-
products—components that have negative quantities in the bill of materials—is
always the manufacturing order due date.)

Refer to Chapter 12, “Links to routings,” in the Manufacturing Core Functions

documentation for more information about linking components to routing sequences. Refer
to Lead time calculations in Chapter 9, “Bill of Materials overview,” in the Manufacturing
Core Functions documentation for more information about lead time calculations.

Refer to the table to see how linking and lead time offsets affect required dates.

BOM/ Lead Time Calculati Is resulting Is resulting Is it a down

Routi Offset on date before date after day on the
ng MO Start MO Due shop
link? Date? If so: Date? If so: calendar? If
so:
No None MO Start Not applicable Not applicable Not applicable
Date
Offset from MO MO Start Not applicable MO Due Date Next up day
Start; Positive Date + Lead
value Time Offset
Offset from MO MO Start Not applicable Not applicable Preceding up
Start; Negative Date - Lead day
value Time Offset
Offset from MO MO Due MO Start date Not applicable Preceding up
Due Date; Positive Date - Lead day
value Time Offset
Yes Any Scheduled sequence start date is always used

How required quantities are calculated

When a picklist is built, the required quantity for each component is calculated. At
the simplest level, the required quantity is the quantity of the component that is
needed to build the manufacturing order start quantity. However, these calculations
can reflect several variables, including:

• The quantity, fixed quantity, and shrinkage percentage for the component, as
stated in the bill of materials

• The scheduling preference for the manufacturing order regarding raw material
shrinkage

• The manufacturing order start quantity

• Links between bills of materials and routing sequences

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Refer to the table for more information about how required quantities are
calculated.

BOM/ Raw Calculation

Routing material
link? shrinkage?
No No (BOM quantity x MO start quantity) + Fixed quantity
No Yes (BOM quantity x MO start quantity) + Shrinkage* + Fixed quantity
All linked No First linked sequence: (Linked quantity x MO start quantity) +
Fixed quantity
Subsequent linked sequences: (Linked quantity x MO start
quantity)
Partially No First linked sequence: (Linked quantity x MO start quantity) +
linked Fixed quantity
Subsequent linked sequences: (Linked quantity x MO start
quantity)
If a portion of the BOM quantity is not linked, it won’t appear on
the picklist.
All linked Yes First linked sequence: (Linked quantity x MO start quantity) +
Shrinkage † + Fixed quantity
Subsequent linked sequences: (Linked quantity x MO start
quantity) + Shrinkage †
Partially Yes First linked sequence: (Linked quantity x MO start quantity) +
linked Shrinkage † + Fixed quantity
Subsequent linked sequences: (Linked quantity x MO start
quantity) + Shrinkage †
If a portion of the BOM quantity is not linked, it won’t appear on
the picklist.
* Shrinkage for lines with no BOM/routing link is calculated: (BOM quantity x MO start quantity)
÷ (1 - Shrinkage percent)
† Shrinkage for lines with BOM/routing link is calculated: (Linked quantity x MO start quantity) ÷
(1 - Shrinkage percent)

Although these are the calculations that are usually made for the picklist quantities,
there is an exception. Any time the calculated required quantity is less than the
Minimum Issue quantity (which is specified in the Item Engineering Data window),
the minimum issue quantity is used.

Refer to Chapter 8, “Item engineering data,” in the Manufacturing Core Functions

documentation for more information about entering item engineering information.

How multiple bins affect manufacturing orders

When you use multiple bins with Manufacturing, bin information will be required
when you’re working with items for manufacturing orders. Manufacturing
transactions use default bins for Material Issues and for Material Receipts. You can
specify default bins for sites and for item-site combinations. When you create a
transaction—such as a component transaction for issuing materials for a
manufacturing order—the default bin information is used. If a default bin has been
defined for the item-site combination, that bin is used. Otherwise, the default bin for
the site is used. You can use the default bins or select other bins, if needed.

Default bins for other types of transactions—such as fulfilling sales orders and receiving
purchased items—are also required. General information about multiple bins is included in
the Microsoft Dynamics GP Inventory Control documentation. You also should refer to
Sales Order Processing and Purchase Order Processing documentation for information
about how using multiple bins affects those modules.

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Refer to the following topics for more information about using multiple bins with
Manufacturing:

• Modifying bin selections for a component on page 77

• Modifying bin information for a finished item on page 143

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Chapter 7: Manufacturing order entry
After you‘ve created routings to describe the steps in the manufacturing process
and you have entered bills of material for your products, you can create
manufacturing orders to build products. Manufacturing includes a detailed
manufacturing order entry and processing system you can use to track the products
manufactured, the volume of production, and the schedule for producing goods.

This information is divided into the following sections:

• How manufacturing orders are created

• Entering a manufacturing order
• Entering serial numbers when entering a manufacturing order
• Changing a manufacturing order
• Rules for changing manufacturing order statuses
• Component shortages and automatic allocations
• Changing the status of multiple manufacturing orders
• Updating CRP for MRP–planned manufacturing orders
• Deleting a manufacturing order

How manufacturing orders are created

There are several ways you can create manufacturing orders. You can create them
one at a time using the Manufacturing Order Entry window, or you can have them
created automatically at various other points in the system.

Manufacturing orders can be generated in the following instances.

Enter sales orders for made items Refer to Chapter 20, “Sales order entry,”
in the Manufacturing Core Functions documentation for more information.

Use Master Production Scheduling to plan manufacturing

orders Refer to Chapter 5, “MPS manufacturing orders,” in the Manufacturing
Planning Functions documentation for more information.

Identify and plan for shortages in the MOP/SOP Link window Refer to
Chapter 11, “Manufacturing/sales order link,” in this manual for more information.

Update MRP, creating MRP-planned manufacturing orders Refer to

Chapter 11, “Pegging,” in the Manufacturing Planning Functions documentation
for more information.

Entering a manufacturing order

Use the Manufacturing Order Entry window to create a manufacturing order.
Before you can create a manufacturing order for an item, you must create a routing
and a bill of materials for the finished item.

To enter a manufacturing order:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Manufacturing Orders list.

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2. Choose Manufacturing Order to open the Manufacturing Order Entry window.

3. Accept the default manufacturing order number, or change it. You can enter a
brief description of the manufacturing order. Use the notes button to enter
detailed information.

4. Enter or select a finished good item number.

If you select a phantom item—a finished good item with a manufacturing bill of
materials with the phantom BOM category—a message is displayed, asking if
you’re sure you want to create a manufacturing order for a phantom item. If
you choose Yes, you can continue to create the manufacturing order as you
would for any item.

5. From the BOM Type list, select the type of bill of materials for the
manufacturing order. The default selection is MFG BOM, or manufacturing bill
of materials.

If you select ARCH BOM—archived bill of materials—or CONFIG BOM—

configured bill of materials, you also must enter or select the bill of materials
name. The revision of the bill of materials used to build the picklist is displayed.

6. Enter or select a routing. The default selection will be the primary routing for
the item, but you can change it, if needed. The revision of the routing used to
schedule the manufacturing order is displayed.

You can change the bill of materials, the routing, or both for a manufacturing order if
the status of the order is Quote/Estimate or Open.

7. Select a status. Refer to Manufacturing order statuses on page 51 for more

information.

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8. If the item you’re producing with this manufacturing order requires lot or serial
numbers, you can enter the lot or serial number information.

If you prefer, you can enter lot and serial numbers when you receive the finished goods.

• If the item is tracked by lot numbers, enter the Lot Number.

• If the item is tracked by serial numbers, choose the Serial Numbers

expansion button to open the Manufacturing Serial Number Pre-Entry
window. Refer to Entering serial numbers when entering a manufacturing order
on page 60 for more information.

9. Accept the default scheduling preference for the manufacturing order, or enter
or select another scheduling preference. The default scheduling preference is
specified in the Scheduling Preferences window.

Refer to Setting up scheduling preferences in Chapter 4, “Manufacturing

production functions setup,” in the Manufacturing Setup documentation for
more information.

10. Accept the default scheduling method for the item, or change it. Refer to
Scheduling methods on page 52.

11. Enter the Ending Quantity—the quantity to be produced by this manufacturing

order. The default ending quantity will be the average quantity for the item,
according to information in the Item Engineering Data window. If you’ve set
system preferences to allow for shrinkage, the starting quantity will be
calculated for you, but you can override the calculated starting quantity.

Refer to Setting up scheduling preferences in Chapter 4, “Manufacturing

production functions setup,” in the Manufacturing Setup documentation for
more information about setting shrinkage preferences for manufacturing order
quantities.

12. Accept the posting sites for the raw materials and finished goods—the Draw
Inventory from Site and the Post Finished Goods to site—or select different
ones. The posting sites might be part of the scheduling preference, but you can
change them. If you haven’t specified a default post-to site for the finished
goods, the default site for the item will be the default entry for the post-to site.

13. Depending on the scheduling method, enter or select either the Start Date or
Due Date for the order.

• If the scheduling method is Forward Infinite, enter or select a start date.

• If the scheduling method is Backward Infinite, enter or select a due date.

Regardless of the scheduling method you’re using, you can edit the manufacturing
order due date. This is helpful if you don’t use Manufacturing to schedule production
processes because you can enter a date that can be used as a reference.

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14. You can select a priority—High, Medium, or Low—for this manufacturing

order.

15. Choose Save.

If the status of the manufacturing order is Quote/Estimate or Open, the order

automatically will be scheduled, and its picklist will be built.

16. Close the window.

Entering serial numbers when entering a

manufacturing order
If your business produces finished goods that are tracked by serial numbers, you
can enter the serial numbers that will be used for the finished goods when you
create the manufacturing order, or later, when you receive the finished goods.

For information about creating serial numbers when you receive the finished goods, refer to
Serial number assignments for finished goods on page 144.

You can use this procedure to enter serial numbers for a new manufacturing order.
You also can add serial numbers to an existing manufacturing order.

To enter serial numbers when entering a manufacturing

order:
1. Open the Manufacturing Order Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Entry)

2. Enter or select a manufacturing order for a finished good item tracked by serial
numbers.

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3. Choose the Serial Numbers expansion button to open the Manufacturing Serial
Number Pre-Entry window.

4. You can enter serial numbers manually or automatically.

• To enter serial numbers manually, go to step 5.

• To enter serial numbers automatically, go to step 8.

5. In the Manual Serial Number Entry region, enter a serial number.

6. Choose Insert to add the serial number to the Entered list.

7. Repeat steps 5 and 6 until the Serial Numbers Needed equals the Serial
Numbers Entered, then skip to step 11.

8. Accept the default Quantity to Generate, or enter another quantity. The default
value is the ending quantity for the manufacturing order.

9. To create or edit a serial number mask, click the Serial Number Mask link to
open the Item Serial Number Definition window.

Refer to Inventory Control documentation for information about creating a serial

number mask and generating serial numbers.

10. Repeat steps 8 and 9 until the Serial Numbers Needed equals the Serial
Numbers Entered.

11. Choose OK to save the serial numbers and close the window.

Changing a manufacturing order

After you’ve created a manufacturing order, your next steps will depend on your
business processes.

You might need to change the status of the manufacturing order. Refer to Rules for
changing manufacturing order statuses on page 62 for more information.

You might want to allocate or issue components. For more information, refer to
Chapter 8, “Component transactions.”

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If your manufacturing order includes outsourcing, you might want to create

purchase orders for outsourced services, or record shipments of items to
outsourcing vendors. For more information, refer to Chapter 17, “Purchase orders
and shipments.”

Occasionally, you might need to update a manufacturing order routing while it is in

process. For example, your engineering department might find a better way to
complete a task for a manufacturing order that is currently in production. Changes
to manufacturing order routings should be done using the Manufacturing Order
Routing Sequence Edit window. For more information about changing
manufacturing order routings, refer to Modifying a manufacturing order routing on
page 98.

Rules for changing manufacturing order statuses

Refer to the tables for information about rules that apply when you change the
status of a manufacturing order.

To change the status of one manufacturing order Use the Manufacturing

Order Entry window. Refer to Changing a manufacturing order on page 61.

To change the status of multiple manufacturing orders Use the Edit

Manufacturing Order Status window. Refer to Changing the status of multiple
manufacturing orders on page 65.

Quote/Estimate status manufacturing orders

Refer to the table for information about changing the status of a manufacturing
order from Quote/Estimate to another status.

New status Rules or effects

Open Always allowed.
Released You’ll be warned if any components couldn’t be allocated.
Hold You’ll have the option to remove the capacity from CRP. You also will have
the option to remove routing sequences.
Canceled You’ll have the option to remove routing sequences.
Partially Received Not allowed. (This only occurs automatically when you post a
manufacturing order receipt.)
Complete Not allowed.

Open status manufacturing orders

Refer to the table for information about changing the status of a manufacturing
order from Open to another status.

New status Rules or effects

Quote/Estimate You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
Released You’ll be warned if any components couldn’t be allocated.
Hold You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
You’ll have the option to remove the capacity from CRP.
You also will have the option to remove routing sequences.
Canceled You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
You also will have the option to remove routing sequences.

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New status Rules or effects

Partially Received Not allowed. (This only occurs automatically when you post a
manufacturing order receipt.)
Complete Not allowed.

Released status manufacturing orders

Refer to the table for information about changing the status of a manufacturing
order from Released to another status.

New status Rules or effects

Quote/Estimate You can’t make this change if costs have been applied for outsourcing, or
if components have been issued.
You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
Open You can’t make this change if costs have been applied for outsourcing, or
if components have been issued or backflushed.
You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
Hold You can’t make this change if components have been issued or data
collection transactions have been entered for the manufacturing order.
You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
Canceled You can’t make this change if costs have been applied for outsourcing, if
components have been issued or backflushed, or if data collection
transactions have been entered for the manufacturing order.
You’ll be asked how any linked purchase orders or recorded shipments for
outsourcing should be handled.
You also will have the option to remove routing sequences.
Partially Received Not allowed. (This only occurs automatically when you post a
manufacturing order receipt.)
Complete Not allowed.

Hold or Canceled status manufacturing orders

Refer to the table for information about changing the status of a manufacturing
order from Hold or Canceled to another status.

New status Rules or effects

Quote/Estimate Always allowed.
Open
Released You’ll be warned if any components couldn’t be allocated.
Canceled Always allowed.
Partially Received Not allowed. (This only occurs automatically when you post a
manufacturing order receipt.)
Complete Not allowed.

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Partially Received status manufacturing orders

Refer to the table for information about changing the status of a manufacturing
order from Partially Received to another status.

New status Rules or effects

Quote/Estimate Not allowed.
Open
Released
Hold
Canceled
Complete Allowed.

Complete status manufacturing orders

Refer to the table for information about changing the status of a manufacturing
order from Complete to another status.

New status Rules or effects

Quote/Estimate Allowed only if there is no material, labor, or machine activity recorded for
the manufacturing order.
Open
Released Allowed. However, CRP information won’t be updated.
Hold Allowed only if there is no material, labor, or machine activity recorded for
the manufacturing order.
Canceled
Partially Received Not allowed.

Additional rules apply when you’re changing the status of a manufacturing order that
includes outsourced sequences. Refer to Changing the status of an outsourcing
manufacturing order on page 203.

Component shortages and automatic allocations

If you marked the Allocate Inventory when MO Status becomes Released option in
the Manufacturing Order Preference Defaults window, the components that are
needed for each manufacturing order are allocated as soon as you change the status
of the manufacturing order to Released.

If there aren’t enough of the components available at the appropriate sites to

allocate, a message will be displayed and you’ll have the option to allocate the
component quantity that is available. (Allocations for other components that have
sufficient quantities will be made as usual, regardless of how you respond to the
message.) The options you’ll have, however, will depend on whether you’ve also
marked Allow Adjustment Overrides when you set up Inventory Control, and
whether any of the shortage components is tracked by lot or serial numbers.

If you have not marked the Allow Adjustment Overrides option in the Inventory
Control Setup window, you can choose Yes or No.

• If you choose Yes, the available quantity of components will be allocated.

• If you choose No, no allocations will occur for any components where the
required quantity is greater than the available quantity.

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If you have marked the Allow Adjustment Overrides option in the Inventory Control
Setup window, you’ll also be able to specify whether the component shortages for
the allocations should be overridden. If you choose Override, the following rules
will apply.

• For items tracked by lot or serial numbers, the available quantity is allocated.

• For items that are not tracked by lot or serial numbers, the required quantity is
allocated.

Changing the status of multiple manufacturing orders

Use the Edit Manufacturing Order Status window to update the status of a group of
manufacturing orders. You can use the window to update the status of any type of
manufacturing order, including planned ones that are suggested by MRP
processing.

When you’re working with groups of manufacturing orders, you can filter the
manufacturing orders that are displayed in the scrolling window.

• You can use the Ranges fields to limit the manufacturing orders based on their
manufacturing order numbers, finished-good item numbers, start dates, post-to
sites, routing names, or bill of materials types or names.

• You can use the Exclude MOs with Status of fields to limit the manufacturing
orders that are displayed based on their current statuses. Manufacturing orders
that are on hold or that are canceled are not displayed by default, but you can
choose to include those manufacturing orders, or to restrict other statuses as
well.

Refer to Viewing and transferring MRP-planned orders in Chapter 11, “Pegging,” in the
Manufacturing Planning Functions documentation for more information about
MRP-planned orders.

To change the status of multiple manufacturing orders:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Manufacturing Orders list.

2. Mark a manufacturing order.

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3. Choose Edit Status to open the Edit Manufacturing Order Status window.

4. To work with manufacturing orders that have been planned by MRP processes,
mark Show MRP Planned Orders.

5. Select the status to assign to a group of manufacturing orders.

As soon as you select the status, manufacturing orders that are eligible to be
changed to that status are displayed in the scrolling window.

6. You can use the Ranges fields or Exclude MOs with Status of fields, if needed, to
filter the manufacturing orders that are displayed in the scrolling window.

If you use the filters, be sure to choose Redisplay to update the information in
the scrolling window.

7. If you’re changing the status of the manufacturing orders to Closed, enter

information used for the closing process.

CRP records are deleted when an order is closed.

Posting Date Accept the default Posting Date, or change it. The posting date
is used when the manufacturing order closing transactions are recorded.

When you change the posting date, the transactions will be posted using the date you
enter, regardless of whether you’ve chosen to use batch or transactional posting.

Calculation Option Select a Calculation Option to determine how the

quantities of backflushed components for the manufacturing orders will be
calculated. For more information about the selections, refer to How backflushed
item quantities are calculated on page 163.

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8. In the scrolling window, mark the manufacturing orders to be updated with the
new status. Use the Mark All button to mark all manufacturing orders at the
same time.

9. Choose Process.

10. When processing is complete, close the window.

Updating CRP for MRP–planned manufacturing orders

You can use the Edit Manufacturing Order Status window to update Capacity
Requirements Planning for a group of MRP–planned manufacturing orders.

When you’re working with groups of planned manufacturing orders, you can select
information that determines which manufacturing orders to display in the scrolling
window.

CRP records are deleted when an order is closed or cancelled.

To update CRP for MRP–planned manufacturing orders:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Manufacturing Orders list.

2. Mark a manufacturing order.

3. Choose Edit Status to open the Edit Manufacturing Order Status window.

4. To work with manufacturing orders that have been planned by MRP processes,
mark Show MRP Planned Orders.

5. You can use the Ranges fields, if needed, to specify which manufacturing orders
to display in the scrolling window.

If you use the filters, be sure to choose Redisplay to update the information in
the scrolling window.

6. In the scrolling window, mark the manufacturing orders to be updated with the
CRP information. Choose Mark All to mark all manufacturing orders at the
same time.

7. Choose Update CRP for MRP Orders. The CRP tables will be updated with the
labor and machine data for each affected work center for the MRP-planned
manufacturing orders that you selected.

8. Close the window.

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Deleting a manufacturing order

You can use the Manufacturing Order Entry window to delete a manufacturing
order if the following conditions are met:

• The manufacturing order isn’t linked to any sales orders or purchase orders.

• The status of the manufacturing order isn’t Released, Partially Received, Hold,
or Complete.

• No data collection transactions have been entered for the manufacturing order.

• No items have been allocated, issued, or purchased for the manufacturing

order.

• No background processes are running.

• No other user is editing the manufacturing order record.

• If you’re using Job Costing, you must have access through process security to
delete job costing links.

Refer to About removing manufacturing order records on page 169 for information about
removing groups of old or canceled manufacturing orders, or deleting lot- and serial-number
information for specific manufacturing orders.

To delete a manufacturing order:

1. Open the Manufacturing Order Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Entry)

2. Enter or select a manufacturing order.

3. Choose Delete.

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Chapter 8: Component transactions
After you’ve created a manufacturing order, you must determine what quantities of
raw materials will be required—and when and where you’ll need them. That
information is calculated when you build a picklist for a manufacturing order.

Next, you must decide how to handle component requirements. You can backflush
all or some of the components for a manufacturing order, or you can issue the
components. Later, you might need to scrap components, or to “reverse” earlier
transactions, and enter transactions to reverse allocate, reverse issue, or reverse
scrap.

This information is divided into the following sections:

• Component transaction types

• Picklists, pick documents, and component transactions
• Component transactions and accounting
• Viewing a picklist
• Allocating components
• Entering component transactions
• Adding a component to a picklist
• Modifying bin selections for a component
• Specifying lot numbers for a component transaction
• Specifying serial numbers for a component transaction
• How lot quantities are consolidated
• Modifying a component transaction line
• How item values are calculated for transactions
• Using an alternate item
• Printing a picking report
• Deleting a pending component transaction
• Changing dates for a pick document
• Specifying components in the picklist to backflush
• Using a pick document as a template
• Adding items to a picklist
• Picklist reports
• Removing a component from a picklist
• Deleting a picklist

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Component transaction types

You can use several types of component transactions to enter information about the
components that are used—or that aren’t used—in your manufacturing processes.
Refer to the following table for more information about the effect of transactions on
inventory.

Action Effect on inventory References

Allocate Optional. When items are allocated, the Available Allocating
quantity of the item at the issue-from site is components on
reduced, and the Allocated quantity is increased. page 72
Allocations occur as soon as an item is selected in
the Manufacturing Component Transaction Entry
window.
Reverse allocate Optional. When a reverse allocate entry is saved Entering
for an inventory quantity, the Allocated quantity is component
reduced and the Available quantity is increased. transactions on
Issue Required for any component not backflushed. page 73
When an issue transaction is posted for an
inventory quantity, the quantity is moved to WIP
(work in process). When you issue an item, it
automatically is allocated if it wasn’t already
allocated. When an issue transaction is posted, the
On Hand and Allocated quantities for the item are
reduced.
Reverse issue Optional. When a reverse issue transaction is
posted, the quantity is removed from WIP and the
On Hand quantity is increased. Depending on
whether the Allocate when Reverse Issue option is
marked, the Allocated quantity may be increased.
Scrap Optional. When a scrap entry is saved, the
component quantities in WIP are marked to be
scrapped. The costs are still applied to the
manufacturing order, but by entering scrap
information, you can monitor component quality
and the quantity actually used to manufacture the
finished good.
Reverse scrap Optional. When a reverse scrap entry is saved, the
component quantities remain in WIP, but the
designation as a scrapped component is removed.
Backflushing Required for backflushed components. When you Specifying
backflush items, they are marked so that their components in the
quantities are consumed when the manufacturing picklist to backflush
order items are received, and possibly when the on page 90
manufacturing order is closed.
Unbackflushing Optional. When you unbackflush items, their
designation as backflushed items is removed.
You’ll need to issue the components for the
manufacturing order.

Refer to How item values are calculated for transactions on page 84 for more information.

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Picklists, pick documents, and component

transactions
When you schedule a manufacturing order—either when you create the
manufacturing order, or automatically when you save the order for the first time—a
picklist also is generated. The picklist is the calculation of material requirements,
based on the manufacturing order quantity and the bill of materials.

When you build a manufacturing order picklist, position numbers are assigned
based on the bill of materials and routing link combinations of the components that
you selected.

Bill of materials and routing link combinations When a bill of materials

and routing link combination exists for the bill of materials components that you
selected, the position numbers of the linked components are assigned to the items in
the manufacturing order picklist.

No bill of materials and routing links When no bill of materials and routing
links exist for the bill of materials components that you selected, the position
numbers of those bill of materials components are assigned to the items in the
manufacturing order picklist.

To view the picklist, to identify all or some components to backflush, or to add

items to the picklist, you’ll use the Picklist window. To allocate or issue components,
however, you’ll use the Manufacturing Component Transaction Entry window and
enter component transactions to create “pick documents.” A pick document is a
collection of component transactions that share the same component transaction
type—such as Allocate or Issue—and posting date. A single pick document can,
however, include component transactions for several manufacturing orders.

Component transactions and accounting

You should be aware of the following information about posting component
transactions.

MRP Component demand in MRP is based on the required date for the
component, not on its allocation date.

Refer to How required dates are calculated on page 53 for information about how required
dates are calculated for components.

Reference numbers Every transaction generated by Manufacturing for

materials will include a reference to the manufacturing order number.

Subsidiary ledger All material transactions automatically will post through the
Inventory subsidiary ledger.

General Ledger and posting preferences Preferences for posting in

summary or in detail and for posting through General Ledger or to General Ledger
will be used in all component transactions.

Standard cost items All items with a Periodic valuation method will have only
one credit amount and only one debit amount in the Inventory subsidiary ledger.
However, the associated General Ledger transaction can have as many as nine
credit and debit values per line.

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Site segments Where they are available, site segments will be used in account
numbers for component transactions.

Missing accounts If an account is not found during the posting process, the
transaction won’t be completed. You will need to correct and manually post the
transaction.

Units of measure Component transactions always are posted in the base unit of
measure, but transaction and posting reports will use the unit of measure used in
the bill of materials.

Viewing a picklist
You can use the Picklist window to view a summary of the picklist information for a
particular manufacturing order.

To view a picklist:
1. Open the Picklist window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Picklist)

2. Enter or select a manufacturing order.

3. Use the scrolling window to view information about the components required
for the manufacturing order. The default sorting method for the components in
the scrolling window was set up in the Manufacturing Order Preference
Defaults window. You can use the View menu to select a different sorting
method.

Use the hide and show buttons to view more information about component parts.

Allocating components
Although it’s not necessary to allocate components in manufacturing order
processing, it can be helpful because it reserves component quantities for use in
specific manufacturing orders. You can allocate both “regular” and backflushed
components.

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Allocations can occur automatically when the status of the manufacturing order
becomes Released, or you can allocate components manually.

To allocate automatically Mark the option to Allocate Inventory when MO

Status becomes Released in the Manufacturing Order Preference Defaults window.
Refer to Setting up manufacturing order processing in Chapter 4, “Manufacturing
production functions setup,” in the Manufacturing Setup documentation.

To allocate manually Use the Manufacturing Component Transaction Entry

window to create a pick document with the Allocate transaction type. Refer to
Entering component transactions.

Entering component transactions

Use the Manufacturing Component Transaction Entry window to create pick
documents—collections of component transactions. You can use this window to
allocate, issue, and scrap components. You also can use the window to enter the
reverse transactions: reverse allocate, reverse issue, and reverse scrap.

To add components to the manufacturing order picklist, you can choose Add
Component in this window to open the Manufacturing Order Add Component
window. For more information, refer to Adding a component to a picklist.

Component transactions always are posted in the base unit of measure, but transaction and
posting reports will use the unit of measure used in the bill of materials.

To enter component transactions:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Picking Documents list.

2. Choose Picking Doc to open the Manufacturing Component Transaction Entry

window.

3. Choose the Transaction Type. Refer to Component transaction types on page 70 for
more information.

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4. Choose the information to view in the scrolling window.

• You can use the Ranges fields to choose any combination of manufacturing
orders, components, issue-from and -to sites, and required dates.

• Use the Restrict Items To list to choose the items to be displayed in the
scrolling window. For example, you can choose to view only the
components that are tracked by serial numbers.

• To include backflushed components in the scrolling window, mark Include

Backflushed Items.

5. Choose Refresh. Item records that meet your restrictions are displayed in the
scrolling window.

6. Choose items to include in the pick document.

Use the View icon button in the upper right corner of the scrolling window to
switch between the scrolling window view of the items and a card view of the
items.

• To choose a single line, mark the check box for the line item.

• To choose all items, choose Mark All. If a line can’t be marked—perhaps

because the available quantity for the item isn’t great enough to cover the
requirement or because the item is tracked by lot or serial numbers—a
message appears. You can choose to mark those items individually, and
handle the exceptions one at a time.

7. Handle exceptions identified by the messages.

For example, if a component is tracked by lot or serial numbers and depending

on the transaction type, you might need to specify the lot or serial numbers that
should be used. Refer to the table for more information.

Issue Action Reference

Transaction Before you can mark the line, you must --
Quantity is zero edit the Transaction Quantity so that it is
greater than zero.
Component tracked If the transaction type is not Allocate or Specifying lot numbers for
by lot numbers Reverse Allocate, you must specify the a component transaction on
lot numbers of components tracked by page 79
lot numbers.
Component tracked If the transaction type is not Allocate or Specifying serial numbers
by serial numbers Reverse Allocate, you must specify the for a component
serial numbers of components tracked transaction on page 81
by serial numbers.
Component A message will appear when you mark Modifying a component
shortage the line. You can use the available transaction line on page 83
quantity, or you can use components
from a different site. (Change the Issue
From site to do this.) If you’ve set up
Inventory Control to allow overrides,
you can override the shortage.
A substitution If you’ve already identified components Using an alternate item on
should be made that can be substituted for bill of page 87
materials items, you can choose to use
the alternate components.

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8. If you’re using multiple bins and the transaction type is not Scrap or Reverse
Scrap, you can change the default bin selection for the transaction. (Scrap and
Reverse Scrap transactions don’t need bin information.) Refer to Modifying bin
selections for a component on page 77 for more information.

9. Repeat steps 6 through 8 until you’ve marked all the component information to
be added to the pick doc.

10. Choose Add to Pick Doc.

To view the items that are part of the pick document you can choose the Pick
Doc tab. (Use the View icon button to switch between the scrolling window
view and the card view, if needed.)

11. If the transaction type of the pick document is Issue, Reverse Issue, Scrap, or
Reverse Scrap, you can enter the Picked By and Date Picked information. The
information you enter in the fields above the scrolling window will be the
default Picked By and Date Picked values for the component transaction lines,
but you can change them, if needed.

If you’ve already added one or more items to the pick document when you
change information in the Date Picked or the Picked By fields, a message is
displayed and you’ll have the option to have the same information applied to
the items already on the pick document.

Refer to Changing dates for a pick document on page 89 for information about changing
the posting date for a pick document.

12. Choose Save or Post. You must save or post the entire pick document at the
same time; you can’t select separate lines to save or post.

Refer to the table for more information.

Transaction Type Save Post

Allocate and reverse allocate Available. Not available.
Scrap and reverse scrap Available. If you save a pick Available. If you post a pick
document with scrap, document with scrap,
Issue and reverse issue
reverse scrap, issue, or reverse scrap, issue, or
reverse issue transactions, reverse issue transactions,
you can save the pick accounting transactions are
document and post it later. created and posted.

13. When you’ve finished, close the window.

Adding a component to a picklist

Use the Manufacturing Order Add Component Entry window to add a component
to the picklist for a manufacturing order. The new component also will be displayed
for the manufacturing order in the Manufacturing Component Transaction Entry
window.

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To add a component to a picklist:

1. Open the Manufacturing Component Transaction Entry window
Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry

2. Select a transaction to view in the Manufacturing Component Transaction Entry

window. For more information refer to Entering component transactions.

3. Choose Add Component.

4. Enter or select a component to add to the picklist.

• If you enter an item number that isn’t already in inventory, a message is

displayed and you’ll have the option to add the item as a non-inventoried
item and also enter a description.

• If the component is an inventoried item, the description will be displayed.

You can’t add a phantom item from this window. To add phantom items, refer to Adding
items to a picklist.

5. Accept or change the position number. Refer to Chapter 10, “Position numbers”
in the Manufacturing Core Functions for more information about position
numbers.

6. Enter the quantity of the item to add to the picklist

7. Enter or select a unit of measure for the item.

8. Enter or select the date when the item is needed in the work center.

9. Mark options, as needed for the component.

Floor Stock Mark this option if the component quantity should be taken
from floor stock and treated as an expense. This option is available only for
inventoried items.

Eng. Approval Req’d Mark this option if an engineer’s approval is required

before the substitution can be made on the production floor.

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Backflush Item Mark this option if the component usage for this item
should be backflushed.

Single Lot Only Mark this option if the entire component quantity you’re
adding to the picklist must come from the same lot. This option is available only
for lot-tracked inventoried items.

10. Enter or select issue-from and issue-to sites, and enter other information, as
needed. Different information is required, depending on the type of item you’re
adding.

Inventoried item You can add an item that has a periodic valuation method
(standard cost item) to a picklist for a finished item that has a perpetual
valuation method (actual cost item). However, you can’t add an actual cost item
to a picklist for a standard cost item finished good.

Non-inventoried item If you're adding a non-inventoried item, refer to the

table for a summary of the information you must enter for the component and
alternate part information.

Field Summary
Unit Cost The cost for the item will be the Unit Cost multiplied by the
Required Quantity. This amount will be added to WIP, and will
Required Quantity be included in calculations when finished goods are received
and when the order is closed.
Non-inventoried Account The default Inventory Control account—specified in the
Posting Setup window—will be the default account, but you
can change it.

11. If needed, you can specify the routing sequence that the item should be linked
to.

12. Choose Save. The item will be added to the picklist and will be displayed in the
scrolling window in the Manufacturing Component Entry window.

Modifying bin selections for a component

You can edit the default bin selections for component transactions. Default bin
selections come from the item-site record when possible. When no default bin has
been identified for the item-site combination, the default bin for the site is used.

You also can modify bin information for components—including by-products—that

are backflushed when you enter a manufacturing order receipt.

Component transactions You can edit bin information for component

transaction information on unposted pick documents if the transaction type for the
pick document is not Allocate, Reverse Allocate, Scrap, or Reverse Scrap.

If the component is tracked by lot or serial numbers, you don’t need to use this procedure to
edit bin information. You can use procedures to select serial or lot numbers instead, because
bin information automatically is updated when lot or serial number selections change.

Manufacturing order receipts You can edit bin information for components
that are backflushed as part of a manufacturing order receipt.

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This procedure assumes that you’re working with a pick document in the
Manufacturing Component Transaction Entry window or you’re entering a receipt
in the Manufacturing Order Receipt Entry window. Use the Bin Quantity Entry
window to modify bin information.

To modify bin selections for a component:

1. Open the window for the pick document or manufacturing order receipt.

Refer to the table for more information.

Document Window and navigation path

Pick document Manufacturing Component Transaction Entry window
(Transactions >> Manufacturing >> Manufacturing Orders
>> Component Trx Entry)
Manufacturing order receipt Manufacturing Order Receipt Entry window
(Transactions >> Manufacturing >> Manufacturing Orders
>> MO Receipt Entry)

2. Enter or select the pick document or manufacturing order receipt that includes
the component information.

3. In the scrolling window, mark the line for the component with the bin
information to modify.

4. Open the Bin Quantity Entry window.

Refer to the table for more information.

Window Navigation
Manufacturing Component Choose the Transaction Quantity expansion button.
Transaction Entry window
Manufacturing Order Receipt Choose the Quantity to Backflush expansion button.
Entry window

The Bin Quantity Entry window will open only if the item is not tracked by lot or serial
numbers. If the item is tracked by lot or serial numbers, windows for selecting lot or
serial numbers open. When you select the lot or serial number, you’re selecting the bin
information as well.

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5. Enter or select a bin and the quantity to be used from that bin. You can use
either of the following methods:

• Enter or select a bin in the Bin field, and then enter the Quantity Selected.

• Locate the bin in the upper scrolling window and enter the Quantity
Selected directly in the scrolling window.

6. Choose Insert to add your selection to the lower scrolling window.

7. Continue, repeating steps 5 and 6 until the Selected Quantity equals the
Extended Quantity.

8. Choose OK to close the window.

Specifying lot numbers for a component transaction

If a component is tracked by lot numbers and you’re entering a transaction to issue,
reverse issue, scrap, or reverse scrap, you must specify the lot associated with the
component quantities. If you’re using multiple bins, the bin information
automatically is selected when you select the lot.

Refer to How lot quantities are consolidated on page 83 for more information about working
with lot number information.

Use the Manufacturing Component Lot Number Selection window to complete this
procedure.

To specify lot numbers for a component transaction:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a pick document. Refer to Entering component transactions on

page 73 for more information.

3. Mark a line in the scrolling window for a component that is tracked by lot
numbers. The Manufacturing Component Lot Number Selection window
opens.

Components that are tracked by lot or serial numbers are marked with a blue pound sign
in the scrolling window.

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If needed, you can choose the Transaction Quantity expansion button at the top
of the scrolling window to open the window.

4. Enter lot number information. You can use any of the following methods:

• Enter the quantity to be taken from each lot in the Quantity Selected column
and choose Insert.

• Enter the lot identifier in the Lot Number field, and enter the quantity in the
Quantity Selected field. Choose Insert.

• Choose Auto-Select to have lot-numbered items selected automatically,

based on the valuation method of the item.

A warning icon appears in the Lot Number field if the lot has already expired. If you’re
selecting lot quantities for an Issue component transaction and you select a lot that is
already past its expiration date or its expiration date is the same as the user date, a
message is displayed and you’ll have the option to continue or cancel.

5. Continue, repeating step 4 until the Extended Quantity equals the Lots Selected.

6. Choose OK.

7. Choose Add to Pick Doc to add the transaction to the pick document.

8. Choose Save or Post. You must save or post the entire pick document at the
same time; you can’t select separate lines to save or post.

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Refer to the table for more information.

Transaction type Save Post

Scrap and reverse scrap Available. If you save a pick Available. If you post a
document with scrap, reverse pick document with scrap,
Issue and reverse issue
scrap, issue, or reverse issue reverse scrap, issue, or
transactions, you can save the reverse issue transactions,
pick document and post it accounting transactions
later. are created and posted.

9. When you’ve finished, close the window.

Specifying serial numbers for a component

transaction
If a component is tracked by serial numbers and you’re entering a transaction to
issue, reverse issue, scrap, or reverse scrap, you must specify the serial numbers
associated with the component quantities. If you’re using multiple bins, the bin
information automatically is selected when you select specific serial numbers.

Use the Manufacturing Component Serial Number Selection window to complete

this procedure.

To specify serial numbers for a component transaction:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a pick document. Refer to Entering component transactions on

page 73 for more information.

3. Mark a line in the scrolling window for a component that is tracked by serial
numbers. The Manufacturing Component Serial Number Selection window
opens.

Components that are tracked by lot or serial numbers are marked with a blue pound sign
in the scrolling window.

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If needed, you also can choose Transaction Quantity expansion button at the top
of the scrolling window to open the Manufacturing Component Serial Number
Selection window.

4. Enter serial number information. You can use any of the following methods.

• Enter the serial number of a component to be included in the transaction in

the Serial Number field.

• Highlight a serial number in the Available scrolling window, and choose

Insert.

• Choose Auto-Select to have lot-numbered items selected automatically,

based on the valuation method of the item.

You don’t need to specify bins when selecting items tracked by serial numbers, because
bin information automatically is included with the serial number selection.

5. Continue, repeating step 4 until the Extended Quantity equals the Serial
Numbers Selected.

6. Choose OK.

7. Choose Add to Pick Doc to add the transaction to the pick document.

8. Choose Save or Post. You must save or post the entire pick document at the
same time; you can’t select separate lines to save or post.

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Refer to the table for more information.

Transaction type Save Post

Scrap and reverse scrap Available. If you save a pick Available. If you post a pick
document with scrap, reverse document with scrap, reverse
Issue and reverse issue
scrap, issue, or reverse issue scrap, issue, or reverse issue
transactions, you can save the transactions, accounting
pick document and post it transactions are created and
later. posted.

9. When you’ve finished, close the window.

How lot quantities are consolidated

When you use a Microsoft Dynamics GP or Manufacturing window to select
quantities of items that are tracked by lot numbers, the lot number information
might be consolidated. That is, rather than displaying lot information for each
purchase receipt on a separate line in a scrolling window, lot information will be
consolidated if all of the following values are the same for the lines:

• Item number
• Lot number
• Site
• Bin
• Quantity type
• Manufactured date
• Expiration date

If quantities are selected automatically, the selections that are made will depend on
the sorting option you’re using in the window.

• If you’re sorting information in the window by Date Received, the lot quantities
will be taken from either the lot that was received first (if the valuation method
of the item is FIFO) or the lot the that was received last (if the valuation method
of the item is LIFO).

• If you’re sorting information in the window by Lot Number or Expiration Date,

the lot quantities will be taken from whatever lot appears first in the scrolling
window.

If you’re allocating or issuing components for a manufacturing order and the bill of
materials requires that all of the component quantity be taken from a single lot, then the lot
quantities will be taken from the first lot that satisfies both the sorting rule and the lot
quantity.

Modifying a component transaction line

Before a component transaction line is posted, you can change the transaction
quantity, issue-from site, and the unit of measure. You can make changes before or
after the transaction line is added to a pick document, but the pick document can’t
be already posted.

When you change this information, you might also have to update other
information for the line. For example, if you increase the transaction quantity and
the item is tracked by lot or serial numbers, you’ll need to select more lot or serial
numbers.

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Use the Manufacturing Component Transaction Entry window to complete this

procedure.

To modify a component transaction line:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a saved (not posted) pick document with the Issue, Reverse
Issue, Scrap, or Reverse Scrap transaction type.

3. Choose the Pick Doc tab to view saved component transaction lines.

4. In the scrolling window, change the transaction quantity, issue-from site, or unit
of measure.

To view information about the quantities of the item, choose the Info icon button to open
the Picklist Quantity Status window.

5. Continue making changes to other component transaction lines by repeating

step 4.

6. Choose Save or Post when you’ve finished making changes. You must save or
post the entire pick document at the same time; you can’t select separate lines to
save or post.

Refer to the table for more information.

Transaction type Save Post

Scrap and reverse scrap Available. If you save a pick Available. If you post a pick
document with scrap, reverse document with scrap,
Issue and reverse issue
scrap, issue, or reverse issue reverse scrap, issue, or
transactions, you can save the reverse issue transactions,
pick document and post it accounting transactions
later. are created and posted.

How item values are calculated for transactions

In Inventory Control, the valuation method for an item determines how the cost of
the item used to fulfill a requirement is calculated.

Standard cost items If the valuation method of an item is periodic, items are
removed from inventory at their standard cost and are returned to inventory at the
same cost that was used when they were removed from inventory.

Refer to Understanding posting for standard-cost items on page 167 for more information.

Average (current) cost items If the valuation method of an average cost item
is perpetual, items are removed from inventory based on the current cost of the
item. Inventory is issued to WIP at the items current cost. When the current cost of
an item is recalculated and the cost of the item is adjusted, the cost of the item will
be updated if the item is still in WIP. If the item has been removed from WIP by a
manufacturing order receipt, the cost won’t be updated.

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If an item is removed from inventory and then returned back to inventory, the item
will have the same cost it had when it was removed. If this cost differs from the
average cost, the average cost of the item will be recalculated. The manufacturing
WIP account will be credited and the inventory account will be debited for the item.

You can view assembly and manufacturing transactions of an average cost item by
clicking on the Quantity Sold Details link in the Purchase Receipts Inquiry window.
Refer to Inventory documentation for more information about the Purchase
Receipts Inquiry window.

Actual cost items If the valuation method of an actual cost item is perpetual,
items are removed from inventory based on the LIFO or FIFO part of their valuation
methods. This is done by tracking the receipt date and cost of each item, and storing
that information in a theoretical format called the “inventory stack.” Inventory is
issued to WIP at cost from the purchase receipt.

Think of the inventory stack as a table that includes information about item
quantities and costs. The most recently received items are added to the top of the
table or stack. When an item needs to be taken from the stack—such as when you
issue components for a manufacturing order—it’s taken from either the top of the
stack (if you’re using a LIFO valuation method) or from the bottom of the stack (if
you’re using a FIFO valuation method). A very simple representation of the
inventory stack for widgets at the Warehouse site might look like this:

Quantity received Receipt date Quantity sold Cost

2 Jan. 11 0 $5.00
3 Jan. 15 0 $5.75
5 Feb. 9 0 $4.98

When you issue a component, it is removed from inventory and placed into WIP at
the work center site. The WIP stack is very similar to the inventory stack, but it uses
the WIP receipt date rather than the inventory receipt date to determine the order of
the items.

You can view information about WIP with the SmartList. To open the SmartList, choose the
SmartList icon (it looks like a flashlight) in the toolbar. In the SmartList window, highlight
Work in Process in the left column. Refer to the System User’s Guide (Help >> Contents >>
select Using the System) for information about using the SmartList.

For example, suppose that the widgets have a FIFO valuation method, and you
enter two separate component transactions on February 20 to issue three widgets
each. Inventory would be updated to look like this:

Quantity received Receipt date Quantity sold Cost

2 Jan. 11 2 $5.00
3 Jan. 15 3 $5.75
5 Feb. 9 1 $4.98
*The Quantity Sold field is used to track quantities removed from the inventory stack layers. For
a manufacturing component the field would be better named “Quantity Used.”

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The WIP stack at the work center site (the site the items were issued to) would be
updated to look like this:

WIP quantity in Inventory receipt WIP quantity Unit cost

date WIP in date out
2 Jan. 11 Feb. 20 0 $5.00
3 Jan. 15 Feb. 20 0 $5.75
1 Feb. 9 Feb. 20 0 $4.98

Now suppose you enter a reverse issue component transaction for two widgets.
Those widgets would be taken from the bottom of the WIP stack because those are
the widgets most recently taken from inventory. One of the widgets would have a
cost of $4.98, and the other would have a cost of $5.75. After you posted the reverse
issue transaction, the WIP stack at the work center site would be updated to look
like this:

WIP quantity in Inventory receipt WIP quantity Unit cost

date WIP in date out
2 Jan. 11 Feb. 20 0 $5.00
3 Jan. 15 Feb. 20 1 $5.75
1 Feb. 9 Feb. 20 1 $4.98

When the reverse issue transaction is posted, the items also are returned to their
original places within the inventory stack, based on their original inventory receipt
dates. Inventory would look like this:

Quantity received Receipt date Quantity sold* Cost

2 Jan. 11 2 $5.00
3 Jan. 15 2 $5.75
5 Feb. 9 0 $4.98
*The Quantity Sold field is used to track quantities removed from the inventory stack layers. For
a manufacturing component the field would be better named “Quantity Used.”

You can refer to the following table for an overview of how the valuation method
for an item determines how costs are calculated for Reverse Issue and Scrap
transaction types.

Transaction type Valuation method Cost information

Reverse Issue Periodic Items are returned to inventory at the same
cost that was used when they were
removed from inventory.
FIFO Perpetual Items are taken from the bottom of the WIP
stack.
LIFO Perpetual Items are taken from the top of the WIP
stack.
Scrap FIFO Perpetual Items are taken from the top of the WIP
Average stack for the transaction.
LIFO Perpetual Items are taken from the bottom of the WIP
stack for the transaction.

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Using an alternate item

When you create a bill of materials, you can specify if one component can be used as
a substitute for another in the bill. When you create a picklist based on a bill of
materials that includes alternates, the alternate items will appear with zero for the
Transaction Quantity. Changing the quantity for the alternate item is the first step in
using an alternate item in a manufacturing order. After you’ve changed the
transaction quantity for the alternate item, you can treat it just like other
components for the manufacturing order.

Use the Manufacturing Component Transaction Entry window to complete this

procedure.

To use an alternate item:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Create a pick document with an Allocate or Issue transaction type. Refer to

Entering component transactions on page 73 for more information.

Select Alternates from the Restrict Item To list to display information about alternates
in the scrolling window.

3. Change the Transaction Quantity for the item you’re substituting for the
primary item.

Alternate items—those that can be substituted for other, primary items in a picklist—
are marked with a small icon that looks like two gears.

When you select the alternate item, a message appears. If neither the primary
item nor the alternate item has been allocated or issued, you’ll have the option
to reduce the quantity of the primary item to zero, leave the quantity of the
primary item as it is, or cancel.

4. Be sure the line is marked, and choose Add to Pick Document.

5. Choose to save or post the pick document, and close the window.

Printing a picking report

Depending on your business practices, you might want to use a picking report to
help warehouse personnel move component items from one site to another. The
picking report can be based on posted transactions or on saved transactions.

Posted transactions You can print a picking report based on posted

transactions. For example, your business practice might be to issue components and
then print a picking report that warehouse personnel can use to move the items.

Saved transactions You also can print a picking report based on saved
transactions. For example, if your businesses uses many serial-number–tracked
items, you might want to create and save issuing transactions. The warehouse
personnel could use the picking report as they picked the items, noting the serial or
lot numbers of items chosen. The marked-up picking report could be used to enter
information about the serial and lot numbers of the specific items that were picked.

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The picking report summarizes the items and quantities for an Issue type
component transaction. You’ll also have the option to print the picklist notes, if
needed. The report also includes spaces where warehouse personnel can record
information about the items they’ve picked.

To print a picking report:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a manufacturing pick document with one of the following

transaction types:

• Issue
• Reverse Issue
• Scrap
• Reverse Scrap

3. Choose the print icon button. The Picking Report Print Options window will
open.

4. Mark Print Picklist Notes if picklist notes should also be printed.

You can set up your system to always include picklist notes, if they should always be
included on the report. Refer to Setting up manufacturing order processing in Chapter
4, “Manufacturing production functions setup,” in the Manufacturing Setup
documentation.

5. Choose how the report should be sorted.

6. Choose Print. The Report Destination window appears, and you can specify
how the report should be printed.

Deleting a pending component transaction

If you’ve saved a pick document with the Issue, Reverse Issue, Scrap, or Reverse
Scrap transaction type, but haven’t posted the pick document, you can delete
component transactions from it. Some tasks—such as changing the status of a
manufacturing order from Released to Open—can occur only if there are no
pending (unposted) component transactions for the manufacturing order.

To delete a pending component transaction:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a picking document. The document must have Issue, Reverse
Issue, Scrap, or Reverse Scrap transaction type, and can’t be already posted.

If you’re using the lookup window to choose the pick document, you can restrict the
scrolling window to those pick documents that are saved.

3. Be sure you’re viewing the Pick Doc tab.

4. In the scrolling window, mark the item to remove.

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5. Choose Remove.

6. When you’ve finished, close the window.

Changing dates for a pick document

You can specify a date other than the current date for posting some pick documents.
The posting date is used to update inventory tables, and is used regardless of
whether you’ve chosen to post by transaction date or batch date. Refer to the table
for more information.

Transaction type Changes to posting date allowed?

Allocate You can change the date only if the pick document hasn’t been
Reverse Allocate saved.
Issue You can change the date only if the pick document hasn’t been
Reverse Issue posted.
Scrap
Reverse Scrap

Use the Mfg Component Transaction Posting Date Entry window to complete this
procedure.

To change dates for a pick document:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a pick document.

3. Choose the expansion button on the Date field to open the Mfg Component
Transaction Posting Date Entry window.

4. Enter date information. If the pick document hasn’t been saved or posted, date
information is updated according to these rules:

• If you haven’t changed the posting date but change the pick document date,
the date you enter for the pick document date also will be the posting date.

• If you have changed the posting date and then change the pick document
date, the posting date won’t be changed to match the pick document date.

5. Choose OK.

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6. In the Manufacturing Component Transaction Entry window, choose Save or

Post. You must save or post the entire pick document at the same time; you
can’t select separate lines to save or post.

If you’re posting the document, reports will be printed if the transaction type is
Issue or Reverse Issue.

7. When you’ve finished, close the window.

Specifying components in the picklist to backflush

If you choose to backflush the materials for a manufacturing order, the inventory
quantities to be deducted from your material accounts will include quantities for
covering shrinkage in either raw materials or finished goods. The exact numbers
deducted from inventory will be determined and posted when you post
manufacturing order receipts.

You can allocate backflushed components, but it isn’t required. If you don’t allocate
materials, they will be allocated and then backflushed when you post
manufacturing order receipts.

Not all components can be backflushed. Refer to Rules for backflushed components in
Chapter 9, “Bill of Materials overview,” in the Manufacturing Core Functions
documentation for more information.

To specify components in the picklist to backflush:

1. Open the Picklist window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Picklist)

2. Enter or select a manufacturing order.

3. Decide what components should be backflushed.

Backflushing specific components In the scrolling window, mark the

Backflush option for the components that should be backflushed. (Some
component requirements might already be marked, if they were designated for
backflushing in the bill of materials.)

Backflushing all components Mark Backflush All, and choose Apply.

You can unbackflush all the backflushed components—as long as there are no
pending transactions against them—by marking Unbackflush All and choosing
Apply.

If you mark a phantom item to backflush, the phantom item won’t be backflushed, but all
of its components will be. To backflush all the components of a phantom item, mark
Backflush All and choose Apply.

4. When processing is complete, choose OK and close the window.

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Using a pick document as a template

You can use an existing pick document as the basis for a new pick document. For
example, if you used pick document PICK000123 to allocate all the materials for a
certain manufacturing order, you could use that same pick document as a template
for a different pick document to issue all the materials for the order. By using
existing pick documents as templates for new pick documents, you can reduce data
entry time.

Refer to the table for more information.

This pick document: ... can be used as a template for:

Saved document with A pick document to Issue or Reverse Allocate
Allocate transaction type
Posted document with Issue A pick document to Reverse Issue or Scrap
transaction type
Posted document with Scrap A pick document to Reverse Scrap
transaction type

To use a pick document as a template:

1. Open the Manufacturing Component Transaction Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Component Trx
Entry)

2. Enter or select a pick document.

3. Change the transaction type for the pick document.

Changing the transaction type will have these effects:

• When the transaction type is changed, the next pick document number
appears in the Pick Document field because the new pick document
requires its own identifier.

• The Transaction Quantity information in the new pick document will be the
same as the transaction quantity information in the original pick document.
If you have reverse allocated component quantities, those changes will be
reflected in the Transaction Quantity in the new pick document.

4. You can continue to make changes to the new pick document, as needed.

5. Choose Save or Post. You must save or post the entire pick document at the
same time; you can’t select separate lines to save or post.

Refer to the table for more information.

Transaction type Save Post

Allocate and reverse allocate Available. Not available.
Scrap and reverse scrap Available. If you save a pick Available. If you post a pick
document with scrap, reverse document with scrap,
Issue and reverse issue
scrap, issue, or reverse issue reverse scrap, issue, or
transactions, you can save the reverse issue transactions,
pick document and post it accounting transactions
later. are created and posted.

6. When you’ve finished, close the window.

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Adding items to a picklist

You can add items to a picklist. For example, if your manufacturing process calls for
one epoxy but you decide to use a new glue, you might need to add the glue to the
picklist. This way, you can substitute one item for another without needing to
identify the new item in the bill of materials for the manufacturing order.

Use the Picklist window and the Add Picklist Entry window to complete this
procedure.

To add items to a picklist:

1. Open the Picklist window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Picklist)

2. Enter or select a manufacturing order.

3. Choose Add Component to open the Add Picklist Entry window.

4. Enter or select the item to be added to the picklist.

Non-inventoried item If you enter an item number that isn’t already in

inventory, a message appears and you’ll have the option to add the item as a
non-inventoried item.

Inventoried item If you enter an inventoried item that isn’t active or that
isn’t effective, a message appears and you’ll have the option to add the item
anyway.

You also can add a finished good item to the picklist.

5. Accept or change the position number. Refer to Position numbers on page 89 in

the Manufacturing Core Functions documentation for more information.

6. Enter the quantity of the item to add to the picklist.

7. Enter or select a unit of measure for the item.

8. Enter or select the date when the item is needed in the work center.

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9. Mark options for the component, as needed.

Floor Stock Mark this option if the component quantity should be taken
from floor stock and treated as an expense. This option is available only for
inventoried items.

Eng. Approval Req’d Mark this option if an engineer’s approval is required

before the substitution can be made on the production floor.

Backflush Item Mark this option if the component usage for this item
should be backflushed.

Single Lot Only Mark this option if the entire component quantity you’re
adding to the picklist must come from the same lot. This option is available only
for lot-tracked inventoried items.

10. Enter or select issue-from and issue-to sites, and enter other information, as
needed. Different information is required, depending on the type of item you’re
adding.

Non-inventoried item If you’re adding a non-inventoried item, refer to the

table for a summary of the information you must enter.

Field Summary
Unit Cost The cost for the item will be the Unit Cost multiplied by the
Required Quantity. This amount will be added to WIP, and
Required Quantity
will be included in calculations when finished goods are
received and when the order is closed.
Non-inventoried Account The default Inventory Control account—specified in the
Posting Setup window—will be the default account, but
you can change it.
Backflush Item All non-inventoried items automatically are backflushed.

Phantom item If you add a phantom item to the picklist, the requirements
for the components of the phantom will be calculated, based on the phantom
bill of materials and the Required Quantity. Those component requirements
also will be added to the picklist.

Standard-cost item You can add an item that has a periodic valuation
method (standard cost item) to a picklist for a finished item that has a perpetual
valuation method (actual cost item). However, you can’t add an actual cost item
to a picklist for a standard cost item finished good.

11. If needed, you can specify the routing sequence the item should be linked to.

12. Choose Save and close the window.

Picklist reports
Depending on your system settings, inventory transactions might be generated
when you post a material component transaction. For example, if you issue or
unissue materials to a manufacturing order, inventory transactions to reflect
moving those items from inventory to work in process will be generated.

To help you track these inventory transactions, certain reports are generated each
time a manufacturing component transaction with the Issue or Reverse Issue type is

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posted. Depending on the posting options you’ve set, the following reports might
be generated when you post the transaction:

• Inventory Transaction Journal

• Transaction GL Register
• General Posting Journal

You also can print Manufacturing reports based on picklist information. To print a
general report about a specific picklist, open the Picklist window and choose the
print icon button to generate the Picklist Report, which summarizes information
about the displayed picklist. Item numbers, sites, quantities, and types—Made,
Bought, Make or Buy—are all included in the report.

To print a picking report for a component transaction with the Issue, Reverse Issue, Scrap, or
Reverse Scrap transaction type, open the Manufacturing Component Transaction Entry
window, enter or select the pick document, and choose the print icon button.

Removing a component from a picklist

You can remove components from a picklist. For example, if your manufacturing
process no longer uses a certain type of glue, you might need to remove the glue
from the picklist.

Use the Picklist window to remove a component from a picklist.

To remove a component from a picklist.

1. Open the Picklist window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Picklist)

2. In the scrolling window, mark the item to delete.

3. Delete the row using one of the following methods.

• From the Edit menu, choose Delete Row

• Choose the delete icon button at the top of the scrolling window.

4. Save and close the Picklist window.

Deleting a picklist
You can use the Picklist window to delete a picklist. You can delete a picklist if there
are no components issued for the manufacturing order. You could enter Reverse
Issue transactions, if needed, to remove those transactions, and then delete the
picklist.

Every manufacturing order needs a picklist, so if you delete a picklist for a manufacturing
order but need to continue work on the order, be sure to rebuild the picklist. To do so, open
the Manufacturing Order Entry window, select the manufacturing order, and choose Build
Picklist.

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To delete a picklist:
1. Open the Picklist window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Picklist)

2. Enter or select a manufacturing order.

3. Choose Delete.

If you’re using outsourcing and you’ve already recorded shipments for items in the
picklist, a message will appear when you delete the picklist and you’ll have the option to
void the shipments or cancel.

4. When you’ve finished, close the Picklist window.

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Chapter 9: Routings and rescheduling
When you create a manufacturing order, a copy of the planning routing you’ve
chosen for the manufacturing order is created. The copy—called the active,
working, or manufacturing order routing—includes all the information that was
part of the planning routing when the manufacturing order was created.

If you make changes to the planning routing, you’ll have the option to update the
associated active routings. Sometimes, however, you’ll want to update the active
routing, and leave the planning routing unchanged.

You can use the Manufacturing Order Routing View window to see a summary of
information for any active routing, and then use the Manufacturing Order Routing
Sequence Edit window to change routing sequence information for manufacturing
order routings.

You also can reschedule manufacturing order sequences. You can use the Manual
Scheduling window to change the scheduling method for one or more sequences for
a single manufacturing order. You can use the Batch Reschedule window to change
scheduling information two or more manufacturing orders.

This information is divided into the following sections:

• Viewing a manufacturing order routing

• Modifying a manufacturing order routing
• Changing user-defined field information
• Comparing actual and estimated sequence times
• Rescheduling manufacturing order sequences
• Rescheduling an entire manufacturing order

Viewing a manufacturing order routing

Use the Manufacturing Order Routing View window to view information about the
sequences within a manufacturing routing.

To view a manufacturing order routing:

1. Open the Manufacturing Order Routing View window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> Routing View)

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2. Enter or select a manufacturing order.

3. Review the information in the scrolling window. Use the hide and show buttons
to adjust the amount of information displayed in the scrolling window.

4. To view more detailed information about a particular manufacturing order

routing sequence, highlight the sequence and choose Zoom. The Manufacturing
Order Closeup window will open, displaying information about the sequence
you’ve selected.

5. When you’ve finished viewing information, close the windows.

Modifying a manufacturing order routing

Use the Manufacturing Order Routing Sequence Edit window to change
manufacturing order routings. You can change estimated times for setup, labor, and
other tasks, you can change required labor codes, and you can modify other
information, as needed.

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To modify a manufacturing order routing:

1. Open the Manufacturing Order Routing Sequence Edit window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Routing
Edit)

2. Enter or select a manufacturing order.

3. Use the browse buttons on the Sequence field to select a routing sequence.

4. Make changes, as needed.

5. Choose Save and close the window.

Changing user-defined field information

Use the User Defined Fields window to change the information you’ve entered for
user-defined fields for a manufacturing order routing.

Using user-defined fields requires two procedures. First, you must define the
prompts or labels that will appear on the user-defined fields; then you must enter
values in the fields. Refer to Setting up work center options in Chapter 1,
“Manufacturing basic setup,” in the Manufacturing Setup documentation for
information about defining the field labels. Refer to Creating an operation in Chapter
3, “Operations,” in the Manufacturing Core Functions documentation for more
information about entering values in those fields.

To change user-defined–field information:

1. Open the Manufacturing Order Routing Sequence Edit window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Routing
Edit)

2. Enter or select a manufacturing order.

3. Enter or select a manufacturing order routing sequence.

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4. From the Go To button, choose User Defined Fields to open the User Defined
Fields window.

5. Change the information in the window, as needed.

6. Choose OK to save your changes and close the window.

Changes you made to user-defined fields apply only to the manufacturing order you
selected.

Comparing actual and estimated sequence times

Use the Sequence Dates window to view information about the estimated and
actual time needed to complete a specific manufacturing order routing sequence.

To compare actual and estimated sequence times:

1. Open the Manufacturing Order Routing Sequence Edit window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Routing
Edit)

2. Enter or select a manufacturing order.

3. Use the browse buttons on the Sequence field to select a routing sequence.

4. Choose Sequence Start/Stop to open the Sequence Dates window.

5. Review information in the window. When you’ve finished, close the window.

Rescheduling manufacturing order sequences

Use the Manual Scheduling window to make scheduling changes to a single
manufacturing order routing sequence or to a range of sequences.

To reschedule manufacturing order sequences:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Manufacturing Orders list.

2. Mark a manufacturing order.

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3. Choose Manual Schedule to open the Manual Scheduling window.

4. Enter or select a manufacturing order.

5. In the scrolling window, select the sequence or range of sequences to

reschedule. A black dot will appear at the end of the first line in the scrolling
window to identify the selected sequences.

You can’t mark a sequence if it has already been completed.

6. Use the fields in the upper right corner of the window to change scheduling
information.

• To change the scheduling method, select another Schedule By option. Refer

to Scheduling methods on page 52 for more information about scheduling
methods.

• To change the start date and time—for sequences scheduled with the
Forward Infinite scheduling method—enter or select a new date or time.

• To change the end date and time—for sequences scheduled with the
Backward Infinite scheduling method—enter or select a new date or time.

7. Choose Save. If the sequence or sequences you’re rescheduling should have

already occurred, a message will appear, and you’ll have the option to cancel
the rescheduling process.

8. When processing is complete, close the window.

Rescheduling an entire manufacturing order

Use the Batch Reschedule window to reschedule one or more entire manufacturing
orders at one time. For example, if your plant has had an unexpected down day, you
might want to move all start dates and end dates of all sequences for several
manufacturing orders out one day.

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To reschedule an entire manufacturing order:

1. Open the Batch Reschedule window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Batch
Reschedule)

2. If needed, use the View MOs with Priority field and the and Due Date <= field
to restrict the list of manufacturing orders listed in the top scrolling window.
You can use one or both of these methods.

• To limit the list of manufacturing orders in the upper scrolling window to

those with a specific priority level, select an operator, and then select a
priority. You can choose from the following operators.

<= Means “is less than or equals”.

= Means “equals”.

>= Means “is greater than or equals”.

• To limit the list of manufacturing orders in the upper scrolling window to

those with a due date on or before a date you specify, enter the date in the
and Due Date <= field.

3. In the upper scrolling window, highlight a manufacturing order to reschedule.

Choose Insert to move the manufacturing order to the lower scrolling window.

4. Continue, repeating step 3 until you’ve added all the manufacturing orders to
be rescheduled to the lower scrolling window.

5. Modify the scheduling information for the manufacturing orders in the lower
scrolling window. You can make changes directly in the lower scrolling
window, using lookup buttons and changing settings in the Scheduling Method
field. Your changes automatically will be saved as you make them.

6. Choose Process to update information.

7. When you’ve finished rescheduling manufacturing orders, close the window.

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Chapter 10: Quick manufacturing orders
This information is divided into the following sections:

• Quick manufacturing orders

• Creating a quick manufacturing order
• Adding a component to a quick manufacturing order
• Closing a quick manufacturing order

Quick manufacturing orders

Before you close a standard manufacturing order, you must supply information
about the labor and machine time used toward the order, as well as material
information—how much material was used, how much was scrapped, how much
was returned to stock.

If your company doesn’t want to track manufacturing order information to this

level of detail, you can use the window designed for creating and closing “quick
manufacturing orders,” allowing you to bypass some of the usual steps required to
close a manufacturing order—such as data collection—while still completing all of
the accounting procedures necessary to close an order.

When you use quick manufacturing orders—sometimes called “quick MOs”—a

picklist automatically is built when you save a manufacturing order. Posting
completed items to inventory and updating the raw materials inventory is handled
automatically when you close the manufacturing order.

You can use the Quick MOs window to close manufacturing orders that were
created in the Manufacturing Order Entry window if no component transactions
have been entered for the manufacturing order. Conversely, you can close
manufacturing orders created in the Quick MOs window using the MO Close
window.

Before you create a quick manufacturing order for an item, you should review the
following information.

Primary routing The method you use to receive finished goods and close a
quick manufacturing order affects how the primary routing for the finished item
must be set up.

• If you close the manufacturing order using the Quick MOs window, all labor
and machine time automatically is backflushed, regardless of whether the labor
and machine time information in each routing sequence is marked to be
backflushed.

• If you use the Manufacturing Order Receipts window to receive finished goods
and the Manufacturing Order Close window to close the manufacturing order,
labor and machine time is not backflushed unless it is marked to be backflushed
in the primary routing sequences.

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Manually select serial and lot numbers for components To manually

select the serial and lot numbers of components for quick manufacturing orders, be
sure that the option Manually select serial/lot numbers in Quick MO is marked in
the Manufacturing Order Preference Defaults window. Refer to Setting up
manufacturing order processing in Chapter 4, “Manufacturing production functions
setup,” in the Manufacturing Setup documentation for more information.

Automatically select serial and lot numbers for components To

automatically have the lot or serial numbers of components selected, be sure that
the Auto-Select lot numbers based on date received or expiration date option is
marked in the Manufacturing Order Preference defaults window.

You can specify if lot numbers that are selected automatically should be based on
the dates that the components are received or the dates when they expire.

• If you select Date Received from the Auto-Select lot numbers based on field, the
lot number selection will be based on the date received.

• If you select Expiration Date for the Auto-Select lot numbers based on field, the
quantity of lot numbers from the backflush site will be selected from the lot
numbers beginning with those that have a blank expiration date, followed by
lot numbers that have an expiration date in order of the earliest date to the latest
date.

Lot-numbered items with expiration dates that come before the current user
date will be skipped. If the actual quantity is unavailable because of expiration
dates, no lot numbers will be selected.

Creating a quick manufacturing order

Use the Quick MOs window to create a quick manufacturing order. Before you can
create a quick manufacturing order, however, be sure you’ve specified a primary
routing and scheduling preference for the item.

Refer to Setting up scheduling preferences in Chapter 4, “Manufacturing production

functions setup,” of the Manufacturing Setup documentation for more information
about specifying default scheduling preferences.

Regardless of the scheduling preference for the finished item, the scheduling method for quick
manufacturing orders is forward infinite.

To add components to a quick manufacturing order, you can choose Add

Component in the Quick MOs window to open the Quick MO Add Component
Entry window. The new components also will be displayed in the Quick MOs
scrolling window. For more information, refer to Adding a component to a quick MO.

To create a quick manufacturing order:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Manufacturing Orders list.

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2. Choose Quick Manufacturing Order to open the Quick MOs window.

3. Accept the default manufacturing order number, or enter another.

4. Enter or select the number of the item to be produced with this manufacturing
order.

If you select a phantom item—an item with a manufacturing bill of materials

with the phantom BOM category—a message is displayed, asking if you’re sure
you want to create a manufacturing order for a phantom item. If you choose
Yes, you can continue to create the manufacturing order as you would for any
item.

5. Accept the default End Quantity, or enter another. The default end quantity
comes from the Avg. Make Quantity field in the Item Engineering Data
window.

6. Enter or select a site ID in the Post To field for a destination for the finished
items produced with this manufacturing order. The default post-to site will be
the site specified in your default scheduling preference. If no site is specified in
the scheduling preference, the default site for the item will be the default value
for the post-to site.

7. Select the bill of materials type.

• MFG BOM is a manufacturing bill of materials.

• ENG BOM is an engineering bill of materials.
• ARCH BOM is an archived bill of materials.
• CONFIG BOM is a configured bill of materials.

If you select Archived or Configured, you also must select a bill of materials
name.

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8. Choose Build Picklist and Save. Information about the components needed for
the manufacturing order is calculated and displayed in the scrolling window.

Use the hide and show buttons in the scrolling window to adjust the amount of
information displayed in the scrolling window.

9. Use the lookup buttons in the Backflush Site ID fields in the scrolling window to
select the locations materials should be taken from. Changes in the scrolling
window automatically are saved.

10. You can modify the Actual Quantity amounts. Changes in the scrolling window
automatically are saved.

If the issue-to site for a component is an outsourced work center, you can’t edit the
actual quantity for the component.

11. When you’ve finished making changes, close the window.

Adding a component to a quick manufacturing order

Use the Quick MO Add Component Entry window to add a component to the
picklist for a quick manufacturing order. The new component also will be displayed
in the scrolling window of the Quick MOs window.

For more information about quick manufacturing orders, refer to Quick

manufacturing orders and Creating a quick manufacturing order.

To add a component to a quick manufacturing order:

1. In the navigation pane, choose the Manufacturing button, and then choose the
Manufacturing Orders list.

2. Mark an item.

3. Choose Edit Quick Manufacturing Order to open the Quick MOs window.

4. Enter or select a manufacturing order number. Choose Build Picklist and Save.
Refer to Creating a quick manufacturing order.

5. Choose Add Component to open the Quick MO Add Component Entry

window.

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6. Enter or select a component item number. You can select an inventoried item—
one already defined in Microsoft Dynamics GP—or enter a non-inventoried
item and description.

Non-inventoried item If you enter an item number that isn’t already in

inventory, a message is displayed and you’ll have the option to add the item as
a non-inventoried item.

Inventoried item Only some inventoried items can be added to the

manufacturing order.

• The status of the item—entered in the Item Engineering Data window—

must be Active, Released, or Service.

• If the effective date of the item—entered in the Item Engineering Data

window—is after the system date, a message is displayed and you’ll have
the option to use the item or cancel.

You can’t add a phantom item from this window.

7. Accept or change the position number. Refer to Chapter 10, “Position

numbers,” for more information.

8. Enter the quantity to backflush, which is the entire quantity of the item to be
added to the manufacturing order.

9. Enter or accept the unit of measure.

10. Mark the Single Lot Only option if the entire component quantity you’re adding
to the picklist must come from the same lot. This option is available only for lot-
tracked inventoried items.

11. If you’re adding an inventoried item, enter or select a backflush site ID—the site
that quantities will be taken from.

12. If you’re adding a non-inventoried item, you can enter the unit cost of the item
and a non-inventoried account. The default Inventory Control account—
specified in the Posting Setup window—will be the default account, but you
can change it.

13. Choose Save. The item is added to the picklist and inventoried items are
backflushed on the picklist.

14. Continue adding items to the picklist, as needed.

15. When you’ve finished adding items, choose Cancel to close this window and
return to the Quick MOs window. The component items you’ve added will be
displayed.

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Closing a quick manufacturing order

You can use the Quick MOs window to close quick manufacturing orders. If you use
this window, labor and machine costs automatically are backflushed, regardless of
whether they’re marked to be backflushed in the routing. When you close a
manufacturing order using the Quick MOs window, it’s assumed that the
component quantities are exactly as described in the picklist, and the number of
finished goods received from the manufacturing order is exactly as planned.

You can use the Manufacturing Order Receipt Entry window to receive finished
goods from a quick manufacturing order, if needed. If you do that, however, the
manufacturing order isn’t “quick” any more, and you’ll need to account for
material, labor, and machine costs that aren’t backflushed. You’ll also need to use
the Manufacturing Order Close window to close the manufacturing order.

If you’re using multiple bins, you can’t edit bin selections for components or receipt
quantities when you close a manufacturing order with the Quick MOs window. To edit bin
information, use the Manufacturing Order Receipt Entry window and the Manufacturing
Order Close window to receive finished goods and close the order. Refer to Chapter 13,
“Receipts and closing,” for more information.

To close a quick manufacturing order:

1. Open the Quick MOs window.
(Transactions >> Manufacturing >> Manufacturing Orders >> Quick MO)

2. Enter or select a manufacturing order number.

3. Choose Close MO. The order status will be changed to Closed.

4. If the manufacturing order is for an item number that is tracked with lot or
serial numbers, another window will open for you to enter that information.
Refer to the following topics for more information:

• If the item is tracked by serial numbers, the Serial Number Assignment

window opens. Refer to Serial number assignments for finished goods on
page 144 for more information.

• If the finished item is tracked by lot numbers, the Manufacturing Lot

Number Entry window opens. Refer to Assigning lot numbers for finished
goods on page 148 for more information.

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Chapter 11: Manufacturing/sales order link
Manufacturing provides a two-way link between sales orders and manufacturing
orders. With this link—sometimes called the “MOP/SOP link”—demand for
finished products can be applied to outstanding manufacturing orders, or new
orders can be created for finished products to be added to inventory.

This information is divided into the following sections:

• Demand terms
• Working with MRP-planned manufacturing orders
• Applying an existing manufacturing order to demand
• Applying a new manufacturing order to demand
• Removing sales order-manufacturing order links

Demand terms
Several terms specific to manufacturing demand are used to describe applications
in Manufacturing.

Total forecasted demand Forecasted demand is the anticipated amount of an

item that will be required to meet projected orders.

Total unmet (or unconsumed) forecasted demand An unmet forecasted

demand is the difference between forecasted demand and actual production. For
example, if you have projected sales of 10,000 units of a product and have produced
only 8,000 units, your unmet forecasted demand would be 2,000 units.

Total actual demand Actual demand is the total quantity of an item requested
on all manufacturing orders with Open status.

Working with MRP-planned manufacturing orders

You can use the Manufacturing/Sales Order Link window to link MRP-planned
orders to existing manufacturing orders or to create new manufacturing orders to
cover the shortage amounts.

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To work with MRP-planned manufacturing orders:

1. Open the Manufacturing/Sales Order Link window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MOP/SOP Link)

2. Enter or select an item number.

3. Enter or select a site.

4. Mark the MRP Planned Orders option. Choose Refresh to update the
information in the left scrolling window.

5. Mark the record in the left scrolling window that you want to create a
manufacturing order for.

6. Choose Create New MO. The Manufacturing Order Entry window will open,
displaying information about a manufacturing order you could create to meet
the demand.

When you choose Create New MO, information about the order that is suggested will be
deleted regardless of whether you save the information in the Manufacturing Order
Entry window.

Several default selections will be displayed in the window. For example, the
manufacturing bill of materials and the primary routing for an item will be
selected. The default scheduling method also will be selected. The ending
quantity for the manufacturing order will be determined by the order policy
you specified for the item. You can accept these default entries or change them.

7. Choose Save.

You can close the window and complete other manufacturing order tasks—
such as scheduling the order or building its picklist—or you can complete those
tasks now. Refer to Chapter 7, “Manufacturing order entry,” for more
information.

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Applying an existing manufacturing order to demand

You can use the Manufacturing/Sales Order Link window to apply units in existing
manufacturing orders to the demand of your existing sales orders with an Open
status.

To apply an existing manufacturing order to demand:

1. Open the Manufacturing/Sales Order Link window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MOP/SOP Link)

2. Enter a location (site ID) and an end date. All manufacturing orders with
Quote/Estimate, Open, Released or Partially Received status and sales orders
with an end date that is the same as or before the date you enter will be
displayed.

3. Choose Sales Orders or MRP Planned Orders. Information displayed in the left
scrolling window will vary, depending on your choice.

• For sales orders, the sales order type, the sales order number, sales order
date, and quantity ordered will be displayed.

• For MRP planned orders, the type, source, date, and quantity needed will
be displayed.

The MO Number, MPS Plan Name, End Quantity, MO Due Date, Actual
Demand, BOM Type, and BOM Name will be displayed in the right scrolling
window.

4. Select the sales order line items to apply to the manufacturing order.

5. In the right-hand scrolling window, select the manufacturing order to apply

these items to.

6. Choose Link. When you’ve finished, close the window.

Applying a new manufacturing order to demand

You can use the Manufacturing/Sales Order Link window to apply production
quantities from new manufacturing orders to sales orders. For example, if demand
has been created by sales orders that have been entered, you could create a new
manufacturing order to fulfill that demand.

When you create a new manufacturing order to meet specific sales order demand,
the priority level for the manufacturing order will come from the Manufacturing
Series Sales Order Preferences window. You can choose to specify one priority for
all manufacturing orders that are created with links to sales orders, or you can
choose to have the customer’s priority level (set in the Customer Maintenance
window) translated to a specific manufacturing order priority. Refer to Setting up
manufacturing orders for sales orders in Chapter 3, “Manufacturing core functions
setup,” in the Manufacturing Setup documentation for more information.

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To apply a new manufacturing order to demand:

1. Open the Manufacturing/Sales Order Link window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MOP/SOP Link)

2. Enter an item and site ID.

3. Enter the end date. Information about all manufacturing and sales orders with
an end date that matches or precedes the date you’ve entered is displayed in the
scrolling windows.

• For manufacturing orders, the order number, end date, plan name, end
quantity, and actual demand will be displayed.

• For sales orders, the sales order type, the sales order number, sales order
date, and quantity ordered will be displayed.

4. In the left scrolling window, choose the sales order to apply the new
manufacturing order to.

5. Choose Create New MO.

6. Go to the Manufacturing Order Entry window to complete the information.

Refer to Chapter 7, “Manufacturing order entry,” for more information about

entering information for a new manufacturing order.

Removing sales order-manufacturing order links

You can use the Manufacturing/Sales Order Cross-reference window to remove
links between sales orders and manufacturing orders.

To remove sales order-manufacturing order links:

1. Open the Manufacturing/Sales Order Cross-reference window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MOP/SOP Xref)

2. Enter or select a manufacturing order to view.

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3. Mark the sales order line item in the scrolling window.

4. Choose Remove to remove the link between the sales order line item and the
manufacturing order.

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Chapter 12: Manufacturing order inquiries
Because manufacturing orders are related to nearly every aspect of Manufacturing,
several inquiry windows are included. You can use these inquiry windows to see
information about the status and costs of manufacturing orders and to view
information about picklists, component transactions, and pick documents.

This information is divided into the following sections:

• Viewing manufacturing order entry information

• Viewing the manufacturing order calendar
• Viewing manufacturing order activity
• Interpreting manufacturing order reason codes
• Viewing component transaction information
• Viewing manufacturing order receipts
• Viewing manufacturing order receipt details
• Viewing manufacturing order summary information
• Viewing serial and lot number component information
• Viewing manufacturing order costs per sequence
• Viewing manufacturing order variances
• Viewing manufacturing picklist quantities
• Interpreting the Manufacturing Order Variance window
• Setup labor costs
• Labor costs
• Machine costs
• Item costs for a picklist item
• Viewing item transaction information

Viewing manufacturing order entry information

Use the Manufacturing Order View window to view information about how a
manufacturing order was entered. You also can use the window to open other
windows that provide more detailed information about the manufacturing order.

To view manufacturing order entry information:

1. Open the Manufacturing Order View window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO View)

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2. Enter or select a manufacturing order.

3. Review the information.

You also can open other windows to view more detailed information for the
manufacturing order. Refer to the table for more information.

Window Navigation Information

Manufacturing Serial Serial Numbers expansion Displays a list of the serial
Number Pre-Entry Inquiry button numbers that were entered for
window the finished goods when the
manufacturing order was
created.
Manufacturing Order/ Purchasing expansion button Displays information about the
Purchase Order Link purchase orders that are
Inquiry window suggested for outsourcing
services.
Manufacturing Order Shipping expansion button Displays information about the
Shipments Inquiry window shipments of materials that are
suggested for outsourced
manufacturing orders.

4. When you’ve finished viewing information, close the window.

Viewing the manufacturing order calendar

You can use the Manufacturing Order Calendar window to see which
manufacturing orders are scheduled at specific times. You can see which
manufacturing orders are scheduled for a particular work center, or for all work
centers. You also can see the “flow” of a manufacturing order through your plant
and the plan for work center operations for a single routing or all routings.

To view the manufacturing order calendar:

1. Open the Manufacturing Order Calendar window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> Calendar)

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2. Select the time period to view.

• Mark the Start Date option to move the start date triangle on the calendar.
Choose the starting date for the period. The red triangle will move to that
date.

• Mark the End Date option to move the end date triangle on the calendar.
Choose the last day of the period. The blue triangle will move to that date.

3. Determine how to view information in the window.

Show MO Numbers View information about selected manufacturing

orders. A small scrolling window will appear in the lower left corner of the
window. Double-click a manufacturing order number to view information
about the specific manufacturing order in the main scrolling window.

Show WC ID View information about selected work centers. A small

scrolling window will appear in the lower left corner of the window. Double-
click a work center ID to view information about that work center in the main
scrolling window.

Show All View information about all manufacturing orders and all work
centers.

4. Determine the kind of time information to view.

Start Time View information about the scheduled start time for each
sequence.

Amount of Time View information about the length of time each sequence
will take.

5. When you’ve finished viewing information, close the window.

Viewing manufacturing order activity

Use the Manufacturing Order Activity window to track changes made to a
manufacturing order record. You can see when the order was created and when its
status was changed. The window also displays accounting information about an
order, such as the numbers of the generated journal entries, document numbers and
types, and reason codes.

For more information about interpreting the information displayed in the Manufacturing
Order Activity window, refer to Interpreting manufacturing order reason codes on page 118.

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To view manufacturing order activity:

1. Open the Manufacturing Order Activity window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO Activity)

2. Enter or select a manufacturing order.

To view more information about a specific activity in the scrolling window,

highlight the event and then choose the Reason Code expansion button. The
window that opens will depend on the activity and the document type.

3. To print the Manufacturing Order Activity report, choose the print icon button.
The report summarizes the history of a particular manufacturing order.

4. Review information in the window. When you’ve finished, close the window.

Interpreting manufacturing order reason codes

When you use the Manufacturing Order Activity window to view information
about the events in the life cycle of a manufacturing order, the scrolling window
displays information based on reason codes.

You can use the following tables to see what document types can be associated with
each event. For example, if the reason code for an activity record is Allocate and you
choose the expansion button on the Reason Code field in the Manufacturing Order
Activity window, a pick document will be displayed if the component allocation
occurred through the picklist.

For more information about using the Manufacturing Order Activity window, refer
to Viewing manufacturing order activity on page 117.

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Allocate
Refer to the following table for information you can use to understand the Allocate
reason code.

Event Document type

Component allocation on pick document Pick Document
Component allocation on order receipt MO Receipt
Component allocation at order close --

If you’ve set the preference to have allocations occur automatically when the status of a
manufacturing order becomes Released, then pick documents also are created automatically
for quick manufacturing orders and MPS manufacturing orders. This enables you to reverse
issue components for those manufacturing orders, if needed.

Financial Activity
Refer to the following table for information you can use to understand the Financial
Activity reason code information.

Event Document type

Any Manufacturing-based transaction that will affect the Journal Entry
General Ledger, such as posting a pick document with the
Issue transaction type

Finished Good Post

Refer to the following table for information you can use to understand the Finished
Good Post reason code information.

Event Document type

Finished goods posted for an order receipt MO Receipt
Inventory transaction for finished goods posted from an order IV Transaction
receipt

Issue
Refer to the following table for information you can use to understand the Issue
reason code information.

Event Document type

Component issue on pick document Pick Document
Inventory transaction for issuing components from a pick IV Transaction
document

Labor Data Collection

Refer to the following table for information you can use to understand the Labor
Data Collection reason code information.

Event Document type

Labor data collection record --

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Machine Data Collection

Refer to the following table for information you can use to understand the Machine
Data Collection reason code information.

Event Document type

Machine data collection --

MO Scheduled
Refer to the following table for information you can use to understand the MO
Scheduled reason code information.

Event Document type

Manufacturing order is scheduled or rescheduled --

Outsourcing Costs
Refer to the following table for information you can use to understand the
Outsourcing Costs reason code information.

Event Document type

Outsourcing data collection record for documenting --
outsourcing costs

Picklist Built and Picklist Change

Refer to the following table for information you can use to understand the Picklist
Built and Picklist Change reason codes information.

Event Document type

Building a picklist --
Changing a picklist --

Post Variance from WIP

Refer to the following table for information you can use to understand the Post
Variance from WIP reason code information.

Event Document type

Journal entry for moving amounts from WIP to variance Journal Entry
accounts

Raw Material Relief

Refer to the following table for information you can use to understand the Raw
Material Relief reason code information.

Event Document type

Component consumption from a manufacturing order receipt MO Receipt
Component backflushing from an order receipt MO Receipt
Inventory transaction for component backflushing from an IV Transaction
order receipt
Journal entry for component backflushing from an order MO Receipt
receipt
Component backflushing from closing an order --
Inventory transaction for backflushing a component from IV Transaction
closing an order

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Reverse Allocate
Refer to the following table for information you can use to understand the Reverse
Allocate reason code information.

Event Document type

Component reverse allocation on pick document Pick Document
Component reverse allocation when canceling an order close --
process

Reverse Issue
Refer to the following table for information you can use to understand the Reverse
Issue reason code information.

Event Document type

Component reverse issue from a pick document Pick Document
Inventory transaction created from a component reverse IV Transaction
issue on a pick document

Reverse Scrap
Refer to the following table for information you can use to understand the Reverse
Scrap reason code information.

Event Document type

Component reverse scrap from a pick document Pick Document

Routing Change
Refer to the following table for information you can use to understand the Routing
Change reason code information.

Event Document type

Changing the active routing for the order --

Scheduled
Refer to the following table for information you can use to understand the
Scheduled reason code information.

Event Document type

Scheduling a manufacturing order --

Scrap
Refer to the following table for information you can use to understand the Scrap
reason code information.

Event Document type

Component scrap from a pick document Pick Document
Component scrap from an order receipt MO Receipt

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Status Change
Refer to the following table for information you can use to understand the Status
Change reason code information.

Event Document type

Manufacturing order status changes --

Viewing component transaction information

You can use the Manufacturing Component Transaction Inquiry window to view
information about a specific component transaction in a pick document.

To view component transaction information:

1. Open the Manufacturing Component Transaction Inquiry window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> Component Trx
Inquiry)

2. Choose component transactions to view.

• To view component transactions for a pick document, mark Manufacturing

Pick Number, and enter or select a pick document.

• To view component transactions for a manufacturing order, mark MO

Number, and enter or select a manufacturing order.

3. Choose the refresh icon button at the top of the scrolling window.

Information will be displayed in the window. You can adjust your view of the
information using the view icon button at the top of the button bar to switch
between the scrolling window view and the card view of the information.

4. If necessary, use the View menu to select a sorting method.

5. You can use the information in this window as a starting point for viewing more
details.

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Refer to the table for more information about other windows you can view.

Event Document type Event

Date expansion button Mfg Component Transaction Pick document date, posting date,
Posting Date Inquiry window last date changed, times printed.
Item Number info button Picklist Quantity Status Information about the item at the
window issue-from site, such as the
Available, Allocated, Issued,
Backflushed, and Scrapped
quantities.
Item Number expansion BOM Component Assigned Available only if other items in the
button Alternates window bill of materials for the
manufacturing order have been
designated as alternates for the
marked component.
Displays the identifier of the
alternate item, as well as the
required quantity, available
quantity, and unit of measure.
Transaction Quantity Manufacturing Component If the item is tracked by lot or serial
expansion button Lot Number Inquiry window, numbers, either the
or Manufacturing Manufacturing Component Lot
Component Serial Number Number Inquiry window or the
Inquiry window Manufacturing Component Serial
Number Inquiry window opens,
displaying information about the
lot or serial numbers of the items
that were included in the specific
component transaction. (If you’re
using multiple bins, bin
information also is included.)
Manufacturing Transaction If the item is not tracked but you’re
Bin Inquiry window using multiple bins, you can view
more information about the bins
involved. If the transaction type is
not Scrap or Reverse Scrap, the
Manufacturing Transaction Bin
Inquiry window opens, displaying
information about the sites and
bins for the transaction. (No bin
information is available for Scrap
and Reverse Scrap transaction
types.)

6. When you’ve finished viewing information, close the windows.

Viewing manufacturing order receipts

You can use the Manufacturing Order Receipt Inquiry window to view information
about one or more posted receipts. The window displays information about the
manufacturing order associated with each receipt, as well as the finished good item
number, the receipt quantity and date, and the issue-to site for the finished goods.

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To view manufacturing order receipts:

1. Open the Manufacturing Order Receipt Inquiry window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO Receipt Inquiry)

2. Select the receipts to view.

• To limit the receipts displayed in the scrolling window, select a range. You
can then use the From and To fields to specify what portion of the records
should be displayed.

• To show all manufacturing order receipts in the scrolling window, select

any range and choose All.

• To show reversed manufacturing order receipts, unmark the Don’t show

reversed receipts option.

3. Choose Refresh from the View menu near the top left corner of the scrolling
window to update the information in the window.

4. View information in the scrolling window. To view more detailed information

about a specific manufacturing order receipt, highlight it in the scrolling
window and then click any of the links at the top of the scrolling window.

You can open the Manufacturing Order Receipt Inquiry Detail window by highlighting
a record in the scrolling window and clicking the Receipt Number link. Refer to
Viewing manufacturing order receipt details on page 124 for more information.

5. When you’ve finished, close the windows.

Viewing manufacturing order receipt details

You can use the Manufacturing Order Receipt Inquiry Detail window to view
detailed information about a manufacturing order receipt. You can view the receipt
number, date, and quantity, as well as information about the components that were
used by the receipt—either through backflushing or through consumption.

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The Manufacturing Order Receipt Inquiry Detail window is also a good starting
point for opening other windows that display more detailed information about the
receipt.

To view manufacturing order receipt details:

1. Open the Manufacturing Order Receipt Inquiry window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO Receipt Inquiry)

2. Refer to Viewing manufacturing order receipts on page 123 to display receipts in

the scrolling window.

3. Mark the receipt to view, and click the Receipt Number link to open the
Manufacturing Order Receipt Inquiry Detail window.

Information will be displayed in the window. You can adjust your view of the
information by using the view icon button at the top of the button bar to switch
between the scrolling window view and the card view of the information.

4. You can use the information in this window as a starting point for viewing more
details.

Refer to the table for more information about other windows you can view.

Button Window opened Displayed information

Receipt Date expansion Manufacturing Order Receipt Displays information about the
button Posting Date Inquiry window receipt date and the posting date.
Receipt Qty info button Manufacturing Order Receipt Displays information about the
Quantity Inquiry window finished good quantities for the
manufacturing order: start
quantity, end quantity, and
quantity received to-date.

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Button Window opened Displayed information

Receipt Qty expansion Manufacturing Serial-Lot If the finished good is tracked by
button Number Inquiry window lot or serial numbers, information
about serial and lot numbers for
the finished good is displayed.
Manufacturing Transaction If the finished good is not tracked
Bin Inquiry window by lot or serial numbers but you’re
using multiple bins, information
about the bins where the items
were posted is displayed.
Receipt Qty component Manufacturing Component Displays information about the
inquiry button Consumption Inquiry components used in a specific
window manufacturing order, including
serial- or lot-number links,
unlinked components, scrap, by-
products, and backflushed
components. Information about
components removed from WIP
when the manufacturing order was
closed (component variance) also
is included.
Receipt Costs button Manufacturing Order Receipt Displays information about the
Cost Inquiry window total costs and the costs per-unit
for material, labor, and machine
time, as well as their related
overhead amounts.
Labor/Machine button Manufacturing Order Receipt Displays information about the
Labor/Machine Cost Inquiry labor and machine costs that are
window applied to a manufacturing order
receipt for an actual cost item.
Item Number info button Manufacturing Order Receipt Displays information about the
Component Detail window marked component, including
whether the item is tracked by lot
or serial numbers, and whether it
is consumed.
Quantity to Consume Manufacturing Serial-Lot This button is available only if the
expansion button Number Inquiry window marked component is tracked by
lot or serial numbers.
Quantity to Backflush
expansion button Displays the lot or serial numbers
of the items that were consumed
or backflushed.

5. When you’ve finished viewing information, close the windows.

Viewing manufacturing order summary information

If the status of a manufacturing order is Released, Partially Received, Complete, or
Closed, you can use the Manufacturing Order Summary window to view
information about the order. You can view quantity information, such as start and
end quantities for the order, and the quantity received to date. You also can view
information about the manufacturing order components.

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To view manufacturing order summary information:

1. Open the Manufacturing Order Summary window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO Summary)

2. Enter or select a manufacturing order to view.

Information will be displayed in the window. You can adjust your view of the
information by the view icon button at the top of the button bar to switch between the
scrolling window view and the card view of the information.

3. You can use the information in this window as a starting point for viewing more
details.

Refer to the table for more information about other windows you can view.

Button Window opened Displayed information

MO Number expansion Manufacturing Order Displays information about the
button Summary Sequence Detail costs applied to a manufacturing
window order for a specific sequence. Refer
to Viewing manufacturing order
costs per sequence on page 129.
Received to Date Manufacturing Serial-Lot Displays information about the
Quantity expansion Number Inquiry window serial or lot numbers that have
button been assigned to the finished
goods produced from the
manufacturing order.
Received to Date Manufacturing Component Displays information about the
Quantity component Consumption Inquiry components used in a specific
inquiry button window manufacturing order, including
serial- or lot-number links,
unlinked components, scrap, by-
products, and backflushed
components. Information about
components removed from WIP
when the manufacturing order was
closed (component variance) also
is included.

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Button Window opened Displayed information

Item Number info button Manufacturing Order Displays information about the
Summary Component Detail component item, such as whether
window it is tracked by lot or serial
numbers.
Consumed to Date Manufacturing Serial-Lot This button is available only if the
expansion button Number Inquiry window marked component is tracked by
lot or serial numbers.
Displays the lot or serial numbers
of the items that were consumed
or backflushed.
Manufacturing Transaction If the component is not tracked by
Bin Inquiry window lot or serial numbers but you’re
using multiple bins, information
about the sites and bins where the
quantities were taken from is
displayed.
Backflushed to Date Manufacturing Serial-Lot This button is available only if the
expansion button Number Inquiry window marked component is tracked by
lot or serial numbers.
Displays the lot or serial numbers
of the items that were consumed
or backflushed.
Manufacturing Transaction If the component is not tracked by
Bin Inquiry window lot or serial numbers but you’re
using multiple bins, information
about the sites and bins where the
quantities were taken from is
displayed.

4. When you’ve finished viewing information, close the windows.

Viewing serial and lot number component information

You can use the Manufacturing Component Consumption Inquiry window to view
information about the components that were issued for a manufacturing order. If
you use serial and lot number linking, you can see the lot and serial numbers of
components and can view the lot or serial numbers of the finished goods that they
were used in. You can view information about the components that were scrapped
or backflushed, and you can view the components that were removed from WIP
when the manufacturing order was closed.

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To view serial and lot number component information:

1. Open the Manufacturing Component Consumption Inquiry window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO Summary >>
enter or select a manufacturing order >> Received to Date Quantity component
expansion button)

2. Use the plus and minus sign buttons above the tree view to show more or less
information. You also can use the plus and minus signs in the tree view to
expand or collapse specific parts of the tree view.

3. When you’ve finished viewing information, close the window.

Viewing manufacturing order costs per sequence

If the status of a manufacturing order is Released, Partially Received, or Complete,
you can use the Manufacturing Order Summary Sequence Detail window to view
information about the machine and labor costs that have been entered in data
collection windows.

To view manufacturing order costs per sequence:

1. Open the Manufacturing Order Summary window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> MO Summary)

2. Enter or select a manufacturing order.

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3. Choose the MO Number expansion button to open the Manufacturing Order

Summary Sequence Detail window.

4. When you’ve finished viewing information, close the windows.

Viewing manufacturing order variances

Use the Manufacturing Order Variance window to compare actual and estimated
costs for a manufacturing order. You can use the window after a manufacturing
order is closed, or while it is in progress.

A variance is the difference between what it should have cost to make something
and what it actually cost to make it. You can analyze variance information to see
what areas need improvement, or what areas are performing above expectations. A
variance of zero indicates that what it actually cost to make something was exactly
what it should have cost to make it. Some variance information compares expected
materials costs, which can be affected by the quantities of the materials actually
used for a manufacturing order or by the cost of those items. Other variance
information compares anticipated costs for labor and machine time to actual
amounts. A positive variance means that it costs less to make something than
expected and indicates performance levels above expectations. A negative variance
means that it cost more than expected and indicates performance levels below
expectations.

The source of the estimated costs for manufacturing orders for standard cost items
can vary. If the manufacturing order was based on a configured bill of materials,
then the “configured standard cost” is the cost of the materials for the configured
item, based on the cost of those items at the time when the item was configured.
Refer to Material costs for configured manufacturing orders in Chapter 26,
“Configurator manufacturing orders,” in the Manufacturing Core Functions
documentation for more information.

In other cases, the estimated material costs for a manufacturing order for a standard
cost item is the inventory standard cost for the finished good.

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To view manufacturing order variances:

1. Open the Manufacturing Order Variance window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> Order Variance)

2. Enter or select a manufacturing order.

3. Review information in the window, using the tabs to view different types of
variance information.

You can use the following resources to learn more about the information that is
displayed.

• For general descriptions of the tabs, refer to Interpreting the Manufacturing

Order Variance window.

• For information about how specific values are calculated, refer to online
help. Press F1 when the Manufacturing Order Variance window is open,
and then click the Fields link near the top of the page.

To view more information for material variances, click the Material link on the
Production Variance tab or the Standard Cost Variance tab to open the
Manufacturing Material Variance Detail window, where you can view
information about both cost and usage variances for materials.

Some information for manufacturing orders closed with versions of Manufacturing

earlier than 8.0 will be missing because those values weren’t saved in earlier versions of
the product. If you’re viewing variance information for one of those manufacturing
orders, some options for viewing the information won’t be available, and the message,
“This MO was closed in a previous version of Manufacturing. Some information may
be unavailable,” will be displayed at the bottom of the window.

4. When you’ve finished, close the window.

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Viewing manufacturing picklist quantities

You can use the Manufacturing Picklist Shortages Inquiry window to view
information about picklist quantities.

To view manufacturing picklist quantities:

1. Open the Picklist Shortage Inquiry window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> Picklist Shortages

2. Enter or select information in the ranges.

3. Mark the Include Open Manufacturing Orders option to include information in

the scrolling window for manufacturing orders that have an Open status.

4. Information about picklist quantities will be displayed in the scrolling window.

When you’ve finished reviewing the information, close the window.

Interpreting the Manufacturing Order Variance

window
The Manufacturing Order Variance window (Inquiry >> Manufacturing >>
Manufacturing Orders >> MO Variance) includes tabs that display different types of
manufacturing order variance information.

You can use the tabs to view variance information for any manufacturing order. As
costs are added to and removed from WIP and manufacturing order receipts are
posted, the information on the tabs is updated. After the manufacturing order is
closed, however, the calculations won’t change.

Some information for manufacturing orders closed with versions of Manufacturing earlier
than 8.0 will be missing because those values weren’t saved in earlier versions of the
product. If you’re viewing variance information for one of those manufacturing orders, some
options for viewing the information won’t be available, and the message, “This MO was
closed in a previous version of Manufacturing. Some information may be unavailable,” will
be displayed at the bottom of the window.

Depending on the options used to view variances, you might have a general ledger
variance and not have a production or standard cost variance. It also is possible to
have a production or standard cost variance but no general ledger variance.
Typically, however, standard cost variances and general ledger variances will be the
same.

Production Variance tab

Use the Production Variance tab to compare actual manufacturing order costs to
anticipated costs, based on the manufacturing order routing, picklist, and labor and
machine codes. You can view information on this tab for any manufacturing order,
but it’s probably most useful for manufacturing orders that produce actual cost
finished goods.

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Material costs displayed on the Production Variance tab come from the current cost
of components, which might not be the same as the costs from the purchase receipts
for the component items. Therefore, it is possible to have a material variance just
because the two values are different—not because more or fewer materials were
used in production. To see specific information about the cause of material
variances, choose the Material link to open the Manufacturing Material Variance
Detail window.

Standard Cost Variance tab

Use the Standard Cost Variance tab to compare the costs for a manufacturing order
and the standard costs for the finished good. Information is displayed in the
Standard Cost Variance tab only for those manufacturing orders that produce
standard-cost finished goods. The variance calculations are the finished good
standard cost multiplied by the manufacturing order quantity, and less any costs
put into WIP (the actual costs of the manufacturing order).

Repeated variances for a particular finished good could indicate a need to change
either the manufacturing bill of materials or the primary routing for the finished
good.

General Ledger Variance tab

Use the General Ledger Variance tab to view information about the costs that
remain in WIP. For closed manufacturing orders, actual general ledger variances are
calculated; for open manufacturing orders, estimated general ledger variances are
calculated.

You can use general ledger variance information to ensure that all costs in WIP are
removed by the time the manufacturing order is closed. General ledger variance
information doesn’t show how well a manufacturing order matched anticipated
costs. Instead, it shows how closely the costs that were put into WIP—through data
collection and through issuing and backflushing material, labor, and machine use—
match the costs that were taken out of WIP through receiving and posting finished
goods to inventory. The calculation for a general ledger variance is costs consumed
(or taken out of WIP) minus costs put in WIP.

The general ledger variance amounts are posted to variance accounts when the
manufacturing order is closed. When more costs have been put into WIP than have
been taken out, the WIP account is credited and the variance account is debited
when the manufacturing order is closed. When more costs have been taken out of
WIP than have been put into it, the WIP account is debited and the variance account
is credited when the manufacturing order is closed.

Data Collection Detail tab

You can use the Data Collection Detail tab to view information about the sources of
labor and machine variances. The tab includes variance calculations for each labor
and machine code that’s included in the manufacturing order routing, except those
that are automatically backflushed. Values for backflushed routing sequences are
not included in this tab.

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A comparison of estimated and actual costs for labor and machine use is displayed
on the tab. Estimated costs are calculated based on the manufacturing order
routing. Actual costs are those that have been added to WIP by data collection
activities, which can include any of the following:

• Entries in the Data Collection window and the Time Card Entry window

• Automatic data collection

• Receipts and invoices for outsourced purchase orders

Setup labor costs

The Manufacturing Order Variance window includes setup labor cost information.
The figures used to calculate the setup labor costs come from the following
windows:

• Manufacturing Order Routing Sequence Edit window

• Labor Code Definition window

Refer to the following table for information about how setup labor costs are
calculated for a single manufacturing order routing sequence. To find the total setup
costs for a manufacturing order, you’d need to calculate the amounts for each
sequence and then add them together.

Cost type Calculations

Setup labor Per hour Setup time x shop rate
Per piece Shop rate
Setup labor - Per hour Amount Setup time x fixed overhead amount
fixed overhead
Percentage Setup time x shop rate x fixed overhead percent
Per piece Amount Fixed overhead amount
Percentage Shop rate x fixed overhead amount ÷ 100
Setup labor - Per hour Amount Setup time x variable overhead amount
variable Percentage Setup time x shop rate x variable overhead percent
overhead
Per piece Amount Variable overhead amount
Percentage Shop rate x (variable overhead amount ÷ 100)

Labor costs
The Manufacturing Order Variance window includes labor cost information. The
figures used to calculate the labor costs come from the following windows:

• Manufacturing Order Routing Sequence Edit window

• Labor Code Definition window

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Refer to the following table for information about how labor costs are calculated for
a single manufacturing order routing sequence. To find the total setup time for a
manufacturing order, you’d need to calculate the amounts for each sequence and
then add them together.

Cost type Calculations

Labor Per hour Labor time x shop rate
Per piece Shop rate
Labor - fixed Per hour Amount Labor time x fixed overhead amount
overhead Percentage Labor time x shop rate x fixed overhead percent
Per piece Amount Fixed overhead amount
Percentage Shop rate x (fixed overhead amount ÷ 100)
Labor - Per hour Amount Labor time x variable overhead amount
variable
Percentage Labor time x shop rate x variable overhead percent
overhead
Per piece Amount Variable overhead amount
Percentage Shop rate x (variable overhead amount ÷ 100)

Machine costs
The Manufacturing Order Variance window includes machine cost information.
The figures used to calculate machine costs come from the following windows:

• Manufacturing Order Routing Sequence Edit window

• Machine Definition window

Refer to the following table for information about how machine costs are calculated
for a single manufacturing order routing sequence. To find the total machine costs
for a manufacturing order, you’d need to calculate the amounts for each sequence
and then add them together.

Cost type Calculations

Machine (Machine time x operating cost) + piece cost
Machine - fixed Per hour Amount Machine time x fixed overhead amount
overhead
Percentage Machine time x operating cost x fixed overhead
percent
Per piece Amount Fixed overhead amount
Percentage Piece cost x (fixed overhead amount ÷ 100)
Machine - Per hour Amount Machine time x variable overhead amount
variable
Percentage Machine time x operating cost x variable overhead
overhead
percent
Per piece Amount Variable overhead amount
Percentage Piece cost x (variable overhead amount ÷ 100)

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Item costs for a picklist item

The Manufacturing Order Variance window includes material cost information. The
current cost that is selected for an item depends on whether it is an inventoried item
and its valuation method. Refer to the table for more information.

Item type Valuation method Source for current cost

Inventoried Actual cost (FIFO or LIFO Current Cost field in the Item Maintenance
Perpetual) window
Average cost
Standard cost (FIFO or The total of the nine cost buckets—Material,
LIFO Periodic) Material fixed overhead, and so on—in the
Standard Cost Maintenance window
Non-inventoried Not applicable Add Picklist Entry window or from the
Manufacturing Order Receipt Component Entry
window

To calculate total material costs for a manufacturing order, you’d need to calculate the
amounts for each item and then add them together.

Viewing item transaction information

Use the Manufacturing Item Transaction Inquiry window to view information
about the item transactions for manufacturing orders. You can view information for
a range of item numbers for components or finished goods, of manufacturing order
numbers, of serial or lot numbers, or of dates.

To view item transaction information:

1. Open the Manufacturing Item Transaction Inquiry window.
(Inquiry >> Manufacturing >> Manufacturing Orders >> Item Transactions)

2. Specify a range to restrict information. You can choose to view information for a
specific item or range of items.

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3. Choose Redisplay to update the information in the window.

4. In the tree view, expand and collapse information to see more or fewer details.
When you highlight different levels in the tree view, different information is
displayed in the rest of the window.

5. When you’ve finished viewing information, close the window.

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Chapter 13: Receipts and closing
You can receive some finished goods from a manufacturing order before all items
are complete for the order. Each instance of receiving items is a manufacturing order
receipt. You can enter unlimited receipts for each manufacturing order.

After you’ve received all the finished goods for an order, you’ll close the
manufacturing order. When you close a manufacturing order, it’s marked as being
closed and component quantity information is cleaned up. For instance, if the
quantity received from the manufacturing order doesn’t match the expected end
quantity, you’ll need to specify how backflushed component quantities should be
calculated.

This information is divided into the following sections:

• Manufacturing order receipts

• Entering a manufacturing order receipt
• Modifying bin information for a finished item
• Serial number assignments for finished goods
• Manually entering serial numbers for finished goods
• Generating serial numbers for finished goods
• Applying pre-entered serial numbers to finished goods
• Assigning lot numbers for finished goods
• Linking finished good and component lot and serial numbers
• Changing dates for a manufacturing order receipt
• Adding an item to a manufacturing order receipt
• Entering labor and machine costs for receipts
• Manufacturing order receipts with by-products
• How receipts affect linked sales orders and invoices
• Effects of posting a manufacturing order receipt
• Reversing a manufacturing order receipt
• Effects of posting a reversing manufacturing order receipt
• Prerequisites for closing manufacturing orders
• Closing a manufacturing order
• Effects of closing a manufacturing order
• How backflushed item quantities are calculated
• How backflushed machine and labor amounts are calculated
• Changing the posting date for closing a manufacturing order
• Causes of variances
• Understanding posting for standard-cost items

Manufacturing order receipts

A manufacturing order receipt is a group of transactions that reflect changes in
inventory when finished goods are moved out of production. In accounting terms,
you can enter a manufacturing order receipt to consume the quantities of
components you’ve added to work in process (WIP)—a process also known as
relieving raw material—and to add the finished goods to inventory. If some
components are backflushed, you also can backflush them in the receipt, so that
their costs are applied to the receipt.

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Machine and labor costs also can be included in manufacturing order receipts. If
machine or labor time for a manufacturing order sequence is backflushed
(something you can choose to do when you create the routing), then the receipt
quantity is multiplied by the backflush amounts to calculate the machine and labor
costs for the receipt. If the labor and machine costs are not backflushed, and if
you’ve collected information about the labor and machine time before you enter the
manufacturing order receipt, you can specify an amount or percentage of the labor
and machine costs to apply to the receipt.

If you’ve linked a manufacturing order to a sales order, the quantity you receive will
be allocated to fulfill the sales order line when you post the receipt. For more
information, refer to How receipts affect linked sales orders and invoices on page 156.

Entering a manufacturing order receipt

When you’re ready to receive some of the finished goods from a manufacturing
order, use the Manufacturing Order Receipt Entry window to enter a
manufacturing order receipt.

To enter a manufacturing order receipt, there can be no pending scrap or reverse

scrap component transactions for the manufacturing order. You also can’t enter a
manufacturing order receipt if the inventory year-end closing routine is running.

If you’re using multiple bins with Manufacturing, you can edit the bin information for the
quantities of finished goods received, and for the quantities of backflushed components. You
don’t need to enter bin information for the quantities of consumed items because those items
are taken from WIP and don’t need bin information.

To enter a manufacturing order receipt:

1. Open the Manufacturing Order Receipt Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry)

2. Select to create a manufacturing order receipt.

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3. Enter or select a manufacturing order.

4. Accept the default receipt date, or change it. Refer to Changing dates for a
manufacturing order receipt on page 152.

5. Accept the default receipt quantity for the finished item, or change it. If you
change it, a message will appear and you’ll have the option to recalculate the
component quantities. Doing so adjusts the default component values in the
scrolling window.

Choose the info icon button on the Receipt Qty field to open the Manufacturing Order
Receipt Quantity Inquiry window, where you can view information about the
anticipated manufacturing order quantities and the receipts to-date.

If the receipt quantity plus the total of receipts to date are greater than the
manufacturing order end quantity, the Component Quantity Calculation
window opens. You’ll have the option to have component requirements based
on the manufacturing order start quantity, or the total receipt quantity. If the
option will be the same for all manufacturing orders, mark Always use this type
of calculation.

6. If the finished goods are tracked by lot or serial numbers, you can choose the
Receipt Quantity expansion button to open a window where you can specify
the lot or serial numbers for the finished goods. Refer to Serial number
assignments for finished goods on page 144 or Assigning lot numbers for finished
goods on page 148 for more information.

You also can choose Auto–Select Serial/Lot Numbers to have component serial
numbers or lot numbers automatically selected for the finished goods.

7. If the finished goods aren’t tracked by lot or serial numbers but you’re using
multiple bins and want to edit the bin information for the items, choose the
Receipt Quantity expansion button to open the Bin Quantity Entry window.
Refer to Modifying bin information for a finished item on page 143.

8. Accept the default site, or change it. The site is the one to which the finished
goods will be added.

9. To apply all the labor and machine costs collected for the manufacturing order
to this manufacturing order receipt, mark Use all collected labor and machine
costs available.

10. To apply all materials issued to work in process for the manufacturing order to
this manufacturing order receipt, mark Use all material issued to WIP.

11. To apply all remaining setup costs for the manufacturing order to this
manufacturing order receipt, mark Use all remaining setup costs.

12. Review information in the scrolling window.

When you sort by position number, the finished good first-level components
and components of phantom subassembly components are assorted
numerically, in ascending order. Components of phantom subassemblies will be
grouped together as if they were appearing beneath the phantom. The phantom
position number will not be displayed.

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Choose the view icon button at the top of the scrolling window to switch between the
scrolling window view and the card view of the components.

13. Accept the default Quantity to Consume and the default Quantity to Backflush
for each of the components, or change them. Depending on the manufacturing
order and your business practices, special rules might apply.

Multiple bins If you’re using multiple bins and you’re backflushing an item
that is not tracked by lot or serial numbers, you can use the Quantity to
Backflush expansion button to open the Bin Quantity Entry window, where you
can edit bin information. You can’t edit the bin information for the Quantity to
Consume because those item quantities come from WIP and don’t have bin
information. Refer to Modifying bin selections for a component on page 77.

Partial receipt If you’re receiving just a portion of the manufacturing order,

be sure to choose Recalculate Component Quantities so that the default
quantities are updated. You can change the default quantities, if needed, but the
recalculated ones should be more accurate.

By-product item If the manufacturing order receipt is for by-products, as

well as finished goods, enter the quantity of by-product items for this receipt as
a negative number in the Quantity to Backflush field.

14. If part of the backflush quantity is for scrap, enter that quantity in the Backflush
Quantity to Scrap field.

15. Specify the lot or serial numbers of any components that are tracked. You can
select an item tracked by lot or serial numbers and choose the expansion button
for the Quantity to Consume or the Quantity to Backflush to open the
appropriate window.

• Refer to Specifying lot numbers for a component transaction on page 79 for

information about choosing lot numbers.

• Refer to Specifying serial numbers for a component transaction on page 81 for

information about choosing serial numbers.

16. If you’re entering a partial receipt—if more finished goods will be received later
from the manufacturing order—for an actual-cost item, choose the Labor/
Machine button to open the Manufacturing Order Receipt Labor/Machine Cost
Entry window. Refer to Entering labor and machine costs for receipts on page 154.

17. If you’re entering information for a by-product, be sure that the Quantity to
Backflush for that item is negative, and verify that the By-product Site ID is the
one to post by-products to.

18. To add another component to a manufacturing order receipt, choose the Add
Component button to open the Manufacturing Receipt Component Entry
window. Refer to Adding an item to a manufacturing order receipt on page 152 for
more information.

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19. Choose Post. Depending on the options you’ve selected, reports will be
generated to summarize the changes you’re making to your inventory records.

For more information about the effects of posting a manufacturing order

receipt, see Effects of posting a manufacturing order receipt on page 157.

20. When processing is complete, close the window.

When you post a manufacturing order receipt that includes items that will be used to
fulfill a sales order invoice or a sales order line, the MO/SO Cross-Reference report is
generated. You can use the report to view information about allocated items, including
their lot and serial numbers if they are tracked.

Modifying bin information for a finished item

If you’re using multiple bins, you can use the Bin Quantity Entry window to modify
bin information for manufacturing order receipts. For example, if you don’t want
finished goods to be placed in the default bin for the item-site combination or for
the site, you can select a different bin. You also can split the receipt quantity among
several bins.

If the finished item is tracked by lot or serial numbers, you can enter or edit bin
information when you enter lot or serial number information. Refer to the following
topics for more information:

• Manually entering serial numbers for finished goods on page 145

• Generating serial numbers for finished goods on page 146
• Assigning lot numbers for finished goods on page 148

This procedure assumes that you already are entering a manufacturing order receipt.

To modify bin information for a finished item:

1. Open the Manufacturing Order Receipt Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry)

Enter receipt information. Refer to Entering a manufacturing order receipt on

page 140.

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2. Choose the Receipt Quantity expansion button to open the Bin Quantity Entry
window.

The Bin Quantity Entry window will open only if the item is not tracked by lot or serial
numbers. If the item is tracked by lot or serial numbers, windows for selecting lot or
serial numbers open. When you select the lot or serial number, you’re selecting the bin
information, as well.

3. Accept the default bin information, or change it.

• To accept the bin information, skip to step 7.

• To change it, choose Remove All to clear the lower scrolling window. Refer
to steps 4 through 6 to enter new bin information.

4. Enter or select a bin in the Bin field, and then accept the default Quantity
Selected, or change it.

5. Choose Insert to add your selection to the lower scrolling window.

6. Continue, repeating steps 3 and 4 until the Selected Quantity equals the
Extended Quantity.

7. Choose OK to close the window.

Serial number assignments for finished goods

You can use the Manufacturing Serial Number Entry window to enter serial
numbers for finished goods. You either can simply record the serial numbers that
have already been assigned to items, you can generate a list of serial numbers and
apply them to your finished items, or you can assign serial numbers from a list you
entered when you started the manufacturing order to the actual items.

If you choose to create serial number masks, you can use any combination of letters,
symbols, spaces, dates, and numbers. However, the serial numbers can be no more
than 20 characters long.

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Generating serial numbers in smaller groups can be especially helpful if you create groups of
serial numbers. For example, if you needed to generate serial numbers for a manufacturing
order of 10,000 items, you might want to create different sets of serial numbers—ABC-0001,
ABC-0002, ABC-0003 for one group, DEF-0001, DEF-0002, and DEF-0003 for another
group, and so on. You can use the serial number mask to modify the mask for each group of
serial numbers you create.

Refer to the following topics for more information:

• Manually entering serial numbers for finished goods on page 145

• Generating serial numbers for finished goods on page 146
• Applying pre-entered serial numbers to finished goods on page 147

Manually entering serial numbers for finished goods

You can use the Manufacturing Serial Number Entry window to enter serial
numbers that have been assigned to finished items one at a time.

To manually enter serial numbers for finished goods:

1. Open the Manufacturing Serial Number Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry >> Receipt Qty expansion button)

The window also will open automatically if you use the Quick MOs window to close a
manufacturing order that produces finished goods tracked by serial numbers, or if you
post a manufacturing order receipt for a serial-numbered item and haven’t already
selected enough serial numbers.

2. If you’re using multiple bins, accept the default bin information or change it.

3. Enter a serial number in the Serial Number field.

4. Choose Insert to add the serial number to the scrolling window. The number in
the Serial Numbers Selected field will change to reflect the addition of the serial
number to the scrolling window.

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5. Continue, repeating steps 2 through 4 until you’ve added all the serial numbers
to the scrolling window. The Serial Numbers Selected field must equal the Serial
Numbers Needed.

6. Choose OK.

You can close the window, or you can create relationships between the serial
numbers of the finished goods and the lot or serial numbers of the components.
Refer to Linking finished good and component lot and serial numbers on page 149 for
more information.

Generating serial numbers for finished goods

Use the Manufacturing Serial Number Entry window to automatically generate
serial numbers for finished items. This is particularly helpful if you have to create a
large number of serial numbers.

There are some limitations to the serial numbers that can be generated. Refer to
Serial number assignments for finished goods on page 144 for more information.

To generate serial numbers for finished goods:

1. Open the Manufacturing Serial Number Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry >> Receipt Qty expansion button)

2. If you’re using multiple bins, accept the default bin information or change it.

3. Click the Serial Number Mask link to open the Item Serial Number Definition
window. Refer to Microsoft Dynamics GP Purchase Order Processing
documentation for more information about creating a serial number mask.

4. After you’ve entered the serial number mask, return to the Manufacturing
Serial Number Entry window, and enter the lowest serial number to be used in
the Starting Serial Number field.

5. Be sure the number in the Quantity to Generate field is the number of serial
numbers you want to generate. The default value is the number of serial
numbers that are needed for the receipt, but you can change it.

6. Choose Auto-Generate. Serial numbers in the range specified will be added to

the scrolling window until the number in the Quantity to Generate field is
reached.

The number of serial numbers needed for the manufacturing order quantity
will be displayed in the Extended Quantity field. The number of serial numbers
in the scrolling window will be displayed in the Serial Numbers Selected field.

The number of serial numbers selected must match the number displayed in the
Extended Quantity before you can post the receipt.

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7. Review the list of serial numbers in the scrolling window.

• To remove any serial numbers from the list, mark them in the scrolling
window and choose Remove.

• To delete all serial numbers from the list, choose Remove All.

If you delete all the serial numbers from the list and then regenerate them,
the first serial number in the list won’t be reset. That is, if you generate
serial numbers AAA-001, AAA-002, and AAA-003 and then delete them,
the first serial number in the new list will be AAA-004.

8. When you have reviewed the numbers, choose OK.

You can close the window, or you can create relationships between the serial
numbers of the finished goods and the lot or serial numbers of the components.
Refer to Linking finished good and component lot and serial numbers on page 149 for
more information.

Applying pre-entered serial numbers to finished goods

You can use the Manufacturing Serial Number Entry window to select the pre-
entered serial numbers to be applied to the finished goods of a manufacturing order
receipt. Refer to Entering serial numbers when entering a manufacturing order on
page 60 for more information.

To apply pre-entered serial numbers to finished goods:

1. Open the Manufacturing Serial Number Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry >> Receipt Qty expansion button)

The window also will open automatically if you use the Quick MOs window to close a
manufacturing order that produces finished goods tracked by serial numbers, or if you
post a manufacturing order receipt for a serial-numbered item and haven’t already
selected enough serial numbers.

2. If you’re using multiple bins, accept the default bin information or change it.

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3. Choose Auto-Select to move serial numbers displayed in the Pre-entered Serial

Numbers scrolling window to the Selected scrolling window.

4. Determine if any additional serial numbers are needed.

• If the Serial Numbers Selected equals the Serial Numbers Needed, go to

step 5.

• If the Serial Numbers Selected is less than the Serial Numbers Needed,
enter an additional serial number in the Serial Number Field, and choose
Insert to add it to the Selected scrolling window. Repeat until the Serial
Numbers Selected equals the Serial Numbers Needed.

5. Choose OK.

You can close the window, or you can create relationships between the serial
numbers of the finished goods and the lot or serial numbers of the components.
Refer to Linking finished good and component lot and serial numbers on page 149 for
more information.

Assigning lot numbers for finished goods

You can use the Lot Number Entry window to assign lot numbers to the finished
goods for a manufacturing order receipt when you enter the receipt. If all the items
in the order will share the same lot number, you also can specify the lot number
when you create the manufacturing order.

To assign lot numbers for finished goods:

1. Open the Manufacturing Lot Number Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry >> Receipt Qty expansion button)

The window also will open automatically if you use the Quick MOs window to close a
manufacturing order that produces finished goods tracked by lot numbers, or if you post
a manufacturing order receipt for a lot-numbered item and you haven’t specified enough
lot number information.

2. If you’re using multiple bins, accept the default bin information or change it.

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3. Enter the Lot Number. If you entered a lot number in the Manufacturing Order
Entry window when you created the manufacturing order, that lot number will
be the default value.

If you’ve set up a lot category and lot attributes for the lot, you can choose the
Lot Number expansion button to open the Lot Attribute Entry window. You can
use that window to enter information about the specific characteristics of the
items in this lot. The default Manufactured Date will be the user date and the
default Expiration Date will be user date plus the number of days specified for
the finished item in the Item Engineering Data window. However, you can
change those dates, if needed.

4. Enter the quantity of the manufacturing order receipt that will have this lot
number.

5. Choose Insert to move the information to the scrolling window.

6. Continue, repeating steps 2 through 5 until the Total Quantity Selected equals
the Quantity Needed.

7. Choose OK.

You can close the window, or you can create relationships between the lot
numbers of the finished goods and the lot or serial numbers of the components.
Refer to Linking finished good and component lot and serial numbers on page 149 for
more information.

Linking finished good and component lot and serial

numbers
You can use the Manufacturing Serial/Lot Link Entry window to link the lot or
serial numbers of finished goods to the lot or serial numbers of their components.
Creating links is not necessary, unless you marked the Require Serial/Lot Linking
option in the Manufacturing Order Preference Defaults window. Creating links will
allow you to track serial and lot numbers throughout your business process. With
the links, you could find all finished goods that included components from a certain
lot, for example. If several different components in a finished good have lot or serial
numbers, you can link as many or as few as you like.

If linking is not required, unmark the Require Serial/Lot Linking option in the
Manufacturing Preference Defaults window. Refer to Setting up manufacturing order
processing for more information.

Before you can link the lot or serial numbers of finished goods with the lot or serial
numbers of components, you must assign the lot or serial numbers to the finished
goods, and you must specify the lot or serial numbers of the components that are
used in each manufacturing order receipt.

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Refer to the following table for more information.

To do this: Refer to:

Assign lot numbers Assigning lot numbers for finished goods on page 148
to finished goods
Assign serial Serial number assignments for finished goods on page 144
numbers to finished Manually entering serial numbers for finished goods on page 145
goods Generating serial numbers for finished goods on page 146
Applying pre-entered serial numbers to finished goods on page 147
Specify lot numbers Specifying lot numbers for a component transaction on page 79
for components in a
receipt
Specify serial Specifying serial numbers for a component transaction on page 81
numbers for
components in a
receipt

To link finished good and component lot and serial

numbers:
1. Open the Manufacturing Order Receipt Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry)

2. Enter or select a manufacturing order for finished goods tracked by lot or serial
numbers.

3. Choose the Receipt Quantity expansion button.

• If the finished good is tracked by serial numbers, the Manufacturing Serial

Number Entry window opens.

• If the finished good is tracked by lot numbers, the Manufacturing Lot

Number Entry window opens.

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4. Choose Link Components to open the Manufacturing Serial/Lot Link Entry

window.

Information about the lot and serial numbers of the components is displayed in
the upper scrolling window. Information about the lot or serial numbers of the
finished goods is displayed in the lower scrolling window.

5. Enter or select the lot or serial number of the finished good that you want to
link component lot or serial numbers to. You can use any of these methods:

• You can use the browse buttons or the lookup button on the Finished Good
Lot Number or Finished Good Serial Number field.

• You can highlight the lot or serial number in the lower scrolling window.

6. Highlight the lot number or serial number of a component that you want to link
to the finished good. You will need to expand the branches of the tree view to be
see specific lot or serial numbers.

7. Link the numbers. If you marked the Require Serial/Lot Linking option in the
Manufacturing Order Preference Defaults window, you must link all available
serial-numbered and lot-numbered items.

You can use either of the following methods:

• To link all of the quantity to the lot or serial number marked in the lower
scrolling window, choose the link icon button in the upper right corner of
the upper scrolling window.

• To link a portion of the quantity to the lot or serial number marked in the
lower scrolling window, enter the quantity in the Quantity to Link field,
and choose Link.

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8. Continue, repeating steps 5 through 7 until you’ve linked all the lot and serial
numbers that you want to link.

To undo all links, choose the Unlink button in the Linked Components tree view. To
unlink a single link, highlight the link and choose the Unlink button.

9. When you’ve finished, choose OK and close the window.

Changing dates for a manufacturing order receipt

Sometimes transactions for a manufacturing order receipt should be posted on a
date other than the user date. You can use the Manufacturing Order Receipt Posting
Date Entry window to change the posting date for a manufacturing order receipt.

To change dates for a manufacturing order receipt:

1. Open the Manufacturing Order Receipt Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry)

2. Enter a manufacturing order receipt. Refer to Entering a manufacturing order

receipt on page 140 for more information.

3. Choose the Receipt Date expansion button to open the Manufacturing Order
Receipt Posting Date Entry window.

4. Enter a posting date for the manufacturing order receipt.

When you change the posting date for a manufacturing order receipt, the transactions
for the manufacturing order receipt will be posted on the entered posting date,
regardless of whether you’ve chosen to use batch or transactional posting.

5. Choose OK to close the Manufacturing Order Receipt Posting Date Entry

window.

6. When you’ve finished entering the manufacturing order receipt, choose Post to
save the information and close the window.

Adding an item to a manufacturing order receipt

When you enter a manufacturing order receipt, you can add inventoried or non-
inventoried items to the receipt so the costs of the added item are reflected in the
overall manufacturing order costs. For example, suppose you have a rush order and
offer to buy pizza for the employees who put in extra hours to get the order
completed. You might want to add the cost of the pizzas to the manufacturing order
receipt. The items you add to a manufacturing order receipt are backflushed as part
of the receipt.

Use the Manufacturing Order Receipt Component Entry window to add an item to
a manufacturing order receipt.

This procedure assumes that you’re entering a manufacturing order receipt as described in
Entering a manufacturing order receipt on page 140.

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To add an item to a manufacturing order receipt:

1. Open the Manufacturing Order Receipt Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt)

2. Enter or select a manufacturing order receipt.

3. Choose Add Component to open the Manufacturing Order Receipt Component

Entry window.

4. Enter or select an item number. You can select an inventoried item—one already
defined in Microsoft Dynamics GP—or enter a non-inventoried item.

Non-inventoried item If you enter an item number that isn’t already in

inventory, a message appears and you’ll have the option to add the item as a
non-inventoried item.

Inventoried item Only some items can be added to the receipt. Refer to the
table for more information.

Item information Rules

Item status The status of the item—entered in the Item Engineering Data
window—must be Active, Released, or Service.
Effective date If the effective date of the item—entered in the Item Engineering
Data window—is after the system date, a message appears and
you’ll have the option to use the item or cancel.

5. Enter the Quantity to Backflush, which is the entire quantity of item to be added
to the receipt.

6. If you’re adding an inventoried item, enter or select the Backflush Site ID—the
site from which the quantities will be taken.

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7. Enter other information, as needed. Different information is required,

depending on the type of item you’re adding.

Non-inventoried item Refer to the following table for a summary of the

information you must enter.

Field Summary
Unit Cost The cost for the item will be the Unit Cost multiplied by the
Quantity to Backflush. This amount will be added to WIP,
Quantity to Backflush
and will be included in calculations when finished goods
are received and when the order is closed.
Non-inventoried Account The default Inventory Control account—specified in the
Posting Setup window—will be the default account, but
you can change it.

Standard cost items You can add an item that has a periodic valuation
method (standard cost item) to a picklist for a finished item that has a perpetual
valuation method (actual cost item). However, you can’t add an actual cost item
to a picklist for a standard cost item finished good.

8. Choose Save. You’ll have the option to add the item to the manufacturing order
picklist.

If you add the item to the manufacturing order picklist, a material variance
won’t be calculated.

9. Close the window to return to the Manufacturing Order Receipt Entry window,
where you can finish entering receipt information.

If you don’t post the manufacturing order receipt in the Manufacturing Order Receipt
Entry window, the costs of the items you’ve added to the receipt won’t be reflected in the
manufacturing order costs.

Entering labor and machine costs for receipts

If you are entering a manufacturing order receipt—one that is not for the entire
manufacturing order quantity—for an actual cost finished good, you can use the
Manufacturing Order Receipt Labor/Machine Cost Entry window to specify the
labor and machine costs that were entered in data collection windows and that
should be applied to this portion of the manufacturing order.

For example, suppose you have a manufacturing order for 100 items that is due on
Friday. On Wednesday, 30 of those items are complete and ready to be shipped to
customers. You could enter a receipt for the 30 items, and then specify what
machine and labor costs should be applied to this portion of the order.

You can mark the Use all collected labor and machine costs available option to add all labor
and machine costs that have been collected for the manufacturing order to the
manufacturing order receipt.

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To enter labor and machine costs for a receipt:

1. Open the Manufacturing Order Receipt Labor/Machine Cost Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry >> Labor/Machine button)

2. Choose how to specify the portion of labor costs to be applied to the receipt.

• Mark Amount to enter currency amounts for Labor, Labor Fixed Overhead
and Labor Variable Overhead.

• Mark Percent and enter a percentage to apply a percentage of the collected

costs to the receipt.

3. Choose how to specify the portion of machine costs to be applied to the receipt.

• Mark Amount to enter currency amounts for Machine, Machine Fixed

Overhead and Machine Variable Overhead.

• Mark Percent and enter a percentage to apply a percentage of the collected

costs to the receipt.

4. When you’ve finished, choose OK to save your entries and close the window.
You’ll be returned to the Manufacturing Order Receipt Entry window, where
you can continue to enter manufacturing order receipt information.

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Manufacturing order receipts with by-products

If your manufacturing processes create by-products, you can use Manufacturing to
account for the additional items created.

You can add by-products to bills of materials or to picklists.

• To add a by-product to a bill of materials, enter a negative amount of usage.

Refer to Accounting for by-products in a bill of materials in Chapter 11, “Bill of
Materials entry,” in the Manufacturing Core Functions documentation for more
information.

• To add a by-product to a picklist, enter a negative amount of usage. Refer to

Adding items to a picklist on page 92.

When you enter a manufacturing order receipt for a manufacturing order, any by-
product quantities will be added to inventory, rather than removed from inventory
when the receipt is posted. To account for the amount of a by-product that is
received on a specific receipt, enter the by-product quantity in the Quantity to
Backflush field in the Manufacturing Order Receipt Entry window as a negative
quantity. The by-product quantity will be posted to the By Product Site ID.

How receipts affect linked sales orders and invoices

When a manufacturing order is linked to a sales order or invoice, receipts of
finished goods for the manufacturing order are used to fulfill the sales order or
invoice. Requirements for linked sales order invoices are met first; requirements for
linked sales orders are met next. Any receipts of finished goods greater than the
invoice and sales order line requirements is posted to inventory.

For example, suppose a sales order has a back order quantity of 10 widgets. All 10
widgets are linked to a manufacturing order. Then you decide to manually change
the back order quantity to six, and transfer four to an invoice. Now the sales order
(linked to the manufacturing order) has a requirement for six widgets and the sales
order invoice (also linked to the manufacturing order) has a requirement for four
widgets.

If you post a receipt for the manufacturing order for two widgets, those widgets
will be allocated to the sales order invoice. If you post another receipt—this one for
three widgets—two of those widgets will be allocated to the sales order invoice, and
the remaining widget will be allocated to the sales order line. If you post another
manufacturing order receipt—this one for six widgets—five would be allocated to
the sales order, and the last one would be posted to inventory.

When you post a manufacturing order receipt that includes items that will be used to fulfill
a sales order invoice or a sales order line, the MO/SO Cross-Reference report is generated.
You can use the report to view information about allocated items, including their lot and
serial numbers if they are tracked.

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Effects of posting a manufacturing order receipt

The following actions occur when posting a manufacturing order receipt.

• The receipt quantity of the finished good posts to inventory.

• Each component’s quantity to consume is removed from WIP based on each

component’s valuation method. WIP quantities can be negative quantities if
you marked the Allow Negative WIP Quantities option in the Manufacturing
Order Preference Defaults window.

• The quantity to backflush is removed from inventory. If the quantity to

backflush is a negative quantity (a by-product), the quantity posts to inventory.

• Items with the a type of Miscellaneous, Flat Fee, or Service are backflushed. The
picklist item’s inventory account is credited and the finished good’s WIP-
Material account is debited.

• The status of the manufacturing order changes to Complete when the Received
to Date Qty equals the manufacturing order’s Ending Quantity. If you are using
Capacity Requirements Planning (CRP), completing the manufacturing order
updates CRP.

• If you’ve linked a manufacturing order to a sales order, the quantity you receive
is allocated to fulfill the sales order line.

• Floor stock items post as an expense.

When posting a manufacturing order receipt, all finished good serial-numbered and
lot-numbered items must be linked before they can be posted if you marked
Require Serial/Lot Linking in the Manufacturing Order Preference Defaults
window.

If you selected the option in the Manufacturing Order Preference Defaults window
to Display Negative WIP Quantities Warning, a message appears if the labor or
machine costs for the manufacturing order receipt is greater than the labor or
machine amounts available in WIP. The message that appears will depend on
whether you also marked the option to Allow Negative WIP Quantities and the
valuation method of the finished item. Refer to the table for more information.

Allow Negative WIP Valuation

Quantities? method Result
Yes Perpetual You will be able to continue, use available,
or cancel.
Periodic You will be able to continue or cancel.
No Perpetual You will be able to continue or cancel.
Periodic The attempt to post will fail.

If you did not select the option to Display Negative WIP Quantities Warning and
the labor or machine costs for the manufacturing order receipt is greater than the
labor or machine amounts available in WIP, posting will occur. Refer to the table for

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more information about what happens, based on other options and the valuation
method of the finished item.

Allow Negative WIP Valuation

Quantities? method Result
Yes Perpetual or The needed quantities from WIP are
Periodic posted.
No Perpetual or The attempt to post will fail.
Periodic

Reversing a manufacturing order receipt

If entries on a posted manufacturing order receipt are incorrect, you can use the
Manufacturing Order Receipt Entry window to reverse a manufacturing order
receipt.

You can’t reverse a manufacturing order receipt once a finished good is sold, the
manufacturing order is closed, or the manufacturing order is linked to a sales order
and a sales line item quantity is fulfilled. You can’t reverse a manufacturing order
receipt if the manufacturing order is linked and the quantity is allocated to a sales
document that is locked.

To reverse a manufacturing order receipt:

1. Open the Manufacturing Order Receipt Entry window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Receipt
Entry)

2. Select to reverse a manufacturing order receipt.

3. Enter or select a receipt number.

4. Accept the default receipt date, or change it.

To change the posting date, choose the Receipt Date expansion button to open
the Manufacturing Order Receipt Posting Date Entry window.

5. Choose Post.

For more information about the effects of posting a manufacturing order

receipt, see Effects of posting a reversing manufacturing order receipt on page 158.

6. When processing is complete, close the window.

Effects of posting a reversing manufacturing order

receipt
The following actions occur when posting a reversing manufacturing order receipt.

Status
The status of the manufacturing order changes to Released if the manufacturing
order had only one posted receipt. The status changes to Partially Received if the
manufacturing order had more than one posted receipt.

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Finished good
The quantity sold is increased for the purchase receipt or purchase receipts for the
finished good created when the manufacturing order receipt was posted. For items
using the Average Perpetual valuation method, the item’s average cost is
recalculated.

The serial numbers and lot numbers are made available.

WIP quantities
Components consumed from WIP are returned to WIP, reversing the debits and
credits using the same posting accounts as on the original manufacturing order
receipt.

For items using the LIFO Perpetual valuation method and the FIFO Perpetual
valuation method, the components are returned to WIP at the same cost at which
they were removed from WIP by the original manufacturing order receipt.

For items using the Average Perpetual valuation method, the components are
returned to WIP at their current cost. If the cost is different from the cost at which
the items were removed from WIP by the original manufacturing order receipt, the
difference posts to the finished good’s purchase price variance account.

For items using the Periodic valuation method, the components are returned to WIP
at the current standard cost. If the cost of the item being returned is different from
the current standard cost, the difference will be handled when the item is reverse-
issued or when the manufacturing order is closed.

The serial numbers and lot numbers are made available in WIP and the serial or lot
links are removed.

Labor and machine costs and hours removed from WIP are returned to WIP at the
same costs they were removed from WIP, reversing the debits and credits using the
same posting accounts on the manufacturing order receipt.

Backflushed components
A purchase receipt is created for the backflush quantity.

The serial number and lot number are made available in inventory and the serial or
lot links are removed.

For items using the LIFO Perpetual valuation method and the FIFO Perpetual
valuation method, the components are returned to inventory at the same cost at
which they were removed from WIP by the manufacturing order receipt.

For items using the Average Perpetual valuation method, the components are
returned to WIP at their current cost. If the cost is different from the cost at which
the items were removed from inventory by the manufacturing order receipt, the
difference posts to the finished good's purchase price variance account.

For items using the Periodic valuation method, the components are returned to
inventory at the current standard cost. If the cost of the item being returned was
different from the current standard cost, the difference posts to the item’s material
and material overhead variance accounts.

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If the Allocate Inventory when MO Status becomes Released option is marked in

the Manufacturing Order Preference Defaults window, components are allocated
when they are returned to Inventory.

By-products
If a by-product was posted, the inventory purchase receipt or receipts are removed.
If the item uses Average Perpetual as the valuation method, the average cost for the
item is recalculated. If serial numbers are tracked for the by-product, the serial
numbers are made available again.

Outsourcing costs
Outsourcing costs applied to the manufacturing order receipt are reversed along
with the labor and machine costs.

Sales order links

If you’ve linked a manufacturing order to a sales order, the quantity you receive is
allocated to fulfill the sales order line when you post the receipt. When you reverse
the receipt, the sales order line is unallocated, the Qty to Invoice is decreased, and
the Qty to Back Order is increased by the quantity that is unallocated.

Job links
A manufacturing order receipt linked to a job is removed from the job and the job
expenses are updated.

Prerequisites for closing manufacturing orders

Before you can close a manufacturing order and post the associated financial
information, certain other tasks must be completed. Refer to this checklist, as
needed, when you close and post a manufacturing order.

• The status of the manufacturing order must be Released, Partially Received, or

Complete.

• There can be no pending component transactions for the manufacturing order.

• The quantity to backflush must be available—you can have no shortages of

backflushed components.

Manufacturing order receipts—information about how materials that were issued

to a manufacturing order were consumed, the number of finished goods added to
inventory—aren’t required to close a manufacturing order.

Closing a manufacturing order

When you close a manufacturing order, any quantities of backflushed components
that weren’t consumed in manufacturing order receipts are backflushed, WIP
quantities are cleaned up, and variance transactions are created. Transactions will
be posted in Microsoft Dynamics GP to complete the process.

Use the Manufacturing Order Close window to close a manufacturing order.

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To close a manufacturing order:

1. Open the Manufacturing Order Close window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Close)

2. Enter or select a manufacturing order.

The manufacturing order you select can have no pending component

transactions, and its status must be Released, Partially Received, or Complete.

3. Review the information in the window. If needed, choose the MO Number

expansion button to open the Manufacturing Order Summary window, where
you can view information about the component quantities that have been
backflushed for the manufacturing order.

4. Accept the default Close date, or change it. Refer to Changing the posting date for
closing a manufacturing order on page 165 for more information.

5. If the Received to Date Qty for the order doesn’t match the End Quantity for the
order, you can select a calculation option. Refer to How backflushed item quantities
are calculated on page 163 for more information.

If you’re closing a manufacturing order for a standard cost finished good item and you
choose the Total Quantity Received calculation option, the total estimated cost for the
manufacturing order will be updated, based on the receipts from the manufacturing
order. This prevents a variance from being posted for the manufacturing order.

The quantity of each component that’s yet to be backflushed is recalculated

when you choose the calculation method. If more of an item needs to be
backflushed but the total of the allocated and available amounts for that item
aren’t enough to cover the additional amount to backflush, the Manufacturing
Order Close Backflush Quantities window opens.

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You also can open the window by choosing the Calculation Option expansion button in
the Manufacturing Order Close window.

6. Review shortages of backflushed components, if needed. Your options will

depend on whether you’ve marked Allow Adjustment Overrides in the
Inventory Control Setup window and whether the components are tracked.

Refer to the table for more information.

Overrides allowed? Tracked? Action:

No None You can’t close the manufacturing order until
you backflush component quantities.
Lot
Serial
Yes None A message appears and you’ll have the option
to close the manufacturing order, or cancel.
Lot You can’t close the manufacturing order until
you backflush component quantities.
Serial

To account for backflushed quantities, you will need to make more of the
backflushed components available at the issue-from sites. You might need to
receive items or transfer them from one site to another. Refer to Inventory
Control documentation for more information.

7. When you’ve finished handling shortages, close the Manufacturing Order Close
Backflush Quantities window.

8. After you’ve handled additional backflush quantities, return to the

Manufacturing Order Close window and choose Process.

9. When you’ve finished, close the window.

Effects of closing a manufacturing order

When you close a manufacturing order, several events occur to “clean up” accounts
for the manufacturing order, including:

Status The status of the manufacturing order will be changed to Closed.

WIP quantities are consumed If there are remaining component quantities in

WIP, those quantities will be consumed during the closing process.

Variances Variances are calculated. If there are variances or backflushed

quantities, several standard reports will be generated, depending on your system
settings.

If there are currency amounts for material, labor, or machine costs remaining in WIP
accounts, the amounts will be removed from those accounts and placed into
variance accounts. If the WIP amount is positive, that account will be credited and
the variance account will be debited. If the WIP amount is negative, the WIP
account is debited and the variance account is credited.

Negative labor and machine costs can occur if you’re using a standard cost component to
build an actual cost finished good and you’ve marked options to allow WIP to be negative
when you post a manufacturing order receipt.

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Capacity Requirements Planning If you’re using Capacity Requirements

Planning and you close the manufacturing order with less labor time than expected,
all remaining capacity reserved for the manufacturing order will be cleared from
CRP. The capacity then becomes available for other manufacturing orders.

How backflushed item quantities are calculated

When you backflush items, you can consume the backflushed quantities when you
enter a manufacturing order receipt and apply the cost of the backflushed items to
the finished goods from the receipt.

In a perfect world, the bill of materials and the picklist for a manufacturing order
would be identical, and the manufacturing order start quantity and end quantity
would be identical. Then calculating the backflush quantity of a particular
component would be easy.

If the manufacturing order end quantity doesn’t match the total received from the
order, however, you need to decide how backflushed quantities should be
calculated. You can base them on the quantity of finished goods that was started in
production, or you can base them on the quantity of goods that was received from
the order.

If you always prefer one method, you can select it as a preference in the Manufacturing
Order Preference Defaults window. Refer to Setting up manufacturing order processing in
Chapter 4, “Manufacturing production functions setup,” in the Manufacturing Setup
documentation for more information.

Example 1: Original and actual end quantities match

Suppose you were building a manufacturing order for 10 finished goods. The bill of
materials for each item calls for two widgets. No shrinkage is involved in the
components or finished goods, so the picklist for the manufacturing order calls for
20 of item A.

Then, suppose that you complete three manufacturing order receipts. In this case,
the default transaction amounts might look like this:

Quantity to Quantity to Total quantity used

consume backflush (cumulative)
Receipt 1 0 10 10
(5 items) (5x2)
Receipt 2 0 8 18
(4 items) (4x2)
Receipt 3 0 2 20
(1 items) (1x2)

In this case, no transactions for backflushing would be needed when the

manufacturing order is closed because the quantities that were expected to be
backflushed matched the quantities that actually were backflushed.

Example 2: Original and actual end quantities don’t match

Again, suppose you were building a manufacturing order for 10 finished goods.
The bill of materials for each calls for two widgets, a backflushed component. These
components have some shrinkage, so the picklist quantity for item A is 30.

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Then, suppose that you complete two manufacturing order receipts for the order. If
you base the default quantities for the backflushed components on the original start
quantity, the transaction to handle backflushing when you close the manufacturing
order is based on the theoretical quantity of components per finished item. In this
case, the picklist quantity (30) divided by the manufacturing order quantity (10)
would be three. The default transaction amounts might look like this:

Quantity to Quantity to Total quantity used

consume backflush (cumulative)
Receipt 1 0 15 15
(5 items) (5x3)
Receipt 2 0 6 21
(2 items) (2x3)
Manufacturing 0 9 30
order close (3x3)

In this case, when you closed the manufacturing order, a transaction would be
created and posted to include backflushing an additional nine items.

On the other hand, if you were to base the calculations for the default backflushed
quantity on the total receipt quantity, the transaction quantities might look like this:

Quantity to Quantity to Total quantity used

consume backflush (cumulative)
Receipt 1 0 15 15
(5 items) (5x3)
Receipt 2 0 6 21
(2 items) (2x3)
Manufacturing 0 0 21
order close (3x7)-21

In this case, when you close the manufacturing order, no transaction would be
created and posted because the theoretical component quantity (3) multiplied by
the total quantity received (7) is 21—and 21 items already have been backflushed
for the order when you posted the manufacturing order receipts.

If the component has a fixed quantity on the bill of materials that hasn’t been consumed
through earlier receipts, however, that quantity will be backflushed when the manufacturing
order is closed.

How backflushed machine and labor amounts are

calculated
If you’re backflushing labor costs for a manufacturing order routing sequence, costs
for the sequence are calculated for you.

These cost calculations do not reflect setup costs. For more information about how setup
costs are applied to a manufacturing order, refer to Setting up costing system default
settings in Chapter 1, “Manufacturing basic setup,” in the Manufacturing Setup
documentation.

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Refer to the table for more information about how labor costs are calculated.

Total Quantity Shop Amount backflushed

Received Rate
Equals manufacturing Per hour MO End Quantity x Labor Time per piece x Shop Rate
order End Quantity per hour
Per piece MO End Quantity x Shop Rate per piece
Less than manufacturing Per hour Quantity Received x Labor Time x Shop Rate per hour
order End Quantity
Per piece Quantity Received x Shop Rate per piece
Greater than Per hour MO End Quantity x Labor Time x Shop Rate per hour
manufacturing order
Per piece MO End Quantity x Shop Rate per piece
End Quantity

Refer to the following table for more information about how machine costs are
calculated.

Total Quantity Operating Amount backflushed

Received Cost
Equals manufacturing Per hour MO End Quantity x Machine Time x Operating Cost
order End Quantity per hour
Per piece MO End Quantity x Operating Cost per piece
Less than manufacturing Per hour Quantity Received x Machine Time] x Operating Cost
order End Quantity per hour
Per piece Quantity Received x Operating Cost per piece
Greater than Per hour MO End Quantity x Machine Time x Operating Cost
manufacturing order per hour
End Quantity Per piece MO End Quantity x Operating Cost per piece

Changing the posting date for closing a

manufacturing order
To post transactions for closing a manufacturing order on a date other than the user
date, you can use the Manufacturing Order Close Posting Date Entry window to
change the posting date.

To change the posting date for closing a manufacturing

order:
1. Open the Manufacturing Order Close window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MO Close)

2. Enter information to begin closing the order. Refer to Closing a manufacturing

order on page 160 for more information.

3. Choose the Close Date expansion button to open the Manufacturing Order
Close Posting Date Entry window.

4. Enter a posting date.

When you change the posting date, the transactions will be posted on the date you enter,
regardless of whether you’ve chosen to use batch or transactional posting.

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5. Choose OK to close the Manufacturing Order Close Posting Date Entry

window.

6. When you’ve finished entering the manufacturing order close information,

choose Process to save the information and close the window.

Causes of variances
When you use the Manufacturing Order Variance window to view variance
information, you often can identify the area where discrepancies occurred. You can
use the Data Collection Detail tab to view information about variances for specific
labor or machine codes, and you can use the Manufacturing Material Variance
Detail window to view information for variances in material costs.

Labor and machine variances

The following events might explain a variance for a particular labor or machine
code.

Labor or machine hours didn’t match routing hours The number of

hours or pieces entered through data collection was different from the estimates
included in the manufacturing order routing.

Labor cost is different The cost of the labor for the manufacturing order was
different from the estimated labor cost. For example, this would be the case if the
shop rate is significantly different from the labor rates that are actually used.

Some labor or machine costs weren’t included in the manufacturing

order routing The machine or labor hours were entered in data collection
windows but weren’t included in the manufacturing order routing.

Material variances
Some manufacturing order variances can’t be attributed to a machine or labor code.
Those variances might be caused by the following factors:

Standard cost of a component changes before it is consumed If a

standard cost revaluation is completed for a component item while that item is in
WIP, a variance could occur because the component will be consumed at the new
standard cost, while WIP will be reduced at the previous standard cost.

Standard cost of a component changes before it is reverse-issued If a

standard cost revaluation is completed for a component item while that item is in
WIP, a variance could occur because the component will be returned to inventory at
the new cost, while WIP will be reduced at the previous standard cost. Refer to
Understanding posting for standard-cost items on page 167 for an example.

A WIP shortage is overridden for a receipt, and the current cost has
changed You enter a manufacturing order receipt that includes a component
quantity that is greater than the quantity that exists in WIP, and the component is
consumed at its current cost. If the current cost is different from the WIP amount, a
variance would occur.

Component quantities The quantity of a component actually used for a

manufacturing order is different from the picklist quantity for the component.

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Understanding posting for standard-cost items

To understand how posting works for standard cost items, you can refer to the
following examples that show the debit and credit amounts for a manufacturing
order where the components actually used in the manufacturing order were less
than anticipated. Both manufacturing orders begin with the same steps—issuing
components and posting a manufacturing order receipt. The difference lies in how
the quantities left over in WIP are handled.

For these examples, assume that each standard-cost finished good uses four
widgets, and that the standard cost of each widget is $1. Refer to the following
illustrations of how accounts are affected by issuing components and posting a
manufacturing order receipt.

Issue components Issue four widgets for a total cost of $4. You’ll need to credit
the component inventory account and debit the finished good WIP inventory
account.

Component inventory account Finished good WIP material account

$4.00 $4.00

Post a manufacturing order receipt If you post a manufacturing order

receipt using just three of the components, a transaction to credit the WIP inventory
account for the finished good for $4 will be created, but one component quantity is
left in WIP. Even though the manufacturing order receipt is consuming three
widgets, the finished good is posted at standard cost of $4. The inventory account
for the finished good is debited.

Finished good WIP material account Finished good inventory account

$4.00 $4.00

Example 1: Leaving component quantity in WIP

For the first example, suppose that you simply close the manufacturing order.

Close the manufacturing order When you close the manufacturing order, the
WIP account is cleared and the remaining component is removed from WIP at a cost
of $0. No variance is created.

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Example 2: Reverse-issuing a component

For the second example, suppose that you reverse-issue the component in WIP
before you close the manufacturing order.

Reverse-issue the component in WIP If you create a Reverse-Issue

component transaction to remove the component that remains in WIP, the
component inventory is debited for $1, and the WIP inventory account of the
finished good is credited for $1. Doing this leaves a $1 credit balance in WIP.

Component inventory account Finished good WIP material account

$1.00 $1.00

Close the manufacturing order When you close the manufacturing order,
you clean out WIP. The WIP inventory account of the finished good is debited for
$1, and the variance account is credited for $1.

Finished good WIP material account Variance account

$1.00 $1.00

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Chapter 14: Manufacturing order removal
In the regular cycle of creating and fulfilling manufacturing orders, you’ll
eventually accumulate many “old” manufacturing order records. These are orders
that have been fulfilled or canceled or are no longer needed in your system.

You can remove manufacturing orders that have been canceled or completed. You
also can remove old manufacturing transaction log records. Those records—
generated only if an attempt to create manufacturing orders from a Master
Production Scheduling plan fail—can be removed in the MO Transaction Log
window.

This information is divided into the following sections:

• About removing manufacturing order records

• Removing manufacturing orders
• Restricting manufacturing order removal
• Removing manufacturing order transaction logs

About removing manufacturing order records

The first step in removing manufacturing orders is setting the default removal
preferences in the Manufacturing Order Preferences Defaults window. Refer to
Setting up manufacturing order processing in Chapter 4, “Manufacturing production
functions setup,” in the Manufacturing Setup documentation.

You must establish a time frame for removing canceled orders and completed
orders.

When you have set up these time frames, they’ll appear as the default entries in the
Remove Manufacturing Orders window. You can override the default entries in this
window; for example, you can remove orders that meet the default entry criteria or
a specific range of orders.

Finally, you can open the Restrict Manufacturing Order Removal window from the
Remove Manufacturing Orders window to review all orders that meet the removal
criteria, and then mark the orders to include or exclude from the removal process.

When you choose Process from either the Remove Manufacturing Orders window
or the Restrict Manufacturing Order Removal window, the orders you have
specified will be removed from your system. Any pick documents that have been
saved but that don’t include any line items also will be removed.

If you’ve specified an order that can’t be removed—such as an order linked to a job

still in process—a message will be displayed. Messages also will be displayed when
you select a manufacturing order in another Manufacturing Order Processing
window—such as Manufacturing Order Variances—and some or all of the order
has been removed. You’ll have the option to continue having those messages
displayed.

For security reasons, only one person can remove manufacturing orders at any one time.

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Removing manufacturing orders

Use the Remove Manufacturing Orders window to complete this procedure.

To remove manufacturing orders:

1. Open the Remove Manufacturing Orders window.
(Microsoft Dynamics GP menu >> Tools >> Utilities >> Manufacturing >>
Remove MO)

2. Select the range of manufacturing order data to remove.

• If you mark All, the system will search all manufacturing orders for the
orders that meet your removal criteria. The Last Change Date fields at the
bottom of the window will display the dates as calculated from the Days
after last change entries in the Manufacturing Order Preference Defaults
window.

• If you mark From, the From and To fields will be available. You can enter
the beginning and ending range of the manufacturing orders to be
searched. You must manually enter the dates in the Last Change Date fields
at the bottom of the window.

3. In the Remove section, mark Canceled Orders to remove canceled orders. You
can accept the default date or enter a different date.

4. Mark Closed to remove orders that have been closed. You can accept the default
date or enter a different date.

To review the manufacturing orders you’ve selected, refer to Restricting

manufacturing order removal on page 170 for more information.

5. To remove all the selected manufacturing orders, choose Process. The orders
and the information you’ve specified will be removed.

Restricting manufacturing order removal

Before you delete all the manufacturing orders that meet the selection criteria you
specify in the Remove Manufacturing Orders window, you can use the Restrict
Manufacturing Order Removal window to view a summary of the orders and to
select which ones to delete.

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To restrict manufacturing order removal:

1. Open the Restrict Manufacturing Order Removal window.
(Microsoft Dynamics GP menu >> Tools >> Utilities >> Manufacturing >>
Remove MO >> Restrictions)

2. Select a sorting option from the list at the top of the window. Choose Redisplay
to update the contents of the scrolling window.

3. Review the information to determine which orders to remove.

• Choose Mark All to indicate that all displayed manufacturing orders will be
removed.

• Choose Unmark All to exclude the displayed orders from removal.

4. Choose Process to remove all marked manufacturing order records. When

processing is complete, close the window.

Removing manufacturing order transaction logs

Transaction logs are created when an attempt to create a manufacturing order based
on a master production scheduling plan fails. You can use the MO Transaction Log
window to remove transaction logs.

Refer to Chapter 5, “MPS manufacturing orders,” in the Manufacturing Planning

Functions documentation for more information about using manufacturing order
transaction logs.

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To remove manufacturing order transaction logs:

1. Open the MO Transaction Log window.
(Inquiry >> Manufacturing >> Manufacturing orders >> MO Transaction Log)

2. Choose Delete to open the Transaction Log Record Removal window.

3. Enter or select dates to include the range of manufacturing order transaction log
records to delete.

4. Choose Process to remove the transaction log records. When you’ve finished,
close the window.

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PART 3: OUTSOURCING
 Part 3: Outsourcing
This part of the documentation includes information that will help you set up and
use outsourcing.

The following information is discussed:

• Chapter 15, “Outsourcing overview,” describes what outsourcing is and how it

works in Manufacturing.

• Chapter 16, “Outsourcing setup,” includes information about the tasks to

complete before you start using outsourced services.

• Chapter 17, “Purchase orders and shipments,” explains how you can create
purchase orders for outsourced services, and how to enter information about
shipments of items to outsourcing vendors.

• Chapter 18, “Outsourcing and manufacturing orders,” describes the effects of

using outsourcing on Manufacturing Order Processing. Special rules for some
tasks—such as changing the status of a manufacturing order—are included.

• Chapter 19, “Outsourcing inquiries,” includes information about viewing

outsourcing information.

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Chapter 15: Outsourcing overview
Outsourcing is a common business practice among manufacturing companies.
Using outsourcing vendors to complete certain tasks can be time- and labor-saving.

You can set up and create manufacturing orders that include outsourcing and can
specify the cost bucket to track outsourcing costs. When you create manufacturing
orders that include outsourcing routing sequences, purchase orders and shipments
to outsourcing vendors are suggested.

This information is divided into the following sections:

• Outsourcing terms
• Outsourcing workflow
• Outsourcing cost buckets
• Outsourcing routings
• Types of manufacturing shipments
• Outsourcing vendors

Outsourcing terms
Refer here for information about some of the terms related to outsourcing.

Outsourcing cost bucket A cost bucket used to track outsourcing costs. You
must specify which of the six existing cost buckets—Labor, Labor Fixed Overhead,
Labor Variable Overhead, Machine, Machine Fixed Overhead, and Machine
Variable Overhead—should be used for the outsourcing cost bucket. Refer to
Outsourcing cost buckets on page 176 for more information.

Outsourcing work center A work center where outsourcing tasks occur. When
you designate a work center as an outsourcing work center, you can select a vendor
and a Services item. You also can specify the purchase order offset days—the
number of days that the release of the purchase order should precede when the
outsourced services are needed.

Outsourcing vendor A vendor from whom you purchase outsourced services.

Services items A service that you purchase from an outsourcing vendor. You
create items with the Services type to use with outsourcing. Later on, you create
purchase orders to buy the outsourced Services item from a vendor. (If you choose
not to create items with the Services type, purchase orders for non-inventoried
items are created for you.)

Manufacturing shipments Shipments of items—either raw material or work

in process (WIP)—to outsourcing vendors. Refer to Types of manufacturing shipments
on page 178 for more information.

Outsourcing routing sequence A routing sequence that occurs at an

outsourcing work center. Sometimes “outsourcing sequence” refers to an
outsourcing routing sequence, and “outsourcing routing” refers to a routing that
includes outsourcing routing sequences.

Outsourcing manufacturing order A manufacturing order that includes

outsourcing sequences.

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Outsourcing labor code A labor code for outsourced services. If you select
one of the labor cost buckets—Labor, Labor Fixed Overhead, or Labor Variable
Overhead—for outsourcing costs, then you must set up an outsourcing labor code.
The labor code will include the information that’s used to calculate the default costs
of the outsourced service.

Refer to Entering a labor code in Chapter 1, “Machines and labor codes,” in the
Manufacturing Core Functions documentation for more information.

Outsourcing machine ID A machine ID for outsourced services. If you select

one of the machine cost buckets—Machine, Machine Fixed Overhead, or Machine
Variable Overhead—for outsourcing costs, then you must set up an outsourcing
machine ID. The machine ID will include the information that’s used to calculate
the default costs of the outsourced service.

Refer to Entering a machine record in Chapter 1, “Machines and labor codes,” in the
Manufacturing Core Functions documentation for more information.

Outsourcing workflow

Setup
Choose cost bucket.
Create outsourcing work center,
routing sequence, and labor code
or machine ID.

Manufacturing Order Entry

Create manufacturing order based on
routing that includes one or more
outsourcing sequences, and a bill of
materials that might include one or
more components that have an issue-to
site that is an outsourced work center.

Manufacturing order scheduling

Purchase Orders Shipments

Purchase orders can be Shipments of items are
created based on recorded, based on
suggestions. suggestions.

Receiving
Services are received
from the outsourcing
vendor.

Outsourcing cost buckets

If you purchase outsourced services for manufacturing, you must specify which of
the six available cost buckets to use for outsourcing costs.

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The bucket you choose for outsourcing costs should be one that isn’t currently used
by your business for tracking other cost information. The bucket also should be one
that has a formula for calculating the estimated costs of outsourced services that
will work well for your business. Estimated outsourcing costs are included in the
estimated manufacturing order costs—and affect manufacturing order variances.

Carefully consider the cost bucket you select for outsourcing. Switching to another cost
bucket later could be very difficult.

The table lists the cost buckets and describes ways you can use each of them to
calculate outsourcing costs.

Cost bucket Variations Formula for cost of outsourcing sequence

Labor Shop Rate per Hour Order Quantity x Shop Rate x Labor Time
Shop Rate per Piece Order Quantity x Shop Rate
Labor Fixed Amount Order Quantity x Currency Amount (assuming that the Shop Rate is 0)
Overhead Percentage Order Quantity x Shop Rate x Percentage
Labor Variable Amount Order Quantity x Amount (assuming that the Shop Rate is 0)
Overhead
Percentage Order Quantity x Shop Rate x Percentage
Machine -- (Operating Cost x Machine Time x Order quantity) + (Piece Cost x Order Quantity)
Machine Fixed Amount Per Hour Order Quantity x Amount x Machine Time x Order Quantity
Overhead Per Piece Order Quantity x Amount
Percentage Per Hour Order Quantity x Percentage x Operating Cost x Machine Time
Per Piece Order Quantity x Percentage x Piece Cost
Machine Amount Per Hour Order Quantity x Amount x Machine Time
Variable
Per Piece Order Quantity x Amount
Overhead
Percentage Per Hour Order Quantity x Percentage x Operating Cost x Machine Time
Per Piece Order Quantity x Percentage x Piece Cost
Order Quantity is the manufacturing order start quantity for the finished item.
Shop Rate is entered in the Labor Code Definition window.
Labor Time and Machine Time are entered in the Routing Sequence Entry window, but can be modified for a specific manufacturing order
in the Manufacturing Order Routing Sequence Edit window.
Amount and Percentage are entered in the Labor Code Definition window or the Machine Definition window, depending on whether the
cost bucket is a labor cost bucket or machine cost bucket.
Operating Cost and Piece Cost are entered in the Machine Definition window.

Outsourcing routings
Before you can create an outsourcing manufacturing order, you must create an
outsourcing planning routing. The outsourcing routing can include multiple
outsourcing sequences.

Each outsourcing sequence requires an outsourcing work center and either an

outsourcing labor code or an outsourcing machine ID, depending on the cost bucket
you’ve chosen.

You also can specify the number of work in process items per finished good item
that is generated from each routing sequence. By specifying this number—called the
WIP Output per MO Start Quantity—for the outsourcing sequence and for the
sequence that immediately precedes the outsourcing sequence, better suggestions
can be made for the number of items to ship to the outsourcing vendor, and the
number of items to expect to receive from the outsourcing vendor.

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The following illustration shows how a routing with outsourcing sequences might
appear.

Outsourcing
Routing Routing
Routing
Sequence Sequence
Sequence

WIP Output Outsourcing work center

per MO Start Outsourcing labor code or machine ID
Quantity WIP Output per MO Start Quantity
PO Offset Days
Outsourcing operation (optional)
Link to bill component (optional)

Refer to the following topics for more information about outsourcing routings.

• Rules for outsourcing routing sequences on page 180

• Creating a routing sequence for outsourcing on page 180
• Entering work in process output for outsourcing on page 182

Types of manufacturing shipments

When you use outsourcing, you’ll ship items—raw materials, work in process
(WIP), or both—to an outsourcing vendor. Shipments can be divided into three
types: suggested, recorded, and voided.

Suggested shipments When you schedule a manufacturing order that

includes outsourcing, a suggested shipment record is created. The suggested
shipment includes the vendor ID, item number, quantity, and other information.

Recorded shipments If you choose to ship items as suggested, you can enter
information about the items actually shipped. This information is a recorded
shipment.

Voided shipments Voided shipments are recorded shipments that have been
reversed.

Outsourcing vendors
You can change the vendor by entering or selecting a new vendor ID. When you
change the vendor ID, you’ll be able to use the new vendor for the displayed
suggestions.

You can’t delete a vendor ID if the vendor has been assigned to an outsourced work
center. To delete the vendor ID, you must remove the vendor ID from any
outsourcing work centers, and then delete the vendor ID, as usual.

You can use the Work Center Report Options window to print the Employee/Machine
Allocation report, if needed, to view which outsourced work center a vendor is assigned to.

Refer to Defining or modifying an outsourced work center in Chapter 2, “Work centers,”

in the Manufacturing Core Functions documentation for information about
changing the vendor for an outsourced work center. Refer to Microsoft Dynamics
GP Purchase Order Processing documentation for more information about deleting
vendor IDs.

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Chapter 16: Outsourcing setup
Before you can create manufacturing orders that include outsourcing sequences,
you must complete several setup tasks. Some tasks must be completed only once,
but others—such as creating a Services item for an outsourcing vendor, or creating
an outsourcing work center—might need to be completed for each outsourcing
service.

This information is divided into the following sections:

• Outsourcing setup overview

• Rules for outsourcing routing sequences
• Creating a routing sequence for outsourcing
• Entering work in process output for outsourcing

Outsourcing setup overview

Before you can use outsourcing, you must complete several setup tasks. The
following table summarizes the tasks that you must complete once. These tasks
affect how outsourcing works in all manufacturing orders.

Task Refer here for more information

Specify a cost bucket You’ll use the WIP Preferences Defaults window to choose the
cost bucket. Refer to Setting up options for outsourcing costs
in Chapter 4, “Manufacturing production functions setup,” in
the Manufacturing Setup documentation.
Set up a user-defined field You’ll use the Manufacturing Order Preference Defaults
(optional) window to set up user-defined fields and process security.
Refer to Specifying outsourcing manufacturing order options
Set up process security for
in Chapter 4, “Manufacturing production functions setup,” in
outsourcing tasks
the Manufacturing Setup documentation.

To set up outsourcing information for a specific finished item, you must complete
the tasks that are described in the following table.

Task Refer here for more information

Set up a work center for You’ll use the Work Center Setup window and the
outsourcing Outsourced Work Center Setup window to set up the work
center. Refer to Defining or modifying an outsourced work
center in Chapter 2, “Work centers,” in the Manufacturing
Core Functions documentation.
Set up a labor code or machine Depending on whether you’re using a labor cost bucket or a
for outsourcing machine cost bucket, you’ll use either the Labor Code
Definition window or the Machine Definition window to set
up the labor code or machine. Refer to Entering a labor code
or Entering a machine record in Chapter 1, “Machines and
labor codes,” in the Manufacturing Core Functions
documentation.
Set up a routing for outsourcing You’ll use the Routing Sequence Entry window to create
outsourcing routing sequences. Refer to Creating a routing
sequence for outsourcing on page 180 for information about
the additional information required for outsourcing routing
sequences.

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You also can complete other, optional tasks. Refer to the table for more information.

Task Refer here for more information

Set up an operation for To use the same outsourcing work center for many routings,
outsourcing (optional) you can use the Operations Setup window to create an
operation as a template for the outsourcing sequence. Refer
to Creating an operation in Chapter 3, “Operations,” in the
Manufacturing Core Functions documentation.
Create an item with the Services To track the historical information about the costs of using an
type (optional) outsourcing vendor for a specific service, create an item with
a Services type and then use the Outsourced Work Center
Setup window to assign it to the outsourcing work center.
Refer to your Microsoft Dynamics GP Inventory Control
documentation for information about creating an item
record. Refer to Defining or modifying an outsourced work
center in Chapter 2, “Work centers,” in the Manufacturing
Core Functions documentation.
Review the bill of materials To ship raw materials to an outsourcing vendor, you must
(optional) use the Bill of Materials Entry window to specify that the
component item in the bill of materials has an issue-to site
that is the outsourcing work center. Refer to Adding a
component to a bill of materials in Chapter 11, “Bill of
Materials entry,” in the Manufacturing Core Functions
documentation.
If only a portion of the bill quantity should be shipped to the
outsourcing vendor, you can create a link between the bill of
materials quantity and the outsourcing routing. Refer to
Linking component usage to a routing sequence in Chapter
12, “Links to routings,” in the Manufacturing Core Functions
documentation.

Rules for outsourcing routing sequences

Each routing sequence for outsourcing services must meet the following
requirements:

• The sequence must occur at an outsourcing work center.

• If you’re using a labor cost bucket for outsourcing costs—Labor, Labor Fixed
Overhead, or Labor Variable Overhead—you must select a labor code
designated for outsourcing for the Labor Code for the routing sequence.

• If you’re using a machine cost bucket for outsourcing costs, you should select a
machine ID that’s been created for outsourcing.

Creating a routing sequence for outsourcing

Use the Routing Sequence Entry window to create a routing sequence for
outsourcing.

This procedure assumes that you’ve already completed the following tasks:

• You have created a header record for the routing. Refer to Creating a routing
header record on page 14 for more information.

• You have created an outsourcing work center. Refer to Defining or modifying an

outsourced work center in Chapter 2, “Work centers,” in the Manufacturing Core
Functions documentation for more information.

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To create a routing sequence for outsourcing:

1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

2. Enter or select the work center where this sequence will take place. The work
center must be one that has been designated for outsourcing.

Outsourced work centers are marked with an asterisk in the lookup window.

Refer to Defining or modifying an outsourced work center in Chapter 2, “Work

centers,” in the Manufacturing Core Functions documentation for more
information about defining work centers.

3. You can enter or select the operation code—or “opcode”—for this sequence.
When you choose the lookup button on the Work Center Opcode field, only
operations that have been linked to the work center will be available.

Refer to Creating an operation in Chapter 3, “Operations,” in the Manufacturing

Core Functions documentation for more information.

If you enter an operation code, it must be designated for outsourcing. That is, the
operation code must use an outsourced labor code if you’re using a labor cost bucket for
outsourcing costs, or must use an outsourced machine ID if you’re using a machine cost
bucket for outsourcing costs.

4. Enter or accept the default PO Release Offset Days, which is the number of days
that the release of the purchase order should precede the start of the routing
sequence.

The default PO Release Offset Days value comes from the outsourcing work
center record. You can change the value for the routing, but that change won’t
be reflected in the work center record.

5. Determine if backflushing should be used for the sequence.

Refer to How backflushed machine and labor amounts are calculated on page 164 for
more information.

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6. Mark QA Sequence if the sequence is an inspection or testing step. Marking the

option is only informational, and doesn’t affect any processing or transactions.

7. Depending on the cost bucket you’re using for outsourcing costs, you can enter
other information, such as a labor code, machine ID, run time, and machine
time.

Refer to Outsourcing cost buckets on page 176 for information about what fields
are needed for each cost bucket.

Refer to the table for information about the fields.

Field Notes
Labor Code If you’re using one of the labor cost buckets, you must select an
outsourcing labor code. Refer to Rules for outsourcing routing sequences
on page 180. Also, note that you can never use an outsourced labor code
for the Setup Labor Code.
Machine ID If you’re using one of the machine cost buckets to track outsourcing costs,
you must select a machine ID for outsourcing.

8. If you choose to have the next sequence begin after a certain number of units or
a certain percentage of units are through the current sequence, enter either the
quantity or the percentage that needs to be completed. If you leave this field
blank, the next sequence will begin when this sequence is complete for the
entire order quantity.

9. If another sequence can run simultaneously with this one, enter that sequence
number in the Concurrent Sequence field. Refer to Parallel routing sequences on
page 18 for more information about parallel routing sequences.

10. Enter the number of the next sequence, if needed. Each routing must have at
least one sequence, but you can include additional sequences.

11. Mark the Last sequence scheduled for a day option if, at the end of the day, no
other sequences should be completed.

12. Choose Save.

13. To continue adding sequences to the routing until all the sequences needed to
complete the product have been entered, repeat steps 2 through 12, as needed.
Be sure to save each sequence.

Entering work in process output for outsourcing

To have default quantities for suggested shipments and receipts calculated correctly,
you can specify the WIP Output per MO Start Quantity in the sequence that
precedes the outsourcing sequence, and in the outsourcing sequence itself.

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For example, suppose you manufacture wagons. The second routing sequence is
outsourced: the outsourcing vendor attaches the wheels to the axles for the wagons.
Two wheels are attached to each axle, and two axles are used for each wagon. A
portion of the routing sequence for building wagons might look like this:

Routing with Outsourcing (Example: Building 10 wagons)

Outsourcing
Routing Routing
Routing
Sequence Sequence
Sequence

Wheels assembled. Wheels put on axles.

WIP output is 4, because WIP output is 2, because
4 wheels are needed for 2 axles are needed for
each wagon. each wagon.

Suggested shipment: Default receipt quantity:

40 units of WIP 20 units of WIP (MO Start
(MO Start Quantity x WIP Quantity x WIP Output = 10
Output = 10 x 4 = 40) x 2 = 20)

In this case, you would enter 4 as the WIP Output per MO Start Quantity for the
first sequence. The quantity of items suggested to be shipped for the second,
outsourcing sequence would be 40—that is, the WIP Output of the first sequence
multiplied by the manufacturing order start quantity.

You would also enter 2 as the WIP Output per MO Start Quantity for the
outsourcing sequence, because you would expect to receive two axles for each
wagon.

If the outsourcing routing sequence is the first sequence, the suggested shipment quantity is
based on the picklist quantity because there would be no work in process material to ship.

To enter work in process output information for

outsourcing:
1. Open the Routing Sequence Entry window.
(Cards >> Manufacturing >> Routings >> Routing Entry)

2. Enter or select the finished good item number.

3. Enter or select the routing identifier.

4. Enter or select the routing sequence.

5. Enter the WIP Output per MO Start Quantity.

6. Choose Save and close the window.

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Chapter 17: Purchase orders and shipments
After you’ve created a routing with outsourcing sequences, you can use that routing
in a manufacturing order. When you schedule the order, suggested purchase orders
for the outsourced services and suggested shipments of items to the outsourcing
vendor are created.

This information is divided into the following sections:

• Effects of scheduling outsourcing manufacturing orders

• Creating a purchase order for outsourced services
• Changing the vendor for outsourced purchase orders
• Voiding a manufacturing order/purchase order link
• Recording a manufacturing shipment
• Specifying lot numbers for a shipment
• Specifying serial numbers for a shipment
• Voiding a manufacturing shipment
• Receipts of outsourced items
• Distributing additional outsourcing costs
• Invoicing for outsourced services

Effects of scheduling outsourcing manufacturing

orders
When you schedule or save an outsourcing manufacturing order, the outsourcing
sequences are scheduled, and other information—used for suggesting purchase
orders and shipments—is calculated.

Purchase orders for outsourced services are suggested A purchase

order for the outsourced service is suggested for each outsourced service in the
manufacturing order routing.

• If you specified a Services item in the Outsourcing Work Center Setup window,
a purchase of that item is suggested. The default cost for the service is the
amount on the most recent invoice for the service. However, you can change the
cost when you create the purchase order.

• If no Services item was specified for the outsourcing work center, a purchase of
an outsourced service (with a made-up name) is suggested. The item number
begins with the letters SERV, followed by the last six letters in the
manufacturing order identifier, a hyphen, and then the routing sequence
number. You can accept the created item number, or you can change to
something more meaningful. However, you can’t change it to an inventoried
item number, and you can’t change it after a purchase order has been created.

The default cost for the purchase is based on the cost bucket selected for
outsourcing. Refer to Outsourcing cost buckets on page 176.

One or more shipments is suggested A shipment of raw materials or work

in process (WIP) will be suggested.

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Refer to the table for more information.

Raw material Work in process

First sequence The raw material to be shipped Not applicable
Subsequent sequences must have an issue-to site that If the outsourced sequence is
is the outsourced work center
not the first sequence, a
for the outsourcing routing
shipment of work in process is
sequence. suggested.

Creating a purchase order for outsourced services

After you’ve scheduled one or more manufacturing orders that include outsourced
services, you can create purchase orders for the services you’re obtaining from the
outsourcing vendor.

You can use the Manufacturing Order/Purchase Order Link window or the
Manufacturing Order/Purchase Order Link by Vendor window to create purchase
orders for outsourced services.

• Use the Manufacturing Order/Purchase Order Link window to select with a

manufacturing order and create purchase orders for only that manufacturing
order.

• Use the Manufacturing Order/Purchase Order Link by Vendor window if you

have multiple manufacturing orders that require outsourced services from the
same vendor, and you want to create a single purchase order for all of the
manufacturing orders.

Before you can create purchase orders for outsourced services, you must have entered and
scheduled a manufacturing order that includes outsourcing, and the status of the
manufacturing order must be Open, Released, or Partially Received.

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To create a purchase order for outsourced services:

1. Open the window to use to create the purchase order.

Refer to the table for more information.

Window Navigation
Manufacturing Order/Purchase Transactions >> Manufacturing >> Manufacturing Orders
Order Link window >> Entry >> enter or select a manufacturing order with
outsourcing sequences >> Outsourcing Purchasing button
Manufacturing Order/Purchase Transactions >> Manufacturing >> Manufacturing Orders
Order Link by Vendor window >> MOP/POP Link
You also can open this window from the MO entry window
to have information displayed, such as Vendor ID, MO
Number Range, Release By Date Range.

The illustration shows the Manufacturing Order/Purchase Order Link window, but the
Manufacturing Order/Purchase Order Link by Vendor window is very similar.

2. Review the vendor selection.

• If you’re using the Manufacturing Order/Purchase Order Link by Vendor

window, enter or select a vendor ID.

If you opened the Manufacturing Order/Purchase Order Link by Vendor window from
the Manufacturing Order Entry window—with a manufacturing order displayed—you
can accept or change the default information displayed in the Vendor ID field. If any
suggested purchase orders are displayed in the upper scrolling window when you
change the vendor ID, you’ll have the option to use the new vendor for the displayed
suggestions.

• If you’re using the Manufacturing Order/Purchase Order Link window,

accept the default vendor selection, or change it.

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3. If you’re using the Manufacturing Order/Purchase Order Link by Vendor

window, use the MO Number Range and Release By Date Range fields to select
the group of manufacturing orders you want to work with.

If you opened the Manufacturing Order/Purchase Order Link by Vendor window from
the Manufacturing Order Entry window—with a manufacturing order displayed—you
can accept or change the default information displayed in the MO Number Range and
Release By Date Range fields.

4. The upper scrolling window will display information about the suggested
purchase orders.

• If you specified a Services type item for the outsourcing work center in the
manufacturing order routing, a purchase order for that service will be
suggested.

• If you did not specify a Services type item, an item number for the services
to be purchased is created. You can accept that item number, or enter
another that is more meaningful. However, you can’t change it to a
inventoried item number.

5. Mark the lines of suggested purchase orders to change into purchase orders.

Use the view icon button at the top of the scrolling window to view more
information about the suggested purchase order. You can accept the default
information or change it before transforming the suggestion into a purchase
order.

6. Choose the Create PO button.

If you marked the option to require process security when a purchase order is
created from a manufacturing order in the Manufacturing Order Preference
Defaults window, you might have to supply a password. Process security also
can be based on user IDs, though, so you might not need to supply a password.

If the outsourced routing sequence already has been marked Done when you create the
purchase order, the Done designation will be unmarked; the sequence can’t be done
before you create a purchase order for it.

7. The Purchase Order Entry window appears. Enter information in other fields in
that window, as needed, and then choose Save.

Refer to your Microsoft Dynamics GP Purchase Order Processing

documentation for more information.

8. Close the Purchase Order Entry window.

Depending on your setup options, one or more reports might be printed when you close
the window. If you marked the Include Sequence Notes Report with Purchase Order
Report in the Routing Preference Defaults window, a print dialog box will appear and
you’ll have the option to print the sequence notes report after the purchase order report.
A separate report page will be printed for each combination of purchase order,
manufacturing order, and routing sequence.

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The lower scrolling window in the Manufacturing Order/Purchase Order Link

or in the Manufacturing Order/Purchase Order Link by Vendor window
displays information about the purchase orders that have been created for the
outsourced services.

9. If other purchase order suggestions are displayed in the upper scrolling

window, you can create more purchase orders. Repeat steps 5 through 8 for
each purchase order.

10. When you’ve finished, close the window.

Changing the vendor for outsourced purchase orders

After you’ve displayed suggested purchase orders in the scrolling window of the
Manufacturing Order/Purchase Order Link by Vendor window, you may need to
change the outsourcing vendor.

You can use the Manufacturing Order/Purchase Order Link by Vendor window to
view suggested purchase orders and change the outsourcing vendor, if necessary.

To change the vendor for outsourced purchase orders:

1. Open the Manufacturing Order/Purchase Order Link by Vendor window.
(Transactions >> Manufacturing >> Manufacturing Orders >> MOP/POP Link)

You also can open this window from the MO entry window to have information
displayed, such as Vendor ID, MO Number Range, Release By Date Range.

2. Enter or select the vendor.

If you opened the Manufacturing Order/Purchase Order Link by Vendor window from
the Manufacturing Order Entry window—with a manufacturing order displayed—the
vendor for the manufacturing order will be displayed.

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3. Use the MO Number Range and Release By Date Range fields to select the
group of manufacturing orders to work with.

If you opened the Manufacturing Order/Purchase Order Link by Vendor window from
the Manufacturing Order Entry window—with a manufacturing order displayed—the
default manufacturing order number ranges and release by date ranges will be
displayed.

4. Change the vendor number in the Vendor ID field. If any suggested purchase
orders are displayed in the upper scrolling window when you change the
vendor ID, you’ll have the option to use the new vendor for the displayed
suggestions.

5. When you’ve finished, close the window.

Voiding a manufacturing order/purchase order link

You might need to void a link for a purchase order for outsourced services that is
linked to a manufacturing order. For example, to delete or cancel a manufacturing
order that has linked purchase orders, you’ll need to void—or remove—the link
before the manufacturing order can be canceled or deleted.

Voiding a purchase order link doesn’t remove the purchase order itself. You must use the
Purchase Order Entry window to void or delete the purchase order, if needed. Refer to your
Microsoft Dynamics GP Purchase Order Processing documentation for more information.

You can use either the Manufacturing Order/Purchase Order Link window or the
Manufacturing Order/Purchase Order Link by Vendor window to void the links
between purchase orders and manufacturing orders.

• If the purchase order was for outsourced services for a single manufacturing
order, you can use the Manufacturing Order/Purchase Order Link window.

• If the purchase order was for outsourced services for multiple manufacturing
orders, use the Manufacturing Order/Purchase Order Link by Vendor window.

To void a manufacturing order/purchase order link:

1. Open the window to use to void the link.

Refer to the table for more information.

Window Navigation
Manufacturing Order/Purchase Transactions >> Manufacturing >> Manufacturing Orders
Order Link window >> Entry >> enter or select a manufacturing order with
outsourcing sequences >> Outsourcing Purchasing button
Manufacturing Order/Purchase Transactions >> Manufacturing >> Manufacturing Orders
Order Link by Vendor window >> MOP/POP Link
You also can open this window from the MO entry window
to have information displayed, such as Vendor ID, MO
Number Range, Release By Date Range.

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2. If you’re using the Manufacturing Order/Purchase Order Link by Vendor

window, you must:

• Enter or select a vendor ID.

• Use the MO Number Range and Release By Date Range fields to select a
group of manufacturing orders.

If you opened this window from the Manufacturing Order Entry window—with a
manufacturing order displayed—you can accept or change the default information
displayed in the Vendor ID, MO Number Range and Release By Date Range fields. If
any suggested purchase orders are displayed in the upper scrolling window when you
change the vendor ID, you will have the option to use the new vendor for the displayed
suggestions.

3. The lower scrolling window will display information about the linked purchase
orders.

In the lower scrolling window, mark the lines of purchase orders to void.

Use the view icon button at the top of the scrolling window to view more information
about the purchase orders.

4. Choose the Void Link button.

If you marked the option to require process security to manage manufacturing

order/purchase order links, you might have to enter a password.

Depending on your setup options, one or more reports might be printed.

The lower scrolling window in the Manufacturing Order/Purchase Order Link

window or in the Manufacturing Order/Purchase Order Link by Vendor
window displays information about the voided purchase order link. The voided
purchase order will be marked with a small icon.

5. When you’ve finished, close the window.

Recording a manufacturing shipment

When you’re ready to ship items to an outsourcing vendor for services, you’ll need
to record the shipment of the items.

You must issue items tracked by lot or serial numbers before you ship them.

You can use either the Manufacturing Order Shipments window or the
Manufacturing Order Shipments by Vendor window to enter information about the
items shipped to an outsourcing vendor.

• If the shipment is for items for a single manufacturing order, you can use the
Manufacturing Order Shipments window.

• If the shipment is for several items to a single vendor, you can use the
Manufacturing Order Shipments by Vendor window.

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To record a manufacturing shipment:

1. Open the window to use to enter manufacturing shipment information.

Refer to the table for more information.

Window Navigation
Manufacturing Order Transactions >> Manufacturing >> Manufacturing Orders
Shipments window >> Entry >> enter or select a manufacturing order with
outsourcing sequences >> Outsourcing Shipping button
Manufacturing Order Transactions >> Manufacturing >> Manufacturing Orders
Shipments by Vendor window >> MFG Shipments

2. If you’re using the Manufacturing Order Shipments by Vendor window, you

must:

• Enter or select a vendor ID.

• Use the MO Number Range and Ship By Date Range fields to select a group
of manufacturing orders.

3. The upper scrolling window will display information about the suggested
items to ship. You can ship either of the following types of items, or both.

• If the issue-to site for any of the items in the manufacturing order picklist is
an outsourcing work center, then a shipment of that item will be suggested.

• Otherwise, an item number for the work in process items to be shipped is

created if the outsourced sequence is not the first sequence. (There would
be no WIP items to suggest to ship for the first sequence.) The item number
will be WIP, then the manufacturing order identifier, a hyphen, and then the
identifier of the sequence preceding the outsourcing sequence.

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4. Use the view icon button at the top of the scrolling window to view more
information about the suggested shipments. You can use the view icon button
to switch between the two views of information whenever you like.

You can accept the default entries, or change them in either view of the
information. For example, to ship only part of the total suggested quantity, you
would enter the quantity that you’re shipping now in the Shipment Quantity
field.

5. In the scrolling window, mark the suggested shipments that should be

recorded. If you’re using the card view, mark the check box in the first line.

6. Choose the Record Shipment button.

If you marked the option to require process security when a shipment is

recorded, you might have to enter a password.

Depending on your setup options, one or more reports might be printed when you close
the window. If you marked the Include Sequence Notes Report with Outsourcing
Shipping Report option in the Routing Preference Defaults window, you’ll have the
option to print the note report for the routing sequence.

7. If the item you’re shipping is tracked by lot or serial numbers, you must specify
them. The Manufacturing Shipping Lot Number Entry window or the
Manufacturing Shipping Serial Number Entry window will open. Refer to
Specifying lot numbers for a shipment on page 193 or Specifying serial numbers for a
shipment on page 194 for more information.

8. If you set up a user-defined field for outsourcing, you can enter information in
that field, which will appear in the card view of the lower scrolling window.
Card-view information appears when you use the view icon button in the
upper right corner of the scrolling window to see more detailed information
about a specific record.

9. When you’ve finished, close the window.

Specifying lot numbers for a shipment

As you’re entering the shipment information in the Manufacturing Order
Shipments window or the Manufacturing Order Shipments by Vendor window, you
might need to specify lot numbers for the items being shipped. If you mark a line in
the upper scrolling window for an item tracked by lot numbers, and if the Shipment
Quantity for the line isn’t zero, the Manufacturing Shipping Lot Number Entry
window opens. The window also opens if you edit the shipment quantity for items
tracked by lot numbers.

If you’re shipping raw materials tracked by lot numbers to an outsourcing vendor,

you can use the Manufacturing Shipping Lot Number Entry window to specify the
lots the items are taken from.

You must issue items tracked by lot numbers before you can specify that they are to be
shipped to an outsourcing work center.

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To specify lot numbers for a shipment:

1. Enter information about a shipment of items tracked by lot numbers in the
Manufacturing Order Shipments window or the Manufacturing Order
Shipments by Vendor window. Refer to Recording a manufacturing shipment on
page 191 for more information.

2. In the upper scrolling window, determine which lot shipped items will be taken
from. The upper scrolling window displays the lot numbers issued for the
manufacturing order.

3. On the appropriate line in the Quantity Selected column, enter the quantity of
the lot-number–tracked item to be shipped from the specific lot.

4. Choose Insert. Information about the lot and the items will be displayed in the
lower scrolling window.

5. Repeat steps 3 and 4 until the Lot Quantity Selected equals the Shipment
Quantity. If needed, mark lines in the lower scrolling window and choose
Remove or Remove All to remove incorrect entries.

6. Choose OK to save your entries and close the window.

Specifying serial numbers for a shipment

As you’re entering the shipment information in the Manufacturing Order
Shipments window or the Manufacturing Order Shipments by Vendor window, you
might need to specify serial numbers for the items being shipped. If you mark a line
in the upper scrolling window for an item tracked by serial numbers, and if the
Shipment Quantity for the line isn’t zero, the Manufacturing Shipping Serial
Number Entry window opens. The window also opens if you edit the shipment
quantity for items tracked by serial numbers.

If you record a shipment for a group of items that is tracked by serial numbers, you
can use the Manufacturing Shipment Serial Number Entry window to enter
information about the serial numbers of the shipped items.

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To specify serial numbers for a shipment:

1. Enter information about a shipment of items tracked by serial numbers in the
Manufacturing Order Shipments window or the Manufacturing Order
Shipments by Vendor window. Refer to Recording a manufacturing shipment on
page 191 for more information.

2. Serial numbers of available items that were issued for the manufacturing order
are listed in the left scrolling window. Highlight a serial number to be included
in the shipment, and then choose Insert.

3. Continue until the Serial Numbers Selected equals the Shipment Quantity.

4. Choose OK to close the window.

Voiding a manufacturing shipment

You can use the Manufacturing Order Shipments window and the Manufacturing
Order Shipments by Vendor window to void a manufacturing order shipment. To
reverse-issue items that have been shipped to an outsourcing vendor, you must first
void the shipment.

• If the shipment is for items for a single manufacturing order, you can use the
Manufacturing Order Shipments window.

• If the shipment is for several items to a single vendor, you can use the
Manufacturing Order Shipments by Vendor window.

If you void a shipment for items tracked by lot or serial numbers, those items typically will
be made available again so another shipment can be recorded. However, if the shipment was
voided because you chose to void shipments when you were entering a Reverse Issue
transaction in the Manufacturing Component Transaction Entry window, then you must
reissue the items before you can ship them.

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To void a manufacturing shipment:

1. Open a window to void manufacturing shipment information.

Refer to the table for more information.

Window Navigation
Manufacturing Order Transactions >> Manufacturing >> Manufacturing Orders
Shipments window >> Entry >> enter or select a manufacturing order with
outsourcing sequences >> Outsourcing Shipping button
Manufacturing Order Transactions >> Manufacturing >> Manufacturing Orders
Shipments by Vendor window >> MFG Shipments

2. If you’re using the Manufacturing Order Shipments by Vendor window, you

must:

• Enter or select a vendor ID.

• Use the MO Number Range and Ship By Date Range fields to select a group
of manufacturing orders.

3. The lower scrolling window will display information about the shipments.

4. Use the view icon button at the top of the scrolling window to view more
information about the shipments. You can switch views whenever you like.

5. In the lower scrolling window, mark the shipments that should be voided. If
you’re using the record view, mark the check box in the first line.

6. Choose the Void button.

If you marked the option to require process security when a shipment is

recorded, you might have to enter a password.

In the upper scrolling window, the suggested shipment quantities will be

updated. In the lower scrolling window, the voided shipment record will be
marked with an icon.

7. When you’ve finished, close the window.

Receipts of outsourced items

When an outsourcing vendor returns items to you, you can use the Receiving
Transaction Entry window to enter information about the items. You should be
aware of the following effects.

Data collection If you marked Mark Outsourced Sequences as “Done” when

Service is Received in the WIP Preference Defaults window, the sequence will be
marked completed when you have received the entire line quantity.

Accounts When you enter a shipment or shipment/invoice for an outsourced

service for a manufacturing order, the extended cost is not debited to inventory.

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Instead, the extended cost of the receiving line is debited to the manufacturing
order finished good WIP-X account. If you’re using site segments in your account
numbers and have set them up for the site for the outsourcing work center, the WIP-
X account uses that site segment. (X is the account you selected in WIP Preferences
Defaults window for outsourcing costs: Labor, Labor Fixed Overhead, Labor
Variable Overhead, Machine, Machine Fixed Overhead, or Machine Variable
Overhead.) You can edit the account, but if you do, the costs of the outsourcing
service won’t be applied to the manufacturing order.

The accrued purchases account (for a shipment) or the accounts payable account
(for a shipment/invoice) is credited.

If the manufacturing order status is Closed, the default inventory or purchases account (for
non-inventoried items) will be used because the costs can no longer be applied to the
manufacturing order.

Landed costs If you’re using landed costs, only those landed costs that are
entered when the linked purchase order line is received with a Shipment or
Shipment/Invoice transaction will be applied to the cost of the manufacturing
order. The landed costs that are applied are calculated using this formula:

Unit Cost Included Landed Cost value for receiving line x (Quantity Shipped -
Quantity Rejected)

If later on you match the invoice for the landed cost and the cost differs from the
landed cost amount from the purchase receipt, the difference is not applied to the
manufacturing order.

Distributing additional outsourcing costs

Use the Additional Outsourcing Cost Distribution Entry window to modify how
additional costs of purchasing outsourced services—such as freight and tax—are
applied to manufacturing orders that include outsourced services. If you’ve set up
your system to distribution additional costs to the manufacturing order but you
don’t use this window, the additional costs are still applied to the manufacturing
orders.

To apply these additional costs to a manufacturing order, you must have the Apply
Additional Outsourcing Costs to MO option marked in the WIP Preference Defaults
window.

To distribute additional outsourcing costs:

1. Enter a shipment/invoice or a purchasing invoice for the receipt of outsourced
items linked to a manufacturing order.

• Use the Receivings Transaction Entry window to enter a shipment/invoice.

• Use the Purchasing Invoice Entry window to enter a purchasing invoice.

Refer to your Microsoft Dynamics GP Purchase Order Processing or Invoicing

documentation for more information.

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2. Choose Additional >> Additional Outsourcing Costs to open the Additional

Outsourcing Cost Distribution Entry window.

3. Accept the default distributions for the additional costs, or change them.

If multiple manufacturing orders are linked to the lines in the shipment/invoice

or invoice, amounts to apply to each manufacturing order are suggested. If you
change the Amount to Apply for the lines and then want to return to the
default, suggested amounts, choose the calculator icon button or the Reset
Defaults button.

4. Choose OK.

Invoicing for outsourced services

If you enter an invoice for a purchase order line for outsourced services, and the
invoice cost is different from the cost posted from a receipt, the difference is posted
to the WIP-X account for the manufacturing order finished good, where X is the
account selected in WIP Preference Defaults window: Labor, Labor Fixed Overhead,
Labor Variable Overhead, Machine, Machine Fixed Overhead, or Machine Variable
Overhead.

You can edit the account, but if you do, the difference won’t be reflected in the
manufacturing order costs.

The WIP-X account is debited or credited, just as a purchase price variance account
is debited or credited under normal circumstances.

The WIP-X account will have the PURCH type.

If the manufacturing order status is Closed, the usual purchase price variance account will
be used because the costs can’t be reflected in the manufacturing order costs.

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Chapter 18: Outsourcing and manufacturing
orders
Manufacturing orders that include outsourcing sequences have special rules and
requirements.

Note that these changes are for manufacturing orders and manufacturing order routings.
These rules don’t apply to changes to planning routings. For more information about the
differences between manufacturing order routings and planning routings, refer to Types of
routings on page 10.

This information is divided into the following sections:

• Rescheduling outsourcing manufacturing orders

• Purchase orders and outsourcing manufacturing orders
• Shipment rules for changes to outsourcing manufacturing orders
• Changing the status of an outsourcing manufacturing order
• Effects of removing history of outsourcing orders

Rescheduling outsourcing manufacturing orders

Some changes to the manufacturing order routing can affect how outsourcing
information for purchase orders and shipments is calculated. If you change any of
the following information for a manufacturing order that includes outsourcing
sequences, you should reschedule the manufacturing order.

• PO Release Offset Days

• WIP Output per MO Start Quantity
• Setup Time
• Labor Time
• Machine Time
• Queue Time
• Move Time
• Cycle Time
• Percentage Next Start
• Quantity Next Start
• Concurrent Sequence
• Next Run Sequence

You also should reschedule an outsourcing manufacturing order any time you add
or remove a sequence.

Refer to the table for more information about methods you can use to reschedule
manufacturing orders.

Condition Method
Manufacturing order status is Use the Schedule MO button in the Manufacturing Order Entry
Quote/Estimate or Open window.
Manufacturing order status is Use the Batch Reschedule window to reschedule the entire order.
Released Refer to Rescheduling an entire manufacturing order on
page 101.
Use the Manual Scheduling window to reschedule specific
sequences. Refer to Rescheduling manufacturing order
sequences on page 100.

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Purchase orders and outsourcing manufacturing

orders
You can make many changes to a manufacturing order. For example, you can
replace one work center with another. You can add a manufacturing order routing
sequence, or you can remove one. You also can reschedule an entire manufacturing
order, or specific sequences.

When you make changes to an outsourcing manufacturing order routing, special

rules apply. Generally, if no purchase orders have been created and no shipments
have been recorded for the specific sequence, you can complete the change as if it
were any other manufacturing order routing. If purchase orders have been created
or shipments have been recorded, however, there are some limitations.

Rescheduling an outsourcing manufacturing order

Refer to the table for information about rules for rescheduling a manufacturing
order.

Purchase orders Effect

None created Rescheduling occurs as normal.
Created New suggestions are No changes are made to suggested or created
the same as existing purchase orders
suggestions
New suggestions If the status of the lines in the created purchase
differ from existing orders is New, Released, or Change Order, then
suggestions you’ll have the option to remove the link to the
purchase order lines, leave the lines, or cancel.

Replacing an outsourcing work center

Refer to the table for information about replacing an outsourcing work center.

Purchase orders Effect

None created You can change the work center. If you’re
replacing the work center with a different
outsourcing work center, new suggestions are
created.
Created Purchase order line You’ll have the option to void the links, keep
status is New, them intact, or cancel.
Released, or Change
Order
Purchase order line A message appears, stating that the costs of
status of Received or the lines already have been applied to the
Closed manufacturing order. You’ll have the option to
void the links to the purchase order lines that
aren’t already applied to the manufacturing
order (if there are any); to leave the links; or to
cancel.

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Deleting a manufacturing order

Refer to the table for information about deleting an outsourcing manufacturing
order.

Purchase orders Effect

None Manufacturing order is deleted as usual.
Created Purchase order line You’ll have the option to void the purchase
status is New, order links or cancel. If you choose to void the
Released, or Change links, the links also will be removed from any
Order unposted receipt or invoice transactions.
Purchase order line You can’t delete the manufacturing order.
status is Received or
Closed

Deleting a manufacturing order routing sequence

Refer to the table for information about deleting a manufacturing order routing
sequence.

Purchase orders Effect

None Sequence is deleted as usual.
Created Purchase order line You’ll have the option to void the links to the
status is New, lines, or cancel.
Released, or Change
Order, and no lines
have Received or
Closed status
Purchase order line You’ll have the option to continue and void
status is Received or links to lines that have New, Released, or
Closed, and costs have Change Order status, or cancel.
been applied

Rescheduling a manufacturing order routing sequence

Refer to the table for information about rescheduling a routing sequence.

Purchase orders Effect

None Sequence is rescheduled as usual.
Created Purchase order line You’ll have the option to void the links to the
status is New, purchase order lines, leave the links, or cancel.
Released, or Change
Order for all lines
One or more lines You’ll have the option to void the links to the
have Received or lines with New, Released, and Change Order
Closed status status, leave the links, or cancel.

Shipment rules for changes to outsourcing

manufacturing orders
When you change an outsourcing manufacturing order, special rules apply.
Generally, if no purchase orders have been created and no shipments have been
recorded for the specific sequence, you can complete the change as if it were any
other manufacturing order. If purchase orders have been created or shipments have
been recorded, however, there are some limitations.

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Rescheduling an outsourcing manufacturing order

Refer to the table for information about rescheduling an outsourcing manufacturing
order.

Shipments Effect
None recorded All the suggested shipments are replaced with
new suggestions.
Recorded New suggestions are No changes are made to the suggested or
the same as existing recorded shipments.
suggestions
New suggestions If shipments have been recorded and new
differ from existing suggestions differ from existing ones, you’ll
suggestions have the option to void the recorded
shipments, leave them, or cancel.
If you void the shipments, the links will be
removed, the manufacturing order will be
rescheduled, the picklist will be rebuilt, and the
old shipment suggestions will be replaced with
new ones.
If you leave the shipments, the existing
recorded shipments will be unchanged, the
manufacturing order will be rescheduled, the
picklist will be rebuilt, and the existing
shipment suggestions will be replaced with
new ones.
If you cancel, the suggested and recorded
shipments are kept intact, and the
manufacturing order is not rescheduled.

Replacing an outsourcing work center

Refer to the table for information about replacing an outsourcing work center.

Shipments Effect
None recorded You can change the work center. If you replace the outsourcing work
center with a different outsourcing work center, new suggestions for
shipments are created.
Recorded You’ll have the option to void the links, leave them, or cancel.
If you replace an internal work center—one that is not for outsourcing—
with an outsourcing work center in a manufacturing order routing,
suggestions for purchase orders and shipments will be created.

Deleting a manufacturing order

Refer to the table for information about deleting an outsourcing manufacturing
order.

Shipments Effect
None recorded Manufacturing order is deleted as usual.
Recorded You’ll have the option to void the shipments or cancel.

Deleting a manufacturing order routing sequence

Refer to the table for information about deleting a manufacturing order routing
sequence.

Shipments Effect
None recorded Manufacturing order routing sequence is deleted as usual.
Recorded You’ll have the option to void the recorded shipments or cancel.

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Rescheduling a working routing sequence

Refer to the table for information about rescheduling a manufacturing order routing
sequence.

Shipments Effect
None recorded Manufacturing order routing sequence is rescheduled as usual.
Recorded You’ll have the option to void the recorded shipments or cancel.

Changing the status of an outsourcing manufacturing

order
You can change the status of a manufacturing order, but changing a manufacturing
order that includes outsourcing might require special attention for any linked
purchase orders or recorded shipments.

You also can change the status of multiple manufacturing orders at the same time. Refer to
Changing the status of multiple manufacturing orders on page 65 for more information.

Purchase orders
Refer to the table for information about the effects of changing the manufacturing
order status of an outsourcing manufacturing order.

Manufacturing order status Purchase order Effect

Old status New status line status

-- Quote/Estimate New You’ll have the option to void the links to the purchase order lines, or
Canceled Released cancel.
Change Order
-- Hold Received You’ll have the option to void the links to the lines that haven’t yet
Closed been applied to the manufacturing order (if any), leave the links, or
cancel.
New You’ll have the option to void the links, leave them, or cancel.
Released
Change Order
Released Quote/Estimate Received This change is not permitted.
Open Closed
Canceled
Open New You’ll have the option to void the links, leave them, or cancel.
Released
Change Order

Shipments
Refer to the table for information about the rules that apply when you change the
manufacturing order status of an outsourcing manufacturing order. The messages
will appear only if shipments have been recorded for the manufacturing order.

New order status Effect

Hold You’ll have the option to void the links, leave them, or cancel.
Open
Quote/Estimate You’ll have the option to void the links or cancel.
Cancel

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Effects of removing history of outsourcing orders

You can use the Remove Manufacturing Orders window to remove information
about closed and completed manufacturing orders.

Refer to Removing manufacturing orders on page 170 for more information about removing
manufacturing orders

When you remove information about manufacturing orders with outsourcing

sequences, the following changes occur:

• When you remove an outsourcing manufacturing order, its suggested purchase

orders, purchase order links, and suggested and recorded shipments also are
removed. If the linked purchase order still exists, it will no longer show a visual
cue that it is linked to a manufacturing order.

• If you remove purchase order history for a linked purchase order, the link
information will be removed and you won’t be able to view information about
it in Manufacturing.

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Chapter 19: Outsourcing inquiries
You can use outsourcing inquiry windows to view information about suggested
and created purchase orders, as well as suggested and recorded shipments. You can
view information for a vendor or for a specific manufacturing order. You also can
view information about the additional costs that have been applied to outsourcing
manufacturing orders.

This information is divided into the following sections:

• Viewing outsourcing purchase order information

• Viewing manufacturing shipment information
• Viewing lot number information for shipments
• Viewing serial numbers for shipments
• Viewing distributions of additional outsourcing costs

Viewing outsourcing purchase order information

You can use either the Manufacturing Order/Purchase Order Link Inquiry window
or the Manufacturing Order/Purchase Order Link by Vendor Inquiry window to
view purchase orders for outsourced services.

• Use the Manufacturing Order/Purchase Order Link Inquiry window to start

with a manufacturing order and view purchase order information for only that
manufacturing order.

• Use the Manufacturing Order/Purchase Order Link by Vendor Inquiry window

to view purchase order information for a vendor.

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To view outsourcing purchase order information:

1. Open the window to view the purchase order information.

Refer to the table for more information.

Window Navigation
Manufacturing Order/Purchase Inquiry >> Manufacturing >> Manufacturing Orders >> MO
Order Link Inquiry window View >> select manufacturing order >> Purchasing button
Manufacturing Order/Purchase Inquiry >> Purchasing >> Vendor >> Additional >> MO PO
Order Link by Vendor Inquiry Link Inquiry
window

2. If you’re using the Manufacturing Order/Purchase Order Link by Vendor

Inquiry window, you must:

• Enter or select a vendor ID.

• Use the MO Number Range and Release By Date Range fields to select a
group of manufacturing orders.

3. The upper scrolling window displays information about the suggested

purchase orders; the lower scrolling window displays information about the
created purchase orders.

Use the view icon button at the top of the scrolling windows to view more
information about the suggested and created purchase orders.

4. When you’ve finished, close the window.

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Viewing manufacturing shipment information

You can use either the Manufacturing Order Shipments Inquiry window or the
Manufacturing Order Shipments by Vendor Inquiry window to view information
about the items shipped to an outsourcing vendor.

• If the shipment is for items for a single manufacturing order, use the
Manufacturing Order Shipments Inquiry window.

• If the shipment is for several items to a single vendor, use the Manufacturing
Order Shipments by Vendor Inquiry window.

To view manufacturing shipment information:

1. Open the window to view manufacturing shipment information.

Refer to the table for more information.

Window Navigation
Manufacturing Order Inquiry >> Manufacturing >> Manufacturing Orders >> MO
Shipments Inquiry window View >> select manufacturing order >> Shipping button
Manufacturing Order Inquiry >> Purchasing >> Vendor >> Additional >> MFG
Shipments by Vendor Inquiry Shipments Inquiry
window

2. If you’re using the Manufacturing Order Shipments by Vendor Inquiry window,

you must:

• Enter or select a vendor ID.

• Use the MO Number Range and Ship By Date Range fields to select a group
of manufacturing orders.

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3. The upper scrolling window displays information about the suggested

shipments; the lower scrolling window displays information about the recorded
shipments.

Use the view icon button at the top of the scrolling windows to view more
information about the suggested and recorded shipments.

4. When you’ve finished, close the window.

Viewing lot number information for shipments

If you’re shipping raw materials tracked by lot numbers to an outsourcing vendor,
you can use the Manufacturing Shipping Lot Number Inquiry window to view
information about the lot numbers. You can open the window through the
Manufacturing Order Shipments window, or through the Manufacturing Order
Shipments by Vendor Inquiry window.

• If the shipment is for items for a single manufacturing order, use the
Manufacturing Order Shipments Inquiry window.

• If the shipment is for several items to a single vendor, use the Manufacturing
Order Shipments by Vendor Inquiry window.

To view lot number information for shipments:

1. Open the appropriate window.

Refer to the table for more information.

Window Navigation
Manufacturing Order Inquiry >> Manufacturing >> Manufacturing Orders >> MO
Shipments Inquiry window View >> select manufacturing order >> Shipping button
Manufacturing Order Inquiry >> Purchasing >> Vendor >> MFG Shipments
Shipments by Vendor Inquiry Inquiry
window

2. If you’re using the Manufacturing Order Shipments by Vendor Inquiry window,

you must:

• Enter or select a vendor ID.

• Use the MO Number Range and Ship By Date Range fields to select a group
of manufacturing orders.

3. Use the view icon button at the top of the lower scrolling window to see a “card
view” of recorded shipments.

4. Use the Previous and Next buttons, as needed, to see the specific shipment
record.

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5. Choose the expansion button on the Quantity Shipped field to open the
Manufacturing Shipping Lot Number Inquiry window.

6. View information in the window.

7. When you’ve finished, close the window.

Viewing serial numbers for shipments

If you record a shipment for a group of items that are tracked by serial numbers,
you can use the Manufacturing Shipment Serial Number Entry window to enter
information about the serial numbers of the shipped items. You can open the
window through the Manufacturing Order Shipments window, or through the
Manufacturing Order Shipments by Vendor Inquiry window.

• If the shipment is for items for a single manufacturing order, use the
Manufacturing Order Shipments Inquiry window.

• If the shipment is for several items to a single vendor, use the Manufacturing
Order Shipments by Vendor Inquiry window.

To view serial numbers for shipments:

1. Open the window to view shipment information.

Refer to the table for more information.

Window Navigation
Manufacturing Order Inquiry >> Manufacturing >> Manufacturing Orders >> MO
Shipments Inquiry window View >> select manufacturing order >> Shipping button
Manufacturing Order Inquiry >> Purchasing >> Vendor >> MFG Shipments
Shipments by Vendor Inquiry Inquiry
window

2. If you’re using the Manufacturing Order Shipments by Vendor Inquiry.

window, you must:

• Enter or select a vendor ID.

• Use the MO Number Range and Ship By Date Range fields to select a group
of manufacturing orders.

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3. Use the view icon button at the top of the lower scrolling window to see a “card
view” of recorded shipments.

4. Use the Previous and Next buttons, as needed, to view information about the
specific shipment record.

5. Choose the expansion button on the Quantity Shipped field to open the
Manufacturing Shipping Serial Number Inquiry window.

6. When you’ve finished viewing information in the window, close the window.

Viewing distributions of additional outsourcing costs

You can use the Additional Outsourcing Cost Distribution Inquiry window to view
information about how the additional costs of outsourcing purchases—such as
freight, miscellaneous, and taxes—are distributed among manufacturing orders.
You can view the information for one receipt at a time.

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To view distributions of additional outsourcing costs:

1. Open the Additional Outsourcing Cost Distribution Inquiry window.
(Inquiry >> Purchasing >> Purchase Order Documents >> click the Receipt
Number link >> Additional >> Additional Outsourcing Costs)

2. View information about how the additional costs are distributed.

3. When you’ve finished, close the window.

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PART 4: WORK IN PROCESS
 Part 4: Work In Process
This part of the documentation includes information that will help you enter and
use information in the Work in Process module. You can refer to this information for
details about entering work-in-process information—direct labor, indirect labor,
and machine time. You also can refer to this information for instructions on
modifying or viewing existing entries, or for using the information as the basis of
your Payroll transactions.

The following information is discussed:

• Chapter 20, “Work in Process overview,” includes terms and concepts you’ll
need to know to use Work in Process.

• Chapter 21, “Manual data entry,” describes how data entry personnel can enter
information about indirect and direct labor time, as well as machine time.

• Chapter 22, “Time card entry,” explains how you can use time card entry
windows to enter direct and indirect labor information you collect from
employees’ time cards.

• Chapter 23, “Automated data collection,” contains information about setting up

your system to use automated data collection.

• Chapter 24, “Outsourcing and Work in Process,” explains how data collection
records will appear for outsourcing sequences.

• Chapter 25, “Work in Process data uses,” includes information about how you
can use the information you collect and enter in Work in Process.

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Chapter 20: Work in Process overview
Work in Process helps you to track and analyze the costs associated with a
particular manufacturing order. Accountants can use work-in-process information
to gather information about the costs associated with manufacturing orders. On the
production floor, employees can use the information to view the progress of
manufacturing orders through the system. Managers can use the labor and machine
cost information about your manufacturing orders to make more informed
decisions about pricing and scheduling.

This information is divided into the following sections:

• Why use Work in Process?

• Work in Process terms
• Data collection methods
• Work in Process transactions
• Using Work in Process options to track progress

Why use Work in Process?

Work in Process helps you to track two main costs: labor costs and machine costs.
By comparing actual costs to estimated costs, you can get a better idea of which
areas of your plant are performing best—and which have room for improvement.
(Material costs are not entered through Work in Process, but are now entered in the
Manufacturing Order Receipt window. Refer to Chapter 13, “Receipts and closing,”
for more information about material costs.)

If you used an earlier version of Manufacturing, you can use Work in Process to view
material data collection entries made with that software. You also can print the Data
Collection Material report for those entries.

You can capture the costs of labor and machine time two ways: you can backflush
the labor and machine costs, or you can enter the actual times each employee or
machine started and ended work on a particular manufacturing order sequence.

If you use backflushing, the costs for the labor, machine time, or both, are calculated
based on the manufacturing order receipt quantity, the times entered when you
created the routing sequences, and the shop rate or operating costs. Refer to How
backflushed machine and labor amounts are calculated on page 164.

If you enter actual times, you’ll use Work in Process to enter the amount of time
spent on each sequence. You can use traditional data entry methods, or you can use
automated data collection. The traditional methods rely on data entry personnel
who enter information from worksheets or other forms your employees complete.
The automated data collection method uses other devices—such as bar-code
readers—to enter information into the system.

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Work in Process terms

Before using Work in Process, you should be familiar with terms commonly used in
discussions about work in process and data collection.

Direct labor Direct labor is the cost of any employee time spent working on a
specific manufacturing order. For example, production personnel who spend their
time assembling or finishing goods is direct labor. Direct labor doesn’t reflect
quality assurance testing or support costs.

Indirect labor Indirect labor is the cost of any employee time that can’t be
attributed to a specific manufacturing order. Indirect labor tasks can include
meetings, training, quality-assurance testing, and paid break times.

Total costs Total costs are the cumulative total of all expenses associated with a
manufacturing order, plus any overhead that might not be directly associated with
the order.

Unit cost Unit cost is the value of time and resources consumed to create one
unit of product for an order. Typically, the unit cost is calculated by dividing the
total costs by the number of units manufactured.

Data collection methods

The methods manufacturing companies use to record information about the
machine time and labor time will vary from one company to another. One company
might use a bar-code reader to automatically enter information, while another
company might use data-entry personnel to transfer information recorded on paper
to the computer system. The Manufacturing windows you use with your work-in-
process information will depend on your company’s data collection methods.

Manual data collection

If your company uses a paper-based system—requiring employees to complete time
sheets or other logs to track the hours they’ve spent on a particular task and the
number of items they’ve completed—you must use traditional data entry to add the
information to your system.

Manufacturing provides two systems for manual data entry. You’ll use the Data
Collection window for all manual entries of machine time and indirect labor, but the
window you use to record direct labor will depend on your information source.

Travelers If your information is taken from travelers—pages that accompany

items through the production process—you should use the Data Collection window
to record labor information. Refer to Chapter 21, “Manual data entry,” for more
information about using the Data Collection window to record employee
information from travelers.

Time cards If your information is taken from time sheets or time cards, you
should use the Time Card Entry window to record direct labor for each employee.
Refer to Chapter 22, “Time card entry,” for more information about using the Time
Card Entry window to record employee information from time cards.

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Automated data collection

If your company is using a bar-code reader or other device to collect information,
you might use the Automated Data Collection window to make manual corrections
to your data entries. Refer to Chapter 23, “Automated data collection,” for more
information about working with automated data collection.

Automated data collection can be used to collect information only for machine time and
direct labor time. You can enter information for material usage in the Manufacturing Order
Receipt Entry window. You can enter information for indirect labor in the Data Collection
window.

Work in Process transactions

Data is collected for the WIP machine and labor accounts, as well as the associated
overhead accounts. When transactions are posted, the finished goods work-in-
process account is debited, and the appropriate overhead and applied accounts—
labor or machine—are credited.

As you enter information about the labor and machine costs that have accrued for a
particular manufacturing order, the information is saved and becomes the basis of
the information needed to complete the manufacturing order closing process.

However, you only can enter information for manufacturing orders with Released
or Partially Received status.

Using Work in Process options to track progress

As you’re entering information about the labor and machine costs, you can use
other options to track progress on a manufacturing order. You can use these
additional options when you’re using manual data entry from travelers or from
time cards.

• You can specify if the labor numbers you’re entering are for setup tasks by
marking the Setup option when you’re entering the labor information.

• You can specify if all work for a specific routing sequence for a manufacturing
order is complete by marking the Done option.

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Chapter 21: Manual data entry
You can enter any manual data collection for machine time or indirect labor in the
Data Collection window. Refer to Data collection methods on page 216 for more
information about determining the best data collection method for direct labor
information for your company.

This information is divided into the following sections:

• Entering direct labor information

• Entering indirect labor information
• Entering machine-cost information
• Entering a reversing entry

Entering direct labor information

Use the Data Collection window to enter information about the hours employees
have spent completing tasks directly associated with a manufacturing order. The
information describes how to enter information for one combination of employee,
manufacturing order, and routing sequence. You must enter a separate record for
each combination.

To enter direct labor information:

1. Open the Data Collection window.
(Transactions >> Manufacturing >> WIP >> Data Collection)

As you make selections in the Data Collection window, the available fields will change.

2. Enter or select a manufacturing order with a Released or Partially Received

status.

If the manufacturing order is linked to a job, the number of the job will be
displayed in the window. Refer to Linking an element or transaction to a job in
Chapter 14, “Job link maintenance,” in the Manufacturing Management
Functions documentation for more information about linking manufacturing
orders to jobs.

3. Enter or select a routing sequence.

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4. If the data you’re entering is for the last sequence of the manufacturing order,
mark the Done option. For example, if you’re entering information for a
painting sequence for a manufacturing order of 100 widgets, you should mark
the Done option when you enter information about the last group of widgets to
be painted.

5. From the Data Collection Type list, select Direct Labor.

If the manufacturing order routing is using backflushing for labor data

collection, you can’t enter data collection information for direct labor time.
Instead, a standard cost will be used to determine costs for the sequences. Refer
to How backflushed machine and labor amounts are calculated on page 164 for more
information.

6. Use the fields at the bottom of the window to enter information about the
employee time spent working on the manufacturing order. You must enter or
select the employee’s ID, labor code, starting and finishing dates and times, and
pay codes.

The default labor code comes from the manufacturing order routing and the
default pay code is the primary pay code for the labor code. You can accept the
default values or change them.

7. You can enter piece-count and reject-count information.

8. If you’re entering information about setup tasks, mark the Setup option.

9. Choose Save.

Fields cleared after the record is saved will depend on your user preferences.
For example, if you must enter many data collection records for the same
manufacturing order, you might not want to have the manufacturing order
number field cleared each time you save a record.

Refer to Setting up WIP user preferences in Chapter 9, “Manufacturing production

functions user setup,” in the Manufacturing Setup documentation for more
information about setting user preferences

10. Enter the next data collection transaction, or close the window.

Entering indirect labor information

Use the Data Collection window to enter information about compensated time
employees spend on tasks not directly related to a specific manufacturing order. The
information describes how to enter this information for one employee. If several
employees have indirect labor time, you must enter a separate record for each
employee.

To enter indirect labor information:

1. Open the Data Collection window.
(Transactions >> Manufacturing >> WIP >> Data Collection)

2. From the Data Collection Type list, select Indirect Labor.

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3. Use the fields at the bottom of the window to enter information about the
employee time spent working on indirect labor tasks. You must enter or select
the employee’s ID, labor code, start and finish dates and times, and pay code.

4. Choose Save.

Fields cleared after the record is saved will depend on your user preferences.

Refer to Setting up WIP user preferences in Chapter 9, “Manufacturing production

functions user setup,” in the Manufacturing Setup documentation for more
information about setting user preferences.

5. Enter the next data collection transaction, or close the window.

Entering machine-cost information

Use the Data Collection window to enter information about the machine time
associated with a manufacturing order routing sequence. The information describes
how to enter this information for one combination of machine, manufacturing
order, and routing sequence. You must create a separate record for each
combination.

To enter machine-cost information:

1. Open the Data Collection window.
(Transactions >> Manufacturing >> WIP >> Data Collection)

2. Enter or select a manufacturing order with Released or Partially Received

status.

If the manufacturing order is linked to a job, the number of the job will be
displayed in the window. Refer to Chapter 15, “Job link details,” in the
Manufacturing Management Functions documentation for more information
about linking manufacturing orders to jobs.

3. Enter or select a routing sequence.

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4. If the data you’re entering is the last sequence for this manufacturing order,
mark the Done option. For example, if you’re entering information for a
painting sequence for a manufacturing order of 100 widgets, you should mark
the Done option when you enter information about the last group of widgets to
be painted.

5. From the Data Collection Type list, select Machine Cost.

If the manufacturing order routing is using backflushing for machine data

collection, you can’t enter data collection information for machine time. Instead,
a standard cost will be used to determine costs for the sequences. Refer to How
backflushed machine and labor amounts are calculated on page 164 for more
information.

6. Use the fields at the bottom of the window to enter information about the
machine time spent working on the manufacturing order. You must enter or
select the machine ID and start and finish dates and times.

7. You can enter piece-count and reject-count information.

8. Choose Save.

Fields cleared after the record is saved depend on your user preferences. For
example, if you must enter many data collection records for the same
manufacturing order, you might not want to have the manufacturing order
number field cleared each time you save a record.

Refer to Setting up WIP user preferences in Chapter 9, “Manufacturing production

functions user setup,” in the Manufacturing Setup documentation for more
information about setting user preferences.

9. Enter the next data collection transaction, or close the window.

Entering a reversing entry

If you make an error while entering labor or machine data collection records, use
the Data Collection window to enter a reversing entry—a transaction that “undoes”
the error you made in your original transaction.

If you must enter a reversing entry, you should create one that reverses the entire
quantity of the entry with the error. For example, if you entered a transaction for an
employee for four hours of direct labor but later discover that the transaction
should have been for three hours of direct labor, you should create a reversing entry
for four hours. Then you should create a new transaction for three hours of direct
labor.

To enter a reversing entry:

1. Open the Data Collection window.
(Transactions >> Manufacturing >> WIP >> Data Collection)

2. Enter a transaction as you would normally for machine time, or indirect or

direct labor costs.

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3. Mark the Reversing Entry option.

4. Choose Save to save the negative transaction and close the window.

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Chapter 22: Time card entry
If you’re using manual data collection techniques and you’re taking information
from time cards or time sheets, you should use the Time Card Entry window to
record information about the hours a specific employee has spent in direct labor
tasks. Later, you can post this data using the Time Card Batch window.

You can enter direct labor information in the Data Collection window or in the Time Card
Entry window. If the data records you’re entering information from are by manufacturing
order, we recommend using the Data Collection window. If the information is organized by
employee, use the Time Card Entry window.

Besides using the Time Card Entry window to enter information about employee
hours, you also can use the window to view all unposted transactions for an
employee.

This information is divided into the following sections:

• Entering labor information from a time card

• Removing a time card entry line
• Posting batches of time card entries
• Viewing details about a time card entry

Entering labor information from a time card

Use the Time Card Entry window to record an employee’s time card data in one
window.

You must post the batches that include your time card transactions so they are updated in
General Ledger.

To enter labor information from a time card:

1. Open the Time Card Entry window.
(Transactions >> Manufacturing >> WIP >> Time Card Entry)

2. Enter or select an employee ID and a time sheet date. The default time sheet
date will be the user date, but you can change it, if needed.

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3. Accept the default value for Enter Duration Hours/Minutes, or change it.

• If the option is marked, you can enter the hours and minutes that an
employee spends on each sequence for a manufacturing order.

• If the option is not marked, you can enter the start and finish dates and
times for an employee’s work on each sequence for a manufacturing order.

4. In the scrolling window, enter or select a manufacturing order number and a

sequence. Default information—such as the work center, labor code, and job
number, if any—will be displayed on the scrolling window line.

5. If the sequence is complete, mark Done.

6. You can accept the default Labor Code (which is the run labor code for the
sequence in the working routing) or you can change it.

7. Enter either starting and finishing dates and times, or the duration (hours and
minutes).

If you’re entering start and finishing dates and times, enter time using six characters
based on the 24-hour clock. For example, enter 133000 if the start time should be 1:30
p.m., or 073000 if the time should be 7:30 a.m.

8. If the task is a setup task only, mark Setup.

9. If the task is not a setup task, you can enter the number of units completed,
scrapped, or rejected.

10. Accept the default pay code, or enter or select another. The default pay code
comes from the Labor Code Definition window.

11. Continue, repeating steps 4 through 10 until you’ve entered all of the
information for the employee.

12. Close the window.

Your entries are saved as you move off the scrolling window lines.

Removing a time card entry line

You can use the Time Card Entry window to remove a line from the scrolling
window, if needed.

To remove a time card entry line:

1. Open the Time Card Entry window.
(Transactions >> Manufacturing >> WIP >> Time Card Entry)

2. Enter or select an employee ID. All unposted entries for the employee will be
displayed in the scrolling window.

3. Highlight the line in the scrolling window to be removed.

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4. From the Edit menu, choose Delete Row.

5. Close the window.

Posting batches of time card entries

The Time Card Batch window displays one line of information for each employee
ID having unposted transactions entered through the Time Card Entry window.
Unposted transactions entered in other windows—such as indirect labor
transactions entered in the Data Collection window—aren’t displayed.

Use the Time Card Batch window to post time card entries.

To post a batch of time-card entries:

1. Open the Time Card Batch window.
(Transactions >> Manufacturing >> WIP >> Time Card Batch)

2. View the employee time card information displayed.

3. Mark employee time card entries to be posted. Unmark entries you don’t want
to post.

To generate a report based on the time-card entries, choose File >> Print. The Time Card
Batch Edit report will display information from the Time Card Batch and the Time Card
Entry windows.

4. To post entries now, choose Post. To save entries for posting later, close the
window.

When you post a batch of time card entries, a General Ledger batch is created. You also
must post that batch. Refer to General Ledger documentation for more information.

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Viewing details about a time card entry

You can select a specific line in the Time Card Batch window and then use the Go To
button to see more detailed information about the entry.

To view details about a time card entry:

1. Open the Time Card Batch window.
(Transactions >> Manufacturing >> WIP >> Time Card Batch)

2. Mark a record in the scrolling window. A black dot will appear in the left
column of the marked record.

3. From the Go To button, choose Time Card Entry. The Time Card Entry window
will open, displaying information about the highlighted record.

4. When you’ve finished viewing the information, close the windows.

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Chapter 23: Automated data collection
Automated data collection can make your data collection efforts more efficient.
Rather than manually entering individual transactions, you can set up your system
to automatically transfer data into Manufacturing.

After the data is part of the Manufacturing system, you can review it, compile
statistics for it, and use it for other analyses.

This information is divided into the following sections:

• How automated data collection works

• Designating a workstation as an ADC processor
• Generating the ADC Transactions report
• Correcting automated data collection entries
• Correcting posted data collection transactions

How automated data collection works

Moving information into Manufacturing involves using an automated data entry
device—such as a bar-code reader—to enter information, and a workstation
computer you’ve designated as an Automated Data Collection (ADC) Processor to
collect the raw data.

Each entry from your data entry device must include specific information: a
manufacturing order number, a sequence number, an employee or machine ID, a
data collection type—machine time or direct labor—and a date and time. After this
information is transferred into the workstation computer that is logged into
Microsoft Dynamics GP, the system will begin a routine comparison of all the data
entries.

Before you can use automated data collection, a primary pay code must be assigned
to every labor code that will be supplied by the automated data collection device,
and a labor code must be assigned to every manufacturing order sequence. If you
plan to track setup time separately from production time, be sure you’ve assigned
both a setup labor code and a production labor code to each manufacturing order
routing sequence.

When the system identifies two entries with matching manufacturing order
numbers, sequence numbers, employee or machine IDs, and data collection types,
the two entries together become a single transaction; the earlier entry is the starting
date and time for the machine or labor time, and the later entry is the ending date
and time for the work. The difference between the starting and ending times is used
to calculate the amount of machine time or direct labor to be applied to a
manufacturing order sequence.

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To ensure that two records match to create a transaction, the starting record time
must be earlier than the ending record time. The start and end record also must
have identical information for these fields:

• Manufacturing order number

• Sequence number
• Employee or machine ID
• Data collection type (direct or machine)
• Setup indication, if the data collection type is Direct labor
• Labor code, if the data collection type is Direct Labor
• Pay code, if the data collection type is Direct Labor

When two records match, the transaction is transferred to the Microsoft Dynamics
GP data tables. Sometimes, you might have starting and ending entries that don’t
match. You can use the ADC Transactions Report to review those entries and then
correct them manually using the Automated Data Collection window. Refer to
Generating the ADC Transactions report on page 230 and to Correcting automated data
collection entries on page 231.

Designating a workstation as an ADC processor

To use automated data collection, you must designate at least one computer as an
ADC processor—the computer where routines will be run to compare data entries
and match them up to create transactions. Use the Automated Data Collection
Preferences window to complete this procedure.

To designate a workstation as an ADC processor:

1. Open the Automated Data Collection Preferences window.
(Microsoft Dynamics GP menu >> Tools >> Utilities >> Manufacturing >>
Automatic Data Collection Preferences)

2. Mark Designate this workstation as an ADC Processor.

3. Close the window.

The processor will begin reading input from the device immediately, storing it
and comparing entries for matches. This process will continue as long as the
computer is logged into Manufacturing.

Automatic data collection is a background process, so you can’t change users on the
ADC computer without exiting from Microsoft Dynamics GP.

Generating the ADC Transactions report

You can use the ADC Transactions report to review the entries that have been
created from your automated data collection entries but that haven’t been matched
to form transactions and to determine what manual corrections need to be made, if
any.

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To view transactions created when records are matched, use the Data Collection
Summary window. Refer to Viewing a manufacturing-order data summary on page 235
for more information.

Use the Automated Data Collection window to print ADC Transaction reports.

To generate the ADC Transactions report:

1. Open the WIP Report Options window.
(Reports >> Manufacturing >> WIP)

2. Select the ADC Transactions report.

3. Select a report option, or create a new one.

Refer to Chapter 28, “Manufacturing reports,” in the Manufacturing Core

Functions documentation for more information about creating report options.

4. Choose the print icon button. You’ll have the option to view the report on your
computer screen or to send the report to a printer or computer file.

5. When you’ve finished, close the WIP Report Options window.

Correcting automated data collection entries

Generally, you’ll use the Automated Data Collection window only to make
correcting entries for errors you find in the automatically collected data. For
example, if you have a starting record but no ending record or an ending record but
no starting record, you can enter the missing record. If an automated data collection
transaction has been posted, you also can create starting and ending records to
reverse the posted transaction.

Use the Automated Data Collection window to correct errors in automated data
collection transactions.

To correct automated data collection entries:

1. Open the Automated Data Collection window.
(Transactions >> Manufacturing >> WIP >> Auto Data Collection)

2. Enter the data collection type, the employee or machine ID, the manufacturing
order number, and the sequence number.

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3. Enter information in these fields, as needed:

• Data collection type - Choices are direct labor or machine.

• ADC device ID
• Employee ID
• Machine ID
• Manufacturing order number
• Sequence
• Sequence Done option
• Sequence Labor Setup option
• Labor code - The default labor code is the labor code assigned to the
sequence.
• Pay code - The default pay code is the pay code assigned to the labor code.
• Transaction type - Start or Finish
• Date and time
• Scrapped pieces
• Pieces rejected

4. When you’ve finished entering the information, choose Save. If you entered any
invalid information—such as a labor code that doesn’t exist—a message
appears, listing the errors. You can correct the errors and then choose Save
again.

Saving the record transfers it to the Microsoft Dynamics GP data table where it
can be matched with another record to form a data collection transaction.

Correcting posted data collection transactions

To correct an automated data collection transaction that has been posted, you’ll
need to complete two steps.

First, you must enter a negative adjustment transaction in the Data Collection
window to “undo” the incorrect transaction. Refer to Entering a reversing entry on
page 222 for more information.

Second, you must enter a new, correct transaction. You can enter one manual
transaction in the Data Collection window. Refer to Entering direct labor information
on page 219 for more information. Alternatively, you can enter two separate
transactions—a starting transaction and a stop transaction—in the Automated Data
Collection (ADC) window.

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Chapter 24: Outsourcing and Work in Process
Data collection for manufacturing orders that include outsourcing sequences has
some limitations and requirements.

This information is divided into the following sections:

• Direct labor and machine data collection

• Component transactions for outsourcing
• Data collection records for outsourcing
• Completed sequences and outsourcing data collection

Direct labor and machine data collection

If you’re entering data collection information for direct labor or for machine time for
an outsourcing sequence, a message appears. You’ll have the option to continue, or
to cancel.

If you choose to continue and if you’re using one of the labor cost buckets for your
outsourcing costs, you must select an outsourcing labor code.

Component transactions for outsourcing

If you’re entering component transactions for an outsourcing sequence, the
following situations might arise.

You enter a material quantity for a picklist item greater than the
picklist quantity Suggested shipment information for the manufacturing order
will be updated.

• The Total Suggested Quantity will be increased by the difference between the
issued quantity and the picklist quantity.

• The Shipment Quantity will be recalculated, based on the Total Suggested

Quantity.

You enter a reverse issue component transaction Suggested shipment

information will be updated.

• The Total Suggested Quantity will be decreased to reflect the quantity returned
to stock. However, the Total Suggested Quantity can’t be less than zero.

• The Shipment Quantity will be recalculated, based on the updated Total

Suggested Quantity.

You enter a scrap transaction No changes are made to suggested shipments.

Data collection records for outsourcing

Data collection records for outsourcing will appear differently, depending on
whether you selected a labor cost bucket or a machine cost bucket for outsourcing
costs. If you selected a labor cost bucket, the data collection type will be Direct
Labor. If you selected a machine cost bucket, the type will be Machine Cost.

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Each time a shipment or shipment/invoice that is linked to a manufacturing order

is posted, a data collection record is created or updated.

The data type, the manufacturing order number, and the sequence number are
included on all data collection records (except those for indirect labor). However,
when a data collection record is for an outsourcing sequence, the information
sources for some fields in data collection windows are different from the sources for
typical manufacturing order sequences.

Refer to Outsourcing cost buckets on page 176 for more information about how outsourcing
costs are calculated using data collection transaction fields.

Refer to the table for more information.

Field Explanation
Total Time The quantity received on the posted shipment or shipment/
invoice. (Invoices don’t affect this value.)
Total Cost The total cost to be applied to the manufacturing order, including
any additional costs that were applied.
Cost Calculated only if the Labor or the Machine cost bucket (not one
of the overhead buckets) was selected for outsourcing costs. The
amount will be the total cost applied to the manufacturing order,
including any additional costs that were applied.
Fixed Overhead Cost Calculated only if you’re using the Labor Fixed Overhead or
Machine Fixed Overhead cost bucket for outsourcing. The
amount will be the total cost applied to the manufacturing order,
including any additional costs that were applied.
Variable Overhead Cost Calculated only if you’re using the Labor Variable Overhead or
Machine Variable Overhead cost bucket for outsourcing. The
amount will be the total cost applied to the manufacturing order,
including any additional costs that were applied.

Completed sequences and outsourcing data collection

If the Mark Outsourced Sequences as Done when Service is Received option in the
WIP Preference Defaults window is marked, an outsourcing sequence will be
marked complete when all linked purchase order lines have Received status.

Even if a shipment or shipment/invoice linked to a manufacturing order is posted

after the outsourcing sequence is marked complete, a data collection record will be
created or updated, which enables you to receive more of a service than you
ordered. Any time an invoice that includes a WIP distribution is posted, data
collection information is updated.

If a sequence is marked complete and then you create a new purchase order line for that
sequence, the Done check box is cleared.

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Chapter 25: Work in Process data uses
You can use the information you’ve collected about the direct and indirect labor
hours employees have spent in various ways. For example, you can prepare
summaries to analyze the information you’ve collected. You also can use the
information as the basis of your payroll entry.

This information is divided into the following sections:

• Viewing a manufacturing-order data summary

• Viewing data-collection summary details
• Data collection and Payroll
• Entering a data collection payroll transaction
• Verifying and viewing data collection transactions
• Viewing an employee’s indirect labor information

Viewing a manufacturing-order data summary

You can use the Data Collection Summary window to view the time and cost totals
for each sequence in a manufacturing order. For example, if ten employees worked
on a particular sequence for a manufacturing order, you can use the Data Collection
Summary window to see the total amount of time and cost that can be attributed to
the sequence.

Use the Data Collection Summary window to complete this procedure.

To view a manufacturing-order data summary:

1. Open the Data Collection Summary window.
(Inquiry >> Manufacturing >> WIP >> DC Summary)

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2. Enter or select a manufacturing order. Information about the data that has been
collected for the sequences of the manufacturing order will be displayed in the
scrolling window.

With this release of Manufacturing, you can no longer use Work in Process to enter
information about material usage. You must enter that information in the
Manufacturing Order Receipt Entry window. However, you can still view material
entries you made when using earlier versions of the product.

3. Review the information, as needed. When you’ve finished, close the window.

Viewing data-collection summary details

Manufacturing includes three windows you can use to see detailed information
about a specific data collection record in the Data Collection Summary window. The
windows are:

• Data Collection Summary–Direct Labor

• Data Collection Summary–Machine
• Data Collection Summary–Material

To view data-collection summary details:

1. Open the Data Collection Summary window.
(Inquiry >> Manufacturing >> WIP >> DC Summary)

2. Enter or select a manufacturing order.

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3. Double-click any record in the scrolling window to open the appropriate

window and view more details about the record.

• If the data type of the record is Direct Labor, the Data Collection Summary–
Direct Labor window will open.

• If the data type of the record is Machine, the Data Collection Summary–
Machine window will open.

• If the data type of the record is Material, the Data Collection Summary–
Material window will open.

4. You can view information in these windows. You also can click links to other
windows to display still more information about the records, if needed.

With this release of Manufacturing, you can no longer use Work in Process to enter
information about material usage. You must enter that information in the
Manufacturing Order Receipt Entry window. However, you can still view material
entries you made when using earlier versions of the product.

5. When you’ve finished reviewing information, close the windows.

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Data collection and Payroll

As you enter data collection information in Manufacturing—through either manual
entry or automated data collection—transactions are created to reflect the
information you provide. Inventory transfer transactions are created to reflect
material use and production, and General Ledger transactions are created to reflect
overhead, machine, and labor costs.

If you’re using Microsoft Dynamics GP Payroll, you also can use the information
you collect as the basis of transactions for your company’s payroll. You can use the
Data Collection Transactions window to record information about the time and
tasks that employees will be paid for, according to pay codes you’ve defined in
Payroll.

These transactions must be manually posted to a payroll batch to complete

processing. For more information about creating and posting payroll transactions in
batches, refer to Payroll documentation.

Entering a data collection payroll transaction

Use the Data Collection Transactions window to enter a data collection payroll
transaction.

Before entering data collection transactions, be sure no one is using the data you want to
work with. Refer to Using Manufacturing module security in Chapter 2, “Security,” in the
Manufacturing Setup documentation—for more information.

To enter a data collection payroll transaction:

1. Open the Data Collection Transactions window.
(Transactions >> Manufacturing >> WIP >> DC Transactions)

2. Select the Labor Type to enter transactions for.

Direct Labor Select Direct Labor to enter transactions based on the time an
employee spent on direct labor tasks—those directly associated with a specific
manufacturing order.

Indirect Labor Select Indirect Labor to enter transactions based on the time
an employee spent on indirect labor tasks—those not directly related to a
specific manufacturing order, such as clean up, training, meetings, and breaks.

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3. Enter or select the beginning and ending dates for the period for which you are
creating payroll transactions. The beginning and ending dates might be the
beginning and ending dates of the payroll period, but you can use other dates, if
needed.

4. Enter or select an employee ID. If you leave the Employee ID field blank, all
data collection records that are within the specified date range will be selected.

5. Enter or select a batch ID.

6. Choose Save to create payroll transactions based on the displayed data

collection records. A transaction number will be generated automatically.

If a record in the scrolling window can’t be added to a batch—for example,

suppose an employee doesn’t have an assigned pay code—a message will be
displayed and you’ll be advised to check the Data Collection Transaction Log
window for more information. Refer to Verifying and viewing data collection
transactions on page 239.

You also will have the option to print an exception report, which includes
information about why a particular record couldn’t be transformed into a
transaction for a payroll batch. Instead of printing the report, you can view
information in the Data Collection Transaction Log window.

7. Process the payroll transaction batch through Payroll. Refer to the Payroll
documentation for more specific information.

Verifying and viewing data collection transactions

Use the Data Collection Transaction Log window to determine if the transactions
you created in the Data Collection Transactions window were completed. The Data
Collection Transaction Log lists payroll transactions that have been generated from
data collected on the shop floor. These transactions have been assigned to a batch
and are ready to be manually posted to payroll. If a transaction posting fails, that
information will be recorded in the Data Collection Transaction Log window.

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To verify and view a data collection transaction:

1. Open the Data Collection Transaction Log window.
(Inquiry >> Manufacturing >> WIP >> DC Transaction Log)

You also can open the window by choosing the Go To button in the Data Collection
Transactions window and choosing Data Collection Transaction Log.

2. Use the Filter On Transactions list to choose the type of transactions to view.

All Choose All to see information about all transactions.

Successful Choose Successful to see information about only those

transactions that were successfully posted.

Unsuccessful Choose Unsuccessful to see information about only those

transactions that were not successfully posted.

3. Enter or select an attempt date, batch ID, or transaction number, depending on

the sorting method you’ve selected. Information about the transactions will be
displayed in the scrolling window.

240 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 C H A P T E R 2 5 W O R K IN P R O C ES S D AT A U S E S

4. Review the information.

To view more detailed information, highlight the record in the scrolling

window and choose Zoom, or double-click the record.

The Transaction Log View window will open, displaying more detailed
information about the specific transaction. The message in the Transaction
Result field should describe the problem, if any.

5. When you’ve finished reviewing the information, close the windows.

Viewing an employee’s indirect labor information

You can use the Indirect Labor Inquiry window to view information about the
amount of indirect labor that has been recorded for a specific employee.

To view an employee’s indirect labor information:

1. Open the Indirect Labor Inquiry window.
(Inquiry >> Manufacturing >> WIP >> Indirect Labor)

2. Enter or select an employee ID.

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3. You can enter or select a starting date. You must enter an ending date for the
information.

4. Information about indirect labor entries for the employee will be displayed in
the scrolling window. When you’ve finished reviewing the information, close
the window.

242 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Glossary AQL table
See Acceptable Quality Level table.
Buyer ID
Code that identifies the person who
purchases the item from a supplier.
Acceptable Quality Level table ARCH BOM
A representation of testing standards and See Archived bill of materials. By-product
sample sizes. AQL tables include A finished good that is created incidentally
Archived bill of materials to another finished good.
information about appropriate sample sizes
A bill of materials stored in a separate area of
and the maximum number of pieces that can Child part
your computer system. Bills of material
fail inspection in an acceptable lot. You’ll might be archived as they become obsolete. See Component.
probably set up several AQL tables to reflect
different inspection standards for different Assemble to order Class
items. A type of manufacturing facility that puts a A method for grouping similar parts or
group of components together according to products.
Active routing customer specifications.
See Manufacturing order routing. Co-product
Back order See By-product.
Actual costing An order to be fulfilled when stock for items
An inventory tracking method that involves in shortage is replenished. Company data
constantly updating inventory each time an Company data is the information you enter
item is added or removed. Backflushing about your organization, such as its
A method of accounting for the use of applicants, employees, benefits systems,
Actual demand resources—labor and machine time, and training programs, and organizational
The total quantity of an item requested on all
items—based on standards you’ve defined. structure.
firm manufacturing orders. Transactions to account for the use of
backflushed resources are created when a Component
Actual expenses (Job Costing) Items used to build a product. Component
The total of all applied expense transactions manufacturing order is closed.
parts can be items (nuts, screws, diodes) or
linked to a job. Backward finite scheduling subassemblies (axles, circuit boards).
Actual margin (Job Costing) A scheduling method that starts from a due
date and works out a plan for the flow of Component transaction
A measure of the overall profitability of a A line on a pick document to allocate,
specific job. The actual margin for a job is work through the plant with the assumption
that there are only a limited number of reverse allocate, issue, reverse issue, scrap,
calculated by dividing the actual profit by
resources (machines and workers) available or reverse scrap components for a
the actual revenue, and then multiplying the manufacturing order.
result by 100. to complete the task.

Backward infinite scheduling CONFIG BOM

Actual profit (Job Costing) See Configured bill of materials.
The difference between actual expenses and A scheduling method that starts from a due
actual revenues for a job. date and works out a plan for the flow of Configuration data
work through the plant with the assumption In Bill of Materials, information about the
Actual revenues that the plant has unlimited machine and
product’s overall design. It includes the
The total of all applied revenue transactions worker capacity.
design authority for the product, the unit of
linked to a job. measure, and the revision level.
Batch cards
Allocate See Manufacturing order. Configured bill of materials
To reserve materials needed for a A bill of materials that is built by selecting
manufacturing order. Bill of materials
A list of the components and subassemblies options from a super bill of materials.
Alternate routing needed to build one unit of a product. The Configured cost
Any planning routing for an item other than bill of materials also shows quantities for
The calculated cost of building a specific
the primary routing. each component.
configured item, depending on the options a
Alternate work center Bill of operations customer selects. The configured cost reflects
A work center to which work can be shifted See Routing. the cost of the component items and the
if the customary work center for a specific labor required to manufacture the item.
task is not available. If the primary work Bin
A storage device to hold discrete items. Configured price
center is temporarily shut down, or if
The suggested price to charge the customer
demand exceeds the capacity of the primary Blanket purchase order for a configured item, based on your finished
work center, the work load can be shifted to
A purchase order that is delivered gradually goods price schedule and the selected
the alternate work center.
to the buyer. options.
Apply Bucket Configured routing
To add the amount of a revenue or expense
A time period used for calculating MRP A routing based on the selected options. For
linked to a job to the financial information requirements. Manufacturing supports daily, example, if you created a configured bill of
about the job. If a transaction isn't applied to
weekly, and monthly bucketing options. materials for office chairs and chose plastic
a job, its amount won't be reflected in the
components rather than wooden ones, the
overall financial information about the job. Buy items routing would be modified to exclude the
Applying transactions in Job Costing can Items that are supplied to your plant by a sequences for staining and varnishing the
happen manually or automatically. supplier. wooden components. Also known as a
“configured working routing.”

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Configured Working Routing Down day Engineering bill of materials

See Configured routing. A day when the facility—the entire shop A proposed bill of materials. Designs that are
floor or a specific work center—is not in only in the prototype stage of development,
Consume production. for example, may have engineering bills of
To use up the quantity that has been issued materials. In this way, the costs of producing
to WIP—for materials, labor time, or Drawing a design can be studied without impacting
machine time—for a manufacturing order. A schematic or other illustration. You can the material requirements that the system
“attach” electronic drawing files—such as generates.
Cost variance CAD illustrations, bitmaps and even .AVI
The difference between the actual costs—for movies—to records. Engineering change
materials, machine time and labor—and the management (ECM)
estimated costs for a manufacturing order. Drawing group The systems that a company has in place to
Cost variances can be positive or negative. A set of related drawing files. For example, a
ensure that changes to its product
drawing group might include several views
Customer record specifications are properly monitored.
of the same item.
A record that shows all the information you Engineering change order (ECO)
need to conduct sales transactions, such as Due date The second stage of the engineering change
address information, billing and shipping The date when the items on a sales order management process. An engineering
instructions, credit history and other data for should be ready to ship.
change order is a change that has been
that customer.
ECM approved for incorporation.
Cycle time See Engineering change management (ECM). Engineering change request (ECR)
The total amount of time it takes to make one
ECO The proposal stage of the engineering
part, such as setup time, labor time, machine change management process. An
time, queue time and move time. See Engineering change order (ECO).
engineering change request is a proposed
Default inventory site ECR change.
The location commonly used to store raw See Engineering change request (ECR).
Estimated expense
materials or finished goods. Either item A projection of the expenses for a job,
Defect code Item that can be bought or manufactured by entered in the Job Maintenance window.
An identifier for a particular type of item your company.
Estimated margin
failure. For example, if an item is too long Element A job costing calculation based on estimated
and fails a specification for length, you might An order or transaction that can be linked to revenues and estimated expenses for a
create a defect code called LENGTH. Defect
a job, such as a manufacturing order, a sales specific job. The estimated margin is
codes are used in Manufacturing reports to
order, a purchase order line, a receiving line, calculated by dividing the estimated profit
help summarize information. or inventory transaction. by the estimated revenues, and the
Denial code multiplying the result by 100.
Employee allocation
An identifier for the reason why an The assignment of workers to work areas. Estimated profit
engineering change request wasn’t
Each employee can be assigned an efficiency The difference between the estimated
approved.
rating for a particular task. The number of expenses and the estimated revenues for a
Destination routing hours per shift spent on a task can also be specific job.
A routing that you copy from another specified. Total scheduled employee hours
for the work center are also displayed. Estimated revenue
routing. You can add sequences to the A projection of the revenues for a job,
destination routing. Employee efficiency percentage entered in the Job Maintenance window.
Direct labor A ranking of how an employee performs a
given task. You can use this field different Exclusions (MRP)
The time spent by one or more production
ways, depending on how your organization A method of marking an item, site or item-
workers on filling a specific manufacturing
handles its employee efficiencies. Some site combination so it isn’t included in MRP
order. calculations.
organizations complete time studies of
Discrete item various tasks, and set task goals for workers Exclusions (Sales Configurator)
An item that is manufactured as a distinct based on those figures. Employees earn Options that are disallowed because of
unit. Examples of discrete items include efficiency ratings based on their ability to
another option selection.
computers, automobiles, and radios. meet those criteria. In other organizations,
the top producer is assigned a value of 100% Expensed floor stock
Disposition code (or less) and all other employees would be A bill of materials component that has been
An identifier for a method for handling ranked in comparison to the top producer. designated—regardless of its issue-to and
defective items. For example, you might issue-from sites—as a floor stock item. The
decide to scrap certain defective items, and ENG BOM cost of expensed floor stock is applied to an
might assign a SCRAP disposition code to See Engineering bill of materials.
expense account, rather than to the cost of
those items. the finished item. See also Floor stock.
Double-booking
A situation where a job might inadvertently
be charged twice for the same expense.

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Explode General ledger variance Issue-from location

To determine the total quantities of The difference between costs that have been The site where the components used in the
components needed for a manufactured added to WIP and the costs that have been manufacturing process are stored prior to
item. To explode a bill of materials, the removed from WIP for a specific beginning the manufacturing order, such as
quantity ordered is multiplied by the manufacturing order. with a vendor, or in a department, a
quantity used for each of its components. warehouse, or another plant.
Exploding continues throughout the bill of Header record
materials, so component requirements for The information that ties the pieces of a Issue-to location
subassemblies are also calculated. larger record together. For example, the The site where the finished product will be
header record of a routing includes stored prior to delivery to the customer, such
Filled order information about the type of routing, the as in a department, a warehouse, or another
An order that has had all its requirements routing name, the date the routing was plant.
met and can be closed. created and so on. This information ties
sequence records together to create one Item type
Finished goods routing record. A code to designate the accounting class for
An item that is manufactured for sale. Also, the item, such as inventory, discontinued,
the final products that a company sells. Hours per shift and misc. charge.
The amount of time per shift actually spent
Finite scheduling working on the assigned tasks. To determine Item-specific inventory
A scheduling method that assumes that hours available per shift, subtract any non- valuation
limited capacity for labor and machines is task related activities from the total number An accounting method that places a value on
available. of available hours. For example, if an each item that you produce, based upon
employee is scheduled for an eight-hour either standard cost or current cost.
Fixed order quantity
An order policy type that calculates order shift but has a one-hour meeting and two
Job
quarter-hour breaks that day, the total
size for a day’s requirements based on one or A series of business activities that, when
available time would be 6.5 hours.
more of these variables: standard order completed, will fulfill a high-level objective.
quantity, order increment size, minimum Inclusions
order size, and maximum order size. Job category
Option items automatically added to a
Groupings that you can create to organize
Fixed quantity configured bill of materials when a customer
the titles and descriptions of jobs within
The quantity of a component that is required selects a certain option. For example, a
your company. Each job category must
computer manufacturer might offer a
for each manufacturing order, regardless of include a set of values that can be used to
computer system in tan and black. If the
how many finished goods are produced with sort all jobs. For example, you might create a
the order. For example, if you use two customer selects the option for a tan
job category called REGION so you could
computer, the computer manufacturer might
widgets to calibrate equipment each time track jobs from specific geographical areas.
set up the super bill of materials so that the
you begin a new manufacturing order, the Values for that job category might be East,
fixed quantity for widgets would be 2 for the tan keyboard automatically is included as
West, North and South-or might be states,
part of the purchase.
finished good bill of materials. provinces, countries/regions or other areas.
Floor stock Indirect labor
Job costing element
The time spent on tasks that are not directly
A bill of materials component that uses the A type of element that can be linked to a job.
related to filling a specific manufacturing
same site for its issue-from and issue-to sites.
The cost of this type of floor stock is applied order. Examples of indirect labor include Job costing transaction
meetings and training. An instance of a job element that is linked to
to the cost of the finished item. See also
Expensed floor stock. a specific job, capturing information about a
Instruction sheet
specific revenue or expense associated with
Forecasted demand See Routing.
the job. Job costing transactions aren’t
An estimate of how much of an item should Infinite scheduling accounting transactions: they won’t affect
be produced over a specific period of time. A scheduling method that assumes that all the General Ledger or any subsidiary
required capacity for labor and machines is ledgers.
Forward infinite scheduling
A scheduling type based on a starting date always available.
Job order
for an order, with the assumption that the Invoice history See Manufacturing order.
plant has unlimited machine and worker The information tracked about past invoices.
capacity for the work order. Job transaction list
Invoice history allows you to determine
A selection of transactions to be applied to a
Full regeneration what historical information you will need for
specific job. You can use transaction lists to
An MRP process that recalculates your MRP tracking sales activity. History information
specify the kinds of transactions that should
can include transaction detail and/or
data, including all sales orders, purchase be applied to jobs, and to specify the
account distributions.
orders, sales forecasts, and manufacturing transactions to be applied automatically to
orders. See Net change regeneration. Issue jobs.
Functional currency A type of component transaction. When
Kit
The currency type (such as dollars or components are issued for a manufacturing
A group of finished items that compose a set.
order, they are removed from inventory and
pounds) used by your organization for its
added to WIP.
accounting. See also Originating currency.

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Labor code Machine time Manufacturing picklist

A code that is used to tie a job function to a The number of machine hours needed to A list of the items and quantities of items
specific pay grade. Usually, jobs requiring complete the operation. that are required to fill a manufacturing
fewer skills have lower pay grades and are order.
compensated at lower rates. Jobs requiring Machine utilization
more skills or education have higher pay A measure of how much of the available Material Requirements Planning
grades and higher pay rates. machine capacity is actually being used. For A series of data collection and interpretation
example, if a machine is capable of procedures that allow you to forecast
Labor time producing 100 items per eight-hour day and resource requirements over a specified time
The number of employee hours required to you are only producing 80 items, the period (days, weeks or months).
complete the operation. machine utilization rate is 80 percent.
Maximum order size
Lead time Make item One of the variables that can be used to
The minimum amount of time required for An item that is produced by your plant. calculate order quantities for fixed or period
production of an item. order quantity order policies. Maximum
Make or Buy item order size puts a limit on the size of
Location An item that can be bought or manufactured automatically generated purchase and
A work site. Some businesses are organized by your company. manufacturing orders. If demand is greater
as a single company or division, but may than the maximum order size, an additional
have multiple sites. Make to order
order will be created.
An order fulfillment method for made items.
Lot-for-lot When make-to-order items are sold, MFG BOM
An order policy for ordering the exact manufacturing orders to build the items See Manufacturing bill of materials.
quantity needed, provided that the order required to fulfill the manufacturing orders
quantity is between the minimum and are created. Manufacturing orders are used Minimum order size
maximum order quantities. to respond to specific sales orders One of the variables that can be used to
calculate order quantities for fixed or period
Lot-numbered item Make to stock order quantity order policies. It is similar to
Any inventoried item that is part of a group An order fulfillment method for made items. standard order quantity, and is used in its
that is assigned a unique identifier, which When make-to-stock items are sold, the place if the standard order quantity is zero. If
can be letters, numbers or a combination of quantities required to fulfill the sales order the standard order quantity is greater than
letters and numbers. are taken from inventory quantities. zero, the standard order quantity supersedes
Manufacturing orders are used to keep the minimum order size.
Lot-number–tracked item inventory levels up so that sales orders can
See Lot-numbered item. be fulfilled. Module security
Lot-sample size A way to see if other users are working with
Manufacturing bill of materials records that prevent you from completing
The number of item units that should be The bill of materials used to build a parent certain processes. Module security also
inspected to determine if a group of items part in your organization. A manufacturing allows you to unlock records and remove
meets specifications. bill of materials is the “real” bill of materials, users from MRP.
Lot-tracked item and is used to figure material requirements
See Lot-number–tracked item.
for your organization. Move in
To adjust the due dates of existing
Low-level code Manufacturing data sheets manufacturing orders and purchase orders
See Routing. to meet potential shortages identified by
A code that identifies the deepest level an
item has in any bill of materials in your Manufacturing order MRP calculations. If MRP calculations
manufacturing records. uncover a shortage of an item and if there’s
A set of documents conveying the authority
an existing order for the item in the future,
Machine to manufacture parts or products in specified
quantities. Manufacturing orders are also the order will be flagged to be “moved in” to
Any tool, device or implement that you use prevent the shortage.
called batch cards, job orders, production
in your manufacturing process.
orders, run orders, shop orders, or work Move out
Machine allocation orders. To reschedule certain manufacturing orders
The assignment of a machine to a work area. or purchase orders to prevent stock overages
Each allocation record displays available
Manufacturing order receipt
A document where material, labor, and on the current due date. An appropriate
machine hours, the efficiency rating, and future date to move the order to cover a
machine costs in WIP are applied to finished
utilization rate for that machine. Total future net requirement is proposed
scheduled machine hours for the work goods that are received in inventory. Costs
for backflushed materials, labor, and Move time
center are also displayed.
machine time also are applied to the finished The number of hours needed to physically
Machine definition goods cost. move an item to the next operation.
The record of a machine in your plant that
allows you to track statistics for each
Manufacturing order routing MRP
machine, including vendor information, A routing used to complete a specific See Material Requirements Planning.
manufacturing order, which includes all the
warranty period, and operating costs.
necessary requirements to fill the order, such
Machine efficiency as workers, machine time, and raw
A measure of how a machine is suited for a materials. Also known as “manufacturing
specific task. The higher the efficiency rating, routing.”
the more effectively the machine works.

246 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
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MRP shortage Operation code Outsourcing routing

A lack of resources to produce the required A code assigned to a particular task within A routing that includes one or more
amount of an item to fill outstanding orders. the manufacturing process. For example, in a sequences that are completed by an
Manufacturing orders can be entered company that makes electrical components, outsourcing vendor.
regardless of current stock of available the operation code for testing the validity of
materials. a certain characteristic might be “110.” Also, Outsourcing vendor
op code. A vendor that you purchase outsourced
Multi-level bill of materials services from.
A bill of materials that lists all the Operation list
components directly or indirectly involved See Routing. Outsourcing work center
in building the parent part, together with the A work center where outsourced services are
required quantity for each item. For Operations sheets performed. An outsourcing work center can
example, if a subassembly is used in the See Routing. be on-site or can be at the vendor site.
parent part, the multi-level bill of materials Option Overhead
will show all the components needed to In sales configurator, an option is one of the Costs incurred that cannot be directly related
build the subassembly, including purchased
available choices for some aspect of a to the products or serviced produced. These
parts and materials. See also Single-level bill
configured item. For example, a computer costs, such as light, heat, supervision, and
of materials. manufacturer might offer 15-, 17- and 21- maintenance can be grouped and distributed
Negative WIP inch monitors as options for a computer. to units of products or services by some
The situation that occurs if you enter and standard allocation method.
Option bill of materials
post a manufacturing order receipt where Parallel routing
A bill of materials for a component
more is consumed from WIP than was in
signifying that the component won’t be A routing that includes some routing
WIP for the manufacturing order. When identical in all finished products. sequences that run concurrently.
finished goods are received into inventory
before materials have been issued to the Option category Parent part
order or before labor or machine time data A group of related items that customers can An item built from the component parts. A
collection transactions have been completed, choose from, such as various sizes of parent part can be a subassembly or a final
this can occur. You must set up computer monitors. product.
Manufacturing Order Processing to be able
to enter receipts that would cause negative Option setting Pegging
WIP. A setting that controls the information that To trace an item requirement through the
appears on a report, such as sorting method, MRP system to find the source of the
Net change regeneration detail level, and range restriction. requirement quantity. Pegging will reveal
An MRP process that updates MRP whether a requirement is driven by a
information based on changes to Order increment manufacturing order, sales order, purchase
manufacturing orders, sales orders, purchase A variable that can be used to calculate order order or picklist.
orders, and inventory quantities. See also Full quantities for fixed or period order quantity
regeneration. order policies. The order increment is the Period order quantity
number of item units that can be added to An order policy type that calculates order
Nettable item the standard order quantity to increase the size for requirements for a period you
An item, site or item-site combination that is order size to meet demand. specify, based on one or more of these
included in MRP calculations. variables: standard order quantity, order
Order policy increment size, minimum order size and
Non-nettable item A method for calculating the order sizes of maximum order size.
Any item, site, or item-site combination that automatically generated purchase and
is not included in MRP calculations. manufacturing orders. Manufacturing Periodic costing
includes three order policies: lot-for-lot, See Standard costing.
Non-Standard Report fixed order quantity and period order
A report for internal use that summarizes Periodic inventory
quantity.
information about defects identified in a An inventory tracking method that involves
group of items. An NSR might also include Originating currency taking inventory on a recurring basis, such
information about the disposition of the The alternate currency that a multicurrency as monthly, quarterly or yearly. This is the
defective items. transaction was conducted in. See also same as “standard” costing.
Functional currency.
NSR Perpetual inventory
See Non-Standard Report. Outsourced item An inventory tracking method that involves
A finished good that requires one or more constantly updating inventory each time an
Op code outsourced services. item is added or removed.
See Operation code.
Outsourced service
Operation A service that is part of manufacturing
A specific task within the manufacturing
processes that is purchased from a vendor.
process. You can use operations as templates
for routing sequences. Outsourcing
The practice of using outside vendors to
Operation chart perform certain manufacturing tasks.
See Routing.

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Phantom bill of materials Process security set Quote

A bill of materials used to describe the A password or list of user IDs you define to A company’s offered price for an item that a
components of a parent part that will be built restrict authority for completing a customer or a potential customer has
as part of a higher-level parent part. The Manufacturing process. You can use one requested. Quotes can be transferred to
term “phantom” is used to indicate that the process security set for all restricted another document type, deleted or voided.
part never really exists as a stocked item, but procedures, or you can create different
is built along with the production of the process security sets for different procedures. Raw materials
higher-level part that is driving an overall Items used to build products. They can be
production order. Creating bills of materials Production variance individual items like nuts, screws and
as phantoms allows the manufacturing order The difference between the actual and diodes, or they can be subassemblies.
picklist and the Material Requirements estimated costs for a manufacturing order,
based on the working routing, the picklist, Record
Planning (MRP) features to explode through A group of computer data tied together by a
the phantom item down to the lower-level and labor and machine codes.
common key. (All of one item's
parts. Promise date information—from quantity and site
Pick document The date that the customer has been told to information to engineering data to bill of
A group of component transactions that expect receipt of the order. materials data—is the item's record.)
share a type such as Allocate, Issue, Reverse Promotion Reference designator
Issue, and that are posted together. A pick
Special pricing offered on a particular option Information that specifies where
document can include component
for a configured item. components should be used in an assembly,
transactions for multiple manufacturing such as the placement of four resistors on a
orders, items, or sites. A special pricing offered on a particular
printed circuit board.
option for a configured item.
Picklist Regular bill of materials
A list of the items and quantities of items Purchase order A simple, single-level bill of materials.
that are required to fill a manufacturing A formal request for goods or services. The
order. purchase order shows the quantity of goods Replaced item
ordered, expected receipt date, and supplier An item in a mass update to bills of materials
Planner code name. The purchase order may also include that is removed from bills of materials. A
A code that identifies the individual other information pertaining to the delivery replacement item might or might not be
responsible for the production of the item. of the item, such as Free On Board (F.O.B.) substituted for the replaced item.
Planning routing points.
Replacement item
A routing used to determine resource QA Required An item in a mass update to bills of materials
requirements for a potential manufacturing A designation for purchased items that must that is added to bills of materials. A
order. If negotiations with the customer are pass a quality inspection before being added replacement item might be an addition to a
successful, the planning routing can be to your inventory. bill of materials, or might be a substitution
converted into an active routing and used to
for a replaced item.
fill a manufacturing order. Quantity damaged
The total items, if any, damaged during Return
Pointer routing shipping. An item or merchandise returned by a
A pointer routing is used to outline a series
customer to your company. A return
of steps that are common to all items Quantity ordered decreases the customer's balance on account
produced by your plant. For example, if each The amount of the item requested on a single
and, if you choose, increases inventory
item needs to be tested by quality assurance, purchase order.
quantities.
packaged and shipped, a routing can be
defined to cover these steps for all items that Quantity received Revalue
you manufacture. The amount of the item received from the
To finalize rolled-up standard cost changes.
supplier. Revaluing replaces existing standard cost
Post-to site information with new standard cost
The site where the finished product will be Quantity to fill
An amount of a product that was ordered information, which is used in your
stored prior to delivery to the customer. This accounting processes. As you change your
location can be a department, a warehouse, but has not been received.
standard cost information, you might roll up
or another plant. Query costs several times, but probably will revalue
Primary routing A search through a specific set of records for items only at certain points.
A routing that provides the instructions for certain information.
Revenue/expense code
building an item. It is a basis for scheduling Queue time A short identifier used to categorize
and resource estimates. The primary routing
The number of hours spent waiting for the expenses and revenues linked to a job.
information is used to determine the
operation to begin.
required lead time for manufacturing the Reverse allocate
product. Each item can have only one active The number of hours spent waiting for an A component transaction type where items
primary routing. operation to begin. that have been allocated to a manufacturing
order are unallocated. See also Allocate.
Process security Quick manufacturing order
A type of security that allows you to restrict A manufacturing order that doesn’t require
access to certain procedures or processes you to collect information about labor and
within Manufacturing. machine time and material costs when the
order is closed.

248 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 G L O S S A R Y

Reverse Issue Run orders Setup time

A component transaction type where See Manufacturing order. The number of hours needed to prepare the
components that were issued to a work area prior to the operation.
manufacturing order (which removes them Sales order
from inventory and adds them to WIP) are A request for goods or services. Sales orders Ship date
removed from WIP and put again in can be Open (ready to be filled) or Planned The date when a sales order leaves your
inventory. See also Issue. (hold pending credit check or other criteria). warehouse or office.

Reverse Scrap Sampling Shipping method

A component transaction type where A statistical process of selecting a portion of The manner in which the items are
components that were scrapped for a a large group of items to be inspected. From transported from the supplier to the
manufacturing order are restored to the the sample you select—and your inspection manufacturer. Examples of shipping
issued (and not scrapped) quantity for the results for the sample—you can draw methods include FedEx, rail, air freight, etc.
order. See also Scrap. inferences about the overall quality of the
entire item quantity. Shop calendar
Roll up A calendar of up and down days—days
To apply calculations based on changes to SCAR when the plant is in production and when it
standard cost information to items. If you See Supplier Corrective Action Request. isn’t—for an entire manufacturing facility.
change the cost of a raw material that is part Scheduling data Shop order
of several subassemblies and finished goods,
The lead time needed to manufacture an See Manufacturing order.
"rolling up" that change will result in item on a bill of materials and the amount of
calculations that will determine the new Shop rate
scrap materials produced by the
standard costs of the subassemblies and The average pay rate for the pay grade. It is
manufacturing process.
finished goods. the figure that is used when labor costs are
Scheduling preference estimated for a manufacturing order.
As you change your standard cost
A user preference that controls the allocation
information, you might roll up costs several Shrinkage
of resources to a particular manufacturing
times, but probably will revalue items only The loss of materials. You might have raw
order. Scheduling preferences identify
at certain points. material shrinkage—such as when some
additional resources that may be available
and define waiting periods for a sequence. component items are defective and can't be
Routing
used in manufacturing—or you might have
A detailed set of instructions that describes
Scrap parent part shrinkage—such as when not all
how to create a particular item. Routings
A component transaction type where manufactured items meet your product
include operations to be performed, the
components that are issued to a standards.
scheduling sequence, machines and work
manufacturing order are flagged to be
centers involved, and hours required for Single-level bill of materials
scrapped. Scrapped component costs are
setup and run times. Routings also can A bill of materials that lists components and
applied to the manufacturing order costs,
include information about tooling, operator subassemblies, including the quantities of
but the quantities aren’t.
skill levels, inspection needs, testing each, that make up the parent part. See also
requirements, and so on. Sequence number Multi-level bill of materials.
A number assigned to a particular step in a
In engineering change management, a Site
routing is a list of users who must review an routing. Each step (or sequence) represents
an operation in the manufacturing process. A location that you have defined for storing
engineering change request before it items. A site could be a department, a plant,
The sequence number controls the order in
becomes a change order, and who must or a warehouse. The number of sites
review a change order before it's finalized. which steps are executed.
depends on your organizational structure.
Routing preference Serial-numbered item
An inventoried item that is assigned a Source routing
An individual user choice on how A previously defined routing that contains
unique identifier, which can be letters,
information is displayed or processed for one or more steps that you want to use in a
numbers, or a combination of letters and
update in the routings subsystem. new routing.
Preferences can control such actions as numbers.
substituting one description for another or Serial-number–tracked item Standard cost variance
appending work center operations notes on See Serial-numbered item. The difference between the actual costs for a
to routing notes. manufacturing order for a standard cost
Serial-tracked item, and the standard cost of the item.
Routing sequence See Serial-numbered item.
A single step in the manufacturing process. Standard costing
Some routings will contain multiple steps Setup cost An accounting method used by some
while others will have only a single step. The cost of preparing a work area for businesses to value their inventories. A
Examples of a sequence include assembly, production. Setup costs might include the company that uses standard costing—also
painting, drying, etc. cost of calibrating machines or gathering the known as “periodic costing”—revalues its
necessary tools and resources. inventory periodically to reflect significant
Routing sheets changes in the cost of its items.
See Routing. Setup labor code
A labor code that identifies the skill
Run labor code requirements for the person preparing the
A labor code that identifies the skill work area prior to performing the
requirements to perform the operation as manufacturing task.
defined.

MANUFACTURING PRODUCTION FUNCTIONS 249

G L O S S A R Y

Standard order quantity

A variable that can be used to calculate order
quantities for fixed or period order quantity
order policies. It is similar to a minimum
order quantity, requiring no less than a set
amount for an order, but it can be increased,
either by increments or multiples of the
standard order quantity.

Subassembly
A part that is both a component and a parent
part. An assembly that is used in the
manufacture of a higher-order assembly.

Super bill of materials

A list of all the component items that can
possibly be included the bill of materials for
a finished item. For example, a computer
manufacturer might develop a super bill of
materials that includes several options for
hard disks, RAM, monitors, keyboards, mice
and other peripherals. No computer can
include all the options, but all the options
must be included in the super bill of
materials.

SUPER BOM
See Super bill of materials.

Supplier
A person or company that supplies goods or
services to a manufacturer.

Supplier Corrective Action

Request
A formal report to be sent to a supplier to
involve the supplier in resolving problems
with defective parts. SCARs describe the
problems you’ve found—including item
numbers, lot numbers, dates and test
results—and might outline possible areas for
the supplier to research to prevent the defect
from recurring. Suppliers usually are
required to respond to the SCAR reports
with information about the cause of the

250 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
Index B
back orders
component transactions (continued)
and pick documents 71
and manufacturing orders, fulfilling bins 77
A with linked 140 cost calculations 84
accounts backflushing deleting 88
invoicing for outsourced services 198 labor costs effect of allocating on MRP 71
WIP for outsourced services 196 calculations 164 entering 73
active routings data collection transactions 220 handling exceptions 74
actual and estimated times 100 machine costs 222 lot number consolidation 83
described 10 materials 90 lot numbers 79
modifying 98 backward infinite scheduling, described modifying 83
rescheduling 52 posting 71
entire 101 Batch Reschedule window serial numbers 81
sequences 100 displaying 102 viewing for a pick document 122
viewing 97 rescheduling 102 viewing for ranges 136
actual cost items, viewing for batches, posting time card information components
manufacturing orders 130 227 adding to picklists 75
actual demand, described 109 bills of operations, see routings backflushing 90
ADC Transactions report, printing 230 Bin Quantity Entry window consumption in manufacturing
Add Picklist Entry window displaying 78 orders 128
adding items to picklist 92 modifying bins for a component dates required 53
displaying 92 transaction 78 linking serial and lot numbers 149
Additional Outsourcing Cost Distribution specifying bins for finished goods 144 linking to sequences 27
Entry window bins lot numbers
applying outsourcing costs 198 backflushed components 77 component transactions 79
displaying 198 by-products 77 quick manufacturing orders 103
Additional Outsourcing Cost Distribution component transactions 77 viewing links 128
Inquiry window effect on manufacturing orders 54 required quantities 53
displaying 211 finished goods 143 serial numbers
viewing distributions 211 manufacturing order receipts component transactions 81
allocating entering 142 quick manufacturing orders 103
see also component transactions modifying 143 viewing links 128
described 50 quick manufacturing orders 108 transaction types 70
effect of shortages 64 WIP quantities 140 viewing
viewing component information 122 BOM Routing Link window in picklists 72
with component transactions 73 displaying 28 serial and lot number links 128
with picklist 72 linking 28 computers, designating ADC processor
alternate items, component transactions modifying links 29 230
87 unlinking 30 cost buckets for outsourcing
alternate routings viewing links 31 calculations 176
described 11 by-products described 175
specifying 15 bins 77 overview 176
automated data collection manufacturing order receipts cost variances
corrections overview 156 causes 166
for posted transactions 232 procedure 142 described 51
for unposted transactions 231 required dates 53 viewing 130
described 217 costs
designating workstation 230 C component transactions 84
overview 229 capacity, effect of closing manufacturing labor
reports 230 orders 163 backflushed 164
requirements 229 Capacity Requirements Planning, calculations 134
Automated Data Collection Preferences updating for MRP-planned direct 219
window manufacturing orders 67 entering from time card 225
designating processor 230 changes since last release, information indirect 220
displaying 230 about 4 viewing 129
Automated Data Collection window Component Quantity Calculation machine
correcting entries 231 window, displaying 141 calculations 135
displaying 231 component transactions entering for manufacturing
see also pick documents orders 221
affected by outsourcing 233 viewing 129
alternate items 87 picklist items 136

MANUFACTURING PRODUCTION FUNCTIONS 251

IN DEX

costs (continued) Data Collection Transactions window G

setting up labor calculations 134 (continued) general ledger
viewing entering payroll transaction 238 relationship to component
detail 236 Data Collection window transactions 71
summary 235 correcting unposted transactions 232 variances 133
cycle times displaying 219 General Posting Journal report 94
in calculations 23 entering direct labor 219
in routings 17 entering indirect labor 220 H
entering machine costs 221 header records
D reversing entries 222 defining for a routing 14
data collection dates deleting 37
see also automated data collection, ending for manufacturing orders 59 described 9
work in process manufacturing orders modifying 38
backflushed labor costs 164 entering 59 help, displaying 4
correcting modifying 165 Help menu, described 4
posted entries 232 required dates, components and MRP history
unposted entries 231 71 manufacturing orders, viewing 117
direct labor starting for manufacturing orders 59 removing for manufacturing orders
entering from time cards 225 demand 170, outsourcing effects 204
entering transactions 219 allocating components 71
indirect labor types 109 I
entering 220 direct labor icons, used in manual 3
viewing 241 described 216 indirect labor
machine time 221 entering described 216
manufacturing orders from time cards 225 entering 220
viewing details 236 from travelers 219 viewing for employee 241
viewing summary 235 distributions for outsourcing Indirect Labor Inquiry window
methods 216 entering for additional costs 197 displaying 241
outsourcing viewing for additional costs 210 viewing for an employee 241
overview 233 documentation, symbols and conventions instruction sheets, see routings
routing sequences 234 3 Inventory Control Setup window, Allow
payroll drawings, attaching to routings 19 Adjustment Overrides option 64
exception report 239 Inventory Transaction Journal report 94
relationship to 238 E invoicing, outsourced services 198
transactions 238 Edit Manufacturing Order Status window issue-from sites
posting time card batches 227 displaying 66 manufacturing orders 59
reports 230 updating manufacturing order quick manufacturing orders 106
reversing entries 222 statuses 66 issue-to sites, manufacturing orders 59
time cards 216 ending quantities 59 issuing
travelers 216 estimated costs, viewing 130 see also component transactions
verifying transactions 239 component transactions 73
Data Collection Summary window F described 50
displaying 235 field-used queries 34 how costs are calculated 84
viewing summary information 235 finished goods items
Data Collection Summary–Direct Labor lot numbers see also components
window assigning 148 adding components to picklists 75
displaying 237 viewing links 128 and manufacturing orders
viewing data collection details 237 serial numbers adding to picklist 92
Data Collection Summary–Machine choosing pre-entered 147 adding to receipts 152
window generating 146 allocating 72
displaying 237 manually entering 145 alternate items 87
viewing data collection details 237 viewing links 128 backflushing in Picklist window
Data Collection Summary–Material forecasted demand 109 90
window forecasts, types of demand 109 calculations for transactions 84
displaying 237 forward infinite scheduling, described 52 default quantities for closing 163
viewing data collection details 237 freight charges receiving shipments 196
Data Collection Transaction Log window outsourcing
displaying 240 distributing 197 L
verifying transactions summary 240 viewing 210 labor codes, described for outsourcing 176
Data Collection Transactions window labor costs
displaying 238 backflushing 164

252 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 I N D E X

labor costs (continued) Manufacturing Component Serial Manufacturing Order Entry window
calculations 134 Number Selection window displaying 58
direct displaying 82 manufacturing orders
entering for receipts 154 selecting components 82 creating 58
entering from time cards 225 Manufacturing Component Transaction deleting 68
entering from travelers 219 Entry window Manufacturing Order Preference Defaults
for an outsourced sequence 233 adding components to picklists 76 window, Allocate Inventory when MO
for payroll 238 component transactions Status becomes Released option 64
indirect deleting unposted 88 Manufacturing Order Receipt Component
entering 220 entering 73 Detail window, displaying 126
viewing 241 modifying 84 Manufacturing Order Receipt Component
setup calculations 134 using alternate items 87 Entry window
landed costs, for outsourcing 197 displaying 73 adding items to receipts 153
lookup window, displaying 4 printing picking reports 88 displaying 153
lot numbers using pick documents as templates 91 Manufacturing Order Receipt Cost
adding to manufacturing order Manufacturing Component Transaction Inquiry window, displaying 126
receipts 141 Inquiry window Manufacturing Order Receipt Entry
automatic selection 104 displaying 122 window
components viewing, component transactions 122 displaying 140
component transactions 79 manufacturing data sheets, see routings entering receipts 140
linking 149 Manufacturing Item Transaction Inquiry linking serial and lot numbers 150
quick manufacturing orders 103 window Manufacturing Order Receipt Inquiry
viewing links 128 displaying 136 Detail window
consolidation 83 viewing component transactions 136 displaying 125
finished goods Manufacturing Lot Number Entry viewing receipt details 125
beginning of order 59 window Manufacturing Order Receipt Inquiry
end of order 148 displaying 148 window
linking 149 entering for finished goods 148 displaying 124
linking 149 Manufacturing Order Activity report, viewing receipts 124
manual selection 104 printing 118 Manufacturing Order Receipt Labor/
manufacturing shipments Manufacturing Order Activity window Machine Cost Entry window
entering 193 displaying 118 displaying 155
viewing 208 viewing activity 118 entering labor and machine costs 155
selecting by date received 104 Manufacturing Order Add Component Manufacturing Order Receipt Labor/
selecting by expiration date 104 Entry window Machine Cost Inquiry window,
viewing links 128 adding components to picklist 76 displaying 126
displaying 76 Manufacturing Order Receipt Posting
M Manufacturing Order Calendar window Date Entry window
machine costs displaying 116 displaying 152
backflushing 222 viewing calendar 116 modifying dates 152
calculations 135 Manufacturing Order Close Backflush Manufacturing Order Receipt Posting
entering for receipts 154 Quantities window Date Inquiry window, displaying 125
overview for outsourcing 233 displaying 161 Manufacturing Order Receipt Quantity
machine times, entering 221 viewing backflush quantities 161 Inquiry window, displaying 125
Manual Scheduling window Manufacturing Order Close Posting Date manufacturing order receipts
displaying 101 Entry window adding items 152
rescheduling sequences 101 displaying 165 bins
Manufacturing Component Consumption modifying dates 165 backflushed components 77
Inquiry window Manufacturing Order Close window modifying 143
displaying 126 closing an order 161 by-products 156
viewing component information 129 displaying 161 dates 152
Manufacturing Component Lot Number Manufacturing Order Closeup window described 51
Inquiry window, displaying 123 displaying 98 effect on linked sales orders 156
Manufacturing Component Lot Number viewing, sequences 98 entering 140
Selection window manufacturing order costs labor costs 154
displaying 80 see also variances linked to sales orders 140
selecting components 80 labor 134 lot numbers for finished goods 148
Manufacturing Component Serial machine 135 machine costs 154
Number Inquiry window, displaying materials 136 overview 139
123 setup labor 134 posting 157, 158
posting a reversing receipt 158

MANUFACTURING PRODUCTION FUNCTIONS 253

IN DEX

manufacturing order receipts (continued) Manufacturing Order Variance window manufacturing orders (continued)
reversing 158 (continued) component transactions
serial numbers values in calculations lot numbers 79
automatic entry 146 setup labor 134 modifying 83
choosing pre-entered 147 viewing variances 131 quantities 53
manual entry 145 Manufacturing Order/Purchase Order required dates 53
viewing Link by Vendor Inquiry window serial numbers 81
details 124 displaying 206 types 70
summary 123 viewing purchase orders 206 viewing 122
Manufacturing Order Routing Sequence Manufacturing Order/Purchase Order components
Edit window Link by Vendor window linking serial and lot numbers
displaying 99 changing vendors 189 149
modifying working routings 99 displaying 187 viewing links 128
Manufacturing Order Routing View purchase orders cost variances, described 51
window creating 187 costs
displaying 97 voiding 190 viewing 235
viewing working routings 97 Manufacturing Order/Purchase Order viewing for sequences 129
manufacturing order setup, automatic Link Inquiry window creating
allocations on release 64 displaying 206 basic 57
Manufacturing Order Shipments by viewing purchase orders 206 for MRP demand 109
Vendor Inquiry window Manufacturing Order/Purchase Order dates for components 53
displaying 207 Link window deleting 68
viewing shipments 207 displaying 187 described 50
Manufacturing Order Shipments by purchase orders direct labor
Vendor window creating 187 from time cards 225
displaying 192 voiding 190 from travelers 219
manufacturing shipments manufacturing orders effect of using multiple bins 54
recording 192 activity ending dates 59
voiding 196 reason codes 118 ending quantities 59
Manufacturing Order Shipments Inquiry viewing 117 Hold status 51
window allocating labor costs 134
displaying 207 components 72 linking serial and lot numbers 149
viewing shipments 207 components and shortages 64 lot numbers
Manufacturing Order Shipments window described 50 component transactions 79
displaying 192 alternate items 87 finished goods at order entry 59
manufacturing shipments and sales orders, unlinking 112 viewing links 128
recording 192 applying production to demand machine costs 135
voiding 196 existing orders 111 machine time 221
manufacturing order statuses new orders 111 material costs 136
changing 62 Canceled status 51 modifying
changing multiple 65 Closed status 52 overview 61
described 51 closing routings 98
effects 52 accounts for standard cost statuses 62
Manufacturing Order Summary finished goods 167 statuses for multiple 65
Component Detail window, displaying default item quantities 163 Open status 51
128 described 139 outsourcing
Manufacturing Order Summary Sequence effect on CRP 163 changes affecting purchase
Detail window effects 162 orders 200
displaying 130 modifying dates 165 changes affecting shipments 201
viewing sequence cost information multiple 65 described 175
130 quick manufacturing orders 108 effects of scheduling 185
Manufacturing Order Summary window rules 160 status changes 203
displaying 127 standard cost finished goods 167 overview 49
viewing order summary 127 Complete status 51 Partially Received status 52
Manufacturing Order Variance window component transactions pick documents
displaying 131 allocating 72 modifying dates 89
tabs 132 alternate items 87 overview 71
values in calculations and picklists 71 picklists
labor 134 bins 77 adding components 75
machine 135 deleting 88 adding items 92
materials 136 entering 73 deleting 94

254 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 I N D E X

manufacturing orders (continued) manufacturing routings Manufacturing Transaction Bin Inquiry

picklists actual and estimated times 100 window
described 50 described 10 displaying 123
overview 71 modifying 98 viewing bin information 123
posting sites 59 rescheduling Manufacturing/Sales Order
prerequisites 57 entire 101 Cross-reference window
printing picking reports 87 sequences 100 displaying 112
quick Manufacturing Serial Number Entry unlinking orders 112
adding components 106 window Manufacturing/Sales Order Link window
closing 108 choosing pre-entered serial numbers applying production to demand
creating 104 147 existing orders 111
default quantities 105 displaying 145, 147 new orders 112
described 50 generating serial numbers 146 creating manufacturing orders for
issue-from sites 106 manually entering serial numbers 145 MRP demand 110
overview 103 Manufacturing Serial Number Pre-Entry displaying 110
picklists 106 Inquiry window, displaying 116 material costs, calculations 136
posting 108 Manufacturing Serial Number Pre-Entry Material Requirements Planning (MRP)
primary routing 103 window and manufacturing orders, creating
sites 105 displaying 60 orders for shortages 109
Quote/Estimate status 51 entering serial numbers 60 bill of materials and routing links 27
Released status 51 Manufacturing Serial/Lot Link Entry effect of allocating components 71
removing window Mfg Component Transaction Posting Date
effect on outsourcing 204 displaying 151 Entry window
overview 169 linking serial and lot numbers 151 displaying 89
restricting list to remove 170 Manufacturing Serial-Lot Number modifying dates 89
transaction logs 171 Inquiry window, displaying 126 Mfg Component Transaction Posting Date
rescheduling manufacturing shipments Inquiry window, displaying 123
entire 101 additional costs miscellaneous charges
for outsourcing 199 distributing 197 distributing for outsourcing 197
sequences 100 viewing 210 viewing for outsourcing 210
routings affected by changes to manufacturing MO Transaction Log window
actual and estimated times 100 orders 201 displaying 172
viewing 97 described 175 removing logs 172
serial numbers lot numbers move times
finished goods at order entry 59 entering 193 described 17
for component transactions 81 viewing 208 in calculations 23
pre-entering 60 overview 178 setting up 17
viewing links 128 receiving items 196 MRP, see Material Requirements Planning
setup labor costs 134 recording 191 (MRP)
sources 57 serial numbers MRP–planned manufacturing orders,
starting dates 59 entering 194 updating CRP 67
terms 50 viewing 209
tracking progress 217 viewing 207 N
types of demand 109 voiding 195 navigation, symbols used for 3
updating CRP for planned 67 Manufacturing Shipping Lot Number new features, information about 4
user-defined fields, modifying entries Entry window non-inventoried items
99 displaying 194 adding components to picklists 75
variances entering lot numbers 194 adding to manufacturing order
causes 166 Manufacturing Shipping Lot Number receipts 152
viewing 130 Inquiry window adding to picklists 92
viewing displaying 209
activity 117 viewing lot numbers 209 O
calendar 116 Manufacturing Shipping Serial Number operation charts, see routings
component consumption 128 Entry window operation codes
component transactions 136 displaying 195 described 9
cost details 236 entering serial numbers 195 in routings 16
picklists 72 Manufacturing Shipping Serial Number operation lists, see routings
sequence costs 129 Inquiry window outsourced services
serial and lot number links 128 displaying 210 changing the vendor for 189
summaries of orders 126 viewing serial numbers 210 creating purchase orders for 186
WIP amounts 130 voiding purchase orders for 190

MANUFACTURING PRODUCTION FUNCTIONS 255

IN DEX

outsourcing outsourcing routing sequences (continued) Pointer Routing Creation window

accounts for costs 196 WIP output 182 creating pointer routings 42
accounts for invoicing 198 outsourcing routings displaying 42
additional costs overview 177 Pointer Routing Duplicate window
distributing 197 rules 180 copying 45
viewing 210 outsourcing vendors displaying 45
data collection deleting 178 Pointer Routing Edit window
overview 233 described 175 adding pointer to routing 43
overview of records 233 outsourcing work centers adding sequences 42
invoicing 198 described 175 displaying 42
landed costs 197 switching one for another modifying pointer routings 43
manufacturing orders purchase orders 200 Pointer Routing window
changing status 203 shipments 202 displaying 44
effects on component specifying sequence spacing 44
transactions 233 P pointer routings
removing 204 parallel routings adding a sequence 43
rescheduling 199 described 10 adding to routing 43
manufacturing shipments requirements 18 advantages 41
receiving 196 sequence setup 18 copying 44
recording 191 verifying 19 creating 41
viewing 207 Parallel Utilities window described 11
viewing lot numbers 208 displaying 19 modifying 43
viewing serial numbers 209 verifying parallel sequences 19 overview 41
voiding 195 payroll removing sequence 43
purchase orders and direct labor 238 position numbers
creating 186 and indirect labor 238 for picklist items, described 50
viewing 205 and work in process 238 posting accounts, closing manufacturing
voiding 190 data collection exceptions report 239 orders for standard cost items 167
setup 179 transactions 238 post-to sites
terms 175 verifying transactions 239 manufacturing orders 59
work in process output 182 pick documents quick manufacturing orders 105
workflow illustration 176 see also component transactions primary routings
outsourcing cost buckets modifying dates 89 described 11
calculations 176 overview 71 quick manufacturing orders 103
described 175 using as templates 91 specifying 15
overview 176 viewing 122 production orders, see manufacturing
outsourcing labor code, described 176 picking reports, printing 87 orders
outsourcing machine IDs, described 176 Picklist Quantity Status window production variances, described 132
outsourcing manufacturing orders displaying 84 purchase orders
changes affecting purchase orders 200 viewing quantity information 84 outsourcing
changes affecting shipments 201 Picklist window affected by changes to
component transactions 233 adding items to picklist 92 manufacturing orders 200
deleting backflushing 90 changing vendors 189
effect on purchase orders 201 deleting a picklist 95 creating 186
effect on shipments 202 displaying 72 viewing 205
deleting sequences viewing a picklist 72 voiding 190
effect on purchase orders 201 picklists
effect on shipments 202 adding components 75 Q
described 175 adding items 92 queries for routings 33
effects of scheduling 185 allocating items 72 queue times
removing 204 and pick documents 71 described 17
rescheduling 199 backflushing items 90 in calculations 23
rescheduling sequences deleting 94 setting 17
effect on purchase orders 201 described 50 quick manufacturing orders
effect on shipments 203 position numbers, described 50 adding components 106
status changes 203 quick manufacturing orders 106 closing 108
outsourcing routing sequences removing components 94 creating 104
completed 234 reports 93 default quantities 105
creating 180 viewing 72 described 50
described 175 planning routings, deleting 37 issue-from sites 106
marking complete 196 overview 103

256 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 I N D E X

quick manufacturing orders (continued) Routing Duplicate window (continued) routing sheets, see routings
picklists 106 displaying 38 routing types
posting 108 Routing Header Creation window described 10
primary routing 103 creating header 15 specifying 15
sites 105 displaying 15 Routing View Closeup window
Quick MO Add Component Entry Routing Header Edit window displaying 25
window changing headers 38 viewing routings 25
adding components to quick displaying 38 Routing View window
manufacturing orders 106 Routing Preference Defaults window, displaying 24
displaying 106 allowing pointer routings 41 viewing routings 24
Quick MOs window Routing Query window routings
adding components to quick displaying 34 see also pointer routings
manufacturing orders 106 queries 34 actual and estimated times 100
closing an order 108 Routing Renumber window adding pointer 43
creating an order 105 displaying 39 alternate 11
displaying 105 renumbering sequences 39 Archived status 10
Routing Sequence Entry window attaching files 19
R displaying 14 copying 37
reason codes 118 routings cycle time
reference numbers, component adding pointer 43 described 17
transactions 71 attaching electronic files 19 in scheduling 23
Remove Manufacturing Orders window creating for outsourcing 181 deleting
displaying 170 creating headers 14 entire 37
removing sequences one sequence 23
manufacturing orders 170 creating 16 range of sequences 36
outsourcing manufacturing creating for outsourcing 181 described 9
orders 204 deleting 23 destination 35
renumbering routing sequences 38 entering WIP output 183 entering times 17
reports modifying 21 field used queries 34
ADC Transactions report 230 verifying parallel 19 generating queries 33
data collection 230 routing sequences header records
exceptions for payroll 239 actual and estimated times 100 creating 14
General Posting Journal 94 adding to pointer routings 43 described 9
Inventory Transaction Journal 94 calculations 23 modifying 38
Manufacturing Order Activity 118 copying ranges 35 linking
picking reports 87 creating 15 advantages 27
picklist 93 deleting a range 36 changing links 29
Transaction GL Register 94 deleting one 23 overview 27
required fields, described 4 linking reasons 27
rescheduling changing links 29 unlinking 30
effect on outsourcing procedure 27 Manufacturing routings 10
purchase orders 200 unlinking 30 marking completed 226
shipments 202 marking completed modifying
manufacturing orders for direct labor data collection for manufacturing orders 98
not outsourced 101 220 overview 20
outsourced 199 for direct labor from time cards revision levels 38
sequences 100 226 types 38
resources, documentation 4 for machine data collection 222 move time
Restrict Manufacturing Order Removal outsourcing described 17
window completed 234 in scheduling 23
displaying 171 creating 180 Not Released status 10
limiting orders to remove 171 described 175 On Hold status 10
revision levels WIP output 182 operation codes
in routings 15 parallel described 9
modifying 38 entering 17 specifying in routing 16
Routing Delete window overview 18 outsourcing overview 177
deleting routings 37 verifying 19 parallel sequences
deleting sequences 36 removing from pointer routing 43 described 10
displaying 36 renumbering 38 entering 17
Routing Duplicate window rules for outsourcing 180 overview 18
copying routings 38 updating 21 verifying 19

MANUFACTURING PRODUCTION FUNCTIONS 257

IN DEX

routings (continued) serial numbers Time Card Batch window

Planning routings 10 adding to manufacturing order displaying 227
primary receipts 141 posting batches 227
described 11 automatic selection 104 Time Card Entry window
specifying 15 components displaying 225
query ranges 34 component transactions 81 entering labor information 225
queue time linking 149 removing lines 226
described 17 quick manufacturing orders 103 viewing details 228
in scheduling 23 viewing links 128 time cards
Released status 10 finished goods labor time 225
renumbering sequences 38 automatic 146 posting batches 227
revision levels 15 beginning of order 59 removing lines 226
searching 33 linking 149 viewing details 228
sequence numbers 9 manual 145 time sheets, described 216
sequences, see routing sequences overview of methods 144 Transaction GL Register Report 94
setup time 23 pre-entered 147 Transaction Log Record Removal window
statuses 10 linking 149 displaying 172
time calculations 23 manual selection 104 removing transaction logs 172
total sequence time 23 manufacturing shipments Transaction Log View window
types of changes 20 entering 194 displaying 241
unlinking 30 viewing 209 viewing transaction problems 241
updating pre-entering for manufacturing transaction logs, removing 171
active routings 21 orders 60 transactions, see also component
effects of 21 viewing links 128 transactions
planning routings 21 Services items transactions in Manufacturing Order
sequences 21 for outsourcing 175 Processing, viewing for components
types of changes 21 purchase orders 186 136
viewing Set Amount window transactions in Work in Process
all 24 changing link amounts 30 exceptions report for payroll 239
attached files 20 displaying 30 for Payroll 238
for manufacturing orders 97 setup, outsourcing overview 179 overview 217
links 31 setup labor costs, calculations 134 reversing entries 222
where used queries 34 setup times, in calculations 23 verifying for data collection 239
work centers 16 shipments, see manufacturing shipments transactions, component, see component
run orders, see manufacturing orders shop orders, see manufacturing orders transactions
shortages, automatic allocations 64 travelers, described 216
S site segments, component transactions 72
sales orders sites, see issue-from sites, issue-to sites, U
and manufacturing orders, unlinking post-to sites unit costs, described 216
112 source routings, described 35 unlinking
effects of manufacturing order standard cost items lot and serial numbers 152
receipts 140 component transactions 71 manufacturing and sales orders 112
linked 156 effect of manufacturing order close routings and bills of materials 30
scheduling 167 unmet forecasted demand, described 109
effect on outsourcing manufacturing standard cost variances, described 133 Update Mfg Orders window
orders 185 statuses choosing active routings to update 23
viewing results 116 manufacturing orders displaying 23
scheduling methods changing 62 Update Routings window
described 52 changing for outsourced 203 choosing routings to update 22
manufacturing orders 59 changing multiple 65 displaying 22
scheduling preferences, manufacturing described 51 Use Pointer Routings option 41
orders 59 effects 52 User Defined Fields window
Sequence Dates window routings 10 displaying 100
displaying 100 symbols, used in manual 3 modifying entries 100
viewing routing times 100 user-defined fields
sequence numbers, described 9 T manufacturing order changes 99
sequences, see routing sequences taxes outsourcing entries 193
Sequences Copy window outsourcing
copying sequences 35 distributing 197 V
displaying 35 viewing 210 variances
cost 51

258 M A N U F A C TU R I N G PR O D U C T I O N FU N C TI O N S
 I N D E X

variances (continued) working routings (continued)

described 130 rescheduling
general ledger 133 sequences 100
production 132 viewing 97
standard cost 133
vendors
deleting 178
outsourcing 175

W
what’s new, accessing 4
WIP, see work in process (WIP)
WIP Output per MO Start Quantity,
described 182
WIP Report Options window
displaying 231
generating ADC Transactions report
231
work centers
outsourced, described 175
routings 16
work in process (WIP)
correcting
posted entries 232
unposted entries 231
effect of closing manufacturing
orders for standard cost items 167
exception report for payroll 239
indirect labor 220
labor costs
backflushing 164
entering direct labor 219
entering from time cards 225
machine time 221
payroll
relationship 238
transactions 238
using 238
posting time card batches 227
reports 230
reversing entries 222
rules to automate collection 229
terms 216
tracking progress 217
transactions 217
verifying transactions 239
viewing for manufacturing orders
details 236
summary 235
viewing indirect labor 241
work in process (WIP) accounts, viewing
for manufacturing orders 130
work orders, see also manufacturing
orders
workflows, outsourcing 176
working routings
actual and estimated times 100
described 10
modifying 98
rescheduling
entire 101

MANUFACTURING PRODUCTION FUNCTIONS 259