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Evo-ERP and DBA Classic >> Manufacturing >> Raw Material Inventory
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Message started by Lisa_Jones on 08/29/05 at 15:20:25

Title: Raw Material Inventory
Post by Lisa_Jones on 08/29/05 at 15:20:25

We have metal that is ordered by a vendor in bulk for a part that he machines. We purchase the material ahead of time and he stores it until it is time to make the parts. I am not quite sure how to set up the BOM so that the raw material shows in inventory before it is actually machined. Any ideas?

Thanks.

Title: Re: Raw Material Inventory
Post by Tim Keating on 08/29/05 at 18:55:16

1. Create a Part Number for the metal.
2. Create a BOM for the Parent Part listing the Raw Material and the Qty consumed per part.
3. Create a Routing with the vendor's Labor added as an Outside Process.
4. Issue a Work Order for the required Qty of the Parent Part.
5. Issue a PO to the vendor for the required processing.
6. Receive PO and Enter Finished Production and Roll-up when the goods are received.
7. When you do a Physical Inventory, have the vendor count the material on-hand for you.

Title: Re: Raw Material Inventory
Post by Mike_Habich on 08/30/05 at 05:30:55

or maybe...
1. Create a Part Number for the metal.
2. Create a BOM for the machined Part as a make-from listing the Raw Material and the Qty consumed per part.
3. no Routing
4. no Work Order
5. Issue a PO to the vendor for the machined part (which automatically includes negative qty for material).
6. Receive PO and automatically consume material when the goods are received.
7. When you do a Physical Inventory, have the vendor count the material on-hand for you.

We do this for castings we have machined.

Title: Re: Raw Material Inventory
Post by Lenette on 08/30/05 at 07:14:23

We have been following the process Mike listed since 2002. HOWEVER, there is a bug in the system and if you change the price via PO-C it will throw your RNI out of balance (RNI report vs. Balance Sheet) along with wacking out the Last Cost for the part. This will really freak out those who review your COGS vs Income Rec'd GL lines.

I have recently changed my default not to let PO-C update prices. HOPEFULLY, with this in place and Lynn's promised bug fix the problem will go away.