We have always bought our lumber kiln-dried. However, we will now sometimes buy it green and get it kiln dried by a different vendor. I am trying to figure out how to allow for that. The best I've come up with is to make the Green part type R, the KD part a type A, the services as type T. That way we can buy it KD, or use a WO to put them together when purchased green. I have never used outside processing before and am not familiar with just how it works. Will this work? Any other suggestions or pitfalls to watch for?

OK - will try it out. Thanks!

Type T should ALWAYS be purchased for the work order that is converting the green wood to the dried wood.  It is not a tangible thing and never has an on-hand quantity.  It is a process being applied to the parts in the work order and the costs will post directly to WIP..

Quote from Tim Keating   on 02/16/06 at 10:18:25:

But if you are putting the WO# on the PO, why not just do that with a type R? Or is there another advantage to the Type T?

Quote from David Waldmann   on 02/17/06 at 06:26:24:

 
If your vendor uses a different Unit of Measure for the job (say Board Feet vs. Lbs) or get's better or worse yield than you expected, you can end up with a balance on the Type R Part (either positive or negative) after the WO closes.
 
Since you can't really carry a balance for an Outside Process, you have to make adjustments to correct this for each order.
 
Also, if the Vendor charges a Per Lot price and your lot sizes are variable, you have to constantly change the BOM Qty to keep things accurate.
 
Seems like the T option forces all costs to the Work Order with no extra accounting.
 
Of course, you still have to account for what you sent out and what you got back.

David,
 
We use outside processing and we have to b e very careful how we use it!  We use one with an outside process on a workorder for heat treating.  There is not a seperate part but a seq number for the heat treat.  That works pretty good.
 
We also have a part that  we cut here then send out for bending, riviting and painting.  This one we have a problem with as we do a single WO to create three parts (a shroud with one top and two sides)  It is processed outside as a single piece and most of the time, we use it as a single peice,  However, sometimes we sell or use as individual pieces.  That's where the problem comes in.   So we will do a reverse BOM to the break out the three pieces then do a cost adjust on the single pieces so they have fairly accurate prices.
 
The third is a part that we sometimes make in-house and other times have it done outside.  For this we have two part numbers.  One for what we build as a type A  and the second as a type M where we send that parts out,  they are made into a kit (not the Kit in DBA) and we receive as a M.  in Workorders we can substitute the A part with the M part. (The A Part was a kit, however kits aren't displayed or broken down as kits on a WO BOM so we changed to an A).
 
Hope it helps,
 
 
Tim

Any Outside processing (other than using Make-From) should be assigned to a work order and go into WIP so there is no need for a GL Account on the PO Line.  Both Service PO (Outside Process operation on a Routing) and type T parts should be assigned to a Work Order and the cost goes to WIP as part of the work order cost.

When you purchase to a work order, the GL used is the work order's sku (part) GL account (when you do finish production)
 
 
 
Kelloggs