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Set up part for purchase and outside process (Read 4680 times)
Lynn_Pantic
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evolution (n) -
gradual change to a
different form

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Re: Set up part for purchase and outside process
Reply #15 - 09/21/15 at 09:46:36
 
The cost goes to WIP when the PO is received.  it is not an expense, it is an increase in the WIP Asset value.  It becomes part of the Finished Good value in Inventory (again, asset account) when Enter Finished Production is performed and becomes COGS expense when the item is shipped.   Purchasing of raw materials, components and outside processing should never be an expense, it is an increase in asset value.
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Lynn Pantic
IS Tech Support
lynn@istechsupport.com
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daletone
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Re: Set up part for purchase and outside process
Reply #16 - 09/23/15 at 09:46:07
 
So with a Make-From (M) where we sent something out for outside processing we should use a Purchase Order, not a Work Order is that correct?  This is what we have been using but we are not finding a good way to reflect in inventory when Part A and Part B leave our building to go to make Part C.  It all happens just fine when the parts return as Part C, but in that time frame between when they left and when they return (which could be 10-12 weeks worst case) we are left guessing.  It seems that the Make-From is fairly popular from what I can tell, and we really like the benefits of using it - does anyone have any advice on how to make the make-from component inventory locations more transparent and straight forward during the time something is being processed?
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Dale Ames
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Beswick Engineering
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