ISTech Support Forum - Replacing a part on a finished assembly

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Replacing a part on a finished assembly (Read 359 times)

DaveE

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Replacing a part on a finished assembly
08/25/08 at 10:28:20

Hello,

I have an assembly that's been completed and entered as finished production in the manufacturing module. Now we find that we need to replace a part in this assembly. I'm trying to figure out the correct way to do this in EVO while accomplishing the following:

1) Remove the part to use for replacement from stock.
2) Update the cost of the assembly and finished goods for this particular unit based on the cost of the replacement part.
3) Have the COGS report reflect the increased cost for when the invoice is posted for this unit.
4) NOT have the COGS affected by this for other units that are in production.

I was thinking of issuing a new work order for the assembly for which the part is normally a component but only issuing the component to be replaced. The problem with this is that it will severely reduce the average cost of that assembly.

I thought of the service/repair module but this isn't a repair. The component needs to be replaced for a new build unit.

Any thoughts? Thanks.

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GasGiant

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Re: Replacing a part on a finished assembly
Reply #1 - 08/25/08 at 11:01:41

Here is a quick way to do everything and keep the costs right:

1) Make a Work Order for the item.
2) Strip the WO BOM using WO-K-B, then put the item itself and the part you are addingg onto the Wo BOM (1 each) and the part you are removing on there as a negative (-1 each).
3) If you backflush, process with WO-I (otherwise, issue the parts)

If you do labor as a part, you will be all set. Otherwise you will need to process with zero labor.

The result will be: one of the finished item will be removed from stock at Avg Cost, one part will be returned to stock at avg, one new part will be used and one finished item will then be put into stock at the correct cost based on the subtraction of the wrong part and the addition of the correct one.

HTH

(We wind up doing this from time to time. Why? Because we never learn Roll Eyes

)

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DaveE

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Re: Replacing a part on a finished assembly
Reply #2 - 08/25/08 at 12:38:12

That seems to make sense. Just to clarify, the part being replaced was the correct part for the assembly but due to an error in production it was non-functional and needed replacement. Is this process still applicable to this instance in which the component being removed from the assembly is essentially going to scrap?

Also, a bit of a caveat in the process here. The assembly which contains the component to be replaced is a component on a higher level assembly that has already been entered as finished production. So:

F
|_ A1
|_ A2 (this is the assembly with the bad part)
| |_R1
| |_R2 (this is the bad part)
| |_...
|_ ...

So in your explanation the work order would create a new A2 component and subtract an A2 component meaning that the total change is 0. It also adds (from the negative amount on the WO) 1 R2 part. I suppose as this part is going to scrap that I can just leave the negative value off. The thing that I'd like to make sure of is that the COGS for F are correct (basically the normal COGS for F + COGS for R2).

Thanks for the reply.

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GasGiant

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Re: Replacing a part on a finished assembly
Reply #3 - 08/25/08 at 12:56:30

Yes. Well, if the part numbers are the same, then why do you need to do any paperwork? Or do you want to charge off the bad part to the job? Or is there lot/serial control on the part?

If you have no need to do either, then just add it as a misc cost on the WO and receive at standard (or whatever you choose), which should post to WIP variance and not affect the average cost. Or you can back out the original WO (reopen it and follow the instructions in WO-I for undoing a receipt) and then redo the WO and scrap the bad part. If you want to be really picky, I suppose you could adjust everything bu that one out of stock, process the WO as above, but leave out the negative part, process the sale and post the invoice, then adjust the items you took out back in at the same cost.

Just out of curiosity, why do you want to charge a failed part to a specific job/invoice? Normally you would want to burden inventory with that cost, not a single order, unless you were a job shop, but then you wouldn't be worried about average costs.

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ISTech Support Forum › Evo-ERP and DBA Classic › Manufacturing

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