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WO-G  Issue Materials

Purpose of Program

Use this program to issue materials from on-hand inventory to specific work orders.  Materials may either be issued from stock individually or as complete sets of the work order bill of material.

The Issue Materials program only applies to materials issued from stock.  If you are purchasing materials specifically for a work order through the Purchase Orders module, the system will bypass inventory and automatically issue the materials to the work order through PO-C  Receive Purchase Orders.

General Program Operation

Enter the work order number or select a work order number from a pop-up window by pressing the F2 key (or clicking on the Lookup button).  Either accept the computer date default or enter the date the material was issued.  The Parent Part (the item number of the item being manufactured) and its description will be displayed.

You can limit the components being issued to those linked to specific sequence(s) by entering a range.

You may enter a short note in the Reference field if there's anything you wish to record regarding this transaction.  The reference goes into the inventory transaction file and can be listed on reports.

Kit Issues and Backflushing

If you answer Y to the Kit Issue? prompt, the cursor will skip to the Qty Issued field.  Enter the number of sets of the bill of material you want issued.

After entering the quantity issued, you will see each component and its average cost display in succession as inventory gets relieved.

Many companies use the kit issue method for all transactions because of its convenience.  It allows complex sets of components to be issued with a single transaction.  It is your choice as to when the kit issue is best performed.

Some companies issue the materials when the components are physically pulled from stock; others wait until the order is completed in WO-I  Enter Finished Production and then "backflush" the materials based on whatever quantity was produced.  The backflushing prompt can be switched on in SD-B  Work  Orders Defaults.

With either kit issues or backflushing, if there are any shortages, the program will ask you if you wish to print a shortage report.  The program will issue the full amounts and will go negative on an item unless the default has been set in DEF-B Work Order Defaults (Evo-ERP) to prevent WO-G from taking inventory negative.  Planned scrap defined in the work order bill of material is included in the kit issue or backflush.

You can combine kit issues with purchasing items directly for a work order.  If the purchase orders have been placed prior to the kit issue and the line items on the purchase order assigned to the work order, then those components will be skipped by the kit issue.

List of Components Issue

If you answer L to the Kit Issue? prompt, the cursor will skip to the Qty Issued field the same as for a Kit Issue.  Enter the number of sets of the bill of material you want issued.

After entering the quantity issued, you will see the work order bill of material displayed with the required quantity for the number of sets requested, the on-hand quantity available and the suggested issue which is the smaller of the two.  If an item is on purchase order, the suggested issue quantity will be the lesser of the balance remaining for the issue after the receipt of the PO and the current on-hand quantity.  Thus, if a work order needs 25 units of a component and 5 are available in stock, a purchase order can be placed for the 20 needed and this list will suggest issuing the remaining 5 from stock to supplement the PO that has been placed for the other 20.  Any of the suggested issue quantities can be edited by highlighting the line and pressing Enter, then entering the desired issue quantity.  The lower part of the screen detailing each component includes the quantity issued previously and, if a Purchase Order has been issued for the item and is tied to the Work Order, the On PO quantity is also listed.

Once all quantities have been reviewed, click Done to save and the items will be issued.  If you do not wish to issue the items, press Esc and you will be prompted to save or to exit without saving.

Issuing the Balance Required for all Components

If you select Kit or List and then enter a 0 quantity, the program will issue sufficient stock to bring each component up to 100% issued   This can be helpful when prior issues have been for different partial quantities and you want a simple way to issue the remaining balances.  Kit will issue all remaining balances regardless of stock level while List will present a list of components and suggest a quantity to issue that will satisfy the requirements only up to the quantity of stock on-hand.  In either case, items on PO will be taken into account.

Lot and Serial Control

If a component is coded to require lot control, processing will stop and you will be asked to enter a lot number.  If you enter an existing lot number, processing will continue.  If you enter a lot number which is not on file, you will be told that the lot number doesn't exist and you will be asked if you want to add it to the lot file.  Existing lot numbers can be looked up via the F2 key (or click on the Lookup button).

In a similar fashion to lot control, if a component is coded to require serial control, you will be asked to enter a serial number for each unit being issued.  The cursor will continue stopping at the serial number field until it gets a serial number for each unit.  If you enter a serial number which is not on file, you will be told that the serial number doesn't exist and you will be asked if you want to add it to the serial file.  Existing serial numbers can be looked up via the F2 key (or via the Lookup button).

Component Record Locks

If a necessary file for any component is open by another user causing a record lock for that item, the component issue will be posted to a temporary file so that the Kit or List process is not aborted midway through the Bill of Materials.  A message to that effect will appear on the screen.  The components thus affected need to be posted at a later time using WO-O Post Material Transactions before the job costing will be correct and the work order can be closed.

Individual Component Issues

If you had answered N to the Kit Issue? prompt, the cursor would have advanced to the Item number field.  You may enter the item number for the component being issued.  Its Description will automatically be displayed as will the Quantity Required for the work order, prior quantity issued, balance needed and current on-hand stock.  Enter the Qty Issued.  If the item is coded to require lot control or serial control, you will be asked for a lot number(s) or serial number(s).

If you wish to keep track of scrap, you may enter a Qty Scrapped.  Issuing a Qty Scrapped implies that you are issuing additional material to the work order to replace a component that was scrapped during the manufacturing process.  You can not issue both scrap and regular material issue in the same transaction screen.  If you wish to track scrap to a particular reason code, you may enter a code from the scrap code file (see RO-G  Enter Scrap Codes).  You may enter the scrap code or select a scrap code from a pop-up window by pressing the F2 key (or clicking on the Lookup button).  Tracking scrap to scrap codes is usually reserved for unplanned scrap.

The system will automatically display the actual cost that will be charged to the work order.  The cost used is the component's Average Cost value from the inventory file.

Once you reach the end of the screen, the system will ask you if you want to save the record.  You can also save the record from any point on the screen by pressing the F10 key (or clicking on the Save button).

Editing Previous Entries

You may edit previous transactions to correct for mistakes.  To find the transaction from the Work Order field press the <Home> key (or click on the Dsp Material Trans button) to get a list of transactions.  You can search the list by work order, date, or parent item number.  Highlight the transaction you want and press <Enter> or click on it.

Once you press <Enter> to continue, you will be asked Do you wish to Backout this record? If you press <Enter> to accept the Y default, the program will reverse all processing that occurred when the original transaction was made.  You can then reenter the transaction, resave the screen, and a new transaction will be processed.

To delete a transaction, bring it up on the screen, indicate that you want to back out the record, then press <Esc> without making a new entry.

Processing

When a material transaction is saved, the following processing takes place.

The material cost is calculated by taking the current inventory average cost for each component multiplied by the quantity issued or scrapped.

The cost and quantity issued are posted to the work order bill of material file.  The Percent Issued for the component is recalculated.

The cost is posted to the work order header file, where it may be viewed through WO-A  Enter Work Orders or DC-I  Work Order Inquiry.  Material component costs get posted to the Actual Materials field; labor component costs get posted to the Actual Labor field.  The Variance and Percent Variance with estimated costs are recalculated.

The On-Hand quantity for the component is reduced, the In Work-in-Process quantity is increased, and the Allocated quantity is decreased.

If general ledger posting is switched on in SD-H  Inventory Defaults, the Asset account defined in the inventory master record for the component is credited and the Work-in-Process account for the item being  manufactured is debited.

A record of the transaction is made in the inventory transaction file and the Work Order material transaction file.

If a lot control entry was made, the lot file gets updated.  If serial file entries were made, the serial number file gets updated.