Jira code: ME-82
Created a solution for satisfying the clients custom scenario for the assembly items creation without using advanced manufacturing module.
Detailed Explanation of the process
When we get a customer inquiry we will decide upon the components we need to make the integrated item also we will consult with the assembler to get assembler component details like the components which he is going to use, the quantity its price etc (outside NetSuite). So after deciding the entire subcomponents used to make the main item, we will send a quote to the customer which will not be created from NetSuite. It will be done outside the system.
When we get the purchase order request from the customer, which is as a token of confirmation from the customer side. The below mentioned are the steps which we will take to systematically record the sales of this integrated item scenario for that customer.
- Item group Creation
Prerequisite:- All components should be there in our NetSuite item record master as inventory items so that we can add it to item group. The items that we will purchase from a vendor, our items from stock ( In NetSuite we flag these two items as Normal Items) and the items which the assembler will be purchasing for the assembly purposes ( In NetSuite we flag this item as Assembler component)
In NetSuite, we will create item groups for each integrated item. Navigate to List>Accounting> items>New in that select the type as item group. In the item, group page gives the main integrated item name as the item name. Then you call to add the line components to that group along with the quantity required for making that final item. If there are two integrated items we will create two separate Item group and so on. These item group should have all the components that they use to like both normal components and assembler components. The sum of all the individual components of the item group will be considered as the unit price for that main item. While including this item in sales order you can enter the custom unit rate for all the line items of the group so it will affect group item total so you can markup the amount for desired products in the sales order itself. In item group, you can give the HSN code for the final integrated item in the HSN code filed in the item group page.
2. Sales Order Creation
Next is to create a sales order. Navigate to Transaction> Sales> Enter sales order> New. In that type the customer name and related details. In the item name field search the item group name and add the item group then all the line items will be populated there. Enter the quantity of the main integrated item, the unit price for each line item components. The total amount will be calculated automatically. When you enter the item group it may show the message called some items are back ordered it just means that those items in the group are not in stock. After adding the item in sales order all components will be marked normal items so you need to manually change the normal components under the component type to “Assembler component ” for the items which will be used by the assembler for the assembler process (The items which we will not be giving to the assembler for the assembly purpose instead he will purchase and use it). Next, you need to select the location for each line item. For the normal components, you will be selecting either the civil lines or BP office. For the assembler components, you need to set the location as the one where we will be receiving the final item. Also, this location should be mentioned in the Purchase order we place to the assembler for receiving the assembler components. Then you can select what all are needed to be included in the print for the proforma invoice by using the show item checkbox. The HSN code of the main item will be populated here also you can change it here if needed. Then save the sales order. After saving the sales order the back ordered quantity, the committed quantity, the fulfilled quantity etc will be shown here. So the back ordered quantities can be used for planning what all items need to be purchased from a vendor (By analyzing the back ordered components of “ Normal components”). Then Save the sales order. After saving only the tax and other related values will be calculated by the system. If this is any correction then you can edit this sales order to enter the correct data. Then save it. After saving only the Proforma invoice button will be showing for taking the proforma invoice Print.
3.Print the Proforma invoice
The Proforma button will be appearing after the save of the sales order. By clicking it we will get the print of proforma invoice. The proforma button shows the items which are ticked in the “Show item” checkbox. We can give this print to the customer to get the advanced payment. The payment can be recorded in the system as the customer deposit. The PDC date and PDC number will be recorded in the customer deposit. This PDC No and PDC date can also be recorded in the body field of the sales order only for our reference because it will be easier to fetch this data from the main sales order into the reports and by viewing the body field of the customer you can identify the date and the PDC number which the customer has given you.
4.Create a Purchase order for the Assembler
For Placing the purchase order for this integrated item we have set up a button in sales order named “Purchase order”. In this case for the assembler PO we need to create PO in this manner, it is a necessary condition because it helps to keep a record of some dates which can be used for the future reference. The purchase order location should be our location where we will receive the main item. The purchase order will contain the assembler components which he will be using also an other charge or service item which have a value of the service which we will pay to him for the components and his service.
5.Create purchase order for the vendor components
Next, we will place the order either by using the purchase order button in the sales order or we will navigate to Transaction> Purchases> Enter purchase order. Both the ways are acceptable since the vendor component date is not tracked in the system separately. When we do the item receipt for the vendor components the quantity on hand for these items will increase in the item record and the back ordered item in the sale order will be automatically committed so by issuing the purchase order and recording the item receipt. The components needed for fulfilling the sales order will be committed.
Note: We need to order the items such a way that all the components inside the item group of the sales order, ie all the normal components which needed to be sent to the assembler will be in committed status in the system. Because after this commit only we will send these items to the assembler for the assembly purpose.
6. Do the Item Transfer to the Assembler( Outside NetSuite)
All the normal items which need to be sent to the assembler are committed in the sales order after that only we will be taking different print outs. For the item transfer process we will be needing three document print outs from system
- Delivery challan
- Purchase order Print which we have created for the assembler in step 4
- Annexure
The delivery challan can be print using the button but for that, you need to check the “show items” box for each line items to select what all components need to be shown in the delivery challan print. This process must be done manually ie the flagging the show items of the line items. Because in the sales order you may include other components which need not be sent to the assembler for the assembly purpose. The next step is to Print the annexure. For the annexure print, there will be a button in the sale order for taking the print. This also needs to be taken after committing the Normal items in the item group. By clicking the button the list of the components which we will be sending to the assembler ie both the normal components and the assembler components from the item group will be automatically shown in the print of annexure. What’s next is that we will be taking the print of the purchase order. All these three print along with the component items will be sent to the assembler for the assembly purpose ( outside NetSuite)
7. Recording the item Receipt when we receive the assemblers integrated item.
When we receive the assembled final item we will create the item receipt for the assembler purchase order by recording that we get the assembler components but in the background, outside the NetSuite, we will receive the final assembled item. When receiving the final item only we will create the item receipt for the assemblers purchase order. The Purchase order can be navigated from the sales order or you can global search the purchase order and then mark the item receipt.
8. Prepare item fulfilment by setting a status “Picked” then do the in-house Assembly(outside the NetSuite)
When all the items of the item group are committed. The internal meaning of this is we have received the integrated assembly item from the assembler. So we need to record that fulfilment. There will be a fulfil button at the top of the sales order. By clicking it you can get an item fulfilment page in that you can record the fulfilment of the item group. You need to mark it as picked then you can do the internal assembly.
9. Change the created item fulfilment to a status “Packed” then do the in-house
Testing (outside the NetSuite)
When your in house assembly is over you need to change the status of that item fulfilment to Packed then do the internal testing for the integrated item.
10. Change the created item fulfilment to a status “Shipped”
To mark the completion of the integrated item testing, we change its status to Shipped and then the integrated item is ready for shipment to the customer.
11.Preparation of Invoice
When all the components of the sales order are fulfilled then the status of the sales order will change to Pending billing. In this case, there will be a bill button in the sales order. By using this button we can navigate to the invoice page. The print of the invoice will be based on the show item checkbox Present in the line items. Fill up the necessary details in the invoice after that we can take the print of it. Then we can dispatch the products to the customer.