Proposal Summary
The procedure for computing the costs for the FG items with By-products. This computation will be handled by a script. To accomplish this, a custom sublist will be created within the work order completion record. This custom sublist will display all of the data associated with this computation.
Requirement
VKC Nuts Pvt Ltd is currently completing Work Orders that have a DEFECT when computing the costing of the FG product. Changes in the cost computation for the FG item with by-Products occur after the work order is completed. The enclosed XL sheet is an example of how to explain the details.
The current script would continue to BOOK the BY –PRODUCTS / PROCESS LOSS through the stock adjustment Automated process
· The Quantity currently for the FG /WIP items being completed is correct & hence the NEW SCRIPT should not impact the inventory of FG/WIP item.
· Only valuation of the ITEM as per WO completion should take care of the impact which is coming due to BY–PRODUCT / PROCESS LOSS & should ensure that the Quantities of RM consumed are equal to the Production of the FG/WIP product along with the generation of the BY PRODUCT / PROCESS LOSS. In the example of the WO:
· THE LHS & RHS should be matched before the successful generation of WO completion record. Otherwise, an ALERT should be triggered to MAP the same
Raw Material (LHS) Qty
401001040 117.00
This should match the Quantities being Completed for FG/WIP & PROCESS LOSS:
FG/WIP + By-product (RHS) Qty
500000226 34.10
300000002 57.00
300000181 25.80
300000143 0.10
Our Solution
We will be adding a custom sublist inside the WO completion record under a new subtab called “Computation Costs”.
This sublist will be having the columns “Components”, “Actual Qty”, “Remaining Adj. Qty”.
Components and Actual Qty fields will be non-editable. The values for these two fields will be populated directly from the “Components” sublist from the same WO completion record.
VKC Nuts Pvt Ltd will be able to enter the remaining Quantity inside the “Remaining Adj. Qty” field. VKC Nuts Pvt Ltd should manually update the Remaining Adj. Qty. field with the number of raw materials incurred in the production of by-products.
As per the entered remaining quantity inside the custom sublist, our script will be deducting this quantity from the actual component quantity inside the component sublist.
There will be a validation for comparing the Quantities being Completed for FG/WIP & Process Loss.
Validation
A script will be running to check whether the completed quantity from the “Completed quantity” field [Image 1] inside the Work order Completion record is equal to the (Sum of the quantities entered for the components from the “Component” sublist [Image 2]) + (Sum of the quantities entered for the By-products [Image 3]).
For example:
Raw Material (LHS) Qty
401001040 117.00
This should match the Quantities being Completed for FG/WIP & PROCESS LOSS:
FG/WIP + By-product (RHS) Qty
500000226 34.10
300000002 57.00
300000181 25.80
300000143 0.10
And if RHS equals LHS VKC nuts Pvt Ltd will be able to complete the record, else there will be a warning message to correct these calculations after clicking the work order completion save button.
Upon saving the WO completion record, NetSuite will use the cost fetched from the raw material item records and the quantity in the standard quantity field to calculate the projected value of the Assembly Item.
The projected value will be reflected in the Assembly Item record.
Then, in the Work Order completion record, in the edit mode, VKC nuts Pvt Ltd must enter the By-products and raw materials under the By-product subtab.
The quantity of the raw material needs to be filled from the Remaining Adj. Qty. field.
An inventory adjustment record will be automatically created upon saving the WO completion record by using the Existing customization. The inventory adjustment record adjusts the quantity and cost in the raw material and By-product item records.
An adjustment account needs to be there which will offset the adjustment amounts. This account will be given inside the field Adjustment Account if the By-Products sublist has negative quantities.
Assumptions
· Remaining Adj. Qty will be filled manually by VKC Pvt Ltd.
· All the By-Products and their quantities are entered manually.
· All the existing scripts are accessible.
Notes
· Considered only the work orders which do not have work order Issue records.
· Also, will not consider the existing work orders for this customization.
· Will consider the total component quantity sum rather than individual component quantity separately.
· Existing inventory value will not get updated by this customization. Inventory valuation will get corrected from the next period onwards after we implement and follow the customization mentioned in the proposal.
Exclusion
· If the entered remaining quantity and the by-product qty are incorrect, it will adversely affect the rest of the calculations and the validation.
· After we implement the solution, the component quantity to be reduced should be entered under the By-products subtab along with by-products details. Otherwise, the inventory adjustment record will not include the adjustment of components used in the By-products production.