Manufacturing an assembly item in NetSuite involves a structured process that integrates inventory management, bill of materials (BOM), and work orders to build the final product. Below are the steps to manufacture an assembly item in NetSuite ERP:
1. Enable Required Features
- Ensure the necessary features are activated in your NetSuite account:
- Go to Setup > Company > Enable Features.
- Under the Items & Inventory subtab, check the boxes for:
- Inventory (to track stock levels).
- Assembly Items (to enable assembly functionality).
- Save the changes.
- This step is typically done by an administrator and is required before you can create or build assembly items.
2. Create an Assembly Item Record
- Define the assembly item, which represents the finished product you want to manufacture:
- Go to Lists > Accounting > Items > New.
- Select Assembly/Bill of Materials as the item type.
- Enter details such as the item name, description, and inventory settings (e.g., costing method).
- In the Bill of Materials section, list the components (raw materials, sub-assemblies, or parts) required to build the assembly, including quantities per assembly.
- Save the record.
- This establishes the “recipe” for the assembly item.
3. Verify Component Availability
- Check that you have sufficient quantities of the components listed in the BOM:
- Go to Lists > Accounting > Items and review the inventory levels of each component.
- If components are missing or low, create purchase orders (Transactions > Purchases > Enter Purchase Orders) to replenish stock.
- NetSuite tracks component stock separately from the finished assembly item.
4. Create a Work Order (Optional)
- If you want to plan and track the production process, create a work order:
- Go to Transactions > Manufacturing > Enter Work Orders.
- Select the assembly item from the list.
- Enter the Quantity to Build (how many units you want to manufacture).
- Specify the location (if using multiple locations) and any other details (e.g., start/end dates).
- Save the work order.
- Work orders are useful for scheduling production and managing larger or more complex builds, but you can skip this step and go directly to an assembly build for simpler processes.
5. Build the Assembly Item
- Record the production of the assembly item using an assembly build:
- Go to Transactions > Manufacturing > Build Assemblies.
- Select the assembly item you want to build.
- Enter the Quantity to Build (this should not exceed the buildable quantity based on available components).
- If applicable, select the location and subsidiary (for NetSuite OneWorld users).
- On the Components subtab, verify the default quantities of each component (pulled from the BOM) and adjust if necessary (e.g., for special builds).
- If using serialized or lot-numbered components, enter the relevant serial/lot numbers.
- If using bin management, specify the bins for components.
- Click Save to complete the build.
- This transaction deducts the component quantities from inventory and increases the stock of the finished assembly item.
6. Review Inventory Updates
- After the assembly build is saved, NetSuite updates inventory levels:
- Component quantities decrease based on the BOM and the quantity built.
- The assembly item’s stock increases by the quantity built.
- You can verify this by checking the item records (Lists > Accounting > Items) or running an inventory report.
7. Handle Work in Process (WIP) (Optional)
- If using the Manufacturing Work in Process (WIP) feature (enabled under Setup > Company > Enable Features > Items & Inventory), follow a multi-step process:
- Issue Components: Go to Transactions > Manufacturing > Issue Components to move raw materials to the production area (transfers costs to a WIP account).
- Record Completion: Go to Transactions > Manufacturing > Work Order Completion to add the finished assembly to inventory.
- Close Work Order: Go to Transactions > Manufacturing > Enter Work Orders > List, view the work order, and click Close when production is complete.
- This is useful for tracking costs and progress in multi-stage manufacturing.
8. Fulfill Orders (if applicable)
- Once the assembly item is built and in stock, it can be used to fulfill sales orders:
- Go to Transactions > Sales > Enter Sales Orders, select the assembly item, and process the order as usual.
- The built assembly is treated like any other inventory item for sales and shipping.