Proposal Summary
This proposal covers the Manufacturing Module Revision and Customization of Work Order Completion records with By-Products for the accurate computation of costs of the Assembly item. The procedure for computing the costs for the FG items with By-products 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 the data associated with this computation.
Requirements
Requirement 1
VKC Nuts Pvt Ltd wants to ensure that the manufacturing configuration is correct for a set of 10 items by which the cost of the assembly item will be calculated correctly. VKC Nuts Pvt Ltd wants to review and confirm that the manufacturing module is being set up in the right way and that the cost calculations are accurate.
Also, VKC Nuts Pvt Ltd want to
- Clean up the BOM.
- Create New Cost Templates.
- Check the accounting impacts of the manufacturing process.
VKC Nuts Pvt Ltd wants to implement the same for 10 items only in Sandbox Instance first.
Scope of Work
We will implement the changes in Sandbox instance for 10 Assembly items.
As part of the configuration of manufacturing module, we will be performing the below mentioned activities,
- Check Item Master
- Review the 10 existing items in Sandbox with respect to the details of items that will be given by VKC.
- Review the existing BOMs with the component details which will be given by VKC.
- Configuration for Routing.
This includes reviewing the existing manufacturing-related records or creating new records as per the data which will be given by VKC.
- Cost Categories.
- Manufacturing Charge Items.
- Cost Templates.
- Work Centre and Work Centre Calendars
- Manufacture Routing
We will be implementing all the mentioned activities in Sandbox instance only.
Assumptions
- We assume that all the data needed for the implementation will be provided by VKC.
- VKC will be reviewing the effects on the Item cost after the configuration in Sandbox.
- VKC sandbox account will be having the latest data.
- Estimates may vary depending on the count of records needed to be evaluated.
Limitations
- Existing transactions will not be corrected through the re-configuration process.
- The existing cost of items will not get corrected.
Estimated Effort
30 Hours
Requirement 2
VKC Nuts Pvt Ltd is currently completing Work Orders that have a DEFECT when computing the cost 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
Scope of Work
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”, and “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.
To automate the calculation of remaining adjustment quantities (The Raw material quantity used to produce By-Products) for each By-product, we’ll need to predefine the quantities of raw materials required for producing one unit of each By-product. So, we will create a custom record that stores the required quantity per unit for each by-product’s production. VKC Nuts Pvt Ltd should enter these raw material quantities into the custom record for all By-product item records.
And we will retrieve the raw material quantity required to manufacture each By-product from this custom record and use it to calculate the remaining adjustment quantities for each By-product.
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.
The By-products will be automatically listed under the By-products sublist by retrieving it from the parent assembly item.
A custom rate field will be created in the by-products item record, and we will populate this rate to the ‘Rate’ column in the by-product sub list. VKC Nuts Pvt Ltd should update this rate in the By-product item record manually. VKC nuts Pvt Ltd must enter the By-products quantities in the By-product subtab.
The Name and Quantity of the raw materials used for producing By-Products will be populated in the By-product sub list from the name and quantity fields of the components sub list.
The cost of raw materials used for producing Finished Goods will be populated from the ‘Average Cost’ field in the raw materials record.
A ‘Description’ column will be added to the By-product sub list and will be fetched from the corresponding By-product’s ‘Nature’ field.
An Inventory Adjustment record will be automatically created upon saving the WO completion record by using the new consolidated script. 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. VKC Nuts Pvt Ltd should provide that Account which needs to be selected for Inventory Adjustment Record created via this automated manufacturing process.
For these customizations, we will deploy a new consolidated script including the logic of both the old scripts(VH_UE_WOC_buyProduct_NewinvAdjt_v2 and ss2 user event).
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” sub list [Image 2]) + (Sum of the quantities entered for the By-products [Image 3]).
If the there is no values in the “Completed quantity” field, will consider the value from the field “Quantity to Build” [Image 4].
If both the fields “Completed quantity” and “Quantity to Build” contains values, the script will consider the value from the “Completed quantity” field.
Image 1:
Image 2:
Image 3:
Image 4:
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 save the Work Order Completion 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 along with the other postings to the WIP account to calculate the projected value of the Assembly Item.
The projected value will be reflected in the Assembly Item record.
ASSUMPTIONS
- Remaining Adj. Qty will be retrieved from the custom record which stores the required qty/unit needed for manufacturing a by-product.
- All the By-Products quantities will be entered manually.
- VKC Pvt Ltd will be updating the by-products under their corresponding Assembly item.
- Assuming the cost of Raw Materials is fetched from ‘Average Cost’ field
- VKC Pvt Ltd should manually update the custom rate field created for by products and same will be populated in the Rate column in by product sub list.
- All the existing scripts are accessible. The new script will be the consolidation of both the existing scripts.
- Whenever component consumption is recorded in a Work Order completion record, raw materials used for the completed quantity or quantity to build of the finished good will be known to VKC and the remaining Quantity used for producing By-products will be fetched from the custom record created which stores required qty/unit needed for each by-product
- In the WIP work orders with manufacturing routing, all the components will be consumed before or at the time of entering the final work order completion record with the final operation as the Ending Operation.
- Assume that all the item records contain the value for the field “Nature” for excluding the Packing materials.
NOTES
- Considered only the work orders which will be completed through backflush. Because the components list will be shown and can be edited in the work order completion records with backflush only.
- Also, will not consider the existing work orders for this customization.
- 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.
EXCLUSIONS
- If the entered remaining quantity and the by-product qty is incorrect, it will adversely affect the rest of the calculations and the validation.
- If there is no required qty/unit mentioned for each by product, the Remaining Adjustment Qty cannot be calculated properly.
EFFORT ESTIMATION
| Description | Time Required |
| Analysis and meeting Development in SB Testing and Documentation Production Deployment | 60 hours * |
* If any variations from the mentioned scope occur, the estimated hour will change.