Work orders are pivotal in NetSuite’s manufacturing module. They orchestrate the production process, impacting inventory management, cost tracking, and product delivery. The lifecycle of a work order in NetSuite begins with Assembly Item Creation. This involves defining the finished product and its components. Navigate to Lists > Accounting > Items > New > Assembly to create an assembly item.
Once the assembly item is set up, a Work Order can be created. This can be done directly by going to Production > Transactions > Work Order > New, or it can be generated from a Sales Order if the sales order includes the assembly item.
In the work order, specify the assembly item, quantity, and location. The work order then moves to the Released stage, indicating readiness for production.
The Build stage follows, where the assembly process takes place. This can be tracked directly from the work order under Transactions > Manufacturing > Assembly Build > New. Here, the assembly builds are created directly from the work order. An assembly build transaction records the physical manufacture of an assembly item from component items and the related inventory level changes3. For each assembly build, the assembly item stock level increases, and the member items’ stock levels decrease. You can enter an assembly build for each production run to update your inventory levels. If you use work orders and have entered work orders for assemblies, you can see Building Work Orders to complete builds for those assemblies
Post-production, the work order progresses to the Closed stage, adjusting inventory levels to reflect the consumption of raw materials and the addition of finished goods.
Finally, the Billing Procedure takes place. The finished goods are linked to a sales order, which is then billed to the customer, completing the lifecycle of the work order.