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Processing Production Orders

The production order is a significant element in the Manufacturing area of the program. Production orders allow you to manage your entire production activity and carry out planning for material and capacities. Production orders can be created manually or automatically from Sales Orders.

To Create a Production Order:

You create a new production order by:

  1. completing the production order header  

  2. refreshing the production order lines

A production order can contain an unlimited number of production order lines.

Routing Link Codes and Inventory Reservations

Production Order Changes

There may be various types of anticipated changes that need to be made to a production order prior to it being released to the shop floor. You may also need to make changes to a production order after work has begun.

NOTE

If ledger entries have been posted for the order, then you cannot change the quantity on the production order header or lines, nor can you reset dates and time on the Schedule tab.

Changes to Components

Components may often need to be changed in order to manufacture an item. This is usually the case in a Make-to-Order (MTO) company, where items are produced to customer specifications. A production order may be created for an MTO item with components from a standard template production BOM. The components are then modified as needed.

To change a production order component:

  1. From the Prod. Order Component window select the component/item to be changed.

  2. Press F4 to delete the component.

  3. Click the Yes button in the Delete Prod. Order Component confirmation window.

  4. Press F3 to insert a new component in the BOM and complete the required fields.

Changes to Routings

Similar to the components, it may be necessary to modify the production order routing. In an MTO company, this is usually the case where items are produced to customer specifications. A production order may be created for an MTO item with operations from a standard template routing. The operations are then modified as needed. In order to recalculate the routing when operations have been changed, you would have to utilize the Replan function.

To change a production order routing:

  1. From the Prod. Order Routing window select the operation to be changed.

  2. Press F4 to delete the operation.

  3. Click the Yes button in the Delete Prod. Order Routing Line confirmation window.

  4. Press F3 to insert a new routing line and complete the required fields.

  5. Run the Replan Production Order batch job.

Replanning Production Orders

The Replan Production Order batch job is used to reschedule production orders, such as when you want to make changes to a production order routing. It is also used to create and plan production orders for lower level assemblies, as required by the current parent production order. When you replan, you not only select the scheduling direction, but also the number of levels for which you are planning.

The Replan Production Order batch job is not meant to be a substitute for the more advanced calculations of planning. While it can create orders for required lower level assemblies, it does not include time phasing, which is integral to planning calculations. A good use of this batch job is for a multi-level production order in which the parent and sub-assemblies are on the same production order and the Ending Date is adjusted for the parent item. In this situation, the batch job enables you to adjust the dates for the lower level assemblies.

There are three different levels that can be used when replanning:

Furthermore, when lower level production orders are created, the planning lot number is copied from the parent production order heading to the lower level production order headings. This is another link or connection between production orders.

Change Production Order Status

The first method of changing the production order status is to change the status in the current production order itself by selecting Functions, Change Status. This window allows you to select the status which this production order is to be assigned, enter the appropriate Posting Date, and select whether the unit costs of this production order are updated by placing a check mark in the Update Unit Cost field.

The second method is to utilize the Change Production Order Status batch job, which changes multiple orders simultaneously.

Material Consumption

Materials may be consumed manually through the Consumption Journal, which may be desirable if there are frequent component substitutions or greater than expected scrap that needs to be reported.

Materials may also be consumed using automatic reporting, which is based on the different Showreporting methods.

To Post Consumption Manually:

  1. Open the Consumption Journal window.

  2. Select your batch.

  3. Click the Functions, Calc. Consumption.

  4. On the Production Order tab, look up the Released Production Order to report consumption.

  5. Click the Options tab and type the Posting Date and select the appropriate Calculation Based on option.

  6. Click OK.

  7. Click Posting, Post to post consumption.

The Consumption Journal entries are posted to the item ledger as a negative adjustment.

Reversing Consumption Posting

Occasionally, it becomes necessary to reverse consumption journal entries, for example when a customer cancels an order once production is underway.

To Reverse a Consumption Journal Entry:

  1. Open the Consumption Journal window.

  2. Select your Batch.

  3. In the Posting Date field, type the Posting Date of the entry to reverse.

  4. In the Prod. Order No. field, select the Production Order of the entry to reverse.

  5. In the Item No. field, select the item number of the entry to reverse.

  6. In the Quantity field, type a negative quantity.

  7. Click Posting, Post to post the reversal.

The Consumption Journal entries are posted to the item ledger as a positive adjustment.

Posting Output

Posting output allows you to track how much time is spent working on a Production Order as well as the quantity produced. As with material consumption, output may be recorded manually using the Output Journal, or automatically, based on the different Showreporting methods.

To Post Output Manually:

  1. Open the Output Journal window.

  2. Select your Batch.

  3. Insert the Setup Time field with the Show Column function.

  4. Fill in the Posting Date field.

  5. In the Prod. Order No. field, click the AssistButton and select the production order to record output from.

  6. Click the Functions, Explode Routing.

  7. Fill in the Setup Time and Run Time fields.

  8. Edit the ShowOutput Quantity

    The Output Quantity contains the quantity of the produced item that can be posted as output on the journal line. It is important to understand that only the output quantity on the last journal line will adjust the inventory level when posting the journal. This step indicates that the pieces are completed and put to stock.

  9. Select the Finished check box if you want the following to happen:

    1. The routing status changed to Finished.

    2. The operation removed from the Allocated Quantity field in the Work Center Load or Machine Center Load window.

    3. The operation lines set to Finished.

  10. Click Posting, Post to post output.

When an output quantity is posted for the final operation on the routing, a positive Item Ledger Entry is created. This entry increases the on-hand inventory for the parent item equal to the output quantity reported. In addition, some entries are posted to the general ledger.

Posting Scrap

If scrap is produced during processing, it can also be entered in the output journal.

Reversing Output Posting

There are times when output posting must be reversed. An example of this would be if a data entry error occurred and an incorrect amount of output is posted to a Production Order.

To Reverse an Output Journal Entry:

  1. Open the Output Journal window.

  2. Select your Batch.

  3. In the Posting Date field, type the Posting Date of the entry to reverse.

  4. In the Prod. Order No. field, select the Production Order of the entry to reverse.

  5. In the Item No. field, select the item number of the entry to reverse.

  6. In the Operation No. field, type the operation number of the entry to reverse.

  7. In the Run Time field, type a negative quantity.

  8. In the Output Quantity field, type a negative quantity, if a value was entered into this field during posting.

  9. In the Applies-To Entry field, click the AssistButton and select the associated item ledger entry. This reverses the capacity and item ledger entries.

  10. Click Posting, Post to post the reversal.

The Output Journal entries are posted to the item ledger as a positive adjustment.

Production Journal

The Production Journal combines the functions of the Consumption Journal and Output Journals into one journal, which is accessed directly from a Released Production Order form. You can register both consumption and output in the Production Journal.

When the journal is opened, it is preset with the quantities to be posted. If nothing has been posted, all quantity fields the expected quantities defaulted from the Production Order. If partial postings have been made, the quantity fields on the lines show the remaining quantities.

Finishing Production Orders

Released production orders are Finished when the Change Production Order Status function has been performed, either directly from the production order or as a batch.

Note

Finishing the production order is an important task in completing the costing lifecycle of the item that is being produced. For instance, in a standard costing environment, when you consume material to produce an item, the cost of the item plus labor and overhead costs go into WIP; when the item is produced, WIP is reduced by the amount of the standard cost of the item. Typically, these do not net to zero. So that these can net to zero, you must run adjust cost. Irrespective of the Automatic Cost Adjustment option selected on the Inventory Setup window, the adjust cost process will only consider production orders that have been Finished.

Finished production orders allow you to view the detailed history of production orders, including their routings and components. This is a valuable feature if you are in a Make-to-Order (MTO) environment where you change the routings and components as needed. When customers call later to reorder, it is easy to view what they previously ordered.

A finished production order may be used as a template for creating new production orders. This is done with the Copy Prod. Order Document function.

Note

When the status of a production order is changed from Released to Finished, any component items with a Backward flushing method are consumed unless you are using routing links.

Related Topics

About Production Orders

Posting Output Quantity

Posting Run Time

Production Schedule

Releasing Production Orders Automatically

Releasing Production Orders by Status Change

Setting Up Production Orders

Using the Manufacturing Batch Unit of Measure

Quick guides for manufacturing are available in a document that you can edit and print in Microsoft Office Word. The file, called Quick Guides – Manufacturing Foundation - Classic.doc, is installed in the documentation folder of your client installation.



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