Inventory Workflow to Track Assembly Items from Raw Materials to Finished Goods

Solution:

1. Create Member Items
- Navigate to Lists > Accounting > Items > New.Click on Inventory Item.
- Fill in the necessary fields.
- On Asset Account - select Raw Materials Inventory.
- Click Save.

Note: Do the same to all member items.

2. Create an Assembly Item
- Navigate to Lists > Accounting > Items > New.
- Click on Assembly Item/Bill of Materials.
- Fill in the fields.
- On Asset Account, select - Finished Goods Inventory.
- Click on Members tab. Select the item created above. Enter the Quantity.
- Click Save.

3. Create the Purchase Order for the Raw Materials
- Navigate to Transactions > Purchases/Vendors > EnterPurchase Orders.
- Fill in the necessary fields.
- On the Items tab, select the Member Items that you created onStep 1.
- Click Save.
- Click Receive button.
- On Item Receipt page, click Save.

GL Impact:

Raw Materials Inventory --------- XXXX
Inventory Received not Billed ----------------- XXXX

- Bill the Purchase Order

GL Impact:

Inventory Received not Billed --------- XXXX
Accounts Payable ----------------------------- XXXX

4. To create work order
- Navigate to Transactions > Inventory > Enter WorkOrders.
- Select the Assembly Item.
- Fill in other fields.
- Click Save.

Notice that the status is Pending Build (to see the list of all pending buildwork order) Navigate to Transactions > Inventory > Enter Work Orders >List. On the footer, select Status is Open.

For more details on this information: Navigate to Help and type in:
- Assembly Work Orders Workflow Chart
- Assembly Work Orders
- Assemblies Overview

5. Once ready to build the work order
- Navigate to Transactions > Inventory > Enter WorkOrders > Lists. On the footer, select Status is Open.
- Click on View next to the work order.
- Click on Create Build button.
- On Assembly Build page, click Save.

GL Impact:

Finished Goods Inventory ---------- XXXX
Raw Materials Inventory ----------------------XXXX

- Bill the Sales Order
- Click Save

GL Impact:

Accounts Receivable ----------- XXXX
Sales ------------------------------------ XXXX

6. Selling the Items
- Navigate to Transactions > Sales > Enter Sales Orders.
- Fill in the necessary fields.
- On the Items tab - select the Assembly Item.
- Click Save.
- Click Fulfill button.
- On Item Fulfillment page, click Save.

GL Impact:

Cost of Goods Sold ------------- XXXX
Finished Goods ------------------------- XXXX

- Bill Sales Order
- Click on Save on Invoice

GL Impact:

Accounts Receivable ------ XXXX
Sales ------------------------------- XXXX