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Quantum VS Help: File Maintenance |
The following example shows the full Works Order Processing cycle, including the relevant system-generated documents and user actions required, for a plated product - Shiny Screws - when a Works Order is initiated from a Sales Order.
Note: For details of the required records and system settings for this example see Examples: Works Order Processing Of A Plated Product.
In this example a Customer - S M Building Contractors - wishes to order 100 Shiny Screws from us. The first phase involves raising and Completing a Sales Order as follows:
Create a new Sales Order. Then:
Enter Sales Order header details, including the Customer - S M Building Contractors. Then:
Add the Product details - the required quantity of Shiny Screws.
On tabbing away from the line Quantity field, the Insufficient Stock warning displays, since we have no free stock of Shiny Screws. We will select Back Order All to back order the goods. As Back-To-Back Ordering is enabled on our system, the window displays additional Back-To-Back Ordering options for creating a Back-To-Back Purchase Order on Completion of the Sales Order:
In this case we will proceed with the default settings - with Create Back To Back PO? and Park Back To Back PO? both set, and with the default Supplier (Peter's Platers) selected. We can now click OK to close the Back Order Options window. For further details see Back-To-Back Sales Ordering.
Note: The Use Raw Material option is selected, as we are supplying the raw materials for processing (Dull Screws). If the Use Raw Material option was not selected, Works Order Processing would be bypassed and the any Purchase Order generated from this Sales Order would proceed as a standard Purchase Order; i.e. no Works Order is generated. See Works Orders 'Use Raw Materials' Options.
Note: If Back-To-Back Ordering was not set up on the system, the standard Insufficient Stock warning will display, enabling the User to Back Order the stock (see When You Receive An Insufficient Stock Warning). On Sales Order Completion the Purchase Order will not be auto-generated but must be raised manually for the Back Order line - see Creating A New Purchase Order.
We may now Complete the Sales Order:
Since the Create Back To Back PO? option was switched on (above), on Sales Order Completion a Purchase Order is generated automatically for the Back Ordered goods. This is addressed to the Supplier handling the processing - Peter's Platers in this example. For further details see Back-To-Back Sales Ordering.
Note: If the 100 Shiny Screws were available in free stock, the Sales Order would proceed as standard: on Sales Order Completion the Insufficient Stock warning would not display, no Works Order would be generated and no Back Ordering would take place. If some but not all of the required Shiny Screws were available - for example, if 40 units of Shiny Screws were available in free stock - on Sales Order Completion the Insufficient Stock warning would display and the User could select Back Order Excess, with the remaining 60 units being generated via a Works Order as described below.
On Completion of the initial Sales Order, a Purchase Order, a 'Works Order' Sales Order - and potentially a Picking Note and possibly a Despatch Note, depending on the User's Order Flags settings (see below) - display in the Sales Order's Tracking tab:
The 'Works Order' Sales Order has a different number from the initial Sales Order (referenced in its Tracking tab and in the header). The 'Works Order' Sales Order is not printed.
With Back-To-Back Ordering enabled, a 'Works Order' Purchase Order is generated/printed on Completion of the initial Sales Order, to order the processed 'output' goods (Shiny Screws) from the Supplier performing the processing (Peter's Platers). At this point the Purchase Order's Status is Undelivered. For further details see Back-To-Back Purchase Ordering.
The Supplier, the number of 'output' lines and the default Quantity required are taken from the relevant Works Order Process record. These may be edited on the Purchase Order at this point. The lines view area's Ack Ref (Acknowledgement Ref) column shows the Works Order number which will be used for picking and despatching the raw materials for this process:
In the next phase we will pick the raw materials required for processing (Dull Screws) from our warehouse and despatch them to the Supplier's works for processing.
To achieve this we will first need to:
Retrieve the Sales Order we created and Completed earlier - see Finding Purchase Orders. Then:
Open the Sales Order's Tracking tab (pictured above).
Open the Works Order, which was generated on Sales Order Completion.
On the Works Order, the listed Customer is the Supplier ordering the raw materials to be processed - in this case, Peter's Platers. The line details show the raw materials which are being 'ordered' for processing (Dull Screws). On the line above, the Works Order Process description (Gold plating) displays:
As with a standard Sales Order, the 'Works Order' Sales Order must proceed through the Picking and Despatch cycle subject to the Order Flags settings in our User record (Quantum User Fields tab). In this case, our User settings are configured so that a 'Works Order' Picking Note is printed automatically (otherwise we would need to first print the Picking Note manually). The printed 'Works Order' Picking Note will be taken to our warehouse as the raw materials are picked.
Therefore, the next step is to retrieve the Works Order, open the 'Works Order' Picking Note from the Tracking tab, and then Confirm the Picking Note. See Confirming A Picking Note Manually.
Note: The 'Works Order' Picking Note and Despatch Note reference the 'Works Order' Sales Order in their header section.
The next stage involves despatching the raw materials to be processed. In this case, our User settings are configured so that a 'Works Order' Despatch Note is printed automatically on Confirmation of the Picking Note (otherwise we would need to first print the Despatch Note manually).
The printed 'Works Order' Despatch Note is now sent with the raw materials to the Supplier's - Peter's Platers - for processing, along with the Purchase Order.
On receipt of the signed Despatch Note from the Supplier, we may retrieve the Works Order, open the 'Works Order' Despatch Note from the Tracking tab, and then Confirm the Despatch Note. See Confirming A Despatch Note Manually.
This completes the picking and despatch of raw materials required for Works Order Processing. The Works Order's Tracking tab confirms this:
Note: The Purchase Order, Works Order, Picking Note and Despatch Note - and their Status - also display in the Tracking tab of the initial Sales Order.
Once the input goods have been picked and despatched by the Stock Issuing Branch for processing, the stock is nominally deemed to be placed with the Holding Branch, even if it is not physically kept on those premises. At this point, stock figures are updated for the Holding Branch and downdated for the Stock Issuing Branch.
Note: If you have a Works Order Stock Holding Branch in place (see Creating A Works Order Stock Holding Branch) you may view the levels of stock of a particular product currently 'out for processing' by selecting the Works Order Stock Holding Branch in the Product Finder.
The Supplier - Peter's Platers - will now 'gold plate' the Dull Screws and return them to us as Shiny Screws. At this point we will need to:
Retrieve the Purchase Order (i.e. the Back-To-Back Purchase Order generated from the initial Sales Order) - see Finding Purchase Orders. Then:
Create a Goods Received Note (GRN) for the Purchase Ordered items (Shiny Screws), checking the goods in and noting any variances. Then:
At this point:
The stock figures for the 'input' goods (Dull Screws) will go down for the Holding Branch (as defined on the Works Order Process record).
The stock figures for the processed goods (Shiny Screws) will go up for the goods receiving Branch.
The Purchase Order's Status will now show as 'Fully Delivered'. The Purchase Order's status is also updated to 'Fully Delivered' on the original Sales Order and on the Works Order.
The received processed goods - Shiny Screws - are now allocated to the original Sales Order for picking and despatch.
Now that the Shiny Screws have been received into stock, picking, despatch and sales invoicing may take place on the initial Sales Order.
To achieve this we will first need to:
Retrieve the Sales Order we created and Completed earlier - see Finding Sales Orders. Then:
Open the Sales Order's Tracking tab.
At this stage the Sales Order's Tracking tab shows a Purchase Order, the 'Works Order' Sales Order, Picking Note and Despatch Note, plus a Goods Received Note.
The Sales Order must proceed through the Picking and Despatch cycle subject to the Order Flags settings in our User record (Quantum User Fields tab). In this case, our User settings are configured so that a Picking Note is printed automatically (otherwise we would need to first print the Picking Note manually); hence, a second (non-Works Order) Picking Note is displayed in the Sales Order's Tracking tab:
The printed Picking Note will be taken to our warehouse as the order goods - Shiny Screws - are picked.
Therefore, the next step is to retrieve the Sales Order, open the Picking Note from the Tracking tab, and then Confirm the Picking Note. See Confirming A Picking Note Manually.
The next stage involves despatching the order goods to the Customer. In this case, our User settings are configured so that a Despatch Note is printed automatically on Confirmation of the Picking Note (otherwise we would need to first print the Despatch Note manually).
The printed Despatch Note is now sent with the order goods to the Customer. On receipt of the signed Despatch Note from the Customer, we may retrieve the Sales Order, open the Despatch Note from the Tracking tab, and then Confirm the Despatch Note. See Confirming A Despatch Note Manually.
This completes the picking and despatch of the order goods to the Customer. A Sales Invoice can be raised once the Despatch stage is Complete - see Working With Sales Invoices.
In our example we have used an external Supplier - Peter's Platers - to perform the gold plating. Hence we expect to receive a Purchase Invoice from them. On receipt of the invoice from Peter's Platers, a User at our Maintenance Branch (which raised the initial 'Works Order' Purchase Order) will register and match the Purchase Invoice. See Purchase Invoice Registration And Matching.
Notes: (1) The system will automatically use the Cost value in the Works Order Process record to apply the Supplier's processing charge. This value is what the system will 'expect' as the value of the Supplier's Purchase Order. (2) You may optionally use Supplier Plating Charge records to add the Supplier's costs of processing the raw materials based on the weight. See Supplier Plating Charge Maintenance. (3) If the goods were being processed internally at zero cost, the system would not expect a Purchase Invoice to be received; hence no Purchase Invoice Registration and Matching would be required.
This completes the Sales Ordering of Shiny Screws via a Works Order Process.
Note: Potentially, Purchase invoicing may take place before Sales Order Picking, Despatch And Sales Invoicing.