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Quantum VS Help: File Maintenance |
Works Order Processing is a system enabling companies to sell products which require processing or assembly while avoiding the need to keep these items in stock.
Works Order Processing is used with two main types of 'output' product:
Plated products - whereby raw materials are sent off to be plated and are received back into stock as a distinct 'plated' product; and
Kits - which are an 'assembly' of several components (which may themselves be Kits/sub-assemblies).
Assuming the required documents and records are in place, when a product requiring processing or assembly is Sales or Purchase Ordered and no free stock of that product is available, the system creates (1) a 'Works Order' Sales Order which generates the documentation required to pick and despatch any raw materials or components for processing/assembly, and (2) a Back-To-Back Purchase Order to order the 'finished' (i.e. processed or assembled) goods. Any ordering into stock of raw materials can be handled by the system automatically. Once the processed or assembled goods have been received into stock the sales or purchasing cycle can then be completed, with the system updating stock details at each stage of the procedure.
This section covers:
Examples Of Works Order Processing For Plated Products And Kit Products
What Advantages Does Quantum VS Works Order Processing Offer?
Works Order Processing may be used to generate free stock of the following 'output' product types:
You may sell a plated product which you do not keep in stock. Free stock of this product is created by sending off another 'raw material' product (or products) off to be plated in an internal or external works. The plated product is then received back into stock and can be released to existing Sales Orders as necessary.
For example, you sell a product called Shiny Screws, which you do not stock. When a Customer orders Shiny Screws, a Sales Order is raised and the Shiny Screws are placed on Back Order, as no free stock is available.
Shiny Screws are created by sending off a different product - Dull Screws (i.e. the raw materials required for processing) off to a Supplier's works to be plated. Hence, on Sales Order completion a Works Order Picking Note - and subsequently a Despatch Note - are generated so that you can pick the required quantity of Dull Screws and despatch them to an external Supplier or to your internal works for plating. These documents - plus a Purchase Order to order the 'finished' items from the Supplier - are generated by the system automatically.
The Dull Screws are then plated by the Supplier, returned to you as Shiny Screws and received into stock via a Goods Received Note. At this point the Shiny Screws are released to the order and can be sold.
Setting up Works Order Processing means you do not need to keep the Shiny Screws in stock. When a Customer orders the plated product, a Works Order and related documents for picking and despatching the raw materials are generated automatically by the system, alongside a Back-To-Back Purchase Order to order the 'finished' product. Similarly, a Works Order and related documents for picking and despatch are also generated if the Shiny Screws are Purchase Ordered.
When ordering an 'output' product via a Works Order Process you will typically be supplying the 'input' products to be processed - such as the Dull Screws in this example. However, you may optionally switch off the 'Use Raw Materials' option and simply order the 'finished' product - the Shiny Screws in this example - from the Supplier as per a standard product, without the need to order/supply/pick/despatch any of the 'input' materials/components. See Works Orders 'Use Raw Materials' Options.
Note: Supplier Plating Charge records may optionally be used to apply the Supplier's costs of processing the raw materials based on the weight. See Supplier Plating Charge Maintenance.
For specific examples see Examples: Works Order Processing Of A Plated Product.
You may sell a Kit product which is an 'assembly' of several components (which may themselves be Kits/sub-assemblies). Free stock of this product is created by assembling - and ordering into stock as necessary - the required components, so that the Kit can be sold as a single product.
For example, you stock a Kit called Kit Z, but you do not keep assembled units of Kit Z in stock. Kit Z is made up of Sub-Assembly A, which has five components stocked in-house, Sub-Assembly B, which has seven components and is supplied by Supplier 1, and Sub-Assembly C, which has seven components and is supplied by Supplier 2.
Stock of Kit Z is created by assembled the various components/sub-assemblies as a complete Kit. On Sales Order completion a Works Order Picking Note is generated so that you can pick the required quantity of each component - Sub-Assembly A, B and C - and assemble them as complete units of Kit Z. A Purchase Order to order the 'finished' items from the 'Supplier' (in this case your own company, since the Kit is assembled in-house) is also generated by the system automatically.
When the required number of units of Kit Z have been assembled they can be received into stock via a Goods Received Note. At this point the units of Kit Z are released to the order and can be sold.
Again, having a system of Works Order Processing means you do not need to keep units of Kit Z in stock. When a Customer orders Kit Z, a Works Order and related documents for picking the components are generated automatically by the system, alongside a Back-To-Back Purchase Order to order the 'finished' product. Similarly, a Works Order and related documents for picking are also generated if Kit Z is Purchase Ordered.
So far we have assumed the components of Kit Z are available in free stock. However, potentially no free stock of Kit Z's components may be available - perhaps because they themselves are Kits/sub-assemblies. In this case we can use additional Works Order Processes to generate stock of the Kit's components as required.
Continuing the above example, one of the components of Kit Z is another Kit - called Sub-Assembly A. If no free stock of Sub-Assembly A is available to fulfil the order for Kit Z, and Auto Generate Works Order? is selected in the Works Order Process record, the system will generate a Works Order Picking Note for the components of Sub-Assembly A and a Purchase Order for Sub-Assembly A. Once Sub-Assembly A has been received into stock, along with all the other components of Kit Z, the units of Kit Z are released to the order and can be sold.
Auto Generate Works Order? works for as many levels as required. So if an order comes in for Kit Z, one of Kit Z's components is a Kit called Sub-Assembly A, and one of Sub-Assembly A's components is another Kit called Sub-Sub-Assembly AA, automatic Works Order Processing will generate stock of (i.e. assemble) Sub-Sub-Assembly AA, then Sub-Assembly A, so that finally Kit Z can be assembled and sold.
For specific examples see Examples: Works Order Processing Of A Kit Product.
The Works Order Processing features in Quantum VS enable companies/merchants to provide a 'just-in-time' ordering system: when an order comes in for a plated product or a Kit, the system automatically creates the required documents for picking (and despatching) the raw materials for processing or components required for Kit assembly, along with a Purchase Order for the 'finished' plated product or Kit. This potentially bypasses the need to have large stock inventories, with associated cost savings, and frees up space in the warehouse/retail premises.
The ability to use Works Order Processing to assemble (i.e. generate free stock of) Kit products has advantages over the 'Kits' functionality in older versions of Quantum VS. Previously, components would need to be in stock in order to make up units of a Kit to be sold. Now, the procedure for ordering, picking and despatching components for assembly as a Kit is all automated. This functionality applies to plated products as well as Kits.
The various Finders - including Products, Kits, Purchase Orders, Works Order Processes, Works Orders and Back Orders - enable you to track the procedure and monitor stock levels at each stage. All required documents are accessible from the Tracking tab of the initial Sales Order or Purchase Order.
Note: Additional traceability tools are available in (a) the Purchase Order - in the form of Progress Notes and the comparison of Expected/Target/Shipping dates - see Reviewing Purchase Order Progress And Supplier Delivery/Shipping Targets; and (b) the Sales Order, via the Required/Target date fields - see Sales Order Date Fields And Delivery Performance.
A Works Order is a type of Sales Order. This does not need to be created by the User - it is generated by the system automatically when the product requiring processing or assembly is Sales or Purchase Ordered. This 'Works Order' Sales Order generates a 'Works Order' Picking Note and subsequently a Despatch Note (as per the standard Picking and Despatch cycle), so that we can pick and despatch the 'input' raw materials required for plating, or the components which will be assembled as a Kit. The Customer listed on the Works Order is whichever company will be performing the processing or assembly; this might be done internally or by an external company. Works Orders can be created for all Product stock types; i.e. standard, and Multi Bin-, Batch- and Serial Number-traceable.
The main record type enabling system-generation of Works Orders and related documents is the Works Order Process record. This links the Product Code of the plated product or Kit being ordered with the Works Order Process required to create it, so that the system generates a Works Order to pick and despatch the raw materials or components. Each Works Order Process record holds details of the internal or external Supplier used to perform the process (i.e. plating or assembly), the Input and Output Products, Branch permissions and more. Works Order Process records are generated automatically by the system when creating a Kit product (i.e. a Product with several components/sub-assemblies), but must be created manually when using Works Order Processing to create free stock of a plated product. For further details see Creating A Works Order Process Record Manually.
Other records required in Works Order Processing include:
Product records: These must be in place for any 'output' product (i.e. a plated product, or a Kit) and any 'input' product (i.e. raw materials or Kit components) required in Works Order Processing.
Kit records: These must be in place (alongside a Kit-flagged Product record - see above) if you will be using Works Order Processing to generate free stock of a Kit.
Supplier records: Each Works Order Process record references the Supplier who will perform the processing or assembly. This might be an existing Supplier record if you are using an external Supplier for 'plating'. Alternatively, if stock is being assembled or processed internally, you will need to create an 'internal' Default Works Order Supplier. This Supplier is listed on the Purchase Order generated when ordering a product requiring processing or assembly.
For a full list of requirements see Configuring Your System For Works Order Processing.
When:
the ordered product (i.e. the product requiring processing or assembly) is listed as an Output Product of a Works Order Process record, and
all other Works Order-related requirements have been set up (as described in Configuring Your System For Works Order Processing),
a Works Order will be system-generated when the product is ordered from any of the following:
Purchase Order: When you order a product requiring processing or assembly, on Completion the system generates a 'Works Order' Picking Note (assuming you are using raw materials and they are in stock - see note) so that you may pick the raw materials/components required for processing/assembly. Once picking has been confirmed, a 'Works Order' Despatch Note is generated. Once despatch has been confirmed, the product can be processed/assembled. On receipt of the processed/assembled goods, the Purchase Order can be retrieved and a Goods Received Note opened and confirmed, as per the standard purchasing cycle.
Kit Make-Up: The Kit Make-Up procedure may used to generate stock of a Kit (i.e. a product requiring assembly). This generates a Purchase Order, which can be retrieved and handled as described above.
Sales Order: When a Customer orders a product requiring processing or assembly for which no free stock exists, the User must Back Order the goods via the Insufficient Stock window. On Sales Order Completion, the system generates a 'Works Order' Picking Note so that the raw materials/components required for processing/assembly may be picked (if you are using raw materials and they are in stock - see note). Once picking has been confirmed, a 'Works Order' Despatch Note is generated. Once despatch has been confirmed, the product can be processed/assembled. If Back-To-Back Ordering is enabled, a Purchase Order is generated automatically on Sales Order Completion, to order the assembled/processed goods. On receipt of the processed/assembled goods, the Purchase Order can be retrieved and a Goods Received Note opened and confirmed, as per the standard purchasing cycle. The back ordered product is released to the Sales Order and a standard Picking Note is generated. The Sales Order line can now proceed through the Picking, Despatch and Invoicing cycle as per a standard stocked product.
Notes: (1) There is the option to bypass the picking/despatch of raw materials/components stage if you simply wish to order the finished item direct from the Supplier. See Works Orders 'Use Raw Materials' Options. (2) If there is no free stock available of the raw materials/components required for processing/assembly (and raw materials are required) they must be ordered into stock. If the required product is a Kit, this will happen automatically via a Works Order if 'Auto Create Works Order' is selected on the Works Order Process record - see 'Auto Create Works Order' And Kits. Otherwise, the line is placed on Back Order and must be ordered into stock manually.
For further details and examples see Works Order Sales Ordering, Purchase Ordering And Kit Make-Up Examples.
When free stock of a Kit or processed product is generated via a Works Order Process, all related documents are accessible from the Tracking tab of the initial Sales Order or Purchase Order.
The Works Order List may be used to list Works Orders - potentially within a chosen date range and Works Order range. A list of the 'input products' required for picking and despatch (i.e. Kit components and/or raw materials required for processing) is produced for each Works Order with a status of anything other than Cancelled, Completed or Held. See Works Order List.
You may also use the Finder to list and open:
Works Order Processes: see Finding Works Order Process Records
Works Orders: see Finding Works Orders
Purchase Orders: the Purchase Order Finder has a filter for displaying 'Works Order' Purchase Orders. See Finding Purchase Orders
Purchase Order Lines: the Purchase Order Lines Finder has a filter for displaying 'Works Order' Purchase Order lines. See Finding Purchase Order Lines
Back Orders: the Back Orders Finder displays Back Order lines (and Back-to-Back Order lines). See Finding Back Orders
In addition, the following related Finders are available:
Back Order Manager: the Back Order Manager enables the User to list, locate and manage lines from Back-To-Back Sales Orders which have not yet been allocated to a Purchase Order. See Back Order Manager: Allocating Lines Later.
Kits: the Kits Finder lists your existing Kits, free stock of which is generated via an associated Works Order Process. See Finding Kits.
Products: the Products Finder can be used to list and open Product records. If the product is a 'Works Order Process' Output product, the associated Works Order Process will be recorded in the Works Order Code field of the Product record. See Finding Products.
Product record - Kits tab: The Kits tab of a Product record lists any Kits/assemblies the current product is a component of. See Kits Tab: Viewing Assemblies The Product Is A Component Of.
Note: If the 'Supplier Pricing' Optional Enhancement is enabled you may also create Supplier Plating Charge records - and view them in the Finder. See Supplier Plating Charge Maintenance.