how to use inventory kit in production order
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What are you trying to do? Why do you want to use inventory kit in production order?
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because
the inventory kit which i made is dedicated of containing items
when i want to sale this kit deducting from inventory all containing items
and its correct
but for production order
all time we must reenter inventory items
which make delay and mistake
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@Babico, inventory kits are meant for situations where you have several inventory items, such as A, B, C, and D. Sometimes, you sell A alone, or B alone, etc. But sometimes, you sell ABD or BCD. The inventory kits speed up invoicing. But since you are not necessarily selling the items only as kits, you might want to produce only B or only C, etc.
It sounds like you are addressing a situation where you sell kit BCD and want to replenish your stock by entering a production order for BCD. If you always sell BCD together, you can define it as an inventory item. In other words, you don’t have to always define only individual components as the inventory items. You can define what is now a kit as an inventory item in its own right.
You wouldn’t do both - Inventory Kit and Production Order - for the same Finished Good Item. Otherwise the Production Order items will be duplicated inventory deductions when you sell the Finished Good Item.
Therefore, you have to decided to use either Inventory Kits or Production Orders for the Finished Good.
Alternatively, you could have two Finished Good Items but with different codes/names: e.g.
Product (IK) or Product (PO)
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Hi, not directly related to the discussion and apologies if this has been asked before. Would it be possible to move the Inventory Kits Section to a tab along with Inventory Items and Inventory Write-Offs so all the inventory related processes are in the same location on the main window? Many thanks.
All the “main” tabs relate to primary functions. Sub-primary functions like Inventory Kits, Sales Invoice Items, Recurring Sale Invoices, Purchase Invoice Item, Tax Rates etc. are grouped under the Setting tab as they are of a “maintenance/supporting” nature.
If your suggestion was to hold sway, then why not move Sale Invoice Items next to Sale Invoices or Purchase Invoice Items next to Purchase Invoices or (I’m being absurd, but) Chart of Accounts next to Summary as they are directly associated.
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Hi Brucanna, this was just a thought whilst I was putting some kits together so I thought I’d ask. As its something I do quite regularly, for me it would be useful, but if its not meant to be there then that’s fine. It was just an “art of the possible” query, nothing more.
I have Exactly the same thing. We are in Electronics product market, in which we are make some product with some items from inventory, So if the Inventory Kit will be directly use for the Production order then it’s very good option. because we can generate production order fast and accurately. As per me … Manager Team must be think on this also.
hi lubos
iam running candy shop with pick & mix model, ie i have 50 plus different types of jelly candy in my shop & each customer can buy as much he wants grams with any mix he wants,
this concept is successful hence iam no willing to change it, yet on other side stock management is an issue.
i have created production order “Jelly bulk” & added all my jelly stock (qtys) , it worked out at begining as i got total kgs available & avg kg cost.
issue started to be complex when i want to buy new jelly stock & i still have remaining old jelly stock in my shop (scattered around without knowing kg per type).
what is the best way to deal with such business model? production order or inventory kit
thank you
You cannot use inventory kits. Those are for inventory items sold as they are, but also sometimes sold together. For example, you may stock and sell trumpets for 200. You may also stock and sell carrying cases for 50. Or, for convenience, a customer may buy a trumpet with a case for 225. But you don’t manage an inventory of trumpets in cases.
Production orders are for converting input inventory items to output inventory items. The key is that both input items and output items must be countable. In your situation, there is no point in creating output jellies from input jellies because you can’t tell in what quantity an output jelly has been sold.
Consider whether you need to track these jellies as inventory items at all, since they are not sold that way. Why not just buy them as consumable supplies? I would imagine your shop and storage area are not so large that it is difficult to tell when you need to reorder a particular kind of candy.
If, however, you do want to manage the inventory of bagged candy, then use inventory write-offs. As you open a bag for distribution to the bins from which candy is sold, write it off. That way you will be able to track inventory movement, value, etc.
hi Tut,
i will stick to production order as it will help me in managing my stock & inventory, especially whilst doing monthly inventory.
another question on same topic, when iam buying new candy stock & want to add it to remaining stock from old production order, what is the best way to do it.
ex created PO on march for 1000 kg candy, sold 200 kg,
in april i bought 300 kg, iam adding the 300 kg to the old PO ie ending up with PO for 1300 kg, while my inventory for candy is 1100 kg,
is there a better way to manage this, as i need always to claculate avg product kg cost
thx
I don’t know what your “PO” abbreviation means: purchase order or production order?
Purchase orders have no impact on inventory. They are not really financial transactions, just a way of ordering things from suppliers. When the order arrives with a supplier invoice, enter it as a purchase invoice.
Production orders will subtract input inventory items from stock and add output inventory item to stock. But as I said in my earlier response, generating output jellies from input jellies raises problems. You cannot determine how much of a specific output jelly has been sold, since your customers mix and match. The quantities of output jellies will just continue to rise, because you have no way of subtracting them from your stock.
You cannot add new bagged stock to existing output jelly stock created with production orders. They are different inventory items. That’s why I said earlier you would have to do inventory write-offs on your input inventory items. But the same problem exists with output inventory items, because you have no mechanism for recording its sale.
To summarize, you can manage your bagged candy stock using inventory. You would use purchase invoices for inputs and either production orders or write-offs for outputs. You cannot manage unbagged inventory because you have no way to count it or monitor its sale. So you would have to write off the output items immediately after creating it with a production order. That defeats the whole idea of a production order, which sends you back to only managing the bagged inventory.
I think you are best to create some form of kanban inventory management approach. Check the internet for ideas about ways to implement simple kanban systems.
A modification which is more manual but would provide you with what you want and that is via a stocktake.
The inventory of each jelly candy is kept separate and the unpacked would be counted on a periodic basis.
To start with, your initial Production Order (PO) should only contain the quantities of the jelly candy that have been unpacked and placed into the shops display containers - not the entire jelly candy inventory.
So in effect you have storeroom inventory and shop inventory (which is the “jelly bulk” item).
Say at each month end, count the unpacked jelly candy and compare that to the inventory items quantities within Manager, any differences would be placed into a “new” PO which would transfer the inventory from the storeroom to the shop.
However, if all jelly candy is shop inventory, then do a “new” PO each month which would contain just the purchases for that month. so based on your figures:
Initial PO 1000 kgs less 200 kgs sold plus new PO 300 kgs = 1100 kgs
thank you brucanna & tut,
will give it a try & revert back, thumbs up
Hi
Just an idea that, u know what i am doing. Make a Production order once and take it as a BOM e.g just duplicate it next time add production cost and just sell the finished item. Inventory kit helps but not in a scenario where production is required or you have to add some prod cost.
And if you don’t want to add some extra cost just clone inv kit that you have made.
I think this will serve as your requirement