Hello @lubos,
In the previous version, when creating a production order, if there was insufficient inventory, it would be displayed in red as incomplete production and we would search for the insufficient inventory in the warehouse. Now, even if there is no such inventory, it will be displayed in green as complete and we will not know whether this product is in the warehouse or not. Please look into this issue and mark it in red when the inventory is insufficient in production.
Thank you.
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The issue with insufficent quantity concept in production orders is that it was not about physical quantities, it was about quantity for accounting purposes.
I think more intuitive way is to simply review Inventory Items tab which now has alert if Qty on hand goes negative. This better reflects what you are looking for I think.
See
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Still I donāt have figure for the incomplete production orders , the previous version was more helpful in this point .
Hi @lubos, The issue with insufficient quantity concept in production orders was most helpful than how somethings goes now.
Dear @lubos, you are putting a lot efforts and introducing new things in the system, but unfortunately the users/clients are not much satisfied/easy with the changes, namely insufficient inventory, recalculate, inventory starting balance and few more like it. I thing you must review it all.
Regards.
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Production orders should not be held back by insufficent quantity. If you are entering production order, then itās assumed that you actually have input materials on hand and can produce the output item.
Why is it a āfeatureā to have a production order stuck in insufficent quantity state? What problem does this solve in your business?
I knew these changes will have negative impact on user satisfaction. I do not see these changes as improvements, I see them as how I should have done them in the beginning.
A lot of complains are valid and Iām working through them to resolve but some of the complains I donāt really understand. One of them is why insufficent quantity concept is so important in production orders. Quite a few businesses agree that being alerted when Qty on hand goes negative across all inventory items under Inventory Items tab is better approach than being alerted on selected input items that happen to be used in Production Orders.
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Perhaps this is an uninformed question, but is there a particular reason why both approaches cannot be implemented? Is it truly a matter of choosing one over the other, or could they coexist to provide flexibility for different business needs?
I think a popup of quantity on hand at the selected location when an item is selected will resulve most of these challenges. This fearure is in most software. You select an item in a transaction and there is a popup of quantity on hand at the location selected. This will prevent money situations where an item goes negative at a particular location.
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Hope production order remain incomplete (in-progress status) until replenishment recorded for the insufficient input item. Otherwise, sales invoice and delivery note is possible on related finished good item even though the actual production is hindered by insufficient input quantity. This may require a manual intervention to (pass in-complete production order to complete status) align accounting records with actual production status.
@lubos I think the best way would be if it depends on Qty on hand rather than Qty owned. So if qty on hand is not sufficient then production order shouldnāt be considered complete.
Previously this issue was mainly due to Goods Received but not invoiced. So the costs were unknown at that point. But now costs are standard so this would not be an issue.
It would be even better if you make Inventory calculations based on Qty on hand.
Iām trying to understand why businesses even want insufficent quantity alert on production orders. When you enter a production order, it means you have raw materials on hand and can produce the item regardless what accounting system says.
If users want to be alerted on insufficent quantity, then Qty on hand alert under Inventory Items is better approach because it takes into account all transactions, not just selective production orders.
Some accounting systems have two accounts. I think it was already suggested for Manager too.
- Inventory in transit
- Inventory on hand
You will still have calculation based on Qty owned but on balance sheet, the difference between Qty owned and Qty on hand will be shown in Inventory in transit.
I donāt mind implementing it like that.
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The purpose of the complain that I want to reduce manual checking as much as possible , in other words , Manager system has to remind me if something is going wrong not me , for Example in the old version If I have a number of incomplete productions orders it was easy to sort them and check the insufficient quantities and follow up the purchasing process ( and by the way it wasnāt best practice also).
My Proposal for the production cycle as below :
1- Creating production order with required bill of material and the non inventory cost processes.
2- insufficient material quantities to be automatically requested with purchasing request and to be mentioned in the production order .
3- non inventory process need to be marked as completed.
4- closing production order is allowed only by quality person.
5- inventory items showing negative amounts must not be allowed.
A simple example would be if you are producing an item and you have all the required material except packaging material and without packaging you canāt ship that product. So, on accounting system it will show you have ready to ship product on hand but in reality, you dont.
I think you want that users are not hindered by difference between Qty on hand in real vs on accounting system. But if someone is not keeping their books updated, they wonāt care about Incomplete status either.
Maybe Production Start date and Completion date would do the job too. BOM qty and value remains in Production in progress account until completion.
Yes different sytems use different terms. Some use Inventory Input account (For purchases) and Inventory/Stock Output Account (For Sales).
Been waiting for this feature from the start.
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A post was merged into an existing topic: Unit costs (problem)
A simple reason for the Production Order to tell me if Iām short - we create a product that uses a number of similar but not same electronic components. Occasionally when inventory comes in it is listed under the wrong inventory item. We may not notice the problem until we do a Production Order and it tells us weāre short. We can then hunt down why weāre short on that item and correct the accounting error. Having the inventory program tell us weāre āoutā is unlikely to be helpful and we generally always have parts in stock. checking there would require us to figure out how many items weāre creating, adding up all the parts quantities and then checking the main Inventory to see if we have enough. Or, creating production orders in the software and then checking our inventory to find out thereās not going to be enough parts to actually make those items. Both options there are far less efficient than the software simply telling us we donāt have enough to make the products for an order we have.
Hope that made sense.
Kris
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