Critical Materials

Form ID: (AM401000)

The Critical Material process is accessed from the menu or from the Production Order Maintenance (AM201500) and Production Order Details (AM209000) forms by clicking the Inquiries button. By default, the screen shows only those items where the materials required for the specific Production Order exceed the current quantity on hand and the material is NOT set to be backflushed. Qty Short is the amount of the materials that are needed for this production order. Selecting the Show All Items check box will display all the materials that are required by this production order including non-stock items.

For more information about allocations, see the article Production Processing: Item Availability and Allocation.

Tip: The on hand quantity is the total of all locations in the warehouse where the Production Allowed and Sales Allowed check boxes are selected.

In addition to listing the materials required, the user is able to create production, purchase, and/or sales order transfer orders from this form. The resultant supply orders are linked to the top level parent production order. This process allows the user to create all the related orders in one easy step.

Attention: Production and purchase orders are created regardless of the quantity available. In addition, multiple orders may be created for the same inventory item if that item is listed more than once. Each order created will have a reference to the production order.

An example bill of material is shown below.

A-Item

  • 1 B-Item
  • 1 C-Item
    • 2 X-Item
    • 2 Y-Item
  • 1 D-Item
    • 2 C-Item
      • 3 X-Item
      • 3 Y-Item
    • 2 X-Item
    • 2 Z-Item

In the above example, A-Item is made up of B-Item, C-Item and D-Item. B-Item is a purchased part. C-Item is a sub-assembly that is made up of X-Item and Y-Item, which are purchased parts. D-Item is made up of C-Item, X-Item and Z-Item.

Only the materials for the production order itself are shown which are the B, C, and D items. The C-Item material for the D-Item would not be shown in critical materials. You can however, create production orders for all levels if you select the Auto Create Linked Orders check box in the Create Production Order dialog box. All orders created will have a reference to the A-Item production order number and their immediate parent; that is, a production created for C-Item would have a references to the A-Item production order and the D-Item production order.

There are no restrictions as to the supply order type you wish to create; that is, you can create a purchase or transfer order for a manufactured item.

Form Toolbar

The form toolbar includes standard and form-specific buttons and commands. For the list of standard buttons, see Form Toolbar and More Menu. The form-specific commands are listed in the following table.

Button Description
Manufacture Opens the Create Production Order dialog box.
Purchase Opens the Create Purchase Order dialog box.
Transfer Opens the Create Transfer Order dialog box.
Inquiries Provides the following:

Summary Area

Element Description
Order Type The order type for the production orders.
Production Nbr This is the production order number and defaults from the order you were viewing if invoked by the Production Order Maintenance (AM201500) form.
Show All Items If selected, all material requirements all listed including non-stock items.
Show Allocated If selected, the material lines that are allocated are listed.

Critical Materials Details Table

The table shows all of the components required to build the top level assembly if the Show All Items check box is selected or just the components that have not been issued. You can use the column selector to add, remove, or rearrange the columns.

The table toolbar includes only standard buttons. For the list of standard buttons, see Table Toolbar.

Column Description
Selected This indicates you want to create a supply order for this line. If there is an existing supply order (purchase, transfer, or production order) a warning indicator is displayed if you select the line.
Attention: If you select a line that already has a reference number (i.e. a supply order has already been created), the warning icon is displayed. If you select the line, it will create another supply order.
Inventory Id The inventory id of the item required.
Subitem
This column is visible only if the Inventory Subitems feature is enabled on the Enable/Disable Features (CS100000) form.
Important: The Inventory Subitems check box has been removed from the Enable/Disable Features form because the functionality associated with the Inventory Subitems feature will be phased out. If you have this feature enabled in your system, the associated functionality remains available. To disable the feature, contact your MYOB support provider.
Description This is the description of the item from the production order materials list or the primary bill of material for sub assemblies of the parent production order.
Qty Remaining This is the remaining quantity to be issued to the production order.
UOM This is unit of measure specified for the material requirement. It may not be the same as the base unit.
Qty On Hand This is the quantity on hand for locations with the Sales Allowed and Production Allowed check boxes selected. Existing demand is ignored.
Qty Short The difference between Qty Remaining and Qty On Hand.
Replenishment Source This the replenishment source of the replenishment class specified for the item. The source can be Manufacturing, Purchase, or Transfer.
Warehouse This is the issue from warehouse specified for the material requirement.
Qty. Available This is calculated the same as shown as Available on the Inventory Allocation Details (IN402000) form.
Qty. Hard Available This is the same as Qty Available for Shipment; it represents the quantity on hand less the hard allocations for sales orders/shipments, field service orders, and production orders.
Qty. Production Demand Prepared This is calculated the same as shown on the Inventory Allocation Details form. This is the remaining quantity to issue to Production Orders in a status of Planned.
Qty. Production Demand This is calculated the same as shown on the Inventory Allocation Details form. This is the remaining quantity to issue to production orders in a status of Released, In Process, and/or Completed'
Qty. Production Supply Prepared This is calculated the same as shown on the Inventory Allocation Details form. This is total of the remaining quantity to produce for production orders in a status of Planned.
Qty. Production Supply This is calculated the same as shown on the Inventory Allocation Details form. This is total of the remaining quantity to produce for production orders in a status of Released or In Process.
Total Required This is the total quantity required for the material requirement.
Preferred Vendor ID Vendor ID assigned to this item.
Vendor Name Vendor name.
Item Class Item class assigned to this item.
Allocated If selected, the material has been hard allocated to the production order.
Mark for PO This indicates if the material requirement was marked to create a purchase order. This was either selected on the Production Order Details (AM209000) form or as a result of creating the purchase order using this form.
PO Order Nbr. The material requirement is allocated to this purchase order number.
Mark for Production This indicates if the material requirement was marked to create a production order. This was either selected on the Production Order Details form or as a result of creating the production order using this form.
Sub. Assy. Order Type The material requirement is allocated to this production order type.
Sub. Assy. Production Nbr. The material requirement is allocated to this production order.
Operation ID. The operation number of the parent assembly routing to which the material is linked.
Required Date The start date of the operation to which this material is linked.
Line Nbr. This is used to order the lines in the table.
Production Nbr. The production order number to which this line belongs. This is used for inquiries and

reports.
Order Type This is the order type of the production order.
Stock Item This indicates if the item is a stock item or non-stock item.
By-Product If checked this a by-product.

Create Purchase Order Dialog Box

This will create a single purchase order for the vendor you enter. You can select lines with different warehouses and/or vendors.

Be aware that when you select materials with different warehouses, the value of the Default Ship Dest. Type box on the Purchase Orders Preferences (PO101000) form is used when creating the purchase order. If warehouse is the default, then the warehouse from the first material is used. This may not be the desired outcome.

The purchase order line type will be Goods for MFG to indicate the line is allocated to a production order. The allocation type depends on the status of the production order:

  • Purchase for Production: When the production order has a status Released or In Process and is not on Hold.
  • Purchase for Prod. Prepared: When the production orders has a status of Planned or is on Hold.

Changing the status or changing the hold flag will change the allocation type.

Table 1. Dialog Box Elements
Element Description
Order Type This is set to Normal and cannot be changed
Order Nbr The value depends on the settings on the Numbering Sequences (CS201010) form used for purchase orders as follows.
  • If the Manual Numbering check box is selected, then enter the order number to create.
  • If the Manual Numbering is cleared, then the New Number Symbol is shown.
Vendor Enter the vendor for the purchase order to create.
Vendor Location Enter the vendor location for the purchase order to be created.
Table 2. Dialog Box Buttons
Button Description
Create Creates the order for the selected items and closes the dialog box.
Cancel Closes the dialog box without creating the order.

Create Production Order Dialog Box

A production order will be created for each selected line. When created the References tab will indicate the parent order type and production order number that this order was created for. The supply allocation type, as shown on the Inventory Allocation Details (IN402000) form, reflects status of the production order just created as follows:

  • Production for Prod. Prepared: When the production orders has a status of Planned or is on Hold.
  • Production for Production: When the production order has a status Released or In Process and is not on Hold. This would be the status after the created order is release.

The demand allocation type, as shown on the Inventory Allocation Details is Production to Production.

Table 3. Dialog Box Elements
Element Description
Order Type Order types are used to classify production orders. These are defined on the Production Order Types (AM201100) form. Only order types with a function of Regular can be released and transacted against. The default is specified on the Production Preferences (AM102000) form.
Production Nbr The value depends on the settings on the Numbering Sequences (CS201010) form used for production orders as follows.
  • If the Manual Numbering check box is selected, then enter the order number to create.
  • If the Manual Numbering is cleared, then the New Number Symbol is shown.
Use Full Qty Required This determines the production quantity to produce. If cleared (default) the Qty Short is used as the quantity to produce for the production order; if selected then the Qty Required is used.
Auto Create Linked Orders When this is checked production orders are created for any subassemblies of the parent order through all levels of the bill of material. The behavior is determined by Use Full Qty Required box value as follows:
  • With Use Full Qty Required selected, production orders are created for all levels in the full quantity required regardless of inventory balances.
  • With Use Full Qty Required cleared, production orders are created for the quantity short at each level.

As an example, if the parent order is for quantity of 10 and B is a subassembly of A and has 5 on hand and C is a subassembly of B and has 1 on hand:

  • With Use Full Qty Required selected, production orders for a quantity of 10 are created for both B and C.
  • With Use Full Qty Required cleared, production orders for a quantity of 5 (10 needed less 5 on hand) are created for B and a quantity of 4 (5 needed less 1 on hand) for C. If C had 5 or more on hand, no production order would have been created. If B had 10 on hand, no production orders for subassemblies are created.
Override Warehouse If selected, this enables the next two elements.
Warehouse This is the warehouse from the production order material line. If blank, then the production order warehouse is used.
Location This is the warehouse bin location to be used for production receipts and defaults from the Default Receipt To box on the Item Warehouse Details (IN204500) form.
Table 4. Dialog Box Buttons
Button Description
Create Creates the order for the selected items and closes the dialog box.
Cancel Closes the dialog box without creating the order.

Create Transfer Order Dialog Box

Once the transfer order is created, you need to follow the steps outlined in Sales from Multiple Warehouses: Process Activity.

Table 5. Dialog Box Elements
Element Description
From Warehouse Enter the warehouse supplying the stock item.
To Warehouse This defaults to the Production Order receiving warehouse
Order Type The value is copied from the Default Transfer Order Type box on the Sales Orders Preferences (SO101000) form.
Order Nbr The value depends on the settings on the Numbering Sequences (CS201010) form used for transfer orders as follows.
  • If the Manual Numbering check box is selected, then enter the order number to create.
  • If the Manual Numbering is cleared, then the New Number Symbol is shown.
Use Full Qty Required If cleared (default) the Qty Short is used as the quantity to transfer; if selected then the Qty Required is used.
Table 6. Dialog Box Buttons
Button Description
Create Creates the order for the selected items and closes the dialog box.
Cancel Closes the dialog box without creating the order.