Production with Backflushing: Process Activity

The following activity will walk you through the process of producing items with backflushed materials and labor.

Story

Suppose that GoodFood One Restaurant has ordered three juicers from the SweetLife Fruits & Jams company. The production process includes the assembly and packing of the juicers. In the production process of SweetLife Fruits & Jams, materials and labor are backflushed for the packing operation. Further suppose that all components required for the juicer assembly and packing are available in SweetLife Fruits & Jams's warehouse.

Acting as a production manager, you will create a production order for producing the juicers and process all transactions related to production.

Configuration Overview

In the U100 dataset, the following tasks have been performed for the purposes of this activity:

  • On the Warehouses (IN204000) form, the WORKHOUSE warehouse has been defined, and its locations include MGI and MTL.
  • On the Stock Items (IN202500) form, the CFJFRUITBF, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE, GRDISC01, PACKTAPE, PPEANUTS, and PACKBOX stock items have been defined.

Process Overview

In this activity, to process the documents and transactions related to the production of the juicers, you will do the following:

  1. On the Production Order Maintenance (AM201500) form, create and release the production order
  2. On the Materials (AM300000) form, issue the materials required for the assembly operation
  3. On the Labor (AM301000) form, record the labor spent on the juicer assembly and the produced quantity
  4. On the Production Order Maintenance form, review the production order balances after the assembly operation
  5. On the Move (AM302000) form, record the produced items for the packing operation
  6. On the Materials and Cost Transactions (AM309000) forms, review the transactions that the system created and released when you released the move transaction
  7. On the Production Order Maintenance form, review the production order balances after you have completed the order
  8. On the Close Production Orders (AM506000) form, close the production order

System Preparation

Do the following:

  1. As a prerequisite to the current activity, complete Configuration of Production with Backflushing: Implementation Activity so that the system is ready for processing the production of juicers with labor and material backflushing.
  2. Launch the MYOB Acumatica website, and sign in to the company in which the prerequisite activities have been performed. You should sign in as the production manager by using the peters username and the 123 password.
  3. In the info area, in the upper-right corner of the top pane of the MYOB Acumatica screen, make sure that the business date in your system is set to today’s date. For simplicity, in this activity, you will create and process all documents in the system on this business date.

Step 1: Creating the Production Order

To create the production order for three juicers, do the following:

  1. On the Production Order Maintenance (AM201500) form, add a new record.
  2. In the Summary area, specify the following settings:
    • Order Type: RO (selected automatically)
    • Inventory ID: CFJFRUITBF
    • Warehouse: WORKHOUSE (selected automatically)
    • Location: MGI (selected automatically)
    • Order Date: Today's date (selected automatically)
    • Description: Production of 3 juicers
  3. In the Qty. to Produce box of the General tab, specify 3.
  4. On the form toolbar, click Save.
  5. On the form toolbar, click Release Order. The order's status changes to Released.

Step 2: Issuing Materials for the Assembly Operation

In this step, you will issue the materials for the assembly operation of the production order. Do the following:

  1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, on the More menu (under Transactions), click Release Materials. The system opens the Material Wizard 2 (AM300020) form with the list of materials needed for the assembly operation.
  2. On the form toolbar, click Select All. The system creates the material transaction and opens it on the Materials (AM300000) form.
  3. In the Summary area, do the following:
    1. In the Description box, specify Materials for the assembly operation.
    2. Clear the Hold check box. The system changes the transaction's status to Balanced.
  4. On the form toolbar, click Release. The system releases the material transaction and changes the status of the transaction to Released.

Step 3: Recording the Labor and Produced Items for the Assembly Operation

Suppose that Carlos Cruz, a worker in the work center, spent 30 minutes setting up the working environment for juicer assembly and assembled three juicers for one hour. To record the time spent on juicer assembly and the assembled quantity of juicers, do the following:

  1. On the Labor (AM301000) form, add a new record.
  2. On the table toolbar, click Add Row.
  3. In the row, specify the following settings:
    • Labor Type: Direct
    • Order Type: RO
    • Production Nbr.: The number of the production order that you created earlier in this activity
    • Employee ID: EP00000027 (Carlos Cruz)
    • Shift: 0001
    • Labor Time: 01:30
    • Quantity: 3
  4. In the Summary area, do the following:
    1. Make sure that today's date is specified in the Date box.
    2. In the Description box, specify Recording the time for assembly of 3 juicers and the completed quantity.
    3. Clear the Hold check box. The system changes the transaction's status to Balanced.
  5. On the form toolbar, click Release. The system creates and releases a cost transaction to record the labor costs and releases the labor transaction.

Step 4: Reviewing the Production Order Balance

To review the production order balance after you have recorded the completion of the assembly operation, do the following on the Production Order Maintenance (AM201500) form:

  1. Open the production order you created earlier in this activity.
  2. On the Totals tab, review the production order balance (shown in the screenshot below) as follows:
    1. Notice that in the Actual section, the following values are displayed:
      • Labor Time: 1 h 30 m
      • Labor: 30.00
      • Material: 1392.51

      This means that the system applied the labor and material costs of the assembly operation to the production order.

    2. Notice that in the Variance section, the following values are displayed:
      • Labor Time: 1 h 00 m
      • Labor: -12.00
      • Material: -11.16

      These costs relate to the packing operation and the system has not applied the costs to the production order yet.

    Figure 1. Production order balances after the first operation


Step 5: Recording the Produced Items for the Packing Operation

Suppose that a worker in the packing work center has packed all three assembled juicers. To record the completion of the packing operation, do the following:

  1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, on the form toolbar, click Create Move Transaction. The system creates a move transaction for the 0020 operation and opens it on the Move (AM302000) form.
  2. In the Summary area, do the following:
    1. Make sure that today's date is specified in the Date box.
    2. In the Description box, enter Recording the completion of packing 3 juicers.
    3. Clear the Hold check box. The system changes the transaction's status to Balanced.
  3. On the form toolbar, click Release. The system releases the move transaction.

Step 6: Reviewing the Transactions for the Packing Operation

In this step, you will review the transactions that the system created and released when you released the move transaction for the packing operation. Do the following:

  1. On the Materials (AM300000) form, open the transaction for the materials needed for the packing operation with the total amount of $11.16 (as shown in the following screenshot).
  2. Notice that in the Orig. Batch Nbr. box, the reference number of the move transaction, which caused the creation of the material transaction, is displayed.
    Figure 2. The material transaction for the packing operation


  3. On the Cost Transactions (AM309000) form, open the transaction with the total amount of $1481.73.
  4. Notice that in the Orig. Batch Nbr. box, the reference number of the move transaction, which triggered the creation of the cost transaction, is displayed.
  5. In the table of the form, notice that the transaction contains rows with the following Tran. Type values:
    • Backflush Labor: The system added the labor cost of $12.00 for the packing operation to the 51000 - Direct Labor Costs account. This was issued because quantity was reported.
    • Operation MFG to Inventory for an extended cost of $23.16: The receipt took the cost from the 0020 operation and applied it to the inventory receipt cost.
    • Operation MFG to Inventory for an extended cost of $1446.57: The receipt took the cost from the 0010 operation and applied it to the inventory receipt cost.

Step 7: Reviewing the Production Order Balance

To review the production order balance after you have recorded the completion of the packing operation, do the following on the Production Order Maintenance (AM201500) form:

  1. Open the production order you created earlier in this activity.
  2. On the Totals tab, review the production order balance after the completion of the order (shown in the following screenshot) as follows:
    1. Notice that in the Actual section, the Labor box contains 42.00, which is the full labor cost for two operations.
    2. Notice that the Material box contains 1403.67, which is the full cost of the materials for two operations.
    3. Notice that in the Variance section, the values in the Total Variance and WIP Balance boxes are 0.00.
    Figure 3. Production order balances after the completion of the order


Step 8: Closing the Production Order

Now you will close the production order. Do the following:

  1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, on the More menu (under Processing), click Close Order. The system opens the Close Production Orders (AM506000) form with a row for the production order added.
  2. Notice that the check box in the unlabeled column of this row is selected.
  3. On the form toolbar, click Process. In the Processing dialog box, which opens, review the processing details, and when the processing is completed, click Close.
  4. Go to the Production Order Maintenance form, and notice that the status of the production order has changed to Closed.

You have successfully created the production order for the assembly and packing of three juicers and have processed all the transactions related to the production.