Production Processing: To Process Production-Related Documents and Transactions

The following activity will walk you through the creating and processing of a production order and the related documents and transactions.

Story

Suppose that based on the analyzed demand from previous periods of sales, the sales department of SweetLife has asked the production department to produce 12 juicers for citrus. Acting as a production manager, you will create a production order for producing 12 citrus juicers, order the juicer parts that are out of stock from the vendor, and process all related transactions. Further suppose that the production of juicers should start on today's date and the scheduling priority is standard (you do not need to produce the juicers faster or slower than the other items in the queue).

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 and the MGI and MTL locations have been defined.
  • On the Stock Items (IN202500) form, the CFJCITRUS, JCREAMER, JUICECUP1L, MRBASEHIGH, STRBASKET, and SPLGUARD stock items have been defined.
  • On the Vendors (AP303000) form, the JALOOZA vendor has been created.

Process Overview

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

  1. On the Production Order Maintenance (AM201500) form, create and release the production order
  2. On the Critical Materials (AM401000) form, view the list of components that are out of stock and create a purchase order for the components
  3. On the Purchase Receipts (PO302000) form, create a purchase receipt to record the receipt of the components from the vendor
  4. On the Materials (AM300000) form, issue the components required for the production order
  5. On the Labor (AM301000) form, record the labor spent for the juicer assembly and the produced quantity
  6. On the Storage Summary (IN409010) form, view the quantity of juicers available in the warehouse
  7. On the Production Order Maintenance form, view the changes in the production order
  8. On the Move (AM302000) form, record the receipt of one more juicer to the warehouse
  9. On the Production Order Maintenance form, view the labor and costs recorded for the production order
  10. On the Close Production Orders (AM506000) form, close the production order

System Preparation

Do the following:

  1. As prerequisites to the current activity, perform the following activities in the listed order:
    1. Bills of Material: Implementation Activity so that the needed bill of material has been created in a company with the U100 dataset preloaded.
    2. Production Order Types: To Create a Regular Production Order Type so that a production order type for regular orders has been created in this company.
  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 12 citrus 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 (automatically selected)
    • Inventory ID: CFJCITRUS
    • Warehouse: WORKHOUSE (automatically selected)
    • Location: MGI (automatically selected)
    • Order Date: Today's date (automatically selected)
    • Description: Production of 12 citrus juicers in the standard configuration

    Notice that the status of the production order is Planned.

  3. In the Qty. to Produce box of the General tab, specify 12. Notice that this quantity is copied to the Qty. Remaining box.
  4. On the form toolbar, click Save.
  5. On the form toolbar, click Release Order. The order status changes to Released.
  6. In the Planned section of the Totals tab, review the planned labor time and the planned costs for production of the juicers (see the following screenshot). The system calculates the planned time based on the values you have specified in the bill of material on the Bill of Material (AM208000) form. The planned costs are calculated based on the planned time and on the settings of the production cost drivers. (See Configuring Production Cost Drivers: Implementation Activity for details.)
    Figure 1. The Totals tab of the Production Order Maintenance form


The production order is ready to be processed further.

Step 2: Creating a Purchase Order for Out-of-Stock Components

In this step, you will view the list of components that are required for the production of the juicers and are out of stock, and you will create a purchase order to purchase the components from the JALOOZA vendor. Do the following:

  1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, click Critical Material (under Materials) on the More menu. The Critical Materials (AM401000) form opens with the production order number selected in the Production Nbr. box.
  2. Notice that zeros are specified in all rows in the Qty. on Hand column. This means that all the components required to assemble the juicers are out of stock and must be purchased.
  3. In the column header with the unlabeled check box, select this check box to select all rows.
  4. On the form toolbar, click Purchase.
  5. In the Create Purchase Order dialog box, which opens, review the default settings, and click Create. The system creates a purchase order and opens it on the Purchase Orders (PO301000) form.
  6. On the form toolbar, click Remove Hold. The status of the purchase order changes to Open.

Step 3: Receiving the Components in a Warehouse

Suppose that you have received the ordered components from the JALOOZA vendor and need to create a purchase receipt. The items have been received to the MTL location in the WORKHOUSE warehouse (this location is dedicated to the storing of components). Do the following:

  1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the form toolbar, click Enter PO Receipt. The system creates the purchase receipt and opens it on the Purchase Receipts (PO302000) form.
  2. On the Details tab, review the list of the received components.
  3. Notice that MTL is specified for each row in the Location column.
  4. On the form toolbar, click Release. The system releases the purchase receipt and changes its status to Released.
  5. Go to the Orders tab, and notice that Completed is specified in the Status column of the only row.

You have received the required components into stock and now you can continue processing the production order.

Step 4: Issuing the Components for the Production Order

In this step, you will issue the components for the production order. Do the following:

  1. On the Production Order Maintenance (AM201500) form, open the production order that you created earlier in this activity.
  2. On the More menu (under Transactions), click Release Materials. The system opens the Material Wizard 2 (AM300020) form with the list of components from the production order.
  3. On the form toolbar, click Select All. The system creates a material transaction and opens it on the Materials (AM300000) form.
  4. In the Summary area, do the following:
    1. In the Description box, specify Materials for 12 citrus juicers.
    2. Clear the Hold check box. The system changes the transaction status to Balanced.
  5. On the form toolbar, click Release. The system releases the material transaction and changes the status of the transaction to Released.
  6. On the Issues (IN302000) form, make sure that the inventory issue with the components from the production order has been created and released.

Step 5: Recording the Labor and Produced Items

Suppose that Carlos Cruz, a worker in the work center, spent 30 minutes setting up the working environment for juicer assembly and assembled 5 juicers for 1 hour and 40 minutes. Another work center worker, Casey Burrows, assembled 6 juicers for the same amount of time. The assembled juicers have been moved to the MGI location of the WORKHOUSE warehouse. To record the time spent on juicer assembly and the movement of the assembled 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: 02:10
    • Quantity: 5
  4. On the table toolbar, click Add Row.
  5. 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: EP00000028 (Casey Burrows)
    • Shift: 0001
    • Labor Time: 01:40
    • Quantity: 6
  6. In the Summary area, do the following:
    1. In the Date box, make sure that today's date is specified.
    2. In the Description box, specify Recording the time for assembly of 11 citrus juicers.
    3. Clear the Hold check box. The system changes the transaction status to Balanced.
  7. On the form toolbar, click Release. The system creates and releases the cost transaction to record labor costs, the inventory receipt to record the movement of the assembled juicers to the warehouse location, and the labor transaction itself.

Step 6: Viewing the Availability of Juicers

To make sure that the assembled juicers have been moved to the MGI warehouse location, do the following:

  1. On the Receipts (IN301000) form, open the inventory receipt with the 11 juicers.

    Notice that the receipt has the Released status.

  2. On the Inventory Summary (IN401000) form, specify the following settings in the Selection area:
    • Inventory ID: CFJCITRUS
    • Warehouse: WORKHOUSE
    • Location: MGI
  3. Notice that the value in the On Hand column of the only row listed in the table is 11 (as shown in the following screenshot).
    Figure 2. The on-hand quantity of the juicers on the Inventory Summary form


Step 7: Viewing the Changes to the Production Order

In this step, you will view the changes the system made to the production order as a result of the previous steps. Do the following:

  1. On the Production Order Maintenance (AM201500) form, open the production order that you created earlier in this activity.
  2. Go to the General tab, and notice that the value of the Qty. Complete box is 11 and the value of the Qty. Remaining box is 1. This means that 11 out of 12 juicers have been assembled and are available in the warehouse.
  3. Go to the Events tab, and notice that records for material, cost, and labor transactions are displayed in the table.
    Figure 3. The Events tab of the Production Order Maintenance form


Step 8: Recording the Produced Items

Suppose that you have been informed that Carlos Cruz produced 6 juicers— not 5, as you recorded earlier in this activity. To record the receipt of one more juicer to the warehouse location, create a move transaction as follows:

  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 opens the Move (AM302000) form with the row for the production order added to the table.
  2. Notice that 1 is specified in the Quantity column.
  3. In the Summary area, clear the Hold check box.
  4. On the form toolbar, click Release. The system creates and releases the inventory receipt and the cost transaction; it also changes the status of the move transaction to Released.
  5. On the Inventory Summary (IN401000) form, specify the following settings in the Selection area:
    • Inventory ID: CFJCITRUS
    • Warehouse: WORKHOUSE
    • Location: MGI
  6. Notice that the value in the On Hand column of the only row is 12.
  7. Go to the General tab of the Production Order Maintenance form, and notice that the Qty. Complete box contains 12 and the Qty. Remaining box contains 0.
  8. Notice that in the Summary area, the status of the order is Completed.

Step 9: Viewing Production Order Totals

Before closing the production order, you will view the actual recorded labor time and costs on the Production Order Maintenance (AM201500) form, as follows:

  1. Notice that the following values are specified in the Actual section of the Totals tab (as shown in the screenshot below):
    • Labor Time: 3 h 50 m
    • Labor: 76.66
    • Variable Overhead: 23.00

    The other values of the cost boxes are the same as in the Planned section. These costs are fixed and do not depend on the recorded labor.

  2. Review the difference between the planned and actual labor time and costs in the Variance section (which is shown in the following screenshot). Notice that the workers spent 40 minutes of work less than the planned time.
    Figure 4. Actual and variance costs of the production order


Step 10: 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 processed the production order for 12 citrus juicers.