RE: Shop Orders and Inventory Accuracy

["Bird, Richard" <rbird@xxxxxxxxxxxxxxxx>]

By setting up the BOM to Must Issue = Y on each component, you can issue the 
components from inventory to WIP. When the finished part is produced, you can 
enter it in INV500 using a transaction type that updates inventory levels but 
does not require a shop order. Set up CEA to debit and credit account pairings 
as required to track costs. You will not get a breakdown of costs as provided 
by production reporting, but will get the inventory values.

You will have to set up routings and bills of material if you want to use the 
system to roll up the costs. If this is not done in BPCS, it will have to be 
done off line in a spreadsheet or something. If done offline, the standard cost 
of each item can be plugged without the need for routings or bills of material 
to roll up the cost. It's just more work. And, of course, without routings or 
bills of material, planning functionality is not available.

Hope this helps,

Richard Bird

 -----Original Message-----
From:   KASP6281@xxxxxxx [mailto:KASP6281@xxxxxxx] 
Sent:   Thursday, June 26, 2003 1:11 PM
To:     BPCS-L@xxxxxxxxxxxx
Subject:        Shop Orders and Inventory Accuracy

Hi.

I am looking at a situation that I do not have extensive experience in right 
now.  A client has ceased creating and reporting against shop orders.  I have 
searched the archives and found nothing similar.  The client would like to 
have accurate inventory and costs, but I do not see a way to accomplish this 
without using shop orders or reporting production.

Right now they drive the FG inventory negative and the cost of sales should 
then theoretically be accurate.  But they also cut back and don't audit the 
BOMs in BPCS versus their drawing system that generates separate BOMs, routings 
and drawings.  This is being done in a mainly build to order environment.  I 
have considered having the folks here report production using the multi level 
shop order release and have the production backflushed, but I don't know what 
else to attempt.  

Do you have any ideas how to keep inventory accurate without shop orders and 
have accurate costs without BOM and Routing audits?

Thanks.
John Kasper
KASP6281@xxxxxxx
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