Finished Goods module forms part of the production functionality in DEAR Inventory. It helps you keep track of the use of raw materials as well as associated costs throughout the manufacturing process. Before you can begin manufacturing finished goods, you will need to create inventory with Bill of Materials.
Please check this article for more details on how to add Bill of Materials to a product.
In order to manufacture the finished product, you will need to:
- Navigate to the Production module
- Then create a new assembly.
- Here you will need to select the location where the product will be manufactured
- Then select the Product Code
- You have the option to identify the Finished Goods Account as well as the Work in Progress Account for this manufacturing run
- You will then need to provide a quantity that will be manufactured and you can also use the Maximum Quantity calculation to check the maximum quantity that can be produced given raw material availability.
You can then load the Bill of Materials in the Assembly Order tab.
The Bill of Materials table will show the total quantity required to produce the finished product. Total quantity figures marked in red indicate insufficient components that will need to be ordered to complete this manufacturing run.
The Bill of Materials can be amended by either adding additional components to the Bill of Materials by clicking Component Line or amending the quantity of the current components used which will ultimately affect the total quantity.
If you have insufficient total quantity of components you can still proceed with authorizing this order, which will automatically create backorders for any components that are missing. To create a backorder for missing components you will need to authorize this finished goods task. The backordered components will automatically go in the Backorder section within the Purchase module. You can then automatically create purchase orders for any missing components by navigating to the relevant supplier and then selecting the components that you wish to reorder.
As soon as all required components are in stock, you will be able to proceed with the pick stage of the manufacturing process. You can form an Auto Pick that will automatically select the raw ingredients based on the costing method selected. If you know that the total quantity of the raw components used was higher or lower than the total quantity displayed in the pick stage, you are still able to amend that total quantity. You can then allocate these items to the production room physically taking them out of the inventory.
Once the manufacturing run is completed you are able to finish by hitting the Complete button. Before you do that you can still amend the actual yield of the manufacturing run if it was higher or lower than expected. Completing the finished goods task will increase the total quantity of the finished product by the actual yield.