Disassembly


Disassembly can be used to break down inventory items into components. It can also be used to perform unit conversions, e.g. from tons to kilos. The disassembly function can only be used with items that have a Bill of Materials showing their component parts.


Prerequisites:


  1. Create an item with Bill of Materials
  2. Disassemble an item



Create an item with Bill of Materials

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The disassembly function can only be used with items that have a Bill of Materials showing their component parts. If you already have products with Bill of Materials, skip to the next step.


NOTE:  To create a product with a Bill of Materials, the component products must already be created in DEAR. 


To add Bill of Materials to an item:

  1. When creating a new product or editing an existing product, check the Bill of Materials box in the document header


  1. This activates the Bill of Materials tab below. Use + or Add more items to select the component products from your inventory. 

  2. Enter the Quantity of each component product produced in the disassembly. 

  3. Enter a Disassembly Cost percentage if required.


NOTE:  When left blank, DEAR splits the cost of the disassembled components equally between product lines. 



Example : Product A is disassembled into 2 x Product X and 1 x Product Y.


If product A has $100 cost, the default settings in DEAR will set $50 for Product X line (which will be split among 2 items, giving the cost of $25 per each instance of Product X) and $50 for Product Y.



Suppose that you wish to set your own rules. You estimate that the cost of the product Y will be $80 and the cost of the product X will be $10 each. Your disassembly cost percentage will be 20% for the first line (product X) and 80% for the second line (product Y).




  1. Service items associated with the disassembly can be included by clicking or Add more items to the Labour and Overheads section. It is required to include an Expense Account.

  1. Save the product to complete



Disassemble an item

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Disassembly can be performed manually or automatically. Auto-disassembly is only recommended in the case where you do not sell the assembled product. 


NOTE:  Only FIFO, FIFO-Batch and Special-Batch costing methods support auto-disassembly.


To disassemble an item manually:

  1. Navigate to Production -> New -> Disassembly

  2. Choose the Location where the disassembly will take place

  3. Choose a product from the dropdown menu. Only products with a Bill of Materials will be shown. 

  4. Choose a Work in Progress account

  5. Enter a Quantity to disassemble. Use Maximum Quantity to calculate the maximum number of disassemblies that can be performed with your available inventory. 

  1. Next, in the Pick tab, click Auto-Pick to automatically choose the items to disassemble from your inventory

  2. Click Authorise

  1. In the Result tab, click Load BOM to see the component products produced from the disassembly and their costs. 

  2. Click Complete to finish.




To disassemble an item automatically:

  1. Navigate to Inventory -> Products 

  2. Select the product you wish to disassemble automatically

  3. Check the Auto-disassembly box

  4. Save the product



When this item is in received into the inventory, it will automatically be disassembled into the component items.