FAQs

Q: We have assemblies that sometimes require replacement of a component or two. Should we create a credit note for the whole assembly in this case?


A: You will need to process a credit note for the amount of the returned component. If you are going to return the stocks to inventory, you should also process a stock adjustment. For the replacement, you can convert the sale to an Advanced Sale so you can process another fulfilment.


Q: We had set up a Bill of Materials (BOM) for one of our products under the Inventory module, but when we created a new Assembly, the BOM was different from the one we'd set up. Why is this happening? 


A: This happens when the product in the BOM you created also has a BOM with an auto-assembly setting. When you try to assemble the new BOM, the product will replace the new BOM with the other BOM. This is how hierarchical BOMs work in DEAR.


Q: If my assembly has a sub-assembly, how will it look like on the Finished Goods screen? 


A: All products with BOMs and set to auto-assemble are represented by components in Finished Goods tasks. All products with BOMs and Auto-assembly switched off are shown as any other product. Only FIFO, FIFO - Batch and Special - Batch costing methods support the Auto-assembly feature.


Q: We use a contract manufacturer to assemble a completed product from the raw materials (cane sugar, citric acid, lime juice, bottles and labels) I provide them with. The contract packer takes the ingredients and bottles them into a beverage. They charge a base fee + a fee per completed unit. How can I include (capitalise) this fee in production?


A: In this case, you can do the following:

  1. Create an expense account in your Chart of Accounts, e.g. Work in Progress. 
  2. For the raw materials, use the Issue to Production module and write off raw materials to the Work in Progress account, e.g. total cost of raw materials = $10K.
  3. Contractor flat fee and fee per completed unit: Upon receiving an invoice and goods from a contract packer, process them as usual with a purchase invoice. Add a manual journal, debiting Inventory and crediting Work in Progress for the amount of $10K, which will then be distributed across the finished products.



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