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Processing direct purchase for manufacturing orders

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This functionality allows you to:

  • reduce the cost for carrying inventory (by not storing the items in your normal stock)
  • quickly process the purchase orders

Types of items

You can order the following types of items using direct purchase:

  • Items that are not kept in your normal stock but can be used for manufacturing orders. You register these items in the Item file as non-stocked items with an item code, description, and so on, but you do not store these items in stock. Instead, you purchase them from the supplier, when a demand arises from the manufacturing order, and deliver these items directly from the supplier to the manufacturing order or via your transit stock to the order.
  • Items that are neither defined as complete nor kept in stock, but can be used for a manufacturing order. You register an item in the Item file as fictitious item with an item code, general description, etc. The definition of supplier, description, price etc, is made on the item structure (bill-of-material). The items are purchased from the supplier when a demand arises from the manufacturing order and deliver them directly from the supplier to the manufacturing order or via your transit stock to the order.

Creating the purchase order (PO)

You have two options from which to choose for creating the purchase order. You can:

  1. Create the purchase order manually via the Work with manufacturing direct purchase menu item, OR
  2. Let the system automatically create it immediately after the creation of the manufacturing order.

Types of issues

The manufacturing order type determines the type of issues to production:

  • Direct issue to production means that the goods are directly issued to the manufacturing order at the time when purchase order has been received.
  • Manually issue to production means that the goods are stored in transit stock when purchase order has been received. The issue to manufacturing order will be made in the normal issue/receive routine.

Warehouse

Each warehouse you use for the reception of transit goods and deliveries should have the Direct delivery and Transit delivery fields set to YES (you do this in the Item file).

Special warehouse

You can, if you want, set up one warehouse as a BtB warehouse (some sort of fictitious warehouse). Only this warehouse in the Item file would have the Direct delivery and Transit delivery fields set to YES. This allows you to obtain statistics for Direct deliveries and Transit deliveries for BtB orders.

Enquiries and printouts

  • Manufacturing order enquiry
  • Purchase order enquiry
  • Manufacturing shop floor printout
  • Purchase order file list printout

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