The other day we were discussing about Sage (Accpac) 300 ERP for a prospect in Fabric industry and came across a requirement, where they needed to convert a roll of fabric into multiple pieces. The simple solution provided was to have more than 1 UOM (Units of Measure) defined for the same item and then based on the conversion unit transact the item in both the units Roll and Pieces. However, they insisted on maintaining the item separately for Roll and Pieces. Now this situation could be handled by using BOM and Assembly functions of Sage (Accpac) 300 ERP.
Listing down the steps on how to define BOM (Bill of Material) and then assemble an item (Raw Material) to form finished good.
Navigate to Inventory Control Module and select Bills of Material under I/C Items and Price Lists. Then select the Master Item, as the item to be prepared as the finished good, which in this case will be Fabric Pieces. Assign a BOM number, Fixed and Variable costs that can incur in the conversion of roll into pieces. Fill in the build quantity as the no. of pieces that can be made using 1 unit quantity of roll (e.g. 10 pieces of 1 meter each if the roll is of 10 meters.). Select Component item as Roll, enter the Unit Quantity (e.g. 10 Meter) and then save this BOM.
Now, whenever a conversion is to be done, navigate to I/C Transactions> Assemblies and select the Master Item number, Location and Build Quantity and then run the assembly. This will convert 1 roll of fabric (say 10 meters) into 10 Pieces of fabric (say 1 meter each).
A benefit of using this process is that you can program the system to take care of the costing of cut-pieces based on the cost occurred in procuring the role.
On top of this, you can also record the loss of fabric due to cutting process involved by entering the actual quantity in build quantity. (e.g. 1 roll converts into 9.7 pieces – provided you have allow fractional quantities checkbox on) and also if there are any fixed or variable costs involved in the process, they are taken care of.
This process will help you keep a more detailed track of stock that you own in different UOM and also automate to add the conversion costs and wastages to finished goods.
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