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How to record purchased services / subcontract elements on the relevant production order

  • 20 December 2023
  • 8 replies
  • 102 views

As part of our manufacturing process we outsource components or services that we cant establish as  individual stock items. For example, part of production might involve sending elements off to be powder coated before they are sent back to us for being assembled. We raise a PO for these services using a non-stock inventory code.

I am yet to find a way to record these costs on the production order, they are expensed on receipt and unlike a true inventory item they don't backflush and cant be allocated as cost to the production order.

As a result our cost of production is never 100% accurate as these service elements are never included.

Has anyone found a solution to this?

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Best answer by angierowley75 21 December 2023, 12:48

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8 replies

Userlevel 7
Badge +3

Are you using the Outside Processing / Vendor Shipment capability?

Userlevel 5
Badge +1

@Byron  If you are not backflushing the non-stock item, you will need to create a material transaction for the non-stock item to record the cost transaction, after receiving the PO and prior to the Move transaction for the outside service operation. 

Material transaction will apply the subcontract cost to the production order. 

Userlevel 7
Badge +2

@Byron - I have a few videos on OSP that are short and you could watch. What Pragati says is true and the video may help you. You can email me debbie.baldwin@acumatica.com

 

Hi all, thanks for the feedback.

We don't use the outside processing feature, I looked into it and tested a few time but maybe it did not seem to work as expected. @Debbie Baldwin I will send you an email as I am interested in the videos to help my understanding. 

We can and do backflush the non-stock item, but it doesn't apply any actual cost, so on backflush it comes through as nil. The non stock items have no “held” average cost to apply, but regardless each time the value could be entirely different. Using that powder coating example,  we could be requesting powder coating in the range of value from $500 to $50,000 so ideally whatever we raise on the PO is what we want to hit the Production Order.

@PragatiMalviya64 if we complete a material transaction after the PO is received can we control the value of that material hitting the production order or again will the system will try and default to last or average? When i looked at this previously the unit cost is not editable, and only quantity is editable (refer screenshot), so how to i add a custom amount onto the Prd order?.

 

Userlevel 7
Badge +2

@Byron - just sent you a link to videos.

Userlevel 7
Badge +3

We do not yet support receiving a PO cost directly to a Production Operation.  The system will use the Item cost value.

The recommended work around is to setup the non-stock Item with a cost of $1 and then manually set the required quantity on the production material to reflect the service charge.

So in your example the quantity would be 500 or 5000 for an item with a standard cost of $1

I think this Community Idea captures your use case?

https://community.acumatica.com/ideas/allow%2Dpurchases%2Dreceipts%2Ddirect%2Dto%2Da%2Dproduction%2Dorders%2D2597

Thanks @angierowley75….

When you say do not yet support….does that mean this is something that might change in future enhancements?

I clicked that link but I couldn't read it, said something about invalid permissions.

Using the cost of $1 idea had been mentioned to me in the past, I will have another play with this as well. 

Userlevel 7
Badge +3

The link is to an Idea on Communities to enhance the product as you are suggesting - we use Ideas to help drive product roadmap.  It is an enhancement we are considering for a future (undetermined) release.

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