Assembly Item process fully based on purchase order?

Greetings – Our firm wants to explore using assembly items more to better enable us to capitalize large consumable projects…

Currently we buy CPU chips A, B, & C from various vendors on purchase orders. We also have a vendor that would accept combinations of chips A, B, & C + a professional service fee to make us enhanced boards. We want those projects to hit different accounts and the ending product to be capitalized like a fixed asset instead of consumables (as the chips are in their ‘raw’ state).

I’m new to this, my admin journey hasn’t brought me to manufacturing. So how do I setup the transactions to work for purchasing on this? They do a PO for the raw goods, then a PO for the assembly? But how does my raw good inventory decrease when I buy the upgraded board?

Advice appreciated, thanks!

Rookie Asked on December 1, 2022 in Purchasing.
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1 Answer(s)

This kind of sounds like a Special Order to me.  Check out “Special Order Items” SuiteAnswers ID: 28225, and see if that will work for your situation. I’d also check out “Assembly Work Orders” SuiteAnswers ID: 67057.  The Assembly Work Orders Workflow Chart here is particularly helpful just for general flow context/understanding. If you don’t special order, then probably you’re going to end up creating a sales order and some sort of custom way to associate the PO and SO. It probably won’t end up being a super straightforward thing, but there are a number of different ways to handle it, just depends on what works best for you. As for hitting different accounts, I’d probably just make two different items for the different scenarios unless that’s going to totally mess with inventory management somehow.  Pop into sandbox and try out the different scenarios and see what works. Good luck!

Intermediate Answered on December 22, 2022.
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