AcumaticaERP Manufacturing

End-User Guide
Manufacturing
2022 R2
Contents | 2
Contents
Copyright...............................................................................................................................................6
Managing Production Cost Drivers........................................................................................................... 7
Production Cost Drivers: General Information.................................................................................................7
Production Cost Drivers: Configuration Prerequisites.....................................................................................9
Production Cost Drivers: Implementation Activity.......................................................................................... 9
Managing Work Centers........................................................................................................................ 14
Work Centers: General Information................................................................................................................14
Work Centers: Substitution of Work Centers................................................................................................. 15
Work Centers: Configuration Prerequisites....................................................................................................16
Work Centers: Implementation Activity......................................................................................................... 17
Work Centers: Related Forms..........................................................................................................................21
Managing Bills of Material..................................................................................................................... 22
Bills of Material: General Information............................................................................................................ 22
Bills of Material: Operations............................................................................................................................25
Bills of Material: Multilevel BOMs................................................................................................................... 28
Bills of Material: Configuration Prerequisites................................................................................................ 29
Bills of Material: Implementation Activity......................................................................................................30
Bills of Material: Implementation Checklist................................................................................................... 34
Bills of Material: Related Reports....................................................................................................................35
Bills of Material: Key Features.........................................................................................................................36
Bills of Material: Cost Calculation...................................................................................................................37
Bills of Material: Planning BOMs.....................................................................................................................38
Bills of Material: Updating Standard Costs.................................................................................................... 39
Producing Items................................................................................................................................... 42
Production Processing: General Information.................................................................................................42
Production Processing: Control Point Operations.........................................................................................45
Production Processing: Item Availability and Allocation.............................................................................. 48
Production Processing: Cost Calculation....................................................................................................... 49
Production Processing: Implementation Checklist....................................................................................... 53
Production Processing: To Process Production-Related Documents and Transactions..............................54
Production Processing: Production for Sales................................................................................................ 63
Production Processing: To Process Production for Sales..............................................................................66
Production Processing: Generated Transactions...........................................................................................73
Production Processing: Mass Processing....................................................................................................... 76
Contents | 3
Production Processing: Related Report and Inquiry Forms..........................................................................77

Production Processing: Selection of Warehouse Locations.......................................................................... 78
Production Processing: Labor Reporting....................................................................................................... 80
Production Processing: Reconciling WIP to the GL........................................................................................81
Producing Lot- or Serial-Tracked Items...................................................................................................82
Production of Lot- or Serial-Tracked Items: General Information................................................................ 82
Production of Lot- or Serial-Tracked Items: Implementation Checklist....................................................... 88
Production of Lot- or Serial-Tracked Items: To Assign Parent Serial Numbers to Materials on Issue..........89
Production of Lot- or Serial-Tracked Items: To Assign Parent Serial Numbers to Materials on
Completion.......................................................................................................................................................95
Production of Lot- or Serial-Tracked Items: Related Report and Inquiry Forms........................................ 101
Producing Items with Outside Processing............................................................................................. 102
Outside Processing: General Information.................................................................................................... 102
Outside Processing: Implementation Checklist........................................................................................... 105
Outside Processing: Process Activity............................................................................................................ 107
Outside Processing: Generated Transactions.............................................................................................. 115
Producing Items with Backflushing...................................................................................................... 117
Production with Backflushing: General Information...................................................................................117
Production with Backflushing: Implementation Checklist..........................................................................121
Production with Backflushing: Process Activity.......................................................................................... 122
Tracking Scrap and Waste in Production............................................................................................... 130
Scrap and Waste in Production: General Information.................................................................................130
Scrap and Waste in Production: Cost Calculation....................................................................................... 133
Scrap and Waste In Production: Implementation Checklist........................................................................134
Scrap and Waste in Production: To Process a Production Order with No Scrap Settings.......................... 135
Scrap and Waste in Production: To Process a Production Order That Includes Quarantined Scrap......... 141
Scrap and Waste in Production: Generated Transactions........................................................................... 148
Production Management..................................................................................................................... 150
Disassembly Process......................................................................................................................................150
Rework/Repair Orders................................................................................................................................... 151
Reversal of Production Receipts................................................................................................................... 153
Period Closing Tasks......................................................................................................................................154
Material Requirements Planning.......................................................................................................... 156
Material Requirements Planning: General Information...............................................................................156
Material Requirements Planning: Process Details....................................................................................... 158
Material Requirements Planning: Forecasts and Master Production Schedule......................................... 160
Contents | 4
Material Requirements Planning: Planning Transfers in MRP..................................................................... 160

Material Requirements Planning: Implementation Checklist..................................................................... 162
Material Requirements Planning: Process Activity...................................................................................... 163
Material Requirements Planning: Related Report and Inquiry Forms........................................................ 168
Material Requirements Planning: MRP Processor........................................................................................169
Material Requirements Planning: MRP Procedures..................................................................................... 170
Other Manufacturing Functionality...................................................................................................... 172
Using Attributes in Manufacturing................................................................................................................ 172
Manufacturing Data Collection..................................................................................................................... 172
Importing Master Data into Manufacturing..................................................................................................173
Importing Bills of Material Master Data...............................................................................................175
Integration with Projects...............................................................................................................................177
Using Manufacturing Data in Inquiries and Reports....................................................................................179
Estimating..........................................................................................................................................186
Estimating: General Information.................................................................................................................. 186
Estimating: Implementation Checklist......................................................................................................... 187
Estimating: Implementation Activity............................................................................................................ 188
Estimating: Process Activity.......................................................................................................................... 190
Estimating: How to Use Estimates with Orders and Opportunities............................................................193
Estimating: Modifying the Sales Quote to Include Estimates..................................................................... 193
Estimating: Modifying the Opportunity Quote Form to Include Estimates................................................ 194
Product Configurator.......................................................................................................................... 196
Product Configurator: General Information.................................................................................................196
Product Configurator: Processes and Functions......................................................................................... 198
Product Configurator: Rule Processing........................................................................................................ 200
Product Configurator: Managing Configurations.........................................................................................203
Product Configurator: Supplemental Items.................................................................................................205
Product Configurator: Implementation Checklist....................................................................................... 205
Product Configurator: Production Management Integration......................................................................207
Product Configurator: Implementation Activity.......................................................................................... 208
Product Configurator: To Create a Sales Order with a Configurable Item..................................................211
Product Configurator: Adding Configuration Data to Forms.......................................................................213
Product Configurator: Pricing and Cost....................................................................................................... 214
Advanced Planning and Scheduling...................................................................................................... 216
Advanced Planning and Scheduling: General Information......................................................................... 216
Advanced Planning and Scheduling: Capacity Definition........................................................................... 217
Contents | 5
Advanced Planning and Scheduling: Scheduling Details............................................................................ 218

Advanced Planning and Scheduling: Operation Lead Time........................................................................220
Advanced Planning and Scheduling: Production Schedule Board............................................................. 223
Advanced Planning and Scheduling: Process Activity.................................................................................228
Processing Capable to Promise............................................................................................................ 231
Capable to Promise: General Information....................................................................................................231
Capable to Promise: Implementation Checklist.......................................................................................... 233
Capable to Promise: Implementation Activity............................................................................................. 234
Capable to Promise: Process Activity........................................................................................................... 236
Engineering Change Control................................................................................................................ 241
Engineering Change Control: General Information..................................................................................... 241
Engineering Change Control: Implementation Checklist............................................................................ 242
Engineering Change Control: Implementation Activity...............................................................................243
Engineering Change Control: Process Activity............................................................................................. 244
Appendix............................................................................................................................................ 247
Reports........................................................................................................................................................... 247
Report Form.......................................................................................................................................... 247
Report....................................................................................................................................................252
Form Toolbar..................................................................................................................................................253
Table Toolbar................................................................................................................................................. 260
Copyright | 6
Copyright
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Soware Version: 2022 R2

Last Updated: 01/30/2023
Managing Production Cost Drivers | 7
Managing Production Cost Drivers

In this chapter, you will find information about the production cost drivers that can be included in the cost of the
final product in Acumatica ERP Manufacturing Edition. These production cost drivers include labor tools, and
overhead.
Production Cost Drivers: General Information
The costing of items that you make is more complex and detailed than the costing of items you buy. The costing
of these manufactured items includes not only the cost of the materials bought to make an item but also the cost
of labor, factory overhead, machinery, and tooling used in production. And subassemblies may be produced and
stored that become part of the final assembly of the finished goods you sell.
In this topic, you will read about production cost drivers, which are the costs that can be included in the cost of the
final product.
Learning Objectives
In this chapter, you will learn how to do the following:
• Define the labor codes so that labor costs are included in the cost of a produced item
• Define the overhead entities so that overhead costs are included in the cost of a produced item
• Define the tools so that the tool costs are included in the cost of a produced item
• Define the machines so that the machine costs are included in the cost of a produced item
Applicable Scenarios
You configure production cost drivers in the following cases:
• When you initially implement Acumatica ERP, and the Manufacturing feature is included in your license
• When you have purchased the Manufacturing feature, and you need to configure manufacturing in the
existing Acumatica ERP system
• When you need to add or change cost drivers that affect the cost of the produced item
Cost Drivers in Manufacturing

In Acumatica ERP Manufacturing Edition, you need to define the following entities whose costs can affect the cost
of the final product:
• Materials: You define the needed materials (stock items and non-stock items) so that you can track the costs
of the components used to make the finished product.
• Labor: You define labor codes in the system and use them to track the cost of the labor issued (or planned to
be issued) to make the product.
• Overhead: You define the applicable overhead entities in the system and specify the overhead rates to be
applied to particular operations and materials.
• Machines: You define each machine in the system, including the cost rate of running a machine for a
production operation.
• Tools: You define each tool to be used in a production operation, including its cost rate for each usage.
• Subcontractor services and materials: You track the value of the services provided by a vendor and
materials provided to and purchased from a vendor for performing the work.
Costs can be planned and actual. Planned costs are specified on the bill of material level, and actual costs are
calculated when users process production orders. The system posts actual costs when users record quantities of
produced items or when materials or labor are backflushed at a production order operation.
In the following sections, you can find more information about particular cost drivers.
Material Costs
Materials can include stock items and non-stock items. For a stock item, you specify the planned cost in one of the
following locations:
• On the Price/Cost tab of the Stock Items (IN202500) form if the item is stored in one warehouse
• On the Price/Cost tab of the Item Warehouse Details (IN204500) form if the item is stored in multiple
warehouses and the item cost is warehouse-specific
For a non-stock item, you specify the item cost on the Price/Cost tab of the Non-Stock Items (IN202000) form.
Labor Costs
The cost of labor can be broken down into direct labor costs and indirect labor costs. Direct labor costs include
wages for the employees who produce a product. Users may record indirect labor costs for lunch, breaks, or
cleaning up aer work. In Acumatica ERP, you can track both direct and indirect labor costs.
Labor costs are posted to a special GL account. You use the Labor Codes (AM206500) form to define the labor codes
that will contain information about the cost type (direct or indirect) and the GL account where the labor expenses
must be posted. You must define at least one labor code of the Direct type.
Planned labor costs are calculated based on the run units and run time of an operation and the standard cost of a
work center assigned to the operation. Actual labor costs are calculated based on either the standard cost of a work
center or the employee cost rate. You select the way of calculating actual costs in the Use Labor Rate box on the
Production Preferences (AM102000) form. You specify the standard cost of a work center in the Standard Cost box
on the Work Centers (AM207000) form. If based on the business processes of your organization, you calculate labor
costs by using the employee cost rate, you specify the rate on the Labor Rates (PM209900) form.
Make sure that no labor item is specified in the Labor Item box on the General Info tab of the
Employees (EP203000) form.
For more information about labor costs, see Production with Backflushing: General Information and Production
Processing: Labor Reporting.
Overhead Costs
You can set up overhead costs by using the Overhead (AM202500) form. These costs can be accrued at a fixed
rate, which is the same regardless of lot or order size, or at a variable rate, which may depend on labor hours or
the quantity of goods completed. You can create as many overhead IDs as you need to account for the different
overhead expenses of your organization. The full list of the supported overhead types is the following:
• Fixed: Uses a single fixed cost
• Variable by Labor Hours: Depends on the number of labor hours used in production
• Variable by Labor Cost: Depends on the cost of the labor used in production
• Variable by Material Cost: Depends on the cost of the materials used in production
• Variable by Machine Hours: Depends on the number of machine hours used in production
• Variable by Quantity Completed: Depends on the quantity of completed items
• Variable by Total Quantity: Depends on the quantity of completed and scrapped items
You can assign the planned overhead costs to a specific item on the Bill of Material (AM208000) form or to a work
center on the Work Centers (AM207000) form, depending on whether the cost affects a particular product or a
particular production operation.
Actual overhead costs are applied when a quantity of produced items is recorded for a production
order operation.
Tool and Machine Costs

If any tools or machines are used in the production of goods in your organization, you may want to include their
costs in the cost of the produced items. To add tool costs, you create all tools included in the production process by
using the Tools (AM205500) form. On this form, you specify the unit cost, which is the cost for every usage of the tool
in a production order and the GL account where tool costs must be posted.
To add machine costs to the cost of produced items, you create machines and specify their costs on the Machines
(AM204500) form. On the form, you also select the GL account where the system will post the costs. Machines are
assigned specifically to work centers. The cost is calculated at the hourly rate specified for a particular machine on
the Machines form and can be overridden on the Work Centers (AM207000) form for a particular work center.
The actual tool and machine costs are posted when users record quantities of produced items or when labor is
backflushed at a production order operation.
Subcontractor Costs
If any outside organizations (that is, subcontractors) are involved in the production process—such as providing
services or creating components of produced items—you can include the costs your organization spends for these
organizations in the cost of the produced items. For details, see Outside Processing: General Information.
Production Cost Drivers: Configuration Prerequisites
Before starting to create cost drivers for produced items, you must be sure that the system has been configured
properly and that all required entities have been created, as described in the following sections.
Enabling the Needed Features

On the Enable/Disable Features (CS100000) form, the Manufacturing feature must be enabled.
Configuring the System

Before you create records for tools, machines, overhead, and labor codes in Acumatica ERP, you need to make sure
that the following actions have been performed in the system:
• On the Chart of Accounts (GL202500) form, all GL accounts where costs will be posted have been created.
• On the BOM Preferences (AM101000) form, the numbering sequence for bills of material has been specified.
• On the Production Preferences (AM102000) form, the numbering sequences for move, material, labor, cost,
and WIP adjustments have been specified.
Production Cost Drivers: Implementation Activity
In the following implementation activity, you will learn how to create tools, machines, overhead entities, and labor
codes, which are production cost drivers—that is, they determine the cost of the final products.
Story
Suppose that SweetLife Fruits & Jams has decided to assemble customized juicers according to customers' needs.
For accurate calculating of the cost of the juicer, the material costs, machine costs, tool costs, labor costs, and
overhead costs must be considered. In the assembly process, such tools as a screwdriver and a hammer are used.
For producing small plastic parts, the injection molding machine is used. Two workers are involved in the juicer
assembly. The administrative costs, payroll costs, and floor setup costs must be included in the cost of the juicers as
well.
As an implementation manager, you need to create records for a machine, tools, overhead, and labor codes so that
these costs are included in the cost of the juicers. The costs for the components used in juicers have been specified
when the stock items for these components were created in the system, so you will not specify these costs in this
activity.
Configuration Overview
The following entities, which you will use in this activity, have been predefined in the U100 dataset:
• On the Chart of Accounts (GL202500) form, the following GL accounts:
• 51000, Accrued COGS - Direct Labor Costs
• 51050, Accrued COGS - Fixed Overhead Costs
• 51060, Accrued COGS - Fixed Machine Costs
• 51070, Accrued COGS - Fixed Tool Costs
• 51100, Accrued COGS - Indirect Labor Costs
• 51150, Accrued COGS - Variable Overhead Costs
• On the Work Calendar (CS209000) form, the MAIN work calendar
Process Overview
In this activity, you will do the following:
1. On the Labor Codes (AM206500) form, create labor codes for direct and indirect labor costs.
2. On the Overhead (AM202500) form, create overhead entities for administrative costs, payroll costs, and the
floor setup costs.
3. On the Tools (AM205500) form, create tools for a screwdriver and hammer.
4. On the Machines (AM204500) form, create a record for the injection molding machine.
System Preparation
Before you start creating the needed entities in the system, do the following:
1. As a prerequisite to the current activity, complete System Preparation for Manufacturing Implementation:
Implementation Activity so that the needed settings have been made in a company with the U100 dataset
preloaded.
2. Sign in to this company (in which the prerequisite activities have been performed) as a system administrator
with the gibbs username and 123 password.
3. Make sure that the Manufacturing feature has been enabled on the Enable/Disable Features (CS100000)
form.
Step 1: Creating Labor Codes

To create labor codes for direct and indirect labor expenses, do the following:
1. Open the Labor Codes (AM206500) form.
2. On the form toolbar, click Add Row.
3. In the added row, specify the following values in the columns:
• Type: Direct
• Labor Code: DIRLAB
• Description: Direct labor
• Labor Account: 51000
4. Add another row for a labor code with indirect labor costs, and specify the following values in the columns
of the row:
• Type: Indirect
• Labor Code: INDIRLAB
• Description: Indirect labor
• Labor Account: 51100
• Overhead Account: 51150
5. On the form toolbar, click Save.
Step 2: Creating Overhead Entities

To create overhead entities for administrative costs, payroll costs, and floor setup costs, do the following:
1. Open the Overhead (AM202500) form.
2. On the form toolbar, click Add Row.
3. For the administrative overhead, specify the following settings in the columns of the added row:
• Overhead ID: ADMIN
• Description: Administrative overhead
• Type: Fixed
• Cost Rate: 15.00
• Account: 51050
4. Add another row for the floor setup overhead costs, and specify the following settings in the columns of the
added row:
• Overhead ID: FLOOR
• Description: Floor setup overhead
• Type: Variable by Quantity Completed
• Cost Rate: 0.05
• Account: 51150
5. Add one more row for the payroll overhead costs, and specify the following settings in the columns of the
added row:
• Overhead ID: PAYROLL
• Description: Payroll overhead
• Type: Variable by Labor Cost
• Cost Rate: 0.30
• Account: 51150
Step 3: Creating Tools

To create tools for the screwdriver and hammer that will be used in the juicer assembly process, do the following:
1. On the Tools (AM205500) form, add a new record.
To open the form for creating a new record, type the form ID in the Search box, and on the
Search form, point at the form title and click New right of the title.
2. For the screwdriver tool, in the Summary area, specify the following settings:
• Tool ID: SCREWDRIVER
• Description: Electric screwdriver
• Active: Selected
3. In the Cost section of the General tab, specify the following settings:
• Unit Cost: 0.20
• Total Cost: 200
4. In the Account Settings section, select 51070 in the Account box.
6. On the form toolbar, click Add New Record.
7. In the Summary area, specify the following settings for the hammer tool:
• Tool ID: HAMMER
• Description: Hammer
8. In the Cost section of the General tab, specify the following settings:
• Unit Cost: 0.02
• Total Cost: 25
9. In the Account Settings section, select 51070 in the Account box.
10.On the form toolbar, click Save.
Step 4: Creating a Machine

You will create a record for the injection molding machine with the standard cost of $25 per hour and 100%
efficiency. The machine will work during the standard working hours. Do the following:
1. On the Machines (AM204500) form, add a new record.
2. In the Summary area, specify the following settings:
• Machine ID: INJMOLD
• Description: Injection molding machine
• Down: Cleared
3. On the General tab of the form, specify the following settings:
• Standard Cost: 25
• Calendar ID: MAIN
• Efficiency: 1.00
• Account: 51060
You have created records for the labor codes, tools, overhead entities, and machines, and now you can create work
centers.
Managing Work Centers | 14
Managing Work Centers

In organizations that produce items, specific areas are dedicated to operations involved in production, such as
assembly or machine operations. In Acumatica ERP Manufacturing Edition, you need to create work centers that
correspond to these areas. You assign people or machines to work centers, and you specify shis and overhead
costs. Work centers are required for bills of material.
In this chapter, you will read about work centers in Acumatica ERP Manufacturing Edition.
Work Centers: General Information
In Acumatica ERP Manufacturing Edition, a work center corresponds to a physical or virtual location in a warehouse
or production facility. The work center is a required component of configuring bills of material because it
determines the availability of processes as well as the costing from overhead, labor, and machines. You use the
Work Centers (AM207000) form to create work centers and manage settings of existing work centers.
In this topic, you will read about the configuration of work centers in Acumatica ERP Manufacturing Edition.
Learning Objectives
• Create a work calendar for overtime work
• Create shis that will be used in work centers
• Create the work centers that will be involved in manufacturing
You create work centers in the following cases:
• When you initially implement Acumatica ERP, and the Manufacturing feature is included in your license
existing system
• When you need to add new work centers or change the settings of existing work centers because of business
process changes
Work Center Creation

A work center must be created on the Work Centers (AM207000) form before you can create bills of material that
use the work center. Once you have created any bills of material with a work center, on the Where Used tab of this
form, you can view the bills of material that use the selected work center. You cannot delete a work center if it is
used in any bill of material. Before deleting a work center, we recommend that you open the Where Used tab to
make sure no bills of material use the work center.
For each work center you create, you specify the following:
• The warehouse where the work center is located (required): You must assign each work center to a
warehouse.
• The standard cost per labor hour (optional): You specify this setting so that the system calculates the
planned labor costs for the manufacturing process in which the work center is involved.
• The planned capacity of the work center (required): You specify whether the capacity constraint for
scheduling should be the crew size or the machines. The basis for capacity determines whether the
operation is scheduled by using run times or machine times. For more information, see Advanced Planning
and Scheduling: Capacity Definition
• The default scrap action (optional): You specify how the system should handle production scrap in the work
center. For more information about scrap, see Configuration of Scrap, Waste, and By-Products in Production:
General InformationConfiguration of Scrap and Waste in Production: General Information.
• The default settings for the labor or material backflushing (optional): You define whether backflushing
will be used in the work center. These settings are used by default when a user adds new operations
and materials to a bill of material. For details on backflushing, see Production with Backflushing: General
Information.
• An indicator of whether the work center is dedicated for outside processing: A work center can be
created for an outside process, which is performed on a subcontractor side, but you may need to use
the information specified in the work center in the bill of material. For more information about outside
processing, see Outside Processing: General Information.
• An indicator of whether operations performed in the work center must be control points: By using
this setting, you specify whether it is mandatory for workers to record the completed quantity for the
operations. For details, see Production Processing: Control Point Operations.
• All shis used to calculate work time in the work center (required): You add the shis used in the work
center so that the system determines the availability of work center resources (such as employees and
machines) for production needs. A shi can contain information about additional payments to employees
for overtime work. You create shis by using the Shifts (AM205000) form. You must add at least one shi to
the work center.
The labor cost is based on the first shi record found and not all of the shi records on the
work center.
For each shi, you also specify the following required settings:
• The work calendar: You specify the calendar that defines the working hours of the work center for a
particular shi.
• The labor code: You specify the labor code that defines the labor offset account when labor is entered
or backflushed. For more information about labor costs, see Production with Backflushing: General
Information and Production Processing: Labor Reporting.
• All applicable overhead rates (optional): You add overhead rates to the work center to apply additional fixed
or variable overhead costs to production. For details on overhead costs, see Production Cost Drivers: General
Information.
• All applicable machine rates (optional): If machines are involved in the manufacturing process, you add the
rates for these machines to apply these costs to production. For details on machine costs, see Production
Cost Drivers: General Information.
• Substitute work centers (optional): If the same items can be produced in multiple work centers assigned to
different warehouses, you can specify the substitute work centers. For more information, see Work Centers:
Substitution of Work Centers.
Work Centers: Substitution of Work Centers
A company may have multiple production facilities where an item can be made. The components used to make
the item may be the same, although they may have different costs; the production process also may be the same,
but the production facilities may have different labor and overhead rates. For these cases, the ability to specify
substitute work centers has been implemented in Acumatica ERP Manufacturing Edition, as described in this
topic. The system can substitute work centers during production order creation based on the warehouse used for
production. This substitution can eliminate the need to have warehouse-specific bills of material.
The ability to specify substitute work centers is available only if the Multiple Warehouse feature is enabled on the
Enable/Disable Features (CS100000) form.
Substitution of Work Centers

You do the following to configure the ability to substitute work centers:
1. On the Production Order Types (AM201100) form, you select the Substitute Work Centers check box on the
General Settings tab for the needed production order type.
2. On the Work Centers (AM207000) form, you add substitutes for each applicable work center to the
Substitutes tab.
When a user creates a production order of a type for which the Substitute Work Centers check box is selected
or changes a warehouse for the order, the system compares the warehouse of the production order and the
warehouse of each work center specified in the order. If the warehouse of a work center differs from the warehouse
of the order, the system looks for substitute work centers with the warehouse that matches the order warehouse.
If such a work center is found, the system replaces the work center with the substitute, changing the operation
description, replacing the backflush labor setting, and copying the overhead rates of the substitute work center.
Work Centers: Configuration Prerequisites
Before starting to create work centers, you must be sure that the system has been configured properly and that all
required entities have been created, as described in the following sections.
Enabling the Needed Feature


You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create work
centers:
• On the BOM Preferences (AM101000) form, the numbering sequence for bills of material has been specified.
• On the Production Preferences (AM102000) form, the numbering sequences for move, material, labor, cost,
and WIP adjustments have been specified.
• On the Work Calendar (CS209000) form, the work calendars that will be used with work centers have been
created. For an example of the creation of a work calendar, see Work Centers: Implementation Activity.
• On the Shifts (AM205000) form, the shis for the work centers have been created. For an example of the
creation of a shi, see Work Centers: Implementation Activity.
• On the Labor Codes (AM206500) form, the labor codes to be used for calculating the labor costs of any
work center have been created. For an example of the defining of a labor code, see Production Cost Drivers:
Implementation Activity.
• If overhead is to be used, on the Overhead (AM202500) form, the overhead rates to be used for any of the
work centers have been created. For an example of the creating of an overhead entity, see Production Cost
Drivers: Implementation Activity.
• If machines are to be scheduled or used for costing, on the Machines (AM204500) form, the machines to
be used in any of the work centers have been created. For an example of the defining of a machine, see
Production Cost Drivers: Implementation Activity.
Work Centers: Implementation Activity
In the following implementation activity, you will learn how to create a work calendar, shis, and work centers.
Story
Suppose that SweetLife Fruits & Jams has decided to assemble customized juicers according to customers' needs.
Assembly will take place in the Workhouse warehouse of the Service and Equipment Sales Center branch, in a
specific work center. Two workers and a manager will be involved in the assembly process, and no machines will
be used in this work center. Administrative and payroll overhead costs must be included in the production costs for
this work center. Normally, workers will work in the standard shi, but sometimes overtime work will be required,
and usually one worker is involved in overtime work. Standard working hours are from Monday to Friday, 10:00 AM
to 6:00 PM. Overtime work is from Monday to Friday, 6:00 PM to 9:00 PM.
In a separate work center, an injection molding machine has been installed, which will be used for producing small
plastic parts required for juicers. The machine will be used during the standard schedule. One worker will operate
the machine during the working hours.
As an implementation manager, you need to create a work calendar for overtime (a work calendar already exists for
standard working hours), shis for standard working hours and for overtime, and work centers for juicer assembly
and for the injection molding machine.
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse
• On the Work Calendar (CS209000) form, the MAIN work calendar, which is used for standard working hours
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have performed the following tasks for the purposes of this activity:
• On the Labor Codes (AM206500) form, you have created labor codes for direct and indirect labor costs.
• On the Overhead (AM202500) form, you have created overhead entities for administrative costs, payroll
costs, and the floor setup costs.
• On the Machines (AM204500) form, you have created a record for the injection molding machine.
Process Overview
1. On the Work Calendar (CS209000) form, you will create a work calendar for overtime work.
2. On the Shifts (AM205000) form, you will create shis for standard working hours and for overtime work.
3. On the Work Centers (AM207000) form, you will create work centers for juicer assembly and for the injection
molding machine.
System Preparation
Before you start performing the activity, do the following:
1. As a prerequisite to the current activity, complete Production Cost Drivers: Implementation Activity so that the
needed machine, overhead entities, and labor codes have been created in a company with the U100 dataset
preloaded.
2. Sign in to this company (that is, the company in which the prerequisite activity has been performed) as a
system administrator with the gibbs username and 123 password.
form.
Step 1: Creating a Work Calendar

To create a work calendar for overtime, do the following:
1. On the Work Calendar (CS209000) form, add a new record.
2. In the Calendar ID box of the Summary area, type OVERTIME.

3. In the Description box, type Calendar for overtime.
4. In the Time Zone box, select (GMT -05:00) Eastern Time (US & Canada).
5. On the Calendar Settings tab, do the following:
a. In the Day of Week column, make sure that the check boxes are selected for Monday, Tuesday,
Wednesday, Thursday, and Friday.
b. In the Start Time box for each of the selected days of week, select 6:00 PM.
c. In the End Time box for each of the selected days of week, select 9:00 PM.
You have created a work calendar for overtime, which you will use in the work center settings along with the shi
for overtime work.
Step 2: Creating Shis

You will create a shi for standard working time and a shi for overtime work. Do the following:
1. Open the Shifts (AM205000) form.
2. On the form toolbar, click Add Row to add a shi for standard working time.
3. In the columns of the added row, specify the following settings:
• Shi: 0001
• Description: Monday - Friday
• Diff Type: Amount
• Shi Diff: 0
• Crew Size: 2
5. On the form toolbar, click Add Row to add a shi for overtime.
6. In the columns of the added row, specify the following settings:
• Shi: 0002
• Description: Overtime
• Diff Type: Rate
• Shi Diff: 1.5
• Crew Size: 1
You have created shis for standard working time and for overtime, and now you can create the needed work
centers.
Step 3: Creating a Work Center for Juicer Assembly

To create a work center where the assembly of juicers will be performed, do the following:
1. On the Work Centers (AM207000) form, add a new record.
• Work Center: WCR10
• Description: Work center for assembly of juicers
• Warehouse: WORKHOUSE
3. On the General tab, specify the following settings:
• Basis for Capacity: Crew Size
• Scrap Action Default: No Action
• Backflush Materials: Cleared
• Backflush Labor: Cleared
• Control Point: Cleared
• Outside Process: Cleared
4. On the Shis tab, do the following:
a. Make sure that the row for the 0001 shi has been added. (The row for the first shi is always added
automatically because the work center must have at least one shi.)
b. In this row, specify the following:
• Crew Size: 2
• Efficiency: 1
You created this labor code in Production Cost Drivers: Implementation Activity.
Make sure that the values in the Diff Type and Shi Diff columns (Amount and 0.0000, respectively) have
been copied from the shi settings on the Shifts (AM205000) form.
c. On the table toolbar, click Add Row.
d. In this row, specify the following:
• Shi: 0002
• Crew Size: 1
• Efficiency: 1
• Calendar ID: OVERTIME
e. On the form toolbar, click Save.
f. Make sure that the values in the Diff Type and Shi Diff columns (Rate and 1.5000, respectively) have
been copied from the shi settings on the Shifts form.
5. On the Overhead tab, do the following:
a. On the table toolbar, click Add Row.
b. In the Overhead ID column, select ADMIN to add the administrative overhead to the production cost.
You created this overhead entity in Production Cost Drivers: Implementation Activity.
c. In the Factor column, type 1.
d. On the table toolbar, click Add Row.
e. In the Overhead ID column, select PAYROLL to add the payroll overhead to the production cost.
f. In the Factor column, type 1.
You have created the work center that will be involved in the process of juicer assembly.
Step 4: Creating a Work Center for a Machine

While remaining on the Work Centers (AM207000) form, you will create a work center for the injection molding
machine. Do the following:
• Description: Work center for the injection molding machine
• Basis for Capacity: Machines
• Backflush Materials: Selected
• Backflush Labor: Selected
• Control Point: Cleared
• Outside Process: Cleared
4. On the Shis tab, do the following:
a. Make sure that the row for the 0001 shi has been added.
b. In this row, specify the following:
• Crew Size: 1
• Efficiency: 1
Make sure that the values in the Diff Type and Shi Diff columns (Amount and 0.0000, respectively) have
been filled automatically with the values specified in the shi settings on the Shifts (AM205000) form.
5. On the Overhead tab, do the following:
b. In the Overhead ID column, select FLOOR to add the floor setup cost to the production cost.
c. In the Factor column, type 1.
6. On the Machines tab, do the following:

b. In the Machine ID column, select INJMOLD.
You created this machine in Production Cost Drivers: Implementation Activity.
c. Make sure that the values in the Standard Cost and Machine Account columns (25 and 51060,
respectively) have been copied from the Standard Cost box and the Account box respectively on the
Machines (AM204500) form.
You have created a work center for the injection molding machine.
Work Centers: Related Forms
In the following sections, you can find details about the forms you may want to review to gather information about
work centers.
If you do not see a particular report or form that is described, you may have signed in to the system
with a user account that does not have access rights to the report or form. Contact your system
administrator to obtain access to any needed reports or forms.
Viewing the Capacity of a Work Center

You can use the Work Center Capacity (AM405000) form to view the capacity of work centers for which production
orders are scheduled.
Viewing Open Operations for a Work Center

On the Work Center Dispatch (AM000007) form, you can view the list of production orders that require operations
assigned to work centers.
Viewing Production Schedules for Each Work Center

You can view the production schedule for each work center by date and time on the Work Center Schedule
(AM000001) form. The schedule includes planned orders generated by forms of the material requirements planning
functional area.
Managing Bills of Material | 22
Managing Bills of Material

The functionality of Acumatica ERP Manufacturing Edition is based upon the functionality related to bills of
material. A bill of material is a list of the production operations required to build a single-level assembly or
subassembly.
The topics of this chapter describe bills of material in detail.
Bills of Material: General Information
In Acumatica ERP Manufacturing Edition, by using bills of material (BOMs), your organization can describe the
details of the process of producing a particular stock item and plan your manufacturing processes. In a bill of
material, you directly connect materials, work instructions, tools, attributes, and overhead costs to an operation.
Bills of material support revision tracking, phantom assemblies, backflushing of both labor and materials, material
effectiveness dates, and by-products; you can create alternate bills of material. You create bills of material by using
the Bill of Material (AM208000) form.
In this topic, you will read about bills of material.
Learning Objectives
• Prepare the system for the creation of bills of material
• Create and activate a bill of material
You configure the system for the use of bills of material in the following cases:
• When you initially implement Acumatica ERP, and the Manufacturing feature, which is enabled on the
Enable/Disable Features (CS100000) form, is included in your license
existing system
• When you need to add new bills of material or change the settings of existing bills of material to
accommodate changes to business processes
Bills of Material and Stock Items

A bill of material is a document that details the production process of a single stock item and defines the
operations and materials required to build one base unit of the stock item. Before you start creating a bill of
material, you must create the stock item on the Stock Items (IN202500) form.
If a stock item is stored in a single warehouse or it is stored in multiple warehouses but its manufacturing-specific
settings do not differ in each, you specify the item’s manufacturing-specific settings on the Manufacturing tab
of the Stock Items form. If the stock item is stored in multiple warehouses and its manufacturing-specific settings
depend on the warehouse, you specify these settings on the Manufacturing tab of the Item Warehouse Details
(IN204500) form for each item–warehouse pair aer defining the stock item on the Stock Items form.
A stock item may have multiple BOMs assigned, but only one BOM can be specified as the default bill of material in
the Default BOM ID box on the Manufacturing tab of the Stock Items or Item Warehouse Details form.
If the stock item is produced in standard lots, you can specify the lot size in the Lot Size box of the Manufacturing
tab on the Stock Items or Item Warehouse Details form. The lot size becomes the default for planned orders
and production orders and is used in the cost roll process on the Cost Roll (AM508000) form. On the Estimate
(AM303000) form, the Order Qty. on the Totals tab is used as the lot size.
Bill of Material Settings

You create bills of material by using the Bill of Material (AM208000) form. The settings of a bill of material include the
following:
• Bill of material identifier: If the numbering sequence used for the identifier is configured to be entered
manually, you type it into the BOM ID box according to numbering conventions used in your organization.
Otherwise, the system generates this identifier automatically according to the settings of the numbering
sequence and inserts it into the box. For more information, see BOM Identifiers.
• Revision: In the Revision box, you specify the BOM revision. For more information about BOM revisions, see
BOM Revisions.
• Identifier of the stock item: You specify the identifier of the stock item that will be produced in the
Inventory ID box.
• Warehouse (optional): In the Warehouse box, you specify the warehouse in which the production of items
detailed in the bill of material will take place.
• Start date: You enter the date when the BOM revision becomes effective in the Start Date box.
• End date: In the End Date box, you enter the date aer which this revision of the bill of material will no
longer be effective. This setting is optional.
• Operations: In the Operations table below the Summary area, you add the operation or operations (one
in each row) that will be performed during the production of items based on the bill of material. You add
operations in the order in which they will be performed in the production. For more information, see Bills of
Material: Operations.
You can also specify attributes for a bill of material by using the BOM Attributes (AM208500) form.
BOM Identifiers
The identifier of the bill of material, in the BOM ID box of the Bill of Material (AM208000) form, can be up to 15
characters. The format of the bill of material ID is determined by the numbering sequence that is created by using
the Numbering Sequences (CS201010) form and specified on the BOM Preferences (AM101000) form (in the BOM
Numbering Sequence box of the General tab). As with all numbering sequences in Acumatica ERP, you may have
different sequences for each branch. You may choose automatic numbering or manual entry of identifiers. You may
prefer to type in the BOM ID box the inventory ID of the stock item that is produced by using the bill of material (as
long as the inventory ID is fewer than 15 characters).
If you want to have multiple bills of material for a warehouse because of alternate production methods, you might
consider using manual numbering for the BOM ID and use a suffix to indicate the method.
When you are importing bills of material, we recommend that you specify an identifier for each bill
of material in the file that contains import data to reflect the format of the BOM ID; then as the BOM
Numbering Sequence on the BOM Preferences form, you need to select a numbering sequence for
which the Manual Numbering check box is selected on the Numbering Sequences form.
BOM Revisions
The revision entered into the Revision box of the Bill of Material (AM208000) form is the version of the bill of
material. When you initially create a bill of material, this BOM also serves as the first revision of this BOM. You can
create as many revisions as you need for the same BOM ID. In the Default Revision box on the BOM Preferences
(AM101000) form, you specify the default revision identifier to be inserted in the Revision box for the first revision
of all BOMs created in the system. When creating a BOM, you can change the default revision identifier.
If you use engineering change control, you can manage BOM revisions by using engineering change
orders or requests. To indicate this, you select the Require ECR/ECO for New BOM Revisions check
box on the BOM Preferences form. For details about engineering change control, see Engineering
Change Control: General Information.
A BOM revision can have one of the following statuses, which are specified in the Status box of the Bill of Material
form:
• On Hold: The revision is not active, and you can make changes in the bill of material. To assign this status to
a revision, you select Hold in the Summary area of the Bill of Material form.
• Active: The revision can be used for production and planning. You cannot make changes to a BOM revision
with this status. Multiple revisions can be active at the same time. The default revision is the active revision
that was created most recently; this revision is used for production orders and for planning orders.
• Archived: The revision has been archived and is not effective any more.
You can control whether all new BOM revisions will have a status of On Hold. You can clear the Hold BOM Revisions
on Entry check box on the BOM Preferences (AM101000) form if you want all new BOM revisions to be created with
the Active status; in this case, the BOM revisions can be used in production immediately aer creation. By default,
the check box is selected, and the revisions will be created with the On Hold status.
To create a new revision of a particular bill of material, you do the following:
1. In the BOM ID box on the Bill of Material form, select the BOM for which you want to add a new revision.
2. In the Revision box, type the revision identifier to be used for the new revision.
3. Make all the needed changes to the BOM and click Save on the form toolbar.
When you create an additional BOM revision, the system copies all settings (including all attributes, notes, and
attachments) of the most recently created revision to the new revision.
You can archive a BOM revision by using the Archive BOM command on the Bill of Material form. Archiving a bill of
material sets the End Date to the current business date. You can put a revision with a status of Archived on hold to
edit it again. When you remove the revision from hold, the system changes the status of the revision to Active.
Inactivation of Bills of Material

You can make a bill of material inactive on the Bill of Material (AM208000) form in one of the following ways:
• To temporarily inactivate the bill of material, you select the Hold check box in the Summary area. The
system changes the status of the BOM to On Hold and makes the BOM unavailable for production, planning,
or as a source for estimates and configurations until you clear the check box.
• To permanently inactivate the bill of material, you click Archive BOM on the More menu. The system
changes the status of the BOM to Archive and makes the BOM unavailable for production, planning, or as a
source for estimates and configurations.
Deletion of Bills of Material

You cannot delete a bill of material in any of the following cases:
• When it is the source for a production order
• When it is used by a product configuration
• When it is specified in the material details of a bill of material or production order
• When it is the default BOM or default planning BOM for an item
If there are no constraints preventing the deletion, bill of material revisions are always physically
deleted from the database.
Bills of Material: Operations
Operations are an essential part of a bill of material (BOM). When you create a bill of material or change an existing
BOM on the Bill of Material (AM208000) form, you must add at least one operation to the Operations table.
In this topic, you will read about operations for bills of material.
Operations in Bills of Material

Each operation is assigned to a work center and represents the activities performed in this work center. In the
Operations table of the Bill of Material (AM208000) form, you list the included operations in the order in which they
will be performed during production.
In this table, you specify the following for each operation:
• Operation identifier, which you specify manually in the Operation ID column. For details, see Operation
Identifiers.
• The work center where the operation will be performed, which you specify in the Work Center column. The
work center provides the standard labor cost per working hour.
• The time for preparing to start the operation, which you specify in the Setup Time column.
• The quantity of item units produced and the particular time in which the units are produced; you specify the
quantity of item units in the Run Units column and the time in the Run Time column. For example, suppose
that an operation requires 1 hour and 20 minutes to produce 1000 gallons of a liquid; the run units would be
1000 and the run time would be 01:20.
• If a machine is involved in the operation, the quantity of item units produced by using the machine and
the particular time; you specify the quantity of item units in the Machine Units column and the time in the
Machine Time column.
• The time a semi-finished item has to wait in the work center before workers can start processing the item;
you specify this time in the Queue Time column.
• The time for a semi-finished item to be moved from the work center where the current operation is
performed to the work center where the next operation will be performed. You specify this time in the Move
Time column.
• The time required for the semi-finished item to be prepared for the next operation when the current
operation has been finished; you specify this time in the Finish Time column.
• The labor backflushing setting, which is represented by the Backflush Labor check box, that indicates
whether labor should be backflushed. For more information, see Production with Backflushing: General
Information.
• The default scrap action for the operation that will be copied to the new production order, which you
specify in the Scrap Action column. For more details about scrap, see Configuration of Scrap, Waste, and
By-Products in Production: General InformationConfiguration of Scrap and Waste in Production: General
Information.
• The control point state, which is represented by the Control Point check box. This state indicates whether
workers must record the quantity of completed items for the operation. For details, see Production
Processing: Control Point Operations.
The last routing operation is always a control point because before the production order can
be completed, workers must report the labor hours spent and the completed quantity. So you
do not need to select the Control Point check box for the last operation in a bill of material.
For each operation in the Operations table, you can specify the materials, steps, tools, overhead, and outside
process settings included in the selected operation. To do this, you click the operation in the table and then you
specify the settings on the dedicated tabs below the table.
For each operation, you specify the following:
• Materials, which are the stock or non-stock items that will be used in the operation. For more information,
see Materials Used in Operations.
• Steps into which the operation is divided. The steps are used only by workers to understand the sequence of
actions within the operation.
Steps can be printed by using the Production Ticket (AM625000) report.
• Tools that are involved in the operation and whose cost you would like to include in the production cost. For
details, see Production Cost Drivers: General Information.
• Product-specific overhead costs that must be considered when the system calculates costs for the
operation. Overhead costs are usually specified for a work center instead of for a bill of material. For more
information, see Production Cost Drivers: General Information.
• Outside process settings, if the operation is involved in an outside process. For details, see Outside
Processing: General Information.
Operation Identifiers
We recommend that you consider the following points regarding the operation identifiers, which are specified in
the Operation ID column of the Operations table:
• You should assign operation IDs to provide the ability to add new operations between the two existing
operations; that is, do not assign operations contiguous numbers as IDs, because this would not give you
the ability to use an ID between those IDs. For example, suppose that initially a bill of material includes
three operations. You specify the operation identifiers as 010, 020, and 030. Further suppose that a new
operation must be performed between the first and second operations. You can use the 015 ID for this
operation.
• You should not use leading spaces.
• If you use preceding zeros, you should keep in mind that operations are sorted as text when you order
operations in the list.
• You can change the operation identifiers at any time.
• Some common examples of identifiers for operations are the following:
• 010, 020, 030, and so on
• 100, 110, 120, and so on
• 0010, 0020, 0030, and so on
When a user creates a production order, the system generates operation identifiers, which may differ
from those in the bill of material on which the order is based. During the generation of operation
IDs for the production order, the system maintains the order of operations specified in the bill of
material. In the production order, the system assigns 0010 as the identifier of the first operation and
then increases the identifier of each new operation by 10. Thus, the second operation ID will be 0020
and the third operation ID will be 0030.
Materials Used in Operations

Materials are the stock or non-stock items used to produce one base unit of an item. On the Materials tab of the Bill
of Material (AM208000) form, you add the materials that are used when a worker performs the particular operation
selected in the Operations table.
Two system settings for bills of material, which are specified on the General tab (Data Entry Settings section)
of the BOM Preferences form (AM101000) affect the entry of items that are used more than once in an operation
and are used multiple times in different operations of the bill of material. If in the production process, the same
items can be used in the same operation multiple times (and you need to add a separate line for each of the items),
you select the Allow option in the Duplicates on Operation box on this form. If the same items can be added to
different operations of the same bill of material, you select the Allow option in the Duplicates on BOM box.
For each item added to the Materials tab on the Bill of Material form, you specify the identifier of a stock or non-
stock item that represents the material and the quantity of the item required for the operation. The quantity is
defined by values of the Qty. Required, Batch Size, and UOM columns, as described in the following section.
Calculation of the Quantity of Material Required for Production

When a user creates a production order for a bill of material, the system calculates the quantities of the materials
required for production. The required quantity of each item listed on the Materials tab of the Bill of Material
(AM208000) form is based on the combination of the Qty. Required and Batch Size settings as follows:
• If the required quantity does not depend on the quantity of the items being produced, you specify 0 in the
Batch Size column and the needed quantity in the Qty. Required column.
• If the required quantity is calculated based on the quantity of the items being produced, you specify 1 in the
Batch Size column and the quantity required to produce one unit of the item in the Qty. Required column.
• If the material is supplied in units of measure other than the base unit of measure (such as boxes with 10
units), you specify the multiplier for the base unit of measure in the Batch Size column and the needed
quantity in the Qty. Required column. In this case, the system will divide the value specified in the Qty.
Required column by the batch size.
The Batch Size column is hidden from the Materials tab by default. The default value of the batch
size is 1.
For the item being produced, if the lot size specified in the Lot Size box on the Manufacturing tab of the Stock
Items (IN202500) form is more than 1, the system multiplies the required quantity specified in the Qty. Required
column on the Materials tab of the Bill of Material form by the lot size in production orders and planned orders.
Suppose that for producing of one 32-ounce jar of apple jam, 2 pounds of apples and 1 pound of sugar are required.
Sugar is supplied in packages that contain 5 bags with 1 pound in each. Also, workers use 0.8 liquid ounces of dish-
washing liquid for washing a pan aer each brewing cycle. Further suppose that a production order is created for
producing 10 jars of apple jam. In the following table, you can find the example of how the system calculates the
required material quantity for the production order depending on the BOM settings.
Table: Example of calculating the required quantity of materials
Material Required Quantity Batch Size Total Quantity
Apples 2 pounds 1 20 pounds
Sugar 5 pounds 5 10 pounds
Dish-washing liquid 0.8 liquid ounces 0 0.8 liquid ounces
Reference Designators
A reference designator identifies a component on drawings or work instructions. The designator may also
be used as a reference to a list of components used multiple times on a drawing like a fastener. In electronics
manufacturing, the designators are oen used to indicate the position of a component on a circuit board.
To add a reference designator to a material, you do the following on the Bill of Material (AM208000) form:
1. In the BOM ID box of the Summary area, select the needed bill of material.
2. In the Operations table, click the operation that contains the material.
3. On the Materials tab, click the material row.
4. On the table toolbar, click Reference Designators.
5. In the Reference Designators dialog box that opens, click Add New Line.
6. Enter the identifier and the description of the reference designator to the appropriate columns.
7. Click OK to save your changes and close the dialog box.
Bills of Material: Multilevel BOMs
Bills of material (BOMs) become multilevel when a subassembly (that is, an item with another BOM assigned)
is used as a material in another assembly or subassembly. The complete structure, from finished goods to each
subassembly to raw materials, is referred to a multilevel bill of material.
You can view all levels of multilevel bills of material in a tree by using the Engineering Workbench (AM208100) form.
On this form, you can also create bills of material and modify existing BOMs.
Creation of a Multilevel BOM

You can create a multilevel BOM with any number of levels; that is, a top-level BOM may include subassemblies as
materials, which may also include subassemblies as materials. To create a multilevel bill of material, you do the
following:
1. On the Stock Items (IN202500) form, you make sure that stock items for all needed materials and items to be
produced have been created.
2. Either on the Bill of Material (AM208000) or on the Engineering Workbench (AM208100) form, you create a bill
of material for each item that is a subassembly.
3. On the Engineering Workbench form, you create a bill of material for the top-level item to be produced. On
this form, you add subassemblies as materials to production operations in which the subassemblies are
used.
BOM Creation on the Engineering Workbench Form

For bills of materials that do not contain subassemblies as materials, you can use either the Bill of Material
(AM208000) or the Engineering Workbench (AM208100) form. For multilevel bills of material, you can also use either
of the two forms, but the Bill of Material form does not display the structure of subassemblies, so it would be more
convenient to use the Engineering Workbench form.
You create a bill of material by using this form as follows:
1. In the Inventory ID box of the Summary area, you select the item to be produced.
2. You specify other settings in the Summary area (including the warehouse, if applicable).
3. You save these changes. The node for the bill of material appears in the tree.
4. In the More menu of the BOM node, you select Add child.
5. You click the New Operation node, which appears under the BOM node, to create an operation, and on the
Operation tab of the right pane, you specify the needed settings for the operation.
6. You save these changes.
7. If the operation requires materials, you do any of the following for each material, which you first select in
the BOM tree:
a. On the Material tab of the right pane, you click Add Row on the table toolbar and specify the needed
material settings, as you would on the Bill of Material (AM208000) form.
b. On the More menu of the operation node, you select Add child. You then click the New Material node
that appears in the BOM tree and specify the needed material settings on the Material tab of the right
pane.
8. You specify the steps, tools, overhead, or outside processing settings on the corresponding tabs of the right
pane.
9. You save these changes. If any of the added materials is a subassembly, the system displays the operations
and materials of the subassembly BOM in the tree under the parent material node.
10.You add as many operations as are needed.
Modification of the BOM Structure in the Tree

On the Engineering Workbench (AM208100) form, you can modify the BOM structure as follows:
• Change the order of operations
When you reorder operations, the system automatically updates the operation IDs based on
the new order.
• Change the order of materials within an operation

• Move materials between operations
• Add new operations or materials
• Delete operations or materials
To move a node within the tree, you drag the node to the needed position. Some movements are forbidden, such
as the movement of an operation at a lower level than another operation or the movement of a material under
another material. If you attempt a forbidden movement, the system displays an error message and does not move
the node.
The system saves changes to the selected bill of material each time you move nodes in the tree.
Bills of Material: Configuration Prerequisites
Before starting to create a bill of material, you must be sure that the system has been configured properly and that
all required entities have been created, as described in the following sections.
Enabling the Needed Feature


You need to make sure the following tasks have been performed in Acumatica ERP before you begin to create bills
of material:
• On the BOM Preferences (AM101000) form, the preferences for bills of material have been specified.
• On the Stock Items (IN202500) form, the stock items that will be manufactured by using the bill of material,
as well as the items that will be used as materials for manufacturing, have been created and configured
properly.
• On the Warehouses (IN204000) form, the warehouses where production will be performed, and those where
stock items will be received and issued, have been defined.
• On the Work Centers (AM207000) form, the work centers that will be used to perform the operations
included in the bill of material have been created.
• On the Tools (AM205500) form, the tools that will be involved in production by using the bill of material have
been created.
• On the Overhead (AM202500) form, the process-specific overhead entities have been created, and rates have
been specified for each of them.
Bills of Material: Implementation Activity
In the following implementation activity, you will learn how to create a bill of material (BOM).
Story
Suppose that SweetLife Fruits & Jams has decided to assemble customized juicers according to customers'
specifications. Assembly will take place in the Workhouse warehouse of the Service and Equipment Sales Center
branch, in a specific work center. The process of assembling a juicer consists of one assembly operation and
requires juicer parts as materials and a hammer and screwdriver as tools. Overhead costs have been specified at
the work center level; you do not need to specify them on the bill of material. In the work center, two workers are
involved in juicer assembly. Each worker produces three juicers per hour.
As an implementation manager, you will create the bill of material for the assembly process of the configurable
juicer for citrus fruits.
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse
• The following items on the Stock Items (IN202500) form: CFJCITRUS, JCREAMER, JUICECUP1L, MRBASEHIGH,
STRBASKET, and SPLGUARD
In the company in which you have completed the previous lessons of the M100 Basic Manufacturing
Implementation training course, you have performed the following tasks for the purposes of this activity:
• On the Tools (AM205500) form, you have created tools for a screwdriver and hammer.
• On the Work Centers (AM207000) form, you have created a work center for juicer assembly.
Process Overview
On the Bill of Material (AM208000) form, you will create the bill of material for the configurable juicer for citrus fruits.
You will add the assembly operation, which is performed in the dedicated work center. Then you will add materials,
steps, and tools for the operation. Aer that you will make the bill of material active and default for the juicer stock
item. Finally, you will view the total cost of the bill of material.
System Preparation
Before you start performing the activity, do the following:
1. As prerequisites to the current activity, perform the following activities in the listed order:
a. Production Cost Drivers: Implementation Activity so that the needed tools have been created in a company
with the U100 dataset preloaded
b. Work Centers: Implementation Activity so that the needed work center has been created in this company
2. Sign in to this company (in which the prerequisite activities have been performed) as a system administrator
with the gibbs username and 123 password.
form.
Step 1: Creating a Bill of Material

To create a bill of material, do the following:
1. On the Bill of Material (AM208000) form, add a new record.

• Revision: A (automatically specified)
• Hold: Selected
• Inventory ID: CFJCITRUS
• Start Date: 1/1/2022
• End Date: Empty
• Description: A bill of material for assembly of configurable juicers for
citrus fruits
Step 2: Adding an Operation

To add the assembly operation to the bill of material, do the following:
1. On the toolbar of the Operations table, click Add Row.
2. In the row, specify the following settings:
• Operation ID: 010
You created this work center in Work Centers: Implementation Activity.
• Setup Time: 00:30
• Run Units: 3
• Run Time: 01:00
Step 3: Adding Materials

To add the materials required for the operation, do the following:
1. In the Operations table, click the row with the 010 operation.
2. In the lower part of the form, click the Materials tab.
3. On this tab, add rows for the stock items listed in the following table, specifying the listed settings for each.
Inventory ID Qty. Required
JCREAMER 1
JUICECUP1L 1
MRBASEHIGH 1
STRBASKET 1
SPLGUARD 1
Step 4: Adding the Steps

To add steps required to perform the operation, do the following:
1. On the Steps tab, add rows for the steps, and enter the following text in the Description column of each row
in the listed order:
a. Attach the strain basket to the motor base.
b. Attach the reamer to the strain basket.
c. Attach the 1-liter juice cup to the motor base.
d. Attach the splash guard.
Step 5: Adding the Tools

To add the tools involved in the assembly process (you created these tools in Production Cost Drivers:
Implementation Activity) to the operation settings, do the following:
1. On the Tools tab, add rows for the tools listed in the following table, specifying the listed settings for each.
Tool ID Qty. Required Unit Cost
HAMMER 1 0.02
SCREWDRIVER 1 0.20
Step 6: Activating the Bill of Material

To make the created bill of material active and specify it as the default bill of material for the CFJCITRUS item, do
the following:
1. In the Summary area, clear the Hold box. The status is changed to Active.
3. On the More menu, click Set as Default BOM.
You open the More menu by clicking the More button (…) on the form toolbar.
4. In the Default BOM Levels dialog box, which opens, do the following:
a. Make sure that the Item and Warehouse check boxes are selected.
b. Click Update.
The system inserts BOM000001 in the Default BOM ID box of the Manufacturing tab of the following forms:
• The Stock Items (IN202500) form for the CFJCITRUS item
• The Item Warehouse Details (IN204500) form for the CFJCITRUS item and WORKHOUSE warehouse
Step 7: Viewing Total Cost of Bill of Material

To make sure that you have specified all settings of the bill of material correctly, you will view the total cost of the
bill of material. Do the following:
1. On the More menu, click Calculate BOM Cost.
2. In the BOM Cost Settings dialog box, which opens, keep the default settings and click OK.
3. In the BOM Cost Summary dialog box, which opens, make sure that the Total Cost value is 498.5167 (see
the following screenshot).
Figure: BOM Cost Summary dialog box
4. Click OK to close the dialog box.
You have created the bill of material for the configurable juicer for citrus, made it active and default for the stock
item that represents the juicer.
Bills of Material: Implementation Checklist
The following section provides details you can use to ensure that the bill of material and the related entities are
configured properly for processing production transactions.
Implementation Checklist
We recommend that before you initially process manufacturing transactions, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
Form Criteria to Check
BOM Preferences (AM101000) The following basic settings have been specified on
the General tab:
• The numbering sequence for bills of material in the
BOM Numbering Sequence box (Numbering Set-
tings section)
• The default revision identifier in the Default Revi-
sion box (Data Entry Settings section)
• The appropriate options in the Duplicates on Op-
eration and Duplicates on BOM boxes (Data Entry
Settings section) to indicate whether the duplicat-
ed materials can be added at the operation and bill
of material levels
• The default work center in the Default Work Cen-
ter box (Data Entry Settings section)
• The appropriate state of the Hold BOM Revisions
on Entry check box (Data Entry Settings section)
to indicate whether the default status of new BOM
revisions must be On Hold(if the check box is select-
ed) or Active (if it is cleared)
Labor Codes (AM206500) At least one labor code of the Direct type has been cre-
ated.
Machines (AM204500) The machines that are involved in production have

been created.
Tools (AM205500) The tools that are used in production and whose costs
must be included in the cost of the finished goods have
been created.
Overhead (AM202500) The overhead entities have been created to represent

the extra costs that must be included in the cost of the
finished goods, and in each overhead entity, the unit
cost associated with this overhead entity.
Stock Items (IN202500) For the stock items used as materials, costs have been
specified on the Price/Cost tab.
If these items are to be produced, if the item is pro-
duced in lots, the lot size has been specified in the Lot
Size box on the Manufacturing tab.
Non-Stock Items (IN202000) For the non-stock items used as materials, costs have
been specified on the Price/Cost tab.
Work Calendar (CS209000) The work calendars that define the available hours for
the manufacturing floor have been created.
Shifts (AM205000) At least one shi has been created. If the shi de-
scribes overtime or holiday work, the differential com-
pared to the base pay must be specified.
Work Centers (AM207000) At least one work center has been created; a work
center represents the physical or virtual location in a
warehouse or production facility.
Bill of Material (AM208000) Bills of material have been created for all stock items
to be produced.
Validation of Configuration
To make sure that all configuration has been performed correctly, we recommend that in your system, you perform
instructions similar to those described in Bills of Material: Implementation Activity.
Bills of Material: Related Reports
In the following sections, you can find details about the reports you may want to review to gather information
about bills of material.
Viewing a Level-by-Level List of Materials

For multilevel bills of material (those that include other bills of material), you can view the full list of materials
grouped by levels by using the Multi Level BOM (AM413000) report.
Viewing BOM Operation Details

You can view the operations included in bills of material with details of the required materials, steps, tools, and
overhead for each operation by using the BOM Routing (AM612000) form.
Viewing Materials and Their Costs of a BOM

You can view the list of materials required to produce a stock item and specified in a BOM and the costs of the
materials by using the BOM Summary (AM611000) report.
Bills of Material: Key Features
The Bills of Material part is the building blocks of the manufacturing soware. It is where the operations and
work centers are defined, along with materials, steps, overhead, and tools and/or machines. This is where the
production order needs can be defined for your inventory items to become that finished good.
What this section will cover:
• We will discuss the key features of the Bills of Material part.
• Relationship to other Acumatica ERP functional areas
Key Features
• BOM / Routing Maintenance: The BOM / Routing provides the ability to directly update the bills of material
and routing information by using the Bill of Material (AM208000) form.
• Planning Bills of Material: This process facilitates the forecast, or master production schedule, of product
families and/or to order assemblies where the specific configuration is not known until you receive the
customer order. For details, see Bills of Material: Planning BOMs.
• Activity Based Costing: The system provides a means to provide detailed costing well beyond the cost of the
raw materials and labor. Tools costs can be consumed based on usage setup through the Tools (AM205500)
form. User-defined overhead costs can be setup through the Overhead (AM202500) form. These costs can be
accrued at a fixed rate, by labor hour and by the quantity completed. The overhead costs can be associated
to a specific product (BOM / routing) or they can be tied to a work center. You are not limited to a finite
number of overhead IDs. The user can set up as many or as few as they want.
• Alternate BOM / Routing: Too oen in manufacturing systems, the systems will only support a single bill of
material for a finished good product. To setup alternate bills of material, you oen had to set up multiple
inventory items. Manufacturing edition provides you with the ability to set up a single finished good item
(or subassembly) and create alternate BOMs and routings for that same product. A good use of this is in a
situation where the manufacturer has multiple sites. However, they make the same product at the sites. All
too oen, the different sites have different machinery, work centers, shis, costs, etc. The system allows you
to set up a specific bill of material / routing for each site.
• Backflushing: The production transactions can backflush labor and materials and is controlled by the bills of
material. By selecting the operations and materials that need to be backflushed this provides the user more
control in how and what is being costed.
The system will backflush lot- and serial-tracked items based on the usage parameters.
• By-Products Support: By-products are entered as negative materials on the BOM. These materials will be
received into inventory at the cost specified on the BOM or at the standard cost if that is what is being used.
By-products can be setup to backflush automatically or can be received by using the Materials (AM300000) or
Release AM Documents (AM503000) forms.
• Phantoms: Phantom items can be entered on the BOM. They are referred to as phantoms because they show
up on the BOM but disappear when a production order is created. Only manufactured items with a BOM can
become phantoms.
Several advantages to phantoms in the system include the following:
• Ability to be a true phantom or subassembly
• Phantoms can be stocked

• Multilevel phantoms are supported
• Changes to a phantom such as components or quantities when made at the BOM level are carried
through the system
• Production Steps: Specific steps can be defined at the operation level. Steps are the instructions of what
needs to be done for the operation. This allows for full documentation when added with any additional
notes of the production process.
• Revision Tracking: A complete revision history of a BOM can be maintained. Multiple revisions can be saved
to the revision history tables which provides the ability for the information from the past production BOM to
be referenced instead of the most current revision.
• Shis: Multiple shi operations are supported through this application through the Shifts (AM205000) form.
You can create as many shis as is needed together with the following information:
• Work centers that are available
• Number of people or machines
• Efficiency factors
• Working times by shi
• Shi differential
Relationship to Other Functional Areas
Area Usage
Inventory > Manufacturing Creation of a bill of material will fill in the Primary
BOM ID box on the Manufacturing tab of the Stock
Items (IN202500) form.
Item Warehouse Details > Manufacturing Creation of a bill of material will fill in the Primary
BOM ID box on the Manufacturing tab of the Item
Warehouse Details (IN204500) form.
Bills of Material: Cost Calculation
For each bill of material, the system calculates costs for the components included in the bill of material, such as
materials, tools, labor, and overhead. In this topic, you will read about material unit costs displayed on the Bill of
Material (AM208000) form and the cost calculation by using the cost roll process on the Cost Roll (AM508000) form.
Unit Costs for Materials in a Bill of Material

The Item Warehouse Details (IN204500) form is the source for the cost when you add an inventory item to a bill or
production order. The cost used is dependent on the item's valuation method. Unit costs can be manually entered
or updated by the cost roll process on the Cost Roll (AM508000) form. When you add a new material the unit cost
defaults from the settings of the item–warehouse pair according to the item's valuation method as follows:
• Average or FIFO: Average cost
If the average cost is zero, then the last cost is used.
• Standard: Standard cost

• Specific: Last cost
For existing materials, the cost roll process can be used to update the unit costs if desired. When production orders
are created, the cost roll process obtains the current cost for materials.
Cost Calculation by the Cost Roll Process

The formulas the system uses for calculating costs of components included in a bill of material are listed in the
following table.
Table: Formulas for calculating costs of BOM components
Component Formula
Labor ((Setup time / Lot size) + Run time converted to

hours per piece) * (Work Center Standard Cost)
Materials If the value of the Batch Size column on the Bill of Material (AM208000)
form is 0, the formula is the following: Qty. Required * (1 +
Scrap Factor)
If the value of the Batch Size column is not 0, the formula is the following:
Qty Required * (1 + Scrap Factor) * (Lot Size / Batch
Size)
In the formula, Lot Size is the value of the Lot Size box on the Manufac-
turing tab of the Item Warehouse Details (IN204500) form. If the lot size is
zero then the value of the minimal order quantity is used. If both are zero
then a lot size of 1 is used.
Machines (Machine hours converted to hours per piece) * (Ma-

chine standard cost)
Tools (Quantity required) * (Unit cost)
Overhead Overhead is calculated dependent on the overhead type.
Bills of Material: Planning BOMs
A planning bill of material, sometimes referred to as a Pseudo Bill, is a grouping of operations and materials used
in MRP for planning purposes. They are defined on the Bill of Material (AM208000) form exactly the same way as
a production bill. You can choose to designate any bill of material for an item as the planning bill or create a new
unique bill. If you do not have a planning bill, then the default bill of material is used for planning. There are no
restrictions on using the same bill of material as both the default and planning bill.
Why Use a Planning Bill?

Planning bills are most oen used to help forecast or master schedule products that have many options where the
final configuration is not determined until an order is received. Usually, a planning bill flattens out the multiple
level bill of material to a single level bill; that is, the subassembly bills are removed and their key components
made components of the planning bill. Alternatively, you could create a planning stock item and construct a
planning bill with its components the actual items you sell making each component a phantom if you only want to
see their components in MRP and not the assembly.
A manufacturer of desktop computers may have multiple product lines with hundreds of combination of options
for processors, memory, storage, monitors, etc. Some of the options may be available across multiple product
lines. In order to compress the order to ship lead time, it is desirable to have the components already in stock.
Rather than attempt to forecast each product model for every variant, it more feasible to create a pseudo inventory
item that will never be sold and construct a planning bill of material with the component options expressed in
quantities represented by their past usage.
For example, each desktop computer model can have a 500GB or 1TB capacity disk drive and 60% of the customer
select the 1TB disk drive. A planning bill could look like this:
Table: Planning Bill of Material for All Desktop Computers
Component Quantity Required

DiskDrive-1TB .6
DiskDrive-500GB .4
You would create a forecast or MPS for the planning stock item to drive out the requirements to make or purchase
the disk drives. Similarly, you would add other components to the planning bills in their percentages.
Managing MRP with Planning Bills

It's important to consider that both the planning item and stock items are driving down component demand.
The planning bill is intended to represent anticipated sales in the future so as to make or buy the necessary
components in a timely manner. When you enter the sales orders or production orders for the items to be sold, they
will drive component demand also.
• As customer orders are received, you should reduce the forecast or MPS for the planning item so as not to
overstate the component demand. You can use the Planning Horizon setting in MRP Preferences to specify
when to ignore forecasts and use just actual demand. For example, you expect customers to typically place
orders 2 weeks in advance of anticipated ship dates; therefore, you would set the forecast Planning Horizon
or MPS Time Fence to 14 days.
• You should review the actual component usage and periodically adjust their percentages in the planning
bill.
Bills of Material: Updating Standard Costs
You use the cost rollup process, which you perform by using the Cost Roll (AM508000) form, to update the costs
of bills of materials (BOMs). When an item assigned to a BOM has the Standard valuation method specified on the
General tab of the Stock Items (IN202500) form, aer the cost rollup is performed, you may want to update the item
cost with the rolled-up cost.
When it updates the pending standard costs of items assigned to the BOMs, the system typically
updates the pending costs of the stock item on the Price/Cost tab of the Stock Items (IN202500) form.
The system instead updates the pending cost of the item–warehouse pair on the Price/Cost tab of the
Item Warehouse Details (IN204500) form if the following conditions are met:
• A warehouse is specified in the Warehouse box on the Bill of Material (AM208000) form.
• A record for the item–warehouse pair exists on the Item Warehouse Details form.
• The Override Std. Cost check box is selected on the Price/Cost tab of the Item Warehouse
Details form.
Typically, standard costs are updated on an annual basis, but you can update them as oen as needed. In this topic,
you will read about the processes related to updating the standard costs of items to be produced.
Steps to Update Standard Costs

When you want to update standard costs of items to be produced for bills of material, you perform the following
general steps:
1. You update the standard cost with the pending cost for each material included in the BOM for which the
following conditions are met:
• The material has the Standard valuation method specified on the General tab of the Stock Items
(IN202500) form.
• The material is not a subassembly.
For details, see the Update of Standard Costs for Materials section below.
2. You preview the cost changes for the materials with standard costs by using the Standard Cost Change
Preview (IN617500) report, so that you can see the impact of the cost changes on production cost drivers,
such as overhead or labor costs.
3. You roll up the costs for the bills of material by using the Cost Roll (AM508000) form. For more information,
see the Cost Rollup for BOMs section below.
4. You update the pending costs with the costs calculated by the rollup process for the BOMs on the Cost Roll
form. For more information, see the Pending Cost Update for BOMs section below.
5. You again preview the cost changes for materials by using the Standard Cost Change Preview (IN617500)
report to make sure that the costs are correct and to understand the impact of the inventory revaluation.
6. You update the standard costs for the items to be produced by using the Update Standard Costs (IN502000)
form. For details, see the Standard Cost Update for the Items to Be Produced section below.
Update of Standard Costs for Materials

Before you roll up the costs of a bill of material, you need to update the standard cost for each material that is used
in the BOM, has the Standard valuation method, and is not a subassembly. You can use either of the following ways:
• Specify the pending cost for each material manually on the Price/Cost tab of the Stock Items (IN202500)
form and then update the current cost by using the Update Cost command on the same form.
• Create a generic inquiry to display the purchase order history. By using this generic inquiry, you analyze
and calculate a new standard cost that could be imported to update the pending costs of the materials. If
you want to select only items used in BOMs, you can refer to the Using Manufacturing Data in Inquiries and
Reports topic that lists the DACs used by the manufacturing-related forms.
Cost Rollup for BOMs

To calculate costs for bills of material based on the costs of BOM elements, such as materials, tools, or overhead,
you do the following on the Cost Roll (AM508000) form:
1. In the Level box of the Selection area, select Multi to calculate costs of the bills of material and the
subassemblies included in the BOMs.
2. In the Selection area, select the needed check boxes, such as Include Material Scrap Factors.
3. In the Included column, select the check box for each BOM for which you would like to calculate costs.
4. On the form toolbar, click Roll Costs and wait till the process is completed.
5. On the form title bar, click Tools > Trace to view the trace log and make sure that no errors occurred during
the cost rollup process.
You can run the cost rollup process as many times as you need.
Pending Cost Update for BOMs

When the cost rollup process is completed, on the toolbar of the Cost Roll (AM508000) form, you click Update
Pending so that the system updates the pending costs of the items assigned to the BOMs with the calculated costs
on the Price/Cost tab of the Stock Items (IN202500) form.
If you have not yet updated the standard costs for the materials used in the BOMs, you can select the Use Pending
Standard Cost for Purchase Items check box on the Cost Roll form. In this case, the system will use the pending
costs instead of standard costs for the materials that are purchased.
Standard Cost Update for the Items to Be Produced

Finally, you update the standard costs of items to be produced by using the Update Standard Costs (IN502000) form.
During the update, the system does the following for each item to be produced:
• On the Price/Cost tab of the Stock Items (IN202500) form for the item or the Item Warehouse Details
(IN204500) form for the item–warehouse pair, copies the value of the Pending Cost box to the Current Cost
box in the Standard Cost section.
• Sets the Pending Cost to zero.
• On the Adjustments (IN303000) form, creates an inventory adjustment to update the Inventory GL account
and Standard Cost Revaluation GL account and releases the adjustment.
Inventory is always revalued when you update standard costs. However, you might want to revalue inventory
without updating the current costs of the items to the next pending cost. In this case, on the Update Standard Costs
form, you can select the Revalue Inventory check box. With the check box selected, the form shows all items with
the Standard valuation method that have cost layers in the warehouse selected in the Warehouse box. When you
run the update process, the system revalues the inventory with the current cost, but the current cost will not be
updated with the pending cost for the items.
Producing Items | 42
Producing Items
Acumatica ERP Manufacturing Edition provides you with various tools to manage the production of items, calculate
the costs of produced items, and adjust the production processes to the business processes of your organization.
In this chapter, you will read about production processing in Acumatica ERP Manufacturing Edition.
Production Processing: General Information
The production management functionality of Acumatica ERP Manufacturing Edition is used to control and track
the transformation of raw materials and component parts into finished items and subassemblies. You create
production orders of a regular type and the related transactions to record the production of items and their costs.
In this topic, you will find details about the standard workflow of processing production orders when backflushing
and scrap reporting are not used.
Learning Objectives
• Create and process a production order of a regular type
• View the list of components that are out of stock and create documents for purchasing the components
• Issue the components required to produce the item
• Track the produced quantity of items and the employee time spent on producing the items
• Record the movement of items from a work center to a warehouse
You process production orders of a regular type when you need to produce a certain number of items.
Standard Production Process

The standard process of the production of items involves the actions and generated documents shown in the
following diagram.
The employees involved do the following to process the production order and the related transactions:
1. Create a production order.
the production manager creates a production order by using the Production Order Maintenance (AM201500)
form, adding the item to be produced and the quantity of the item. When the production manager creates
the production order and saves the changes, the system assigns the Planned status to the order.
2. Release the production order.
When the production order is ready for processing, the production manager releases the order on the same
form. The order status changes to Released.
3. Optional: Print the production ticket .
If the production manager would like to give the printed production ticket to the workers who will produce
the item, the production manager prints the ticket by using the Production Ticket (AM625000) report.
4. Make sure that the required materials are available.
The production manager makes sure that the quantity of materials required to produce the item is available
on hand by using the Critical Materials (AM401000) form. If the production manager finds a shortage of any
materials, the production manager creates a purchase order to purchase the required materials from a
vendor by using the same form.
5. Issue the materials for each operation.
The production manager issues the materials required to produce the item by using the Materials
(AM300000) form. The production manager either enters the materials manually or uses the Materials Wizard
(AM300010) form.
During the release of materials, the system creates and releases an inventory issue on the Issues (IN302000)
form. The system also updates the production order's details and costs, and the balance of the WIP account.
The production order's status changes to In Process.
6. Record the time spent and the quantity of completed items for each operation, except the last operation.
When each operation is completed, the worker creates a labor transaction by using the Labor (AM301000)
form to record the time that they spent on the operation and the quantity of the completed items. The
system also creates a cost transaction on the Cost Transactions (AM309000) form to record the cost of the
worker's work.
7. Record the quantity of completed items for the last operation.
When the produced items are ready to be moved to stock (usually when the last operation in the routing has
completed), the worker creates a move transaction by using the Move (AM302000) form. The system also
creates an inventory receipt on the Receipts (IN301000) form and a cost transaction on the Cost Transactions
(AM309000) form. If the total quantity completed is greater than or equal to the quantity of the item to be
produced, the system changes the status of the production order to Complete.
If the worker both records labor hours and the quantity of the completed items during the last
operation in the routing, they can use only the Labor form.
8. Close the production order.

The production manager closes the production order by using the Close Production Orders (AM506000) form.
Before the production manager closes the production order, we strongly recommend that the
production manager reviews the balance of the WIP account. A nonzero balance may cause
incorrect cost calculations of the finished goods and affect the item cost. For details, see WIP
Balance Correction.
If the balance of the WIP account is not zero, the system creates the final adjustment to set the balance of
the WIP account to zero by creating a cost transaction on the Cost Transactions form and a GL batch on the
Journal Transactions (GL301000) form. The offset is added to the WIP Variance account.
Production Processing: Control Point Operations
Generally, workers who process or produce items according to production orders are not obliged to record the
quantity of completed items for each operation except the last one. If you have many operations in production
routing and want to make the production progress more visible or improve data recording accuracy for production
orders, you can mark particular operations in routing as control points. For these operations, the system will force
workers to record the completed quantity by using the Labor (AM301000) or Move (AM302000) form before the
workers can record the completed quantity for the last operation.
To mark an operation as a control point, you select the Control Point check box in its row of the Operations table
on the Bill of Material (AM208000) form. The state of the check box is used as the default state of the Control Point
check box in the row for this operation on the Production Order Details (AM209000), but you can override this state.
The last routing operation is always a control point because before the production order can be
completed, workers must report the labor hours spent for production and the quantity of the
completed items.
In the following sections, you will read about operations marked as control points.
Production Process with Control Point Operations

Suppose that a production order has the operations defined in the Operations table of the Production Order Details
(AM209000) form with the settings shown in the following table.
Table: The Operation Settings in the Production Order
Operation ID Backflush (Labor) Control Point Backflush (Materials)
0010 Selected Cleared Selected
0020 Cleared Selected Cleared
0030 Cleared Selected Cleared
In the following diagram, you can view the actions and generated documents for this production order.
1. Create and release the production order.

On the Production Order Maintenance (AM201500) form, the production manager creates and releases the
production order.
2. Issue materials for the control point operation.
On the Materials (AM300000) form, the production manager issues the materials required for the second
operation.
Materials and labor are backflushed for the first operation, so for this operation, the manager
does not need to issue materials, and employees do not need to record labor.
3. Record the time and the completed quantity for the control point operation.
On the Labor (AM301000) form, a worker records the time they spent on the operation and the item quantity
they produced during the second operation. When the worker releases the labor transaction, the system
also does the following:
• Creates and releases the material transaction on the Materials form with the backflushed materials for
the first operation.
• Creates and releases the cost transaction on the Cost Transactions (AM309000) form. The transaction
includes the cost of the backflushed labor for the first operation and the cost of the labor for the second
operation.
4. Record the time and the completed quantity for the last operation.
On the Labor form, the worker records the time they spent on the operation and the item quantity they
produced during the third operation.
On the Close Production Orders (AM506000) form, the production manager closes the production order.
Verification of Item Quantities

If multiple routing operations are marked as control points, when a worker enters the quantity of completed items
on the Labor (AM301000) or Move (AM302000) form for the control point operations, the system verifies that the
quantity entered for the current operation is less than or equal to the quantity recorded for the preceding control
point operation. If this condition is not met, the system displays an error message and does not release the labor or
move transaction until the worker enters the correct item quantity.
For example, suppose that a production order for producing a base unit contains four operations: 0010 Cutting,
0020 Form, 0030 Assembly, and 0040 Inspection; the 0010 and 0030 operations are control points. Further suppose
that on the Move form, a worker creates a move transaction for Operation 0010 and enters 7 as the completed
quantity. Then another worker, when specifying the completed quantity of the item for Operation 0030 on the same
form, mistakenly enters 70 instead of 7 as the quantity. The system does not release the move transaction until the
worker enters a quantity of 7 or less.
Reversal of Item Quantities

When a worker would like to revert the quantity of completed items for some operation and enters a negative
quantity value on the Move (AM302000) form for this operation, the system verifies that the completed quantity
aer the reversal is more than or equal to the completed quantity recorded for the next operation marked as a
control point. If the validation fails, the system displays an error message and does not release the transaction until
the worker enters the correct quantity to be reversed.
In the previously considered example of a production order for producing a base unit, suppose that on the Move
form, a worker creates a move transaction for Operation 0010 and enters the completed quantity as 7. Further
suppose that another worker creates a move transaction for Operation 0030 on the same form and enters a
quantity of 5. Then the first worker finds out that the quantity specified for Operation 0010 is incorrect and creates
a move transaction with a quantity of –3. The system calculates the new completed quantity for Operation 0010 as
7 – 3 = 4. The new quantity is less than the quantity recorded for Operation 0030. So the system will not release the
move transaction until the worker specifies –2 or –1 as the quantity to be reversed.
Production Processing: Item Availability and Allocation
When you process production orders and related documents (such as sales orders and purchase orders), the
system estimates the availability of items in the documents and allocates the items depending on the processing
stage, as described in this topic.
Availability Calculation for Production Processing

The system uses the availability calculation rules specified on the Availability Calculation Rules (IN201500) form.
We recommend that you create an availability calculation rule for items involved in production. For general
information about availability calculation rules, see Configuration of Availability Calculation Rules: General
Information.
According to the rule settings, the system assigns plan types to the quantities of items in documents; you can view
the plan types on the Inventory Allocation Details (IN402000) form. All documents that contain items related to
production (finished goods or components) and that are not closed are assigned specific plan types depending on
the document status; these plan types are described in the following sections.
The system resets allocations for production orders when the quantity of issued items is equal to the required
quantity specified in the production order or when the production order is closed. When you complete the
production order, the system does not reset the allocations if the materials have not been fully issued. If you need
to close a production order with a smaller quantity of the item produced (such as when you were going to make
10 items, but because of a material shortage, you could make only 8), you need to first reduce the quantity to be
produced in the production order and then close the production order.
Allocating Items in Purchase Orders to Production Orders

You can create purchase orders that contain components that are required for production. The type of the line
for these items is Goods for MFG. You can specify this line type manually when you are creating a purchase order
on the Purchase Orders (PO301000) form, and the system specifies this line type automatically when you create a
purchase order by using the Critical Materials (AM401000) form.
Once the purchase order is created, the allocations on the production order materials line are updated. The plan
type of the purchase order depends on its status as follows:
• If the purchase order has a status other than Open, the plan type is Purchase for Prod. Prepared
• If the status of the purchase order is Open, the plan type is Purchase for Production
For a production order for which the related purchase order is created but not completed yet, the plan type is
Production to Purchase. When the items allocated for production are received in a warehouse, the plan type of the
production order changes to Production Allocated.
The line type of the purchase order is not updated when the line is allocated to a production order.
Allocating Items to Production Orders Manually

You can manually allocate available items to a production order or remove the item allocation by using the Line
Details dialog box on the Production Order Details (AM209000) form. In this case, the system uses the Production
Allocated plan type for the production order.
You cannot allocate lot- or serial-tracked items manually for a production order.
Allocating Items in Production Orders to Sales Orders

When a production order is associated with a sales order line, on the Item Plans tab of the Inventory Allocation
Details (IN402000) form, the system assigns plan types, which represent allocations for the item quantity, as
follows:
• The sales order is assigned the SO to Production plan type, which is the demand allocation.
• If the production order has the On Hold or Planned status, it is assigned the Production for SO Prepared plan
type, which is the supply allocation.
• If the production order has the In Process or Released status, it is assigned the Production for SO plan type,
which is the supply allocation.
When the system creates an inventory receipt as a result of the move transaction, the plan type assigned to the
sales order is changed to SO Allocated. If a stock item is a lot- or serial-tracked item, the system specifies the lot or
serial number in the sales order line with this item.
Allocating Items in Production Orders to Other Production Orders

When you create production orders for subassemblies by using the Critical Materials (AM401000) form and these
production orders are linked to the parent production order, the system assigns the Production Allocated plan type
to the items in the parent production order. The plan type for the subassembly production order depends on the
status of the production order as follows:
• For a production order that has the Planned status, the system assigns the Production for Prod. Prepared
plan type.
• For a production order that has the Released or In Process status, the system assigns the Production for
Production plan type.
Material Requirements Planning and Allocations

Availability calculation rules specified on the Availability Calculation Rules (IN201500) form do not affect allocation
details when you regenerate material requirements planning by using the Regenerate MRP (AM505000) form.
Production Processing: Cost Calculation
When produced items are moved to a warehouse, you record this movement by creating a labor or move
transaction. The system creates a related inventory receipt on the Receipts (IN301000) form; it also creates a related
GL transaction to debit the inventory account (and subaccount, if applicable) and to credit the work in process
account (and subaccount, if applicable). If the stock item being received has a valuation method of Standard
specified on the Stock Items (IN202500) form, then the system calculates the cost of the items in the receipt as the
quantity received multiplied by the standard cost for the stock item. If the stock item has a valuation method of
FIFO, Average, or Specific, the receipt cost is calculated depending on the costing method selected for the related
production order, as described in this topic.
You can read more about item costs and valuation methods in Item Costs and Valuation Methods.
Costing Methods in Production

Acumatica ERP Manufacturing Edition supports the following methods of production cost calculation:
• The Actual method, which uses only the actual work in process (WIP) balance to calculate the cost
• The Estimated method, which combines actual and planned costs and is used when material and labor
transactions may be reported aer the produced items are received in stock
You specify the default costing method for new production orders in the settings of a production order type by
using the Production Order Types (AM201100) form. You can change the default method when you are creating a
production order. In the following sections, you will find detailed information about the costing methods.
You can view the cost details of a production order on the Totals tab of the Production Order Maintenance
(AM201500) form.
Actual Costing Method

With the actual costing method, the system calculates the unit cost of produced items as the actual WIP balance
divided by the quantity completed. The system sets the balance of the WIP account to zero when an inventory
receipt is created to indicate that the items on a production order have been produced—that is, when the status of
the production order is changed to Completed.
You can use this method in any of the following cases:
• When the quantity of materials used for production depends on particular conditions. For example, suppose
that workers need to add a particular amount of salt to a product depending on the testing.
• When you might use an additional material or replace a material in item production based on the material
availability or inspection, such as in repair orders when some parts of an item need to be replaced.
• When labor time spent on item production is unknown until the item is produced.
• Accurate costs with the Actual costing method are dependent on the recording of all required
transactions before inventory receipts are created to track the movement of the produced
items to stock. Because the receipt costs are calculated based on the actual WIP balance at the
time of the receipt, using the Actual costing method may have an undesired impact on your
costs when the units are issued or shipped.
• Transactions created and processed by using the WIP Adjustment (AM308000) form adjust the
WIP balance and will be included in the cost of any receipt posted aer the adjustment has
been released.
The system calculates production order variances for each cost element in order to provide a means to measure
performance.
Below you can find examples of calculating production costs by using the Actual costing method.
Example 1
Suppose that the production order to produce 10 units of an item has an actual WIP Total of $100 with zero
completed units (that is, MFG to Inventory is zero). A user creates a move transaction to report the production of 5
units. The total cost for the transaction is $100 with a calculated unit cost of $100 / 5 = $20 each.
Further suppose that aer the user added the move transaction, the other cost of $70 has been added to the
production order, so the WIP Total is $170 and the WIP Balance is $70. A user creates a move transaction for the
final 5 units. The system calculates the unit cost as $70 / 5 = $14. The system creates two inventory receipts, with a
unit cost of $20 in the first receipt and a unit cost of $14 in the second receipt. When the second move transaction is
released, the production order is assigned the Completed status, and the system updates the order balances to the
following:
• WIP Total: $170
• WIP Balance: 0
• MFG to Inventory: $170
Example 2
Suppose that the production order to produce 10 units of an item currently has an actual WIP Total of $0 with zero
completed units (that is, MFG to Inventory is zero). A user creates a move transaction to report the production of 5
units. The total cost for the transaction is $0 with a calculated unit cost of $0 / 5 = $0 each.
Further suppose that aer the user added the move transaction, the cost of $170 has been added to the production
order, so the WIP Total is $170 and the WIP Balance is $170. A user creates a move transaction for the final 5 units.
The system calculates the unit cost as $170 / 5 = $34 each. The system creates two inventory receipts, with a unit
cost of $0 in the first receipt and a unit cost of $34 in the second receipt. When the second move transaction is
released, the production order is assigned the Completed status, and the system updates the order balances to the
following:
• WIP Total: $170
• WIP Balance: 0
Example 3
Suppose that the production order to produce 10 item units currently has an actual WIP Total of $170 with zero
completed units (that is, MFG to Inventory is zero). A user creates a move transaction to report the production of
10 units. The total cost for the transaction is $170 with a calculated unit cost of $170 / 10 = $17 each. The system
creates an inventory receipt with a unit cost of $17 and a total cost of $170. When the move transaction is released,
the production order is assigned the Completed status, and the system updates the order balances to the following:
• WIP Total: $170
• WIP Balance: 0
Estimated Costing Method

The estimated costing method uses a combination of actual and planned costs. In manufacturing, the actual
product oen flows through production processes faster than employees report the transactions to track it. In
some organizations, employees might indicate the labor hours and materials used on the production tickets and
a supervisor collects the data at the end of their shi, reviews the data, and then enters it into the system. The
product may have already been packed, moved to stock, and shipped before the actual labor and materials have
been posted. If the actual labor and materials are not reported, the balance of the WIP account is understated, and
if an inventory receipt is created without these costs, the receipt cost will understated.
In order to minimize the impact of understated costs, the system calculates the cost of the inventory receipt
as the cost of actual labor hours and cost of materials (reported by using the labor and material transactions)
plus the difference between the planned and actual labor hours and quantities. Additionally, machine, tooling,
and overhead costs are also calculated and applied. The balance of the WIP account is set to zero only when the
production order is financially closed, even for stock items using the FIFO, Average, or Specific Cost valuation
methods.
For items with the Standard valuation method, the receipt cost is always the current standard cost and any rate or
usage variance is applied as a WIP Variance value when the production order is financially closed.
When you use the combination of planned and actual costs, be aware that the system calculates planned costs by
using the predefined costs at the time the production order is created and updates the costs when the production
order is released; during the processing of the production order, costs may change. The system calculates the
actual costs at the time the material, labor, or move transaction is released. As an example, the cost layer for
materials with the FIFO valuation method is determined when the inventory issue transaction is released, but not
when the transaction is created.
Other examples of differences between planned and actual costs are the following:
• The average or last cost can be changed in a purchase receipt for stock item components, or the standard
cost of components can be updated.
• The planned labor is calculated by using standard rates specified for a work center, but you report labor by
using employee rates, which differ from the standard work center rates.
• Rates for production cost drivers—such as overhead, machines, or tools—may be changed aer the planned
costs of the production order were calculated.
Rate Variances and Usage Variances

The system considers differences between the planned costs and actual costs to be rate variances and differences
between the planned quantities and actual quantities to be usage variances.
Rate variances will not create a production order variance;the full value of the WIP account is credited when the
production order is completed—that is, when the actual completed quantity equals the quantity to be produced.
If you create inventory receipts for partial quantities of items, a different cost may be calculated for each receipt,
depending on when labor and material are posted to the production order.
Usage variances, however, can result in a production order variance and the non-zero balance of the WIP account at
completion of a production order. The system creates usage variances in either of the following cases:
• There is a difference between the planned and actual labor hours.
• There is a difference between the planned and actual quantities of issued materials.
WIP Balance Correction

Before you close a production order for a finished item, we strongly recommend that you review the balance of the
WIP account in the WIP Balance box on the Totals tab (the Variance section) of the Production Order Maintenance
(AM201500) form.
A completed production order with a nonzero WIP account balance could be caused by any of the following:
• Materials required to produce the items have been issued in a quantity that does not equal the planned
quantity calculated based on the bill of material assigned to the item.
• The number of labor hours reported for the production order differ from the planned number of labor
hours.
If you correct the materials or labor recorded aer you create the final inventory receipt for moving the finished
goods to a warehouse, the system does not recalculate the receipt cost. An incorrect receipt cost affects inventory
valuation and could affect the cost of sales if the item is a finished good.
For a production order with the Actual costing method, you can correct the variance as follows:
• You reduce the completed quantity of the item by creating and releasing a move transaction with the
negative quantity on the Move (AM302000) form for the last operation in routing. The system will change the
status of the production order to In Process.
• If you want to correct the material cost, you create and release a material transaction with the corrected
material quantity by using the Materials (AM300000) form. To reduce the material quantity, you specify a
negative value in the Quantity column.
• If you want to correct the labor cost, you create and release a labor transaction with the corrected time by
using the Labor (AM301000) form. To reduce the reported time, you specify a negative value in the Labor
Time column.
• You record the remaining quantity of the finished item for the last operation by creating and releasing a
move transaction on the Move form. The system will change the status of the production order back to
Completed.
For production orders with the Estimated costing method, if you have not issued the materials yet and the planned
unit cost is not specified for the item, then you perform any of the steps above (which are appropriate to your
situation) to correct the balance of the WIP account.
Planned Cost Update

If you are aware that significant labor, material, or other cost changes have occurred since the production order
was created, you can use the Update Planned Costs command on the Production Order Maintenance (AM201500)
form to specify these costs in the production order. You can use this command for only production orders that have
a status of On Hold, Planned, Released, or In-Process.
Cost Calculation by Production Cost Driver

The system calculates costs for production cost drivers as follows:
• Labor: Costs are calculated for each operation by using the following formula if the actual labor hours are
less than planned labor hours.
Actual labor cost + (Planned labor time - Actual labor time) * Work center standard
rate
• Material: Costs are calculated for each material item by using the following formula if the actual issued
quantity is less than the planned quantity to be issued.
Actual material cost + (Planned material quantity - Actual material quantity) *
Planned unit cost
• Machine and tools: Costs are always calculated based on the actual completed quantity for each operation
or, if necessary, by the adjusted completed quantity.
• Fixed overhead: Costs are calculated for each operation.
• Variable overhead: As with labor and material cost calculation, costs are calculated based on the actual
completed quantity for each operation or if necessary, by the adjusted completed quantity.
Production Processing: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for production
processing, and to understand (and change, if needed) the settings that affect the processing workflow.
Prerequisites
Make sure that the following tasks have been performed before you start implementing production processing:
• The system has been prepared for manufacturing implementation, as described in System Preparation for
Manufacturing Implementation: Implementation Activity.
• Bills of material and all the related entities have been created, as described in Implementing Bills of Material:
General Process.
We recommend that before you initially start processing production orders, you make sure the needed features
have been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
Enable/Disable Features (CS100000) The following features have been enabled:

• The Manufacturing group of features. If you use ad-
ditional manufacturing functionality (such as esti-
mates), make sure that the corresponding features
have been enabled within this group of features.
• The Inventory feature within the Inventory and Or-
der Management group of features.
Production Order Types (AM201100) Production order types have been created, as de-
scribed in Production Order Types: General Information.
Production Preferences (AM102000) All necessary settings related to production manage-

ment have been specified.
Other Settings That Affect the Workflow

You can affect the workflow of processing production orders by specifying additional settings on the Production
Preferences (AM102000) form as follows:
• To cause labor, move, material, and WIP adjustment transactions to be created with the On Hold status (so
that the user can verify them before processing them further), on the Production Preferences (AM102000)
form, you select the Hold Documents on Entry check box.
• To make the system validate totals on labor, move, material, and WIP adjustment transactions, on the
Production Preferences form, you select the Validate Document Totals on Entry check box.
• To make the system immediately update the available quantities of items, on the Inventory Preferences
(IN101000) form, you select the Automatically Post on Release check box.
instructions similar to those described in Production Processing: To Process Production-Related Documents and
Transactions.
Production Processing: To Process Production-Related Documents and

Transactions
The following activity will walk you through the process of creating and processing a production order and the
related documents and transactions.
Story
Suppose that based on the analyzed demand from previous periods of sales, the sales department of SweetLife
has asked the production department to produce 12 juicers for citrus, according to the bill of material dedicated to
the juicer production. Acting as a production manager, you will create a production order for producing 12 citrus
juicers, order the juicer parts that are out of stock from the vendor, and process all related transactions. Further
suppose that the production of juicers should start on today's date and the scheduling priority is standard (you do
not need to produce the juicers faster or slower than the other items in the queue).
In the tenant provided in the class, the following tasks have been performed for the purposes of this activity:
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse and the MGI and MTL locations have been
defined.
• On the Stock Items (IN202500) form, the CFJCITRUS, JCREAMER, JUICECUP1L, MRBASEHIGH, STRBASKET, and
SPLGUARD stock items have been defined.
• On the Vendors (AP303000) form, the JALOOZA vendor has been created.
• On the Bill of Material (AM208000) form, the bill of material for the CFJCITRUS stock item has been created.
• On the Production Order Types (AM201100) form, the RO production order type for regular production orders
has been created.
• On the Production Preferences (AM102000) form, the RO has been specified as the default order type for
regular production orders.
• On the Employees (EP203000) form, the Production Employee check box has been selected for the
EP00000027 (Carlos Cruz) employee.
In the U100 dataset, the following tasks have been performed for the purposes of this activity:
defined.
In the company in which you have completed the M100 Basic Manufacturing Implementation training course, you
have performed the following tasks for the purposes of this activity:
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJCITRUS stock item.
• On the Production Order Types (AM201100) form, you have created the RO production order type for regular
production orders.
• On the Production Preferences (AM102000) form, you have specified RO as the default order type for regular
production orders.
• On the Employees (EP203000) form, you have selected the Production Employee check box for the
defined.
Process Overview
In this activity, to process the documents and transactions related to the production of the citrus juicers, you will
do the following:
1. On the Production Order Maintenance (AM201500) form, you will create and release the production order.
2. On the Critical Materials (AM401000) form, you will view the list of components that are out of stock and
create a purchase order for the components.
3. On the Purchase Receipts (PO302000) form, you will create a purchase receipt to record the receipt of the
components from the vendor.
4. On the Materials (AM300000) form, you will issue the components required for the production order.
5. On the Labor (AM301000) form, you will record the labor spent for the juicer assembly and the produced
quantity.
6. On the Storage Summary (IN409010) form, you will view the quantity of juicers available in the warehouse.
7. On the Production Order Maintenance form, you will view the changes in the production order.
8. On the Move (AM302000) form, you will record the receipt of one more juicer to the warehouse.
9. On the Production Order Maintenance form, you will view the labor and costs recorded for the production
order.
10.On the Close Production Orders (AM506000) form, you will close the production order.
System Preparation
Do the following:
1. Launch the Acumatica ERP website, and sign in to the company in which the M100 Basic Manufacturing
Implementation training course has been completed. You should sign in as the production manager by
using the peters username and the 123 password.
2. Launch the provided Acumatica ERP instance and sign in as the production manager by using the peters
username and the password provided in the class.
a. Bills of Material: Implementation Activity so that the needed bill of material has been created in a company
with the U100 dataset preloaded.
b. Production Order Types: To Create a Regular Production Order Type so that a production order type for
regular orders has been created in this company.
4. Launch the Acumatica ERP website, and sign in to the company in which the prerequisite activities have
been performed. You should sign in as the production manager by using the peters username and the 123
password.
5. In the info area, in the upper-right corner of the top pane of the Acumatica ERP screen, make sure that the
business date in your system is set to today’s date. For simplicity, in this activity, you will create and process
all documents in the system on this business date.
Step 1: Creating the Production Order

To create the production order for 12 citrus juicers, do the following:
1. On the Production Order Maintenance (AM201500) form, add a new record.
• Order Type: RO
• Warehouse: WORKHOUSE (automatically selected)
• Location: MGI (automatically selected)
• Order Date: Today's date (automatically selected)
• Hold: Cleared
• Description: Production of 12 citrus juicers in the standard configuration
Notice that the status of the production order is Planned.
3. In the Qty. to Produce box of the General tab, specify 12. Notice that this quantity is copied to the Qty.
Remaining box.
5. On the More menu (under Processing), click Release Order. The order status is changed to Released.
6. In the Planned section of the Totals tab, review the planned labor time and the planned costs for
production of the juicers (see the following screenshot). The system calculates the planned time based on
the values you have specified in the bill of material on the Bill of Material (AM208000) form. The planned
costs are calculated based on the planned time and on the settings of the production cost drivers. (See
Production Cost Drivers: Implementation Activity for details.)
Figure: The Totals tab of the Production Order Maintenance form
The production order is ready to be processed further.
Step 2: Creating a Purchase Order for Out-of-Stock Components

In this step, you will view the list of components that are required for the production of the juicers and are out
of stock, and you will create a purchase order to purchase the components from the JALOOZA vendor. Do the
following:
1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, click
Critical Material (under Other) of the More menu. The Critical Materials (AM401000) form opens with the
production order number selected in the Production Nbr. box.
2. In the Qty. On Hand column, make sure that zeros are specified in all rows. This means that all the
components required to assemble the juicers are out of stock and must be purchased.
3. In the column header with the unlabeled check box, select this check box to select all rows.
4. On the form toolbar, click Purchase.
5. In the Create Purchase Order dialog box, which opens, view the default settings, and click Create. The
system creates a purchase order and opens it on the Purchase Orders (PO301000) form.
6. On the form toolbar, click Remove Hold. The status of the purchase order is changed to Open.
Step 3: Receiving the Components in a Warehouse

Suppose that you have received the ordered components from the JALOOZA vendor and need to create a purchase
receipt. The items have been received to the MTL location in the WORKHOUSE warehouse (this location is dedicated
to the storing of components). Do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the form toolbar,
click Enter PO Receipt. The system creates the purchase receipt and opens it on the Purchase Receipts
(PO302000) form.
2. On the Details tab, view the list of the received components.
3. In the Location column, make sure that MTL is specified for each row.
4. On the form toolbar, click Release. The system releases the purchase receipt and changes its status to
Released.
5. On the Orders tab, make sure that Completed is specified in the Status column of the only row.
You have received the required components into stock and now you can continue processing the production order.
Step 4: Issuing the Components for the Production Order

In this step, you will issue the components for the production order. Do the following:
1. On the Production Order Maintenance (AM201500) form, open the production order that you created earlier
in this activity.
2. On the More menu (under Processing), click Release Materials. The system opens the Materials Wizard
(AM300020) form with the list of components from the production order.
3. On the form toolbar, click Select All. The system creates the material transaction and opens it on the
Materials (AM300000) form.
4. In the Summary area, do the following:
a. In the Description box, specify Materials for 12 citrus juicers.
b. Clear the Hold check box. The system changes the transaction status to Balanced.
5. On the form toolbar, click Release. The system releases the material transaction and changes the status of
the transaction to Released.
6. On the Issues (IN302000) form, make sure that the inventory issue with the components from the
production order has been created and released.
Step 5: Recording the Labor and Produced Items

Suppose that Carlos Cruz, a worker in the work center, spent 30 minutes setting up the working environment for
juicer assembly and assembled 5 juicers for 1 hour and 40 minutes. Another work center worker, Casey Burrows,
assembled 6 juicers for the same amount of time. The assembled juicers have been moved to the MGI location of
the WORKHOUSE warehouse. To record the time spent on juicer assembly and the movement of the assembled
juicers, do the following:
1. On the Labor (AM301000) form, add a new record.
2. On the table toolbar, click Add Row.
• Labor Type: Direct
• Order Type: RO
• Production Nbr.: The number of the production order that you created earlier in this activity
• Employee ID: EP00000027 (Carlos Cruz)
• Shi: 0001
• Labor Time: 02:10
• Quantity: 5
• Order Type: RO
• Employee ID: EP00000028 (Casey Burrows)
• Shi: 0001
• Quantity: 6
a. In the Date box, make sure that the today's date is specified.
b. In the Description box, specify Recording the time for assembly of 11 citrus
juicers.
c. Clear the Hold check box. The system changes the transaction status to Balanced.
7. On the form toolbar, click Release. The system creates and releases the cost transaction to record labor
costs, the inventory receipt to record the movement of the assembled juicers to the warehouse location,
and the labor transaction itself.
Step 6: Viewing the Availability of Juicers

To make sure that the assembled juicers have been moved to the MGI warehouse location, do the following:
1. On the Receipts (IN301000) form, open the inventory receipt with the 11 juicers.
2. Make sure that the receipt has the Released status.
3. On the Inventory Summary (IN401000) form, specify the following settings in the Selection area:
• Location: MGI
4. In the On Hand column of the only row listed in the table, make sure that the value is 11 (see the following
screenshot).
Figure: The on hand quantity of the juicers on the Inventory Summary form
Step 7: Viewing the Changes to the Production Order

In this step, you will view the changes the system made to the production order as a result of the previous steps. Do
the following:
in this activity.
2. On the General tab, make sure that the value of the Qty. Complete box is 11 and the value of the Qty.
Remaining box is 1. This means that 11 out of 12 juicers have been assembled and are available in the
warehouse.
3. On the Events tab, make sure that records for material, cost, and labor transactions are displayed in the
table.
Figure: The Events tab of the Production Order Maintenance form
Step 8: Recording the Produced Items

Suppose that you have been informed that Carlos Cruz produced 6 juicers— not 5, as you recorded earlier in this
activity. To record the receipt of one more juicer to the warehouse location, create a move transaction as follows:
1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form,
on the More menu (under Processing), click Create Move Transaction. The system opens the Move
(AM302000) form with the row for the production order added to the table.
2. Make sure that 1 is specified in the Quantity column.
3. In the Summary area, clear the Hold check box.
4. On the form toolbar, click Release. The system creates and releases the inventory receipt and the cost
transaction; it also changes the status of the move transaction to Released.
5. On the Inventory Summary (IN401000) form, specify the following settings in the Selection area:
• Location: MGI
6. In the On Hand column of the only row, make sure that the value is 12.
7. On the General tab of the Production Order Maintenance form, make sure that the Qty. Complete box
contains 12 and the Qty. Remaining box contains 0.
8. In the Summary area, make sure that the status of the order is Completed.
Step 9: Viewing Production Order Totals

Before closing the production order, you will view the actual recorded labor time and costs on the Production Order
Maintenance (AM201500) form, as follows:
1. In the Actual section of the Totals tab, make sure that the following values are specified (shown in the
screenshot below):
• Labor Time: 3 h 50 m
• Labor: 76.66
• Variable Overhead: 23.00
The other values of the cost boxes are the same as in the Planned section. These costs are fixed and do not
depend on the recorded labor.
2. In the Variance section, review the difference between the planned and actual labor time and costs (see the
following screenshot). Notice that the workers spent 40 minutes of work less than the planned time.
Figure: Actual and variance costs of the production order
Step 10: Closing the Production Order

Now you will close the production order. Do the following:
on the More menu (under Processing), click Close Order. The system opens the Close Production Orders
(AM506000) form with a row for the production order added.
2. In the unlabeled column of this row, make sure that the check box is selected.
3. On the form toolbar, click Process. In the Processing dialog box, which opens, view the processing details,
and when the processing is completed, click Close.
4. On the Production Order Maintenance form, make sure that the status of the production order has been
changed to Closed.
You have successfully processed the production order for 12 citrus juicers.
Production Processing: Production for Sales
When you produce items that will be sold to customers, you may need to link a production order for producing an
item and a sales order line for the item. When the link is created, the system allocates the produced items for the
sales order, and the items become unavailable for sales operations that are not related to the sales order.
You can link the existing production order to the sales order line either by specifying the production order for the
sales order line on the Sales Orders (SO301000) form or by specifying a sales order line for the production order on
the Production Order Maintenance (AM201500) form. Additionally, you can remove the link between a sales order
line and a production order.
In this topic, you will read about production orders related to sales order lines in Acumatica ERP Manufacturing
Edition.
Learning Objectives
• Create a production order assigned to a sales order
• View allocation of items to sales and production orders
• View the list of components that are out of stock and create documents for purchasing the components
• Issue the components required to produce the item
• Track the produced quantity of items and the employee time spent on producing the items
• Record the movement of items from a work center to a warehouse
You assign production orders to sales orders when customers order items that are not in stock and must be
produced.
Production Process with a Sales Order

When you create a sales order that contains an item to be produced, the production process is the following:
1. You create the sales order by using the Sales Orders (SO301000) form and add the line for the item to be
produced to the order.
2. You create a production order for the line by using the Create Production Orders command. The system
allocates the quantity of the item to be produced for the sales order and adds the link to the production
order to the line. The created production order has the Planned status.
3. On the Production Order Maintenance (AM201500) form, you view the created production order and release
it. The order status changes to Released.
4. If you would like to give the printed production ticket to the workers who will produce the item, you print
the ticket by using Production Ticket (AM625000) report.
5. You make sure that the quantity of materials required to produce the item is available on hand by using the
Critical Materials (AM401000) form. If you find a shortage of any materials, you create a purchase order to
purchase the required materials from a vendor.
6. You issue the materials required to produce the item by using the Materials (AM300000) form. You either
enter the materials manually or use the Materials Wizard (AM300010) form.
During the release of materials, the system creates and releases an inventory issue on the Issues (IN302000)
form. The system also updates the production order's details and costs, and the balance of the WIP account.
Also, the status of the production order is changed to In Process.
7. When each operation is completed, you create a labor transaction by using the Labor (AM301000) form to
report the time that employees spent on the operation. The system also creates a cost transaction on the
Cost Transactions (AM309000) form to record the cost of employees' work.
8. When the finished item is ready to be moved to stock (usually when the last operation in the production
process is completed), you create a move transaction by using the Move (AM302000) form. The system also
creates an inventory receipt on the Receipts (IN301000) form and a cost transaction on the Cost Transactions
form. If the total quantity completed is greater than or equal to the quantity of the item to be produced, the
system changes the status of the production order to Complete.
If you both record labor hours and the completed quantity during the last operation in the
routing, you can use only the Labor form.
9. You close the production order by using the Close Production Orders (AM506000) form. The system creates
the final adjustment to set the balance of the WIP account to zero by creating a cost transaction on the Cost
Transactions form and a GL batch on the Journal Transactions (GL301000) form. The offset is added to the
WIP Variance account.
10.You process the sales order according to the sales process of your organization and ship the items to the
customer.
Criteria to Create a Production Order for a Sales Order Line

For you to be able to create a production order for a sales order line on the Sales Orders (SO301000) form, the
following conditions must be met:
• The status of the sales order must be other than Pending Approval.
• The Mark for Production check box must be selected in the sales order line.
You can select the Make to Order Item check box on the Manufacturing tab of the Stock Items
(IN202500) form to make the system select the Mark for Production check box on the sales
order line by default.
• For the sales order type on the Order Types (SO201000) form, the Allow Production Orders - Approved or
Allow Production Orders - Hold check box is selected, or both check boxes are selected.
• The MTO Order check box is selected for the sales order type, which makes the Mark for Production check
box appear on the Details tab of the Sales Orders form, so that it can be selected in the sales order line.
Linking of an Existing Production Order to a Sales Order Line

In some situations, the sales order and the production order to be associated with the sales order line already exist;
for example, the production order may have been created during material requirements planning. You can link the
applicable sales order line to the production order in either of the following ways:
• On the Sales Orders (SO301000) form, you can do the following:
a. Click the line on the Details tab.
b. On the table toolbar, click Link Prod Order to open the Production Details dialog box.
c. In the dialog box, select the check box in the Selected column in the row with the production order to be
linked to the sales order line; you then click Save.
When the dialog box closes, you can see the identifier of the production order in the Production Nbr.
column of the linked sales order line.
• On the Production Order Maintenance (AM201500) form (in the SO References section of the References
tab), you can do the following:
a. At the bottom of the section, click the Link Sales Order button, which is displayed only if no sales order
line has been linked to the production order, to open the SO Line Details dialog box.
b. In the dialog box, select the check box in the Selected column for the sales order line to be linked to the
production order; you then click Save.
When the dialog box closes, the boxes of the SO References section are filled in with the customer, sales
order type, sales order, and sales order line.
You can link a production order to a sales order line if all of the conditions specified in the following table are met.
Entity Requirements
Sales order The sales order is not assigned the Canceled, Back Order, or Completed status.
Production order • The production order is not linked to a sales order line.
• The order is not assigned the Completed, Canceled, or Closed status.
Stock item • The same stock item is specified in the production order and in the sales order
line.
• The stock item is not a configured item. (That is, the Configurable check box is
cleared for the sales order line on the Details tab of the Sales Orders form.)
Sales order line • The Mark for Production check box is selected for the sales order line on the
Sales Orders form.
• No production order is linked to the sales order line.
• The sales order line has not been canceled.
When you create the link between a sales order line and a production order, the following changes occur in the
system:
• The type and number of the production order are displayed in the sales order line on the Details tab of the
Sales Orders form.
• The customer, sales order type, sales order number, and sales order line are displayed in the SO References
section of the References tab on the Production Order Maintenance form.
• The item quantity is allocated for production; the item plan can be viewed on the Inventory Allocation Details
(IN402000) form.
When you link a production order to a sales order line manually, note the following:
• One production order can be linked to only one sales order line, and a sales order line can be
linked to only one production order.
• If the Multiple Warehouses feature is enabled on the Enable/Disable Features (CS100000) form,
the same warehouse must be specified in the production order and the sales order line.
Changes to a Link Between a Sales Order Line and a Production Order

You can change or remove the link between a sales order line and a production order only on the Production
Order Maintenance (AM201500) form because it is usually a production manager who is responsible for changes to
production orders. To remove the link, you do the following in the SO References section of the References tab:
1. Click the Remove Link button (which is displayed only if the link has been added previously).
2. Confirm the removal in the Confirm dialog box, which is opened.
When the link between a sales order line and a production order is removed, the following changes occur in the
system:
• The type and number of the production order are removed from the sales order line on the Details tab of
the Sales Orders (SO301000) form.
• The customer, sales order type, sales order number, and sales order line are removed from the SO
References section of the References tab on the Production Order Maintenance form.
• The allocation of the item quantity for production is removed. That is, the item plan is removed on the
Inventory Allocation Details (IN402000) form.
When the link to the sales order line is removed, you can add the link to another sales order line.
Production Processing: To Process Production for Sales
The following activity will walk you through the creation and processing of production documents related to sales
documents.
Story
Suppose that the GoodFood One Restaurant has ordered 15 juicers for citrus from the SweetLife Fruits & Jams
company. The 15 juicers include 12 juicers with the 1-liter cup and 3 juicers with the 0.5-liter cup. Further suppose
that SweetLife has the 12 juicers with the 1-liter cup in stock, but the 3 juicers with the 0.5-liter cup must be
produced. Acting as the sales and production manager, you need to create a sales order for the GoodFood One
Restaurant, create a production order for the 3 juicers with the 0.5-liter cup, and process all the related documents
and transactions.
defined.
has been created.
• On the Employees (EP203000) form, the Production Employee check box has been selected for the
defined.
• On the Stock Items (IN202500) form, the CFJCITRUS, JCREAMER, JUICECUP1L, JUICECUP05L, MRBASEHIGH,
STRBASKET, and SPLGUARD stock items have been predefined.
production orders.
production orders.
defined.
• On the Stock Items (IN202500) form, the CFJCITRUS, JCREAMER, JUICECUP1L, JUICECUP05L, MRBASEHIGH,
STRBASKET, and SPLGUARD stock items have been predefined.
Process Overview
In this activity, to process the documents and transactions related to the sales and production of the citrus juicers,
you will do the following:
1. On the Sales Orders (SO301000) form, you will create a sales order for the 15 juicers.
2. On the same form, you will create the production order for 3 of the citrus juicers.
3. On the Inventory Allocation Details (IN402000) form, you will view the item plans for the sales order and the
production order.
4. On the Production Order Details (AM209000) form, you will replace the juicer components.
5. On the Production Order Maintenance form, you will release the production order and view the link to the
sales order.
6. On the Critical Materials (AM401000) form, you will view the list of components that are out of stock and
create a purchase order for the components.
7. On the Purchase Receipts (PO302000) form, you will create a purchase receipt to record the receipt of the
components from the vendor.
9. On the Labor (AM301000) form, you will record the labor spent for the juicer assembly and the produced
quantity.
10.On the Close Production Orders (AM506000) form, you will close the production order.
11.On the Inventory Allocation Details (IN402000) form, you will view the changes to the item plans.
12.On the Sales Orders form, you will process the documents related to shipping the items to the customer.
System Preparation
Do the following:
1. Sign in to the system as the production manager by using the peters username and the provided password.
System Preparation
Do the following:
b. Production Order Types: To Create a Regular Production Order Type so that a production order type for
regular orders has been created in this company.
password.
Step 1: Creating the Sales Order

To create the sales order for the 15 juicers that the GoodFood One Restaurant has ordered, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
• Order Type: SO
• Date: Today's date (automatically selected)
• Customer: GOODFOOD
• Description: Sale of 15 citrus juicers
3. On the Details tab, add a new row for the citrus juicer with the 1-liter cup, and specify the following settings
in the row:
• Quantity: 12
• Unit Price: 2000.00
• Mark for Production: Cleared
4. Add another row for the citrus juicer with the 0.5-liter cup to be produced, and specify the following
settings:
• Quantity: 3
• Unit Price: 1900.00
• Mark for Production: Selected

To create the production order for the three ordered citrus juicers with the 0.5-liter cup, while you are still viewing
the sales order on the Sales Orders (SO301000) form, do the following:
1. On the More menu (under Manufacturing), click Create Production Orders.
2. In the Production Orders dialog box, which opens, do the following:

a. Select the check box in the unlabeled column in the row with three CFJCITRUS items.
b. Click Create.
The system creates a production order and closes the dialog box.
3. In the Production Nbr. column (on the Details tab) in the line with three CFJCITRUS items, make sure that
the link to the production order has been added.
Step 3: Viewing the Allocation of Items

To view the allocation of items for the sales order and the production order, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, click the row with three
juicers and on the table toolbar of the Details tab, click Item Availability. The system opens the Inventory
Allocation Details (IN402000) form with the CFJCITRUS item and WORKHOUSE warehouse selected in the
Summary area.
2. On the Item Plans tab, make sure that the following plans are displayed:
• SO Booked for 12 items: This quantity is allocated for the sales order.
• SO to Production for 3 items: This quantity of the items to be produced is allocated for the sales order.
• Production for SO Prepared for 3 items: This quantity on the production order is allocated for the sales
order.
Step 4: Changing the List of Components

In the bill of materials assigned to the CFJCITRUS item, the 1-liter juice cup is specified as one of the components,
but the customer has ordered three juicers with the 0.5-liter juice cup. You need to change the set of components
for the CFJCITRUS item in this order only. Do the following:
1. On the Production Order Details (AM209000) form, open the production order that the system created earlier
in this activity, which is assigned the Planned status and contains three CFJCITRUS items.
2. In the table of the Materials tab in the lower part of the form, remove the JUICECUP1L item.
3. Add a row for the JUICECUP05L item, and make sure that 1 is specified in the Qty. Required column.
You have replaced the 1-liter juice cup with the 0.5-liter juice cup in the list of components of the production order.
Step 5: Releasing the Production Order

Before you start processing the production order, you need to release it. Do the following:
1. On the Production Order Maintenance (AM201500) form, open the production order that the system created
earlier in this activity.
2. On the More menu (under Processing), click Release Order. The order's status is changed to Released.
3. In the SO References section of the References tab, make sure that the information about the linked sales
order is displayed (see the following screenshot).
Figure: The References tab on the Production Order Maintenance form
Step 6: Creating a Purchase Order for Components

In this step, you will view the list of components that are required for the production of the juicers and are out of
stock, and you will create a purchase order to purchase the materials from the JALOOZA vendor. Do the following:
1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, on
the More menu (under Other), click Critical Material. The Critical Materials (AM401000) form opens with the
production order number selected in the Production Nbr. box.
2. In the Qty. On Hand column, make sure that zeros are specified in all rows. This means that the
components required to assemble the juicers (except JUICECUP05L) are out of stock and must be purchased.
3. In the column header with the unlabeled check box, select this check box to select all rows.
4. On the form toolbar, click Purchase.
5. In the Create Purchase Order dialog box, which opens, view the default settings, and click Create. The
system creates a purchase order and opens it on the Purchase Orders (PO301000) form.
6. On the form toolbar, click Remove Hold. The status of the purchase order is changed to Open.
Step 7: Receiving the Components in a Warehouse

Suppose that you have received the ordered components from the JALOOZA vendor and need to create a purchase
receipt. The items have been received to the MTL location in the WORKHOUSE warehouse (this location is dedicated
to the storing of materials and components). Do the following:
1. While you are still viewing the purchase order on the Purchase Orders (PO301000) form, on the form toolbar,
click Enter PO Receipt. The system creates the purchase receipt and opens it on the Purchase Receipts
(PO302000) form.
2. On the Details tab, view the list of the received components.

3. In the Location column, make sure that MTL is specified for each row.
4. On the form toolbar, click Release. The system releases the purchase receipt and changes its status to
Released.
5. On the Orders tab, make sure that Completed is specified in the Status column of the only row.
You have received the required components into stock, and now you can continue processing the production order.

2. On the More menu (under Processing), click Release Materials. The system opens the Materials Wizard
(AM300020) form with the list of components from the production order.
a. In the Description box, specify Materials for 3 citrus juicers.
b. Clear the Hold check box.
Step 9: Recording the Labor and Produced Items

juicer assembly and assembled 3 juicers for 1 hour. The assembled juicers have been moved to the MGI location
of the WORKHOUSE warehouse. To record the time spent on juicer assembly and the movement of the assembled
juicers, do the following:
• Order Type: RO
• Production Nbr.: The number of the production order that the system created earlier in this activity
• Shi: 0001
• Quantity: 3
b. In the Description box, specify Recording the time for assembly of 3 citrus
juicers.
c. Clear the Hold check box. The system changes the transaction status to Balanced.
5. On the form toolbar, click Release. The system creates and releases the cost transaction to record labor
costs, the inventory receipt to record the movement of the assembled juicers to the warehouse location,
and the labor transaction itself.

2. In the Qty. Remaining box of the General tab, make sure that 0 is specified. This means that all juicers have
been produced.
3. Make sure that the order status is Completed.
4. On the More menu (under Processing), click Close Order. The system opens the Close Production Orders
(AM506000) form with the row for the production order added.
5. In the unlabeled column, make sure that the check box is selected.
changed to Closed.
Step 11: Viewing the Allocation of the Produced Items

To view the allocation details for the produced juicers, do the following:
1. On the Sales Orders (SO301000) form, open the sales order that you created earlier in this activity.
2. On the table toolbar of the Details tab, click Item Availability. The system opens the Inventory Allocation
Details (IN402000) form with the CFJCITRUS item and the WORKHOUSE warehouse selected in the Summary
area.
3. On the Item Plans tab, make sure that the SO Allocated item plan for three items and the SO Booked item
plan for 12 items are displayed. Also, make sure that the following item plans are no longer listed: the
SO to Production item plan for 3 items and the Production for SO Prepared item plan for 3 items (see the
screenshot below).
4. In the Summary area, make sure that the On Hand value is 15 but the Available value is 0 (as shown in the
following screenshot). This means that the juicers are allocated for the sales order and are unavailable for
other sales orders.
Figure: Allocation details for the sales order
Step 12: Shipping Items to the Customer

To ship the items to the customer, do the following:
1. On the Sales Orders (SO301000) form, open the sales order that you created earlier in this activity.
2. On the More menu (under Processing), click Quick Process.
3. In the Process Order dialog box, which opens, select the Release Invoice check box in the Invoicing
section. (Leave the default values as they are for the rest of the settings.)
4. Click OK, and wait until the system processes the related documents and transactions.
5. In the Processing Results dialog box, click OK.
6. Make sure that the status of the sales order has been changed to Completed.
You have successfully processed the sales order and the related production documents and transactions.
Production Processing: Generated Transactions
As you perform item production, you create and process a production order and the related transactions to track
the movement of produced items and used components between a work center and a warehouse, to record item
costs (such as labor, tools, and overhead), and to update the GL balances; details about the transactions are
described in the following sections.
A Material Transaction and Related Transactions

You create a material transaction on the Materials (AM300000) form when you need to issue materials to produce
items for a production order. When you release the material transaction, the system creates an inventory issue
transaction on the Issues (IN302000) form and releases it; you can view the reference number of the issue in the
IN Ref. Nbr. column of the Materials form. For the inventory issue transaction, the system generates a batch of the
general ledger transactions shown in the following table.
Account Source of Account Debit Credit
Work in Process The posting class settings on Amount 0.00

the Posting Classes (IN206000)
form
Inventory Asset The posting class settings on 0.00 Amount

the Posting Classes form
A Labor Transaction and Related Transactions

You create a labor transaction on the Labor (AM301000) form when you need to record direct labor costs (such
as working hours spent for item production) and, optionally, the produced quantity of items or indirect labor
costs. When you release the labor transaction that records direct or indirect labor costs, the system creates a
cost transaction on the Cost Transactions (AM309000) form and releases it. For the cost transaction, the system
generates a batch of the general ledger transactions shown in the following table.
Work in Process Posting class settings on the Amount 0.00

Posting Classes (IN206000)
form
Direct Labor (if direct labor is Labor code settings on the La- 0.00 Amount
recorded) bor Codes (AM206500) form
Indirect Labor (if indirect labor Labor code settings on the La- 0.00 Amount
is recorded) bor Codes form
When you record both labor and the produced item quantity in the labor transaction, the system includes in the
cost direct labor costs, indirect labor costs (if recorded), and other costs involved in item production, such as
machine, tool, and overhead costs, which are specified on the Work Centers (AM207000) form. The batch of the
general ledger transactions generated for the cost transaction may include the transactions listed in the following
table.

Posting Classes form
Direct Labor Labor code settings on the La- 0.00 Amount

bor Codes form
Indirect Labor Labor code settings on the La- 0.00 Amount

bor Codes form
Fixed Tool Costs Tool settings on the Tools 0.00 Amount

(AM205500) form
Fixed Machine Costs Machine settings on the Ma- 0.00 Amount

chines (AM204500) form
Fixed Overhead Costs Overhead settings on the Over- 0.00 Amount

head (AM202500) form
Variable Overhead Costs Overhead settings on the Over- 0.00 Amount

head form
To track the movement of the produced items to a warehouse, the system creates an inventory receipt on
the Receipts (IN301000) form, releases the receipt, and creates and releases another batch of general ledger
transactions, which are displayed in the following table. You can view the reference number of the inventory issue
in the IN Ref. Nbr. column on the Labor form.
Work in Process Posting class settings on the 0.00 Amount

Inventory Asset Posting class settings on the Amount 0.00

A Move Transaction and Related Transactions

You create a move transaction on the Move (AM302000) form when you need to record the movement of produced
items to a warehouse. When you release the move transaction, the system creates an inventory receipt on
the Receipts (IN301000) form and releases it; you can view the reference number of the receipt in the IN Ref.
Nbr. column on the Move form. For the inventory receipt, the system generates a batch of the general ledger
transactions shown in the following table.
Work in Process Posting class settings on the 0.00 Amount

form
Inventory Asset Posting class settings on the Amount 0.00

If tools or machines are involved in the production of the item, the system also creates a cost transaction on the
Cost Transactions (AM309000) form and releases it. For the cost transaction, the system generates a batch of the
general ledger transactions shown in the following table.

Fixed Tool Costs Tool settings on the Tools 0.00 Amount

(AM205500) form
Fixed Machine Costs Machine settings on the Ma- 0.00 Amount

chines (AM204500) form
Transactions Generated for a WIP Adjustment

You can manually adjust costs for a production order by using the WIP Adjustment (AM308000) form. When you
release a WIP adjustment, the system creates a batch of the general ledger transactions listed in the following table.
You can find the reference number of the GL batch in the GL Batch Nbr. column.

form
WIP Variance Posting class settings on the 0.00 Amount

Transactions Generated on the Close of a Production Order

You close a production order on the Close Production Orders (AM506000) form when the quantity of the item in the
order is produced in full. (Any number of production orders can be closed on this form.) If the balance of the Work
in Process account is nonzero, the system creates an adjustment on the WIP Adjustment (AM308000) form and the
related general ledger batch on the Journal Transactions (GL301000) form.
Reversal of Production-Related Transactions

You can reverse all production transactions that you add manually (such as labor and move) by entering a negative
quantity or hours on the form, which you use to create the transactions. The easiest way to accomplish this with
a minimum of typing is to find the original transaction and create a new transaction by copying its settings. You
change the appropriate transaction line quantities or hours to a negative value, and you delete any other lines that
you do not need to correct. If batch control totals are used, they must be negative. Then you release the new batch.
For information about reversing production receipts, see Reversal of Production Receipts.
You cannot manually reverse cost transactions because they are created automatically when you
release other production transactions.
Production Processing: Mass Processing
The following sections explain how to process multiple documents and transactions related to production process,
and how the system generates, changes, or works with documents as a result of the mass processing.
Mass-Closing Production Orders

You close production orders by using the Close Production Orders (AM506000). You can close one order or multiple
orders at a time. On this form, you specify the period within which the production orders were created, select the
unlabeled check box in each row with a production order to be closed, and click Process on the form toolbar. The
system closes the selected production orders.
Mass-Creating Production Orders

You can mass-create production orders for sales order lines with the Mark for Production check box selected
by using the Create Production Orders (AM510000) form. To create multiple production orders related to sales
order lines, on the form, you specify the selection criteria, select the unlabeled check box in each row for which a
production order will be created, and click Process on the form toolbar. The system creates a production order for
each line and links the production order to the sales order.
Mass-Printing Production Tickets

For any number of production orders, you can print production tickets for workers by using the Print Production
Orders (AM511000) form. On this form, you specify the selection criteria to filter production orders, select the
unlabeled check box in each row of a production order for which you need to print tickets, and click Process on the
form toolbar.
Mass-Releasing Production Orders

Production orders that have the Planned status can be mass-released. To release multiple production orders, you
open the Release Production Orders (AM500000) form, select the check box in the Selected column for each row
of a production order to be released, and click Process on the form toolbar. The system releases the production
orders and changes their status to Released.
Mass-Releasing Production-Related Transactions

Production-related transactions—such as material, labor, move, or WIP adjustment transactions—can be mass-
released. To release multiple production-related transactions, you open the Release AM Documents (AM503000)
form, select the unlabeled check box in each row of a transaction to be released, and click Process on the form
toolbar. The system releases the transactions and changes their status to Released.
Production Processing: Related Report and Inquiry Forms
In the following sections, you can find details about the reports and inquiry forms you may want to review to gather
information about the production processing.
Printing Production Tickets

To prepare a printable form of the production order that is being processed, you can use the Production Ticket
(AM625000) or Production Ticket with Barcode (AM625010) report.
Viewing Production Orders

To view production orders that have the Planned, Released, or In Process status, you can use the Production
Summary (AM625200) report.
You can also view all production orders created in the system by using the Production Summary (AM000006) form.
Viewing Production Costs

To view the planned production costs, actual production costs, and variance between the planned and actual
costs for all production orders or a particular production order, you can use the Production Order Performance
(AM652000) form.
Viewing Production Transactions

To view information about production-related transactions (such as labor and material transactions), you can use
the following reports and inquiries:
• Production Batch Register (AM622000): Displays the detailed information about production-related
transactions
• Material Transactions by Order (AM633000): Displays the material transactions for the production order you
select
• Material Transaction Detail (AM000015): Displays the materials in the material transactions for all production
orders
• Labor Transactions by Order (AM634000): Displays the labor transactions for the production order you select
You can also view the full list of production-related transactions in the system by using the Transactions By
Production Order (AM000011) form.
Viewing the Work-in-Process Balance

To view the balance of the Work in Process account, which contains the costs of the items in production orders that
have the In Process or Completed status, you can use the Work in Process (AM654000) report.
Viewing Production Orders by Work Centers

To view the list of operations in the production orders assigned to work centers, you can use the Work Center
Dispatch (651000) or Work Center Dispatch (AM000007) form.
Viewing Labor Efficiency for Production Orders

To view and analyze the labor efficiency of the employees involved in production, you can use the Production Order
Labor Efficiency (AM653000) report.
Production Processing: Selection of Warehouse Locations
Produced items and materials used in production are usually stored in warehouse locations. You assign a
warehouse to each production order. The system uses this warehouse as the default warehouse to which the
produced items are received to and from which the materials are issued. If the warehouse has multiple locations
and the Multiple Warehouse Locations feature is enabled on the Enable/Disable Features (CS100000) form, a
warehouse location must be specified for each production order. This location is where produced items are
received and materials are issued in production transactions.
In the following sections, you can find information about how the system selects default warehouse locations in
production orders and production transactions.
The Use Item Default Location for Picking check box on the Locations tab of the Warehouses
(IN204000) form does not affect the selection of default warehouse locations in production
transactions.
Receipt of Completed Items

When you create a production order on the Production Order Maintenance (AM201500) form, the warehouse and
the warehouse location to which the completed items will be received must be specified in the Warehouse and
Location boxes of the Summary area. By default, the system inserts the warehouse specified in the Default
Warehouse box of the General tab on Stock Items (IN202500) form for the item to be produced. If no default
warehouse is specified for the item, you must select the warehouse manually.
To find the default warehouse location to be copied to the Location box of the production order, the system checks
the following boxes in the listed order and inserts the first location it finds:
1. The Default Receipt To box of the General tab on the Item Warehouse Details (IN204500) form for the item
to be produced and the warehouse specified in the Warehouse box
2. The Default Receipt To box of the General tab on the Stock Items (IN202500) form for the item to be
produced
3. The Receiving Location box of the Locations tab on the Warehouses (IN204000) form for the warehouse
specified in the Warehouse box
If all these boxes are empty, you must manually specify the warehouse location in the Location box of the
production order. You can also override any default location that the system inserts.
When a worker records the quantity of completed items for the last operation of a production order by using the
Move (AM302000) or Labor (AM301000) form, the system inserts in the Warehouse and Location columns of the
item row the values in the respective boxes of the production order. The worker can override the warehouse and
location in the transaction if needed, such as when the produced items must be moved to a specific warehouse
location for an additional inspection.
For each warehouse location that may be used for item receipt, you should make sure that the following check
boxes are selected in the row for the location on the Locations tab of the Warehouses form:
• Active
• Receipts Allowed
• Production Allowed
Issue of Materials
The system can insert default warehouse locations for rows in a material transaction created on the Materials
(AM300000) form. If a warehouse location is specified in the Location column of the Materials tab on the Production
Order Details (AM209000) form in the material row for which you create the material transaction, the system copies
this location to the Location column of the material row in the transaction. If the location column on the Production
Order Details form is empty, then the system uses the following rules for determining the default warehouse
location in a material transaction:
• If you add a material row to the transaction manually, the system leaves the Location column empty. You
need to specify the warehouse location manually.
• If you create the material transaction by using the Materials Wizard (AM300010) form or the system creates
the material transaction for backflushed materials, the system checks the following locations in the listed
order and inserts the first one it finds:
• The location specified in the Default Issue From box of the General tab on the Item Warehouse Details
(IN204500) form for the material and the warehouse specified in the Warehouse column
• The location specified for the material in the Default Issue From box of the General tab on the Stock
Items (IN202500) form
• The location specified in the Shipping Location box of the Locations tab on the Warehouses (IN204000)
form for the warehouse specified in the Warehouse column
• The location with the highest pick priority on the Locations tab on the Warehouses form for the
warehouse specified in the Warehouse column
When you return materials to a warehouse, you reflect this in the system by specifying the negative quantity in the
material row of the material transaction. In this case, you need to specify the warehouse location manually if the
location is not specified for the material in the production order for which the material is returned.
For each warehouse location from which materials will be issued, you should make sure that the following check
boxes are selected in the row for the location on the Locations tab of the Warehouses form:
• Active
• Sales Allowed
• Production Allowed
Production Processing: Labor Reporting
Labor is a component of product cost, both when rolling up the planned costs for bills of material and production
orders and when recording the actual times or backflushing the standard times. Recording the actual time spent on
production operations and comparing them to the planned costs is part of manufacturing performance reporting.
Every production order tracks the variances between planned and actual costs and reports are provided in the
module. Even if all or some labor is backflushed you could possibly create a custom inquiry or report to compare
the actual labor costs to the earned or standard costs.
There are two methods to report labor hours and their resultant cost against production orders:
1. Direct entry by employees using their cost rates or work center standard rates.
2. Backflushing labor by reporting quantities completed at an operation.
Both methods can be used concurrently. For example, employees will only report labor against milestone
operations and the prior secondary operations will be backflushed for labor. Additionally, non-direct labor, labor
not attributed to a production order, can be reported to capture their cost in the GL.
Integration with employee time activities (for details, see Time Activities) is supported by using the Create Labor
Time Activities (AM503000) form if the Time Management feature is enabled on the Enable/Disable Features
(CS100000) form.
Operations in Bills of Material

The setup and run time elements for each operation are used to calculate the planned labor cost of a bill of
material and production order. Both are extended by the work center standard rate per hour. Setup time cannot be
reported; it is only posted when the operation is backflushed.
Reporting Actual Hours

The Labor (AM301000) form is used to report hours against production operations as well as the quantity
completed, and optionally scrap, at an operation of a production order. This same form is used to report indirect
labor.
Additionally, production employees can clock on and off of production orders by using the Clock Entry (AM315000)
form or the Acumatica mobile app.
• Reporting of scrap is not allowed
• Clock entries must be approved by using the Approve Clock Entries (AM516000) form to create a labor
transaction batch.
Accounting for Labor Costs

The WIP account for the production order is debited and the labor account for the labor code is credited. When a
quantity completed is reported on the Labor (AM301000) form, any labor overheads are calculated and debit WIP
and credit their respective overhead accounts. You should consider the impact of posting to these accounts, as well
as the other cost elements recorded by production management transaction, on your GL. Most companies record
their actual factory expenses, such as wages and benefits, equipment costs, production supplies, and utilities to
the GL.
If both the actuals and the production order transactions are reported you may be posting the same costs twice.
You should consider setting up the manufacturing accounts as accrual accounts and debit these accounts to zero
when you post your actual costs.
Production Processing: Reconciling WIP to the GL
Production orders that have had transaction posted represent your work in process inventory. The work in process
balance is updated by every production transaction with a cost. Each production order can have a different work in
process account and subacount or use the same account and subaccounts.
Before Creating Production Orders

The WIP accounts used in production management should have a zero balance. If they do not, you will not be able
reconcile the production work in process balances to your general ledger.
Reconciling Each Period

Similar to inventory where the Inventory Valuation (IN615500) report can be used to validate the GL account
balances, the Work in Process (AM654000) report should agree with the GL account balances. Use the total of the
WIP Balance column for each account and subaccount.
Producing Lot- or Serial-Tracked Items | 82
Producing Lot- or Serial-Tracked Items

If your organization produces items that are lot- or serial-tracked, in Acumatica ERP Manufacturing Edition, you
can assign lot or serial numbers to these items either before you start producing the items or aer the items have
been produced and moved to stock. Additionally, if your organization needs granular traceability, you can set up
the system so that it requires the lot or serial number of the produced item to be assigned to lot- or serial-tracked
components (that is, materials in the production process) when the components are issued or when the item is
moved to stock.
In this chapter, you will read about the production of lot- or serial-tracked items.
Production of Lot- or Serial-Tracked Items: General Information
Acumatica ERP Manufacturing Edition provides you with the ability to record the production of lot- or serial-tracked
items and the usage of lot- or serial-tracked materials in production, as described in this topic.
For more information about lot- or serial-tracked items, see Items with Lot and Serial Numbers: General Information.
Learning Objectives
• Preassign lot or serial numbers to produced items
• Assign the lot or serial numbers of the produced item to the lot- or serial-tracked materials used for this item
• View the hierarchy of lot or serial numbers for produced items
You track the production of lot- or serial-tracked items in the following cases:
• When you want the units of items to be traceable through the whole lifecycle, from production to the people
who consume or use the units of the item
• When you guarantee the quality of produced items, with replacement if the customer is not satisfied,
and thus need these numbers to track quality issues and ensure that the items were produced by your
organization
• When you produce items with expiration dates
• When you organize the produced items in lots
Assignment of Lot or Serial Numbers to Produced Items

Depending on the lifecycle of the lot- or serial-tracked items that your organization produces, you can assign lot or
serial numbers to items at the following stages:
• Aer the item is produced and moved to stock, such as when you sell the item: You assign the lot or serial
number when receiving the item in a warehouse or shipping the item for a sales order. For details, see Items
with Lot and Serial Numbers: General Information.
• Before the item is produced: You assign the lot or serial number before you release a production order. For
details, see the Preassignment of Lot or Serial Numbers to Produced Items section below.
Also, during the processing of production transactions, you can assign the lot or serial numbers of produced
items (which have been preassigned) to lot- or serial-tracked materials. For more information, see the
Assignment of Parent Lot or Serial Numbers to Materials section below.
Preassignment of Lot or Serial Numbers to Produced Items

To assign lot or serial numbers to the units of a produced item in a production order, on the Production Order
Maintenance (AM201500) form, you do the following:
1. Create a production order for the lot- or serial-tracked item.

2. On the General tab, make sure that the Allow Preassigning Lot/Serial Numbers check box is selected.
The system copies the state of this check box from the settings of the production order type
selected in the Order Type box.
3. If the item is serialized, on the Line Details tab, add a row for each unit of the item to be produced, and
specify its serial number in the Lot/Serial Nbr. column. When you finish entering this data, the number of
rows on this tab must be equal to the Qty. to Produce value on the General tab.
If the Auto-Generate Next Number check box is selected for the serial class assigned to the
item on the Lot/Serial Classes (IN207000) form, the system generates the needed quantity of
serial numbers automatically when you save your changes to the production order.
4. If the item is tracked by lot, on the Line Details tab, add one row for each lot number (and enter this number
in the Lot/Serial Nbr. column) to which units are assigned, and specify the quantity of units to which this lot
number is assigned. The total sum in the Quantity column of all rows must be equal to the Qty. to Produce
value on the General tab.
You can release the production order only when you have assigned lot or serial numbers to all units of the
produced item. Otherwise, the system displays an error message and does not release the order.
Assignment of Parent Lot or Serial Numbers to Materials

You can assign the lot or serial number of the item being produced (the parent item) to lot- or serial-tracked
materials when processing production transactions. You can also set up the system so that it verifies that the
parent lot or serial number has been assigned to materials. To do this, you select the needed option in the Require
Parent Lot/Serial Number box of the Production Order Maintenance (AM201500) form as follows:
• If you do not want the system to verify that the lot or serial numbers of a parent item have been assigned
to lot- or serial-tracked materials, you select Never. With this option selected for the production order,
you still can assign the parent lot or serial numbers to materials on the Materials (AM300000) or Late
Assignment(AM312000) forms, but the system does not require this.
• If you want the system to verify that the lot or serial numbers of a produced item have been assigned to
lot- or serial-tracked materials when a user releases a material transaction on the Materials form, you select
On Issue. The system will not release the transaction until the user assigns the lot or serial number of the
produced item to each material. For more information, see the Assignment of Parent Lot or Serial Numbers
on the Issue of Materials section below.
With this option, backflushing of lot- or serial-tracked materials is not supported, because this
setting requires a lot or serial number to be assigned to the parent item at the moment when
the materials are issued.
• If you want the system to verify that the lot or serial numbers of a produced item have been specified for lot-
or serial-tracked materials before users move the produced items into stock (by releasing the appropriate
transaction on the last operation), you select On Completion. For details, see the Assignment of Parent Lot or
Serial Numbers to Materials on Completion section below.
For a production order type, you can also specify the default option in the Require Parent Lot/Serial Number box
on the Production Order Types (AM201100) form; the system will initially insert this option for each production order
of the type.
Assignment of Parent Lot or Serial Numbers on the Issue of Materials

To assign the lot or serial numbers of the item being produced to lot- or serial-tracked materials when you issue
materials for a production order—which you do when the On Issue value is specified in the Require Parent Lot/
Serial Number box of the Production Order Maintenance (AM201500) form for the production order—you do the
following:
1. On the Materials (AM300000) form, add the materials required for producing the lot- or-serial tracked item
for a particular production order.
2. Click the row with the lot- or serial-tracked material, and click Line Details on the table toolbar. The system
opens the Line Details dialog box.
3. If the material is serialized, add a row in the dialog box for each unit of the material item and either specify
its serial number in the Lot/Serial Nbr. column or make sure that the serial numbers have been generated
automatically, depending on the settings of the serial class.
4. If the material is tracked by lot, add one row for each lot number to which units are assigned and specify the
quantity of units to which this lot number is assigned.
5. In the Parent Lot/Serial Nbr. column, specify the lot or serial number of the parent item to be assigned to
each row.
6. Click OK to save the changes and close the dialog box.
7. Release the material transaction by clicking Release on the form toolbar.
If you do not assign the lot or serial numbers of the parent item to any lot- or serial-tracked materials, the system
displays an error message and does not release the transaction.
Workflow of the Assignment of Parent Lot or Serial Numbers to Materials on Issue

For preassigning lot or serial numbers to parent items and assigning parent lot or serial numbers to materials on
issue of the materials, the typical process involves the actions and generated documents shown in the following
diagram.
Assignment of Parent Lot or Serial Numbers to Materials on Completion

To assign the lot or serial numbers of the item to be produced to lot- or serial-tracked materials before you record
movement of the produced parent item to stock—that is, when the On Completion value is specified in the Require
Parent Lot/Serial Number box of the Production Order Maintenance (AM201500) form for the production order—
you do the following:
1. On the Materials (AM300000) form, release the material transaction with the materials required for
producing the item in a particular production order, including the lot- or serial-tracked materials.
2. On the Labor (AM301000) or Move (AM302000) form, record the movement of the produced items between
the operations involved in production, except the last operation.
3. When you record the movement of the produced items for the last operation on the Labor or Move form,
click Late Assignment on the table toolbar to open the Late Assignment (AM312000) form.
4. Assign the parent lot or serial number to each material as follows:
a. In the Lot/Serial Nbr. box of the Summary area, select the lot or serial number of the parent that will be
assigned to materials.
b. In the Unallocated Components table, click the material row to be assigned.
c. On the form toolbar, click Allocate. The system assigns the lot or serial number to the material and
moves the material row to the Allocated Components table.
d. Repeat the previous subinstructions for each material to be allocated to the lot or serial number you
have selected in the Lot/Serial Nbr. box.
5. When you have allocated all needed materials to parent lot or serial numbers, open the Labor or Move form,
and release the transaction for the last operation.
Workflow of the Assignment of Parent Lot or Serial Numbers to Materials on Completion

For preassigning lot or serial numbers to parent items and assigning parent lot or serial numbers to materials on
completion of a production order with the parent items, the typical process involves the actions and generated
documents shown in the following diagram.
Production of Lot- or Serial-Tracked Items: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for tracking the
production of lot or serial-tracked items.
Prerequisites
Make sure that the following tasks have been performed before you start implementing the tracking of the
production of lot or serial-tracked items:
• The system has been prepared for the implementation of manufacturing functionality, as shown in System
Preparation for Manufacturing Implementation: Implementation Activity.
• The production of items has been configured, as described in Production Processing: Implementation
Checklist.
We recommend that before you initially track the production of lot or serial-tracked items, you make sure the
needed features have been enabled and settings have been specified, as summarized in the following checklist.
Enable/Disable Features (CS100000) The Lot and Serial Tracking feature within the Invento-
ry and Order Management group of features has been
enabled.
Lot/Serial Classes (IN207000) The lot or serial classes to be used for produced items
and for materials have been created. For the lot or seri-
al class of the item to be produced, in the Assignment
Method box, the When Received option has been spec-
ified for users to be able to preassign lot or serial num-
bers to production orders.
Stock Items (IN202500) The stock items for the items to be produced and ma-
terials used in production of these items have been
created. The appropriate lot or serial class is specified
in the Lot/Serial Class box of the Item Defaults sec-
tion on the General tab for each lot- or serial-tracked
item.
Bill of Material (AM208000) form The bills of material for producing the lot- or seri-
al-tracked items have been created.
Production Order Types (AM201100) If you need to set up the preassignment of lot or seri-
al numbers to produced items, the Allow Preassign-
ing Lot/Serial Numbers check box is selected on this
form (in the Data Entry section of the General tab) for
the production order type that you use for production
orders of these items. The production order type must
have the Regular option selected in the Function box.
If you want users to assign the lot or serial number
of each unit of the produced item to the lot- or seri-
al-tracked materials used to produce the item, you
make sure that the appropriate value has been speci-
fied in the Require Parent Lot/Serial Number box of
the same section.
To make sure that all configuration has been performed correctly, we recommend that in your system, you
process production orders with lot- or serial-tracked items by performing instructions similar to those described
in .Production of Lot- or Serial-Tracked Items: To Assign Parent Serial Numbers to Materials on Issue and Production of
Lot- or Serial-Tracked Items: To Assign Parent Serial Numbers to Materials on Completion.
Production of Lot- or Serial-Tracked Items: To Assign Parent Serial Numbers to

Materials on Issue
The following activity will walk you through the process of creating and processing a production order with a serial-
tracked item and serial-tracked material. During processing, you will assign the serial numbers of the item to be
produced (the parent item) to the units of serial-tracked materials when the materials are issued.
Story
Suppose that based on the analyzed sales demand from previous periods, the sales department of SweetLife has
asked the production department to produce five juicers. These juicers are serial-tracked and include a serial-
tracked motor base as one of the materials, according to the bill of material dedicated to the juicer's production.
Further suppose that the serial number of each motor base must be assigned to the serial number of a juicer for
whose assembly the motor base was used. The production manager should assign the serial numbers when the
materials for a production order are issued. The information about the serial numbers must be stored in the system
because SweetLife provides service for juicer repairing and replacement. They must be able to confirm that the
juicer and its parts were bought from SweetLife and to track the components that were used in the production of
this specific juicer.
The materials required for the juicer's production are in stock; you do not need to purchase any of them. Also
suppose that the scheduling priority is standard (that is, you do not need to produce the juicers more quickly or
more slowly than the other items in the queue).
Acting as a production manager, you will create a production order for producing five juicer units, generate serial
numbers for the juicer units, issue the materials required for the juicer's production, assign the generated serial
numbers to the motor base units, and process the other related transactions.
defined.
• On the Stock Items (IN202500) form, the CFJFRUITSN, PULPCONT1L, JUICECUP05L, MRBASESN, FNSIEVE, and
GRDISC01 stock items have been defined.
• On the Lot/Serial Classes (IN207000) form, the SNJCRPRT and ASNCFGJCR serial classes have been created.
• On the Bill of Material (AM208000) form, the bill of material for the CFJFRUITSN stock item has been created.
• On the Production Order Types (AM201100) form, the following has been done:
• The RO production order type for regular production orders has been created.
• The default settings for the preassignment of serial numbers in regular production orders of the RO type
have been specified.
• On the Warehouses (IN204000) form, the WORKHOUSE warehouse has been defined, and its locations
include MGI and MTL.
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJFRUITSN stock item.
• On the Production Order Types (AM201100) form, you have done the following:
• Created the RO production order type for regular production orders.
• Specified the default settings for the preassignment of serial numbers in regular production orders of the
RO type.
production orders.
Process Overview
In this activity, to process the documents and transactions related to the production of the juicers, you will do the
following:
1. On the Production Order Maintenance (AM201500) form, you will create the production order for the
serialized item and specify the serial number tracking settings.
2. On the Materials (AM300000) form, you will issue the components required for the production order and
assign the serial numbers of the parent item to the serial-tracked material units.
3. On the Move (AM302000) form, you will record the produced quantity of the items.
4. On the Close Production Orders (AM506000) form, you will close the production order.
System Preparation
Do the following:
System Preparation
Do the following:
1. As a prerequisite to the current activity, complete Configuration for the Production of Lot- or Serial-Tracked
Items: Implementation Activity so that the system is ready for processing the production of serial-tracked
items.
password.

To create the production order for five juicers and specify the serial number tracking settings, do the following:
• Order Type: RO
• Inventory ID: CFJFRUITSN
• Location: MGI
• Order Date: Today's date
• Hold: Cleared
• Description: Production of 5 fruit juicers
• Qty. to Produce: 5
• Require Parent Lot/Serial Number: On Issue
5. On the Line Details tab, make sure that the system has generated five serial numbers (one for each unit to
be produced), as shown in the following screenshot.
Figure: Serial numbers generated for the production order

In this step, you will issue the components for the production order and assign the serial numbers of the juicer units
to the motor base units. Do the following:
1. While you are still viewing the production order you have created on the Production Order Maintenance
(AM201500) form, on the More menu (under Processing), click Release Materials. The system opens the
Materials Wizard (AM300020) form with the list of components from the production order.
2. On the form toolbar, click Select All. The system creates the material transaction, add the selected
components to the transaction, and opens the transaction on the Materials (AM300000) form.
3. In the Description box of the Summary area, enter Materials for 5 fruit juicers.
4. Try to release the material transaction as follows:

a. In the Summary area, clear the Hold check box. The system changes the transaction's status to Balanced.
b. On the form toolbar, click Release. The system returns an error message stating that you need to assign
parent serial numbers to the serial-tracked materials before releasing the material transaction.
5. In the Summary area, select the Hold check box. The system changes the transaction's status to On Hold.
6. In the table, click the row with the MRBASESN item.
7. On the table toolbar, click Line Details.
8. In the Line Details dialog box, which opens, do the following:
a. In the Parent Lot/Serial Nbr. column of each row, select a serial number from the list of numbers that
have been preassigned to the production order (see the following screenshot). You must assign a unique
parent serial number to each material row.
Figure: The parent serial numbers assigned to the material units
b. Click OK to save your changes and close the dialog box.

9. In the Lot/Serial Nbr. column and Parent Lot/Serial Nbr. column of the row with the MRBASESN item, make
sure that <SPLIT> is specified. This means that multiple serial numbers have been selected for the material
units.
10.In the Summary area, clear the Hold check box.
11.On the form toolbar, click Release. The system successfully releases the material transaction and changes
the status of the transaction to Released.

Suppose that warehouse workers have assembled all five juicers and moved them to the MGI location of the
WORKHOUSE warehouse. In the production environment, you would record the workers' time spent on juicer
assembly, but in this activity, for simplicity, you will record only the movement of the assembled juicers. Do the
following:
in this activity.
2. On the More menu (under Processing), click Create Move Transaction. The system opens the Move
3. On the table toolbar, click Line Details. The system opens the Line Details dialog box.
4. In each table row, in the Lot/Serial Nbr. column, make sure that the system selected a serial number from
the list of numbers that have been generated for to the production order (see the following screenshot).
Figure: The serial numbers in the Line Details dialog box on the Move form

b. In the Description box, enter Recording the movement of 5 fruit juicers.
c. Clear the Hold check box. The system changes the transaction's status to Balanced.
7. On the form toolbar, click Release. The system releases the move transaction.
8. Open the production order on the Production Order Maintenance form and make sure that it is assigned the
Completed status.

changed to Closed.
You have processed the production order with the serialized item and assigned the parent serial numbers to the
serialized material units.
Production of Lot- or Serial-Tracked Items: To Assign Parent Serial Numbers to

Materials on Completion
The following activity will walk you through the process of creating and processing a production order with a serial-
tracked item and serial-tracked material. During processing, you will assign the serial numbers of the item to be
produced (the parent item) to the units of serial-tracked materials when the units of the produced item are moved
to stock.
Story
Suppose that based on the analyzed sales demand from previous periods, the sales department of SweetLife has
asked the production department to produce three juicers for fruit. These juicers are serial-tracked and include
a serial-tracked motor base as one of the materials, according to the bill of material dedicated to the juicer's
production. Further suppose that the serial number of each motor base must be assigned to the serial number of
the juicer in whose assembly the motor base was used. The production manager should assign the serial numbers
when the assembled juicers are moved to stock. The information about the serial numbers must be stored in the
system because SweetLife provides service for juicer repairing and replacement. They must be able to confirm that
the juicer and its parts were bought from SweetLife and to track the components that were used in the production
of this specific juicer.
The materials required for the juicer's production are in stock; you do not need to purchase any of them. Also
suppose that the scheduling priority is standard (that is, you do not need to produce the juicers more quickly or
more slowly than the other items in the queue).
Acting as a production manager, you will create a production order for producing three fruit juicer units, generate
serial numbers for the juicer units, issue the materials required for the juicer's production, and while you are
recording the movement of the assembled juicers to stock, assign the generated serial numbers to the motor base
units.
defined.
• On the Bill of Material (AM208000) form, the bill of material for the CFJFRUITSN stock item has been created.
• On the Production Order Types (AM201100) form, the following has been done:
• The RO production order type for regular production orders has been created.
• The default settings for the preassignment of serial numbers in regular production orders of the RO type
have been specified.
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJFRUITSN stock item.
• On the Production Order Types (AM201100) form, you have done the following:
• Created the RO production order type for regular production orders.
• Specified the default settings for the preassignment of serial numbers in regular production orders of the
RO type.
production orders.
Process Overview
following:
1. On the Production Order Maintenance (AM201500) form, you will create the production order for the
serialized item and specify the serial number tracking settings.
3. On the Late Assignment (AM312000) form, you will assign the serial numbers of the parent item to the serial-
tracked material units.
4. On the Move (AM302000) form, you will record the produced quantity of the items.
System Preparation
Do the following:
System Preparation
Do the following:
1. As a prerequisite to the current activity, complete Configuration for the Production of Lot- or Serial-Tracked
Items: Implementation Activity so that the system is ready for processing the production of serial-tracked
items.
password.

To create the production order for three juicers and specify the serial number tracking settings, do the following:
• Order Type: RO
• Inventory ID: CFJFRUITSN
• Warehouse: WORKHOUSE (selected automatically)
• Location: MGI (selected automatically)
• Order Date: Today's date (selected automatically)
• Hold: Cleared
• Description: Production of 3 fruit juicers
• Qty. to Produce: 3
• Require Parent Lot/Serial Number: On Completion
5. On the Line Details tab, make sure that the system has generated three serial numbers (one for each unit to
be produced), as shown in the following screenshot.
Figure: Serial numbers generated for the production order

1. While you are still viewing the production order you have created on the Production Order Maintenance
(AM201500) form, on the More menu (under Processing), click Release Materials. The system opens the
Materials Wizard (AM300020) form with the list of components from the production order.
2. On the form toolbar, click Select All. The system creates the material transaction, adds the selected
materials to the transaction, and opens the transaction on the Materials (AM300000) form.
3. In the Description box of the Summary area, enter Materials for 3 fruit juicers.
4. In the Summary area, clear the Hold check box. The system changes the transaction's status to Balanced.
Step 3: Assigning the Parent Serial Numbers to Material Units

Suppose that warehouse workers have assembled all three juicers and moved them to the MGI location of the
WORKHOUSE warehouse. Before you record the movement of the juicers, you will assign the serial numbers of the
juicer units to the motor base units. Do the following:
in this activity.
2. On the More menu (under Other), click Late Assignment. The system opens the Late Assignment
(AM312000) form with the production order whose reference number was specified in the Production Nbr.
box.
3. In the Lot/Serial Nbr. box of the Summary area, select one of the serial numbers generated for the
production order.
4. In the Unallocated Components table, click the first material line to be allocated.
5. On the table toolbar, click Allocate. The system allocates the material for the lot or serial number and
moves the material line to the Allocated Components table.
6. Repeat the previous three instructions for each of the two remaining serial numbers for the juicers.
You have assigned the serial numbers of the juicer to the motor base units.

In the production environment, you would now record the workers' time spent on juicer assembly. In this activity,
for simplicity, you will record only the movement of the assembled juicers. Do the following:
in this activity.
2. On the More menu (under Processing), click Create Move Transaction. The system opens the Move
3. On the table toolbar, click Line Details. The system opens the Line Details dialog box.
4. In each table row, in the Lot/Serial Nbr. column, make sure that the system selected a serial number from
the list of numbers that have been generated for the production order (see the following screenshot).
Figure: The serial numbers in the Line Details dialog box of the Move form

b. In the Description box, enter Recording the movement of 3 fruit juicers.
c. Clear the Hold check box. The system changes the transaction' status to Balanced.
8. Open the production order on the Production Order Maintenance form and make sure that it is assigned the
Completed status.

changed to Closed.
You have processed the production order with the serialized item and assigned the parent serial numbers to the
serialized material units.
Production of Lot- or Serial-Tracked Items: Related Report and Inquiry Forms
information about the lot- or serial-tracked items in production.
Viewing the Lot or Serial Numbers of Produced Items and Materials

To view the lot or serial numbers of a produced item, the lot or serial numbers of the materials used to produce
the item, and the lot or serial numbers of the produced item assigned to the materials, you can use the As-Built
Configuration (AM401700) form.
Viewing the Lot- or Serial-Tracked Materials Used in Production

To find the items that were produced by using a material with a particular lot or serial number, you can use the
Where Used in Production (AM402500) form. On this form, you can also view the lot- or serial-tracked subassemblies
used to produce the selected material.
Viewing the Materials in Material Transactions

You can use the Material Transaction Detail (AM000015) form to view the list of materials issued for production with
details about material transactions that have been generated on the Materials (AM300000) form. These details
include the transaction identifier and date, the lot or serial numbers assigned to each material, and the reference
number of the production order for which the material has been issued. In addition, you can select the materials
according to particular criteria, such as the lot or serial number of the material and the lot or serial number of the
produced item for which the material has been used.
Producing Items with Outside Processing | 102
Producing Items with Outside Processing

If your organization contracts out any production operations to subcontractors, Acumatica ERP Manufacturing
Edition provides you with the ability to track the materials required for these operations and create documents that
record payments for subcontractor services.
In this chapter, you will read about the production process when outside operations are included.
Outside Processing: General Information
An organization may contract out to outside organizations (vendors or subcontractors) particular operations
related to the production of items. Contract manufacturing is common in some industries, such as circuit boards,
food and beverage, pharmaceuticals, nutraceuticals and cosmetics, aerospace, and defense. An organization might
engage a subcontractor when the organization has insufficient production capacity or does not have the specific
facilities to perform particular operations, such as plating or heat treating.
Acumatica ERP Manufacturing Edition gives you the ability to track outside processing in the production process
and account for the costs related to outside processing in the cost of produced items, as described in the following
sections.
Learning Objectives
In this chapter, you will learn how to process production orders that contain outside operations.
You process production orders with outside operations when your organization contracts out particular operations
in the production process to subcontractors.
Outside Processing Operations

When you involve subcontractors in production of items, you add outside processing operations to the production
routing (for details on configuration of such operations and bills of material, see Outside Processing Configuration:
General Information). These operations require specific processing, which differs from processing of operations
performed inside you organization. You may need to do any of the following for outside operations:
• If you store materials for the outside operation at your facility, you use vendor shipments to record shipping
of the materials to the subcontractor. For details about storing materials in outside processing, see Outside
Processing Configuration: Material Storage and Delivery.
• You usually use purchase orders to pay for subcontractor's services. For more information, see Outside
Processing Configuration: Charges for Subcontractor Services.
To indicate that the subcontractor completed the operation, you create a move transaction for the outside
operation by using the Move (AM302000) form.
Outside Processing by Using Production Orders

Suppose that you use production orders for tracking outside processing performed by a subcontractor. Further
suppose that you have created a non-stock item in Acumatica ERP Manufacturing Edition for this subcontractor's
charges, and you will process vendor shipments in the system when you ship materials to the subcontractor. To
process of such a production order, you perform the following general steps:
1. On the Production Order Maintenance (AM201500) form, do the following:
a. Create the production order.

b. Release the production order.
c. Issue the materials required for the operations you perform prior to the outside operation
2. By using the Move (AM302000) or Labor (AM301000) form, create and release the move or labor transactions
for the operation you perform in-house prior to the outside operation.
3. Create a shipment for the materials required for the outside operation, which are stored in a warehouse at
your facility. You do this by clicking the Create Vendor Shipment button on the Production Order Details
(AM209000) form. The system does the following:
• Creates a vendor shipment for the vendor specified on the Outside Process tab. (If no vendor is specified
on the tab, you must specify the vendor manually in the corresponding box.)
• Adds to the shipment items with the Ship to Vendor subcontract source.
• Opens the shipment on the Vendor Shipments (AM310000) form.
• Adds the following rows to a vendor shipment: a row for the item to be produced (for informational
purposes), which has the WIP type; and a row for each material to be shipped, which has the Material
type.
4. For lot- or serial-tracked materials, enter lot or serial numbers for materials on the Vendor Shipments form.
5. Optional: Print the pick list by using the Vendor Shipment Pick List (AM644000) report.
6. Optional: By using the Vendor Shipment Packing List (AM642000) form, print the packing lists that will
accompany the items being sent to the subcontractor.
7. On the Vendor Shipments form, confirm the shipment. The system creates the material transaction on the
Materials (AM300000) form, issues the materials from the warehouse by using an inventory issue it creates
on the Issues (IN302000) form, and updates the cost in the Subcontractor box of the Actual section on the
Totals tab of the Production Order Maintenance form. You can also view the quantity of items shipped to the
vendor on the Outside Process tab of the Production Order Details form.
8. Create the purchase order to pay the subcontractor for the service by clicking the Create Purchase Order
button on the Production Order Details form. The system creates a purchase order on the Purchase Orders
(PO301000) form for the vendor specified on the Outside Process tab (if no, you must specify the vendor
manually in the corresponding box) and adds items with the Purchase subcontract source to the order.
The system inserts the purchase order number in the PO Order Nbr. box on Outside Process tab of the
Production Order Details form.
9. Create a purchase receipt for the purchase order on the Purchase Orders form. This will update the cost
in the Subcontractor box of the Actual section on the Totals tab with the actual purchase cost on the
Production Order Details form.
10.Create and release the move transaction for the outside processing operation by using the Move form to
record the receipt of the items from the subcontractor.
11.If needed, on the Production Order Maintenance form, issue the materials for the remaining operations
performed in-house.
12.Complete the remaining operations for the production order by creating move or labor transactions on the
Move or Labor form.
13.Review the production order variances in the Variances section of the Totals tab of the Production Order
Maintenance form, and resolve any discrepancies.
14.Close the production order by using the Close Production Orders (AM506000) form.
Workflow of Outside Processing

For production with outside processing, the typical process involves the actions and generated documents shown
in the following diagram.
Calculation of Costs for Outside Services

The planned cost for outside services in a production order includes the cost of the materials you ship to a vendor
(that is, material lines with the Ship to Vendor subcontract source) and the cost of the outside services (that is,
material lines with the Purchase subcontract source). For a particular production order, you can view planned
cost for outside services in the Subcontract box of the Planned section on the Totals tab of the Production Order
Maintenance (AM201500) form.
When you release the purchase receipt for a purchase order with the subcontractor service charges and the
material used for the charges is not backflushed, the system adds the total cost of the purchase receipt to the
Subcontract box of the Actual section on the Totals tab of the Production Order Maintenance form. When you
confirm the vendor shipment with materials to be shipped to the vendor, the system adds the total cost of the
shipment to the same box. If the material is backflushed, the system adds the amount to the box when you record
the movement of items from the outside operation.
Outside Processing: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for performing
the outside processing, and to understand (and change, if needed) the settings that affect the processing workflow.
Prerequisites
Mare sure that the following tasks have been performed before you start implementing production processing:
• The system has been prepared for manufacturing implementation, as described in System Preparation for
Manufacturing Implementation: Implementation Activity.
• Production Cost Drivers: Implementation Activity so that the needed cost drivers have been created in a
company with the U100 dataset preloaded.
We recommend that before you initially perform outside processing, you make sure the needed settings have been
specified and entities have been created, as described in Outside Processing Configuration: General Information and
summarized in the following checklist.
Numbering Sequences (CS201010) The numbering sequence for vendor shipments has
been created.
Production Preferences (AM102000) The numbering sequence for vendor shipments has
been specified in the Vendor Shipment Numbering
Sequence box in the Numbering Settings section of
the General Settings tab.
Work Centers (AM207000) For each vendor who performs outside processing, at
least one work center with the Outside Process check
box selected in the Summary area has been created.
Stock Items (IN202500) The needed stock items or non-stock items that you
will use to pay each vendor for its services have been
Non-Stock Items (IN202000)
created.
Vendors (AP303000) The needed vendors who will represent subcontrac-

tors have been created.
Bill of Material (AM208000) The needed bills of material that you will use for track-
ing outside processing operations have been created.
The settings for each bill of material must be specified
as follows:
• The Operations table must include the needed
work centers dedicated for tracking the outside
processing operations.
• For each outside processing operation, the Mate-
rials tab must include at least one material with a
Material Type of Subcontract and the appropriate
Subcontract Source.
• The warehouse from which a material with the Ship
to Vendor subcontract source will be issued has
been specified in the Warehouse column of the
material line. If the column is empty, the material
will be issued from the warehouse specified in the
Warehouse box of the Summary area.
• The appropriate vendor information has been spec-
ified on the Outside Process tab for each outside
processing operation.
Recommended Settings for Work Centers

When you create a work center dedicated for outside processing, we recommend that you specify the following
settings in the Summary area of the Work Centers (AM207000) form:
• Outside Process: Selected
• Basis for Capacity: Crew Size
• Backflush Materials: Selected
• Backflush Labor: Selected

You can affect the workflow of outside processing by specifying additional settings in the Vendor Shipment
Settings section of the Production Preferences (AM102000) form as follows:
• To cause vendor shipments to be created with the On Hold status (so that the user can verify them before
processing them further), you select the Hold Shipments on Entry check box.
• To make the system validate totals on vendor shipments, you select the Validate Shipment Total on
Confirmation check box.
instructions similar to those described in Outside Processing: Process Activity.
Outside Processing: Process Activity
The following activity will walk you through the process of creating and processing a production order that
contains an outside processing operation.
Story
Suppose that the GoodFood One Restaurant has ordered 10 juicers from the SweetLife Fruits & Jams company.
Production managers have analyzed the workload of the production department and decided to outsource the
assembly of these juicers to a subcontractor, Custom Assembly Services. Further suppose that all components
required for the assembly of the juicer are available in SweetLife Fruits & Jams's warehouse and will be shipped to
the subcontractor. Also, SweetLife Fruits & Jams will pay for the subcontractor's service of $50 for each juicer by
using a purchase order.
Acting as a production manager, you will create a production order for producing 10 juicers, create a vendor
shipment with the required materials for the juicer assembly, create the purchase order for the subcontractor's
service, and process all transactions related to the production order.
defined.
• On the Stock Items (IN202500) form, the CFJFRUIT, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE, and
• On the Vendors (AP303000) form, the CSEMBLY vendor (which provides the subcontractor services for juicer
assembly) has been defined.
• On the Non-Stock Items (IN202000) form, the MFGSUBCON non-stock item has been created.
• On the Bill of Material (AM208000) form, the bill of material for the CFJFRUIT stock item has been created.
has been created.
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJFRUIT item; the bill of
material includes the operation for outside processing.
production orders.
production orders.
Process Overview
following:
1. On the Production Order Maintenance (AM201500) form, you will create a production order for the juicer
assembly.
2. On the Vendor Shipments (AM310000) form, you will create and process the vendor shipment, which records
the delivery of the materials required for the juicer assembly to the subcontractor.
3. On the Purchase Orders (PO301000) form, you will create and process the purchase order for the
subcontractor service, and on the Purchase Receipts (PO302000) form, you will create and process the
related purchase receipt.
4. On the Move (AM302000) form, you will record the receipt of the assembled juicers from the subcontractor
to the dedicated warehouse location.
5. On the same form, you will record the movement of the inspected juicers to the warehouse location.
6. On the Production Order Maintenance form, you will review the production order's balance.
System Preparation
Do the following:
System Preparation
Do the following:
1. As a prerequisite to the current activity, complete Outside Processing Configuration: Implementation Activity
so that the system is ready for processing the production of juicers that includes an outside operation.
password.

To create the production order for 10 juicers, do the following:
• Order Type: RO
• Inventory ID: CFJFRUIT
• Hold: Cleared
• Description: Production of 10 juicers
3. In the Qty. to Produce box of the General tab, specify 10.
Step 2: Creating a Vendor Shipment

To create a vendor shipment for the materials required for the juicer assembly, do the following:
on the More menu (under Other), click Production Detail. The system opens the Production Order Details
(AM209000) form for the production order.
2. In the Operations table, click the row with the OUTPROC work center.
3. On the table toolbar, click Create Vendor Shipment. The system creates the vendor shipment for the
CSEMBLY subcontractor, which is specified on the Outside Process tab, and opens the shipment on the
Vendor Shipments (AM310000) form.
4. Review the details of the vendor shipment (shown in the screenshot below) as follows:
a. In the Vendor box of the Summary area, make sure that CSEMBLY is specified, which is the subcontractor.
b. On the Details tab, make sure that the system has added one row of the WIP type for the CFJFRUIT item
and five rows of the Material type for each of the materials required for the juicer assembly.
Figure: The vendor shipment on the Vendor Shipments form
5. On the form toolbar, click Remove Hold. The system changes the status to Open.
6. On the form toolbar, click Confirm. The system changes the status to Completed.
in this activity.
8. On the Totals tab, make sure that in the Subcontract box of the Actual section, 4,641.70 is specified (see the
following screenshot). This amount is the cost of the materials that have been shipped to the subcontractor.
Figure: The actual subcontract amount aer the confirmation of the vendor shipment
Step 3: Creating a Purchase Order for the Subcontractor's Service

To create a purchase order for the subcontractor service, do the following:
1. On the Production Order Details (AM209000) form, open the production order you created earlier in this
activity.
2. In the Operations table, click the row with the OUTPROC work center.
3. On the table toolbar, click Create Purchase Order. The system creates the purchase order for the CSEMBLY
subcontractor, which is specified on the Outside Process tab and opens the document on the Purchase
Orders (PO301000) form.
4. Review the purchase order details (shown in the following screenshot) as follows:
a. In the Vendor box of the Summary area, make sure that CSEMBLY is specified, which is the subcontractor.
b. On the Details tab, make sure that the system has added one row of the Non-Stock for MFG type for the
MFGSUBCON item with an extended cost of $500.
Figure: The purchase order for the subcontractor services
5. In the Description box of the Summary area, enter Payment for the subcontractor service.
6. On the form toolbar, click Remove Hold. The system changes the status of the purchase order to Open.
7. On the form toolbar, click Enter PO Receipt. The system creates the purchase receipt and opens it on the
Purchase Receipts (PO302000) form.
8. On the form toolbar, click Release. The system changes the status of the purchase receipt to Released.
Step 4: Receiving Items from the Subcontractor

Suppose that the subcontractor has assembled the juicers and delivered them to the warehouse. To record the
receipt of the juicers, you will create the move transaction for the first operation of the production order. Do the
following:
in this activity.
2. On the More menu (under Processing), click Create Move Transaction. The system creates the move
transaction for the 0010 operation and opens it on the Move (AM302000) form.
b. In the Description box, enter Recording the receipt of 10 juicers from the
subcontractor.
5. Close the window with the Move form.
6. On the Totals tab of the Production Order Maintenance form, make sure that in the Subcontract box of
the Actual section, 5,141.70 is specified (see the following screenshot), which is the cost of the materials
that have been shipped to the subcontractor plus the cost of the services. The service amount has been
backflushed. Therefore, the system has added the amount to the actual subcontract amount when you
recorded the operation completion.
Figure: The actual subcontract amount aer the movement of the item for the outside operation
Step 5: Recording the Inspected Items

Suppose that a warehouse worker has inspected all 10 juicers and moved them to the MGI location of the
WORKHOUSE warehouse. Labor is backflushed for this operation so you will record only the movement of the
juicers. Do the following:
in this activity.
2. On the More menu (under Processing), click Create Move Transaction. The system creates the move
b. In the Description box, enter Recording the movement of 10 juicers to the
warehouse.
5. Close the window with the Move form.
Step 6: Reviewing the Production Order's Balance

Before closing the production order, you will review its balance. Do the following:
1. On the Production Order Maintenance (AM201500) form, open the production order you created earlier in this
activity.
2. Make sure that the order is assigned the Completed status.
3. On the Totals tab, review the balance of the production order as follows (see the following screenshot):
a. In the Actual section, make sure that the value in the Labor Time box is 2 h 30 m and the value of the
Labor Cost box is 25.00. The actual values are the same as the planned values.
b. Make sure that the value of the Subcontract Cost box is 5,141.70 and has not been changed aer you
created the move transaction for the 0020 operation.
c. Make sure that the WIP Total and MFG to Inventory boxes both contain 5,166.70, which is the sum of the
values in the Labor and Subcontract boxes.
d. In the Variance section, make sure that the values in the Total Variance and WIP Balance boxes are 0.
Figure: The balance of the production order
All costs have been applied correctly to the production order, so you can close the order.

changed to Closed.
You have created the production order that includes an outside processing operation, created a vendor shipment
for materials provided to the subcontractor, created a purchase order to pay for the subcontractor services, and
processed the production order to the closing.
Outside Processing: Generated Transactions
When you process production orders that include outside operations, you record payments for the subcontractor
services (which may include material costs) by creating and processing purchase orders and the related documents
and transactions. To track these expenses, the system generates the GL transactions described in the following
section.
Transactions Generated for Non-Stock Items Used as Materials

Suppose that for a non-stock item that is used as a material for outside processing, the Accrue Cost check box
is selected on the Price/Cost tab of the Non-Stock Items (IN202000) form, and the Require Receipt check box is
selected on the General tab of the same form. As a result, the system posts to the Expense Accrual account the
costs of materials when the items are received to a warehouse of your organization and a production order is
released. Transactions generated on the inventory receipt release are listed in the following table.
Expense Accrual account Item Amount 0.00
PO Accrual account Item 0.00 Amount
On the Non-Stock Items form for a non-stock item used for outside services, if the Accrue Cost check box is selected
on the Price/Cost tab and the Require Receipt check box is cleared on the General tab, then you create the AP bill
with this non-stock item. When you release the AP bill, the transactions listed in the following table are generated.
Expense account Item Amount 0.00
AP account Item 0.00 Amount
When you issue or backflush the non-stock item for a production order, the transactions listed in the following table
are generated.
Work in Process account Item Amount 0.00

Expense Accrual account Item 0.00 Amount
If the Accrue Cost check box is cleared on the Price/Cost tab of the Non-Stock Items form, the amounts are posted
to the Expense account instead of the Expense Accrual account.
In previous versions of Acumatica ERP Manufacturing Edition, we recommended that when you
are using non-stock items for materials in outside processing, you specify the same account for the
Expense Accrual GL account and Expense GL account. This ensured the proper accounting. If you
use the same account for both the expense and the accrual, the amounts will offset each other; the
Work in Process account specified in the production order will hold the expense of outside services to
include in the product cost.
Producing Items with Backflushing | 117
Producing Items with Backflushing

Your organization may use backflushing to minimize the number of manual entries in production, such as the
releasing of materials, the recording of labor amount, and the recording of produced items for each operation.
With backflushing configured in Acumatica ERP Manufacturing Edition, the system automatically issues materials,
records labor hours, or performs both actions.
This chapter describes the production process that includes the backflushing of materials and labor.
Production with Backflushing: General Information
Backflushing is a method for issuing materials or applying labor costs to production orders when workers record
the items produced at a specific operation. Acumatica ERP Manufacturing Edition gives you the ability to backflush
material and labor costs during item production, as described in the following sections.
Learning Objectives
In this chapter, you will learn how to process production orders with operations for which material and labor costs
will be backflushed.
You process production orders with operations for which material and labor costs are backflushed in the following
cases:
• In the production operations, scrap is common in the finished product. Workers continue to produce the
item until they have produced items whose quality is acceptable in a quantity equal to the quantity to
produce in the production order.
• Workers record production at milestone operations but would like to also record materials being consumed
at operations that are not milestones.
• Workers perform operations for multiple production orders simultaneously or in a continuous run. These
operations might include cleaning, painting, or plating. In this case, it would be difficult to post labor
costs to individual orders. A similar situation occurs in production areas—such as filling, testing, packing,
or assembly—where multiple operators work on any item that appears at their work station, and these
operators do not record their time against specific production orders.
• Bills of material contain floor stock items whose costs are not significant; examples of such items include
lubricants, labels, hardware, wiring, and packing materials. In this case, a production or warehouse
manager periodically reconciles the on-hand balance of the items in stock.
• Your organization uses bulk materials, such as bar stock, roll stock, sheet goods, and dry goods or liquids in
bulk containers. The exact quantity of these materials cannot be specified.
Backflushing in Production
Backflushing is commonly referred to as postproduction issuing. This approach differs from preproduction
issuing,for which materials are pulled from stores and issued to production orders prior to the start of an operation,
and labor is directly reported for each operation.
With backflushing, material and labor costs are flushed backwards through operations to assign costs to products
based on the quantity produced at the operations. This eliminates detailed tracking of costs. With backflushing,
employees involved in production can save time on preliminary issue of materials, on recording the labor amount
and produced items for each operation, and on recording returns of any unused materials.
Backflushing can ensure that the full cost of production is recognized when workers record labor and produced
items for the final operation in the routing. In the backflushing process, the system adjusts the materials consumed
or labor reported for any operations for which the full material or labor costs have not been posted. Thus, you can
make the cost of the product more representative and minimize cost variances.
Backflushing is not appropriate if any of the following conditions are met:
1. The amount of labor recorded for operations may vary from one production run to another. This amount
may represent a significant cost of the product.
2. Your organization tracks employees for the product being produced.
3. You use lot- or serial-tracked materials in production. Although the system can automatically issue lot- or
serial-tracked items during backflushing, in this case, backflushing is generally not recommended.
4. Material consumption is variable, or significant waste of materials may occur.
5. Material substitutions are common and allowed during the production process.
6. Labor transactions for each employee need to be reconciled with time and attendance for payroll purposes,
or a shop data collection system is used.
The Production Process with Material and Labor Backflushing

Suppose that a production order has the operations defined in the Operations table of the Production Order Details
(AM209000) form with the settings shown in the following table.
Operation ID Backflush (Labor) Backflush (Materials)
0010 Cleared Cleared
0020 Selected Selected
0030 Selected N/A
In the following diagram, you can view the actions and generated documents for this production order.
1. Create and release the production order.

On the Production Order Maintenance (AM201500) form, the production manager creates and releases the
production order.
2. Issue the materials for the first operation
On the Materials (AM300000) form, the production manager issues the materials required for the first
operation.
If a material has the Backflush check box selected in the production order settings, it does not
need to be issued before employees record the quantity of the item that is produced.
3. Record the time spent and the quantity of completed items for the first operation.
On the Labor (AM301000) form, workers record the time they spent on the first operation and the item
quantity they produced during the operation.
4. Record the quantity of the completed items for the second operation.
On the Move (AM302000) form, a worker records the completion of the items for the second operation. When
the worker releases the move transaction, the system also does the following:
• Creates and releases the material transaction on the Materials form with the backflushed materials.
• Creates and releases the cost transaction on the Cost Transactions (AM309000) form. The transaction
includes the cost of the backflushed labor and the cost of the backflushed materials.
If the worker also records the time for the operation, they use the Labor form instead of the
Move form.
5. Record the time spent and the quantity of completed items for the last operation.
On the Labor form, the worker records the time they spent on the last operation and the item quantity they
produced during the operation.
On the Close Production Orders (AM506000) form, the production manager closes the production order.
Material Transaction for Backflushed Materials

When the system creates the material transaction for backflushed materials on the Materials (AM300000) form,
the system issues each material from the warehouse or warehouse location specified in the material row of the
production order. If the warehouse or location is not specified, the system issues the items from the default
issue location specified for each stock item that represents the material. For more information, see Production
Processing: Selection of Warehouse Locations.
If the on-hand quantity of any material in stock is less than the recorded quantity of the produced item, the system
will not release the material transaction and will display an error message. If you want the system to be able to
release transactions that will cause a negative quantity in stock, you should select the Allow Negative Quantity
check box on the Item Classes (IN201000) form for the item class selected on the Stock Items (IN202500) form for
the stock item that represents the material.
Material and Labor Cost Adjustments

The purpose of the material and labor cost adjustments is to reconcile the costs charged to the production order
accordingly.
If any previous operations contain backflushed materials, the system calculates the material quantity to be issued
considering the completed quantity for the previous operations and for the current operation.
If labor should be backflushed for any previous operations, the system adjusts the labor amount, if necessary, to
agree with the quantity recorded at the current operation.
Production with Backflushing: Implementation Checklist
The following sections provide details that you can use to ensure that the system is configured properly for
recording the production of items with material or labor backflushing, and to understand (and change, if needed)
the settings that affect the processing workflow.
Prerequisites
Make sure that before you start implementing the production of items with backflushing, the system has been
prepared for specifying manufacturing-specific settings, as described in System Preparation for Manufacturing
Implementation: General Information.
We recommend that before you initially start processing production orders with material or labor backflushing, you
make sure the needed features have been enabled, settings have been specified, and entities have been created, as
summarized in the following checklist.

Production Order Types (AM201100) Production order types have been created, as de-
scribed in Production Order Types: General Information.
Production Preferences (AM102000) All necessary settings related to production manage-

ment have been specified.
Work Centers (AM207000) A work center for each operation with material or la-
bor backflushing has been created. For the work cen-
ter, in the Summary area, the Backflush Materials or
Backflush Labor check box is selected, or both check
boxes are selected.
Bill of Material (AM208000) The bill of material has been created and one or both
of the following criteria are met for each operation
with material or labor backflushing:
• The Backflush check box is selected in the row of
the Operations table.
• On the Materials tab, the Backflush check box is
selected for some or all of the materials required
for each operation

You can affect the workflow of item production with material and labor backflushing by specifying additional
settings. If you want the system to validate whether the material quantity in stock is available for the item quantity
that a user records in a move or labor transaction for an operation with material backflushing, you select the
Not Allow option in the Under Issue Backflush Material box on the Production Order Types (AM201100) form. If
the previous operations also have materials backflushed, the system will validate the availability of the needed
material quantity for these operations as well.
To make sure that all configuration has been performed correctly, we recommend that in your system, you manage
item production with backflushed materials and labor by performing instructions similar to those described in
Production with Backflushing: Process Activity.
Production with Backflushing: Process Activity
The following activity will walk you through the process of producing items with backflushed materials and labor.
Story
Suppose that GoodFood One Restaurant has ordered three juicers from the SweetLife Fruits & Jams company.
The production process includes the assembly and packing of the juicers. In the production process of SweetLife
Fruits & Jams, materials and labor are backflushed for the packing operation. Further suppose that all components
required for the juicer assembly and packing are available in SweetLife Fruits & Jams's warehouse.
Acting as a production manager, you will create a production order for producing the juicers and process all
transactions related to production.
defined.
• On the Stock Items (IN202500) form, the CFJFRUITBF, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE,
GRDISC01, PACKTAPE, PPEANUTS, and PACKBOX stock items have been defined.
• On the Bill of Material (AM208000) form, the bill of material for the CFJFRUITBF stock item has been created.
has been created.
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJFRUITBF item; the bill
of material includes the packing operation.
production orders.
production orders.
Process Overview
following:
1. On the Production Order Maintenance (AM201500) form, create and release the production order.
2. On the Materials (AM300000) form, issue the materials required for the assembly operation.
3. On the Labor (AM301000) form, record the labor spent on the juicer assembly and the produced quantity.
4. On the Production Order Maintenance form, review the production order balances aer the assembly
operation.
5. On the Move (AM302000) form, record the produced items for the packing operation.
6. On the Materials and Cost Transactions (AM309000) forms, review the transactions that the system created
and released when you released the move transaction.
7. On the Production Order Maintenance form, review the production order balances aer you have completed
the order.
8. On the Close Production Orders (AM506000) form, close the production order.
System Preparation
Do the following:
System Preparation
Do the following:
1. As a prerequisite to the current activity, complete Configuration of Production with Backflushing:
Implementation Activity so that the system is ready for processing the production of juicers with labor and
material backflushing.
password.

To create the production order for three juicers, do the following:
• Order Type: RO
• Inventory ID: CFJFRUITBF
• Hold: Cleared
3. In the Qty. to Produce box of the General tab, specify 3.
Step 2: Issuing Materials for the Assembly Operation

In this step, you will issue the materials for the assembly operation of the production order. Do the following:
on the More menu (under Processing), click Release Materials. The system opens the Materials Wizard
(AM300020) form with the list of materials needed for the assembly operation.
a. In the Description box, specify Materials for the assembly operation.
b. Clear the Hold check box. The system changes the transaction's status to Balanced.
Step 3: Recording the Labor and Produced Items for the Assembly Operation
juicer assembly and assembled three juicers for one hour. To record the time spent on juicer assembly and the
assembled quantity of juicers, do the following:
• Order Type: RO
• Shi: 0001
• Quantity: 3
b. In the Description box, specify Recording the time for assembly of 3 juicers and
the completed quantity.
5. On the form toolbar, click Release. The system creates and releases the cost transaction to record the labor
costs and releases the labor transaction.
Step 4: Reviewing the Production Order Balance

To review the production order balance aer you have recorded the completion of the assembly operation, do the
following on the Production Order Maintenance (AM201500) form:
1. Open the production order you created earlier in this activity.
2. On the Totals tab, review the production order balance as follows (see the screenshot below):
a. In the Actual section, make sure that the following values are displayed:
• Labor: 30.00
• Material: 1392.51
This means that the system applied the labor and material costs of the assembly operation to the
production order.
b. In the Variance section, make sure that the following values are displayed:
• Labor: -12.00
• Material: -11.16
These costs relate to the packing operation and the system has not applied the costs to the production
order yet.
Figure: Production order balances aer the first operation
Step 5: Recording the Produced Items for the Packing Operation

Suppose that a worker in the packing work center has packed all three assembled juicers. To record the completion
of the packing operation, do the following:
on the More menu (under Processing), click Create Move Transaction. The system creates the move
b. In the Description box, enter Recording the completion of packing 3 juicers.
Step 6: Reviewing the Transactions for the Packing Operation

In this step, you will review the transactions that the system created and released when you released the move
transaction for the packing operation. Do the following:
1. On the Materials (AM300000) form, open the transaction for the materials needed for the packing operation
with the total amount of $11.16 (see the following screenshot).
2. Make sure that in the Orig. Batch Nbr. box, the reference number of the move transaction, which caused the
creation of the material transaction, is displayed.
Figure: The material transaction for the packing operation
3. On the Cost Transactions (AM309000) form, open the transaction with the total amount of $1482.33 (see the
following screenshot).
4. Make sure that in the Orig. Batch Nbr. box, the reference number of the move transaction, which triggered
the creation of the cost transaction, is displayed.
5. In the table of the form, notice that the transaction contains rows with the following Tran. Type values:
• Backflush Labor: The system added the labor cost of $12.00 for the packing operation to the 51000 - Direct
Labor Costs account.
• Operation MFG to Inventory for an extended cost of $23.16: The system applied the cost of the labor and
materials for the 0020 operation to the production order.
• Operation MFG to Inventory for an extended cost of $1447.17: The system applied the cost of the labor and
materials for the 0010 operation to the production order.
Figure: The cost transaction created on completion of the packing operation

To review the production order balance aer you have recorded the completion of the packing operation, do the
following on the Production Order Maintenance (AM201500) form:
2. On the Totals tab, review the production order balance aer the completion of the order as follows (see the
following screenshot):
a. In the Actual section, make sure that the value of the Labor box is 42.00, which is the full labor cost for
two operations.
b. Make sure that the value of the Material box is 1403.67, which is the full cost of the materials for two
operations.
c. In the Variance section, make sure that the values in the Total Variance and WIP Balance boxes are 0.00.
Figure: Production order balances aer the completion of the order

changed to Closed.
You have successfully created the production order for the assembly and packing of three juicers and have
processed all the transactions related to the production.
Tracking Scrap and Waste in Production | 130
Tracking Scrap and Waste in Production

Acumatica ERP Manufacturing Edition provides you with the ability to enter the quantities of scrapped items
along with the quantities of completed items when you create production-related transactions. By tracking this
information, you can consider the costs of scrap or waste in production cost calculation.
In this chapter, you will read about the production process when scrap or waste are tracked.
Scrap and Waste in Production: General Information
In Acumatica ERP Manufacturing Edition, a produced item is considered to be scrap when it does not meet the item
specifications or quality requirements. If the business processes of your organization require that scrap costs affect
production costs, shop-floor employees can record the quantities of scrapped items along with the quantities of
completed items during their daily routines in the system.
Waste is a loss of materials used in the production process. Shop-floor employees do not need to do specific
actions in the system to record waste. The system calculates the cost of waste and applies it to the production order
cost if the appropriate settings are specified.
The system must be configured properly for the processing of scrap and waste, as described in Configuration of
Scrap, Waste, and By-Products in Production: General InformationConfiguration of Scrap and Waste in Production:
General Information.
In the following sections, you can find information about item production that includes scrapped items.
Learning Objectives
In this chapter, you will learn the following:
• How to enter scrapped item quantities in a labor or move transaction for operations with various scrap
actions
• How the system calculates scrap costs, based on the scrap settings
• How the system calculates waste costs
• How the system selects the default warehouses and warehouse locations for scrap
• How to enter quantities of scrapped items that are lot- or serial-tracked in a labor or move transaction for
operations with various scrap actions
You process production orders and record scrapped items for operations in the following cases:
• In production operations, scrap is common in the finished product, and shop-floor employees need to
record scrapped items during their everyday work.
• In production operations, scrap is rare, but if scrapped items appear, shop-floor employees must record the
quantities of scrapped items in the system.
• Production managers need to review the costs of production orders that may include scrapped items or
material waste.
Scrap Recording Without Quarantine

For operations with the No Action or Write-Off scrap action, you do the following to enter the scrap quantity when
you enter the quantity of completed items for a particular operation of a production order on the Labor (AM301000)
or Move (AM302000) form:
1. You add a line for the operation. In this line, you enter both the labor time and the completed quantity (for a
labor transaction) or only the completed quantity (for a move transaction).
2. In the operation line, you specify the quantity of scrapped items in the Qty Scrapped column.
3. For an operation with the Write-Off scrap action, in the Reason Code column, you specify a reason code
dedicated for scrap.
4. You release the transaction. For lines with the Write-Off scrap action, the system also creates and releases
a WIP adjustment transaction on the WIP Adjustment (AM308000) form to post scrap costs to the scrap
account. For details, see Scrap and Waste in Production: Generated Transactions.
You can create a separate labor or move transaction to record only scrapped items.
Scrap Recording with Movement to Quarantine

For an operation with the Quarantine scrap action, you do the following to enter the scrap quantity when you enter
the quantity of completed items for a particular production order operation on the Labor (AM301000) or Move
(AM302000) form:
1. You add a line for the operation. In this line, you enter both the labor time and the completed quantity (for a
labor transaction) or only the completed quantity (for a move transaction).
2. For each scrapped item, you add a new line, and you specify the following in the line:
a. A reason code dedicated for scrap in the Reason Code column.
b. The quantity of scrapped items in the Quantity column. The system copies this quantity to the Qty
Scrapped column and makes this column unavailable.
3. In the same line, you make sure that the warehouse in the Warehouse column and the warehouse location
in the Location column are correct. The system will record the movement of the scrapped items to this
warehouse and this location.
4. You release the transaction. For scrapped items, the system creates and releases the following transactions:
• A WIP adjustment transaction on the WIP Adjustment (AM308000) form to post scrap costs to the scrap
account
• An inventory receipt on the Receipts (IN301000) form that records the movement of the scrapped items
to the scrap warehouse
For more information about the transactions, see Scrap and Waste in Production: Generated Transactions.
Inclusion of Scrapped Quantity in the Completed Quantity

Depending on the state of the Include Scrap in Completions check box on the Production Preferences (AM102000)
form, the system does not consider the scrapped quantity in the quantity of completed items (if the check box is
cleared) or includes the scrapped quantity in the quantity of completed items (if the check box is selected). With
the check box selected, the system will regard an operation as completed when the sum of the completed items
and scrapped items entered for a production operation equals the quantity of items to be produced.
Correction of the Scrap Quantity and Scrap Labor Time

You can reduce the quantity of scrapped items and the labor time spent on producing scrapped items that have
already been applied to a production order if the order has not been closed yet. To reduce both the scrap quantity
and the labor time, you use the Labor (AM301000) form. To reduce only the scrapped quantity, you use the Move
(AM302000) form. You do the following:
1. Create a transaction.
2. Add a new line to the table, and do the following in the line:
a. Select a production order and an operation for which you would like to correct the scrapped quantity,
labor time, or both.
b. Specify a negative scrap quantity that equals the difference between the previously entered quantity and
the needed quantity (such as –3) in one of the following columns:
• Qty Scrapped for an operation with the No Action or Write-Off scrap action
• Quantity for an operation with the Quarantine scrap action
c. If you have created a labor transaction, in the Labor Time column, specify a negative time, such as –
00:30.
d. If an operation has the Write-Off or Quarantine scrap action assigned, specify the reason code for scrap in
the Reason Code column.
3. Release the transaction.
The costs calculated for a negative scrap quantity may differ from the scrap costs in the transaction
that you would like to correct if since the release of the transaction, additional costs have been
applied to the operations for which you have corrected the scrap quantity.
Selection of the Default Values for the Scrap Warehouse and Location
When the scrap action for an operation of a production order is Quarantine, the system may insert the values of the
Scrap Warehouse and Scrap Location boxes of each new production order on the Production Order Maintenance
(AM201500) form. The values to be inserted depend on the option selected in the Scrap Source box of the General
tab on the Production Order Types (AM201100) form. For details, see Configuration of Scrap, Waste, and By-Products
in Production: Scrap QuarantineConfiguration of Scrap and Waste in Production: Scrap Quarantine.
You can override the scrap warehouse or warehouse location for each particular production order on the Production
Order Maintenance (AM201500) form as follows: On the General tab, you select the Scrap Override check box,
specify the needed warehouse in the Scrap Warehouse box, and specify the needed warehouse location in the
Scrap Location box.
The system copies the warehouse and warehouse location specified in a production order to the lines of a labor or
move transaction that contains a scrapped quantity. You can change the values in the transaction line if needed.
The functionality of selecting a warehouse and warehouse location for scrapped items is available only when
the Multiple Warehouses and Multiple Warehouse Locations features are enabled on the Enable/Disable Features
(CS100000) form. If the features are disabled, the scrapped items are moved to the only warehouse and warehouse
location, which are not displayed in the system.
Scrap Recording for Lot- or Serial-Tracked Items

If an item that you record as scrap is lot- or serial-tracked, you may need to assign a lot or serial number to the
scrapped item in a labor transaction on the Labor (AM301000) form or a move transaction on the Move (AM302000)
form, depending on the scrap action specified for an operation of a production order for which scrapped quantity
has been entered as follows:
• No Action or Write-Off: The system does not request the assignment of a lot or serial number to the scrapped
item.
• Quarantine: You must assign a lot or serial number to the scrapped item by using the Line Details dialog
box, which you open on the Labor or Move form by clicking the line with the scrapped item and then clicking
Line Details on the table toolbar.
If you preassign lot or serial numbers to production orders and lot- or serial-tracked items
can be scrapped, we recommend that you select the Include Scrap in Completions check
box on the Production Preferences (AM102000) form. Otherwise, if you record extra scrapped
items, you will not be able to assign lot or serial numbers to these items because the quantity
of items with assigned lot or serial numbers must be equal to the quantity being produced.
Scrap and Waste in Production: Cost Calculation
In Acumatica ERP Manufacturing Edition, costs of scrap and waste are calculated differently. For scrapped items,
the system applies the costs to production costs depending on the costing method of each production order and
the scrap action specified for the operations of the production order. For more information about the configuration
of the tracking of scrapped items, see Configuration of Scrap, Waste, and By-Products in Production: General
InformationConfiguration of Scrap and Waste in Production: General Information.
For material waste, you specify the percentage of the cost that will increase the material cost in a production order.
For details on the specification of this percentage, see Configuration of Scrap, Waste, and By-Products in Production:
General InformationConfiguration of Scrap and Waste in Production: General Information.
In the following sections, you will read about the ways the system calculates scrap and waste costs.
Scrap Cost Calculation

The system calculates the cost of scrapped items depending on the costing method specified for the production
order in the Costing Method box of the General tab on the Production Order Maintenance (AM201500) form as
follows:
• Actual: The system uses only the costs that have already been applied to a production order at the moment
when a labor or move transaction that contains scrapped items is released. The costs that were not
applied to previous operations of the production order yet (such as material costs) are not included in the
calculation of the scrap cost.
• Estimated: The system uses both the actual costs that have already been applied to a production order and
the planned costs of the prior operations, such as labor or material overhead that has not been recorded.
• Standard: The system calculates scrap costs in the same way as it does for the Estimated costing method.
For operations with a scrap action of Quarantine, the system posts the difference between the calculated
scrap cost and the standard cost specified for an item to a standard cost variance GL account.
Viewing of Scrap Costs

You can view the scrap cost of a particular production order in the Scrap box of the Actual section on the Totals
tab of the Production Order Maintenance (AM201500) form. To view the scrap cost by production operation, you
open the production order on the Production Order Details (AM209000) form, select the needed operation in the
Operations table, and view the value of the Scrap box in the Actual section of the Totals tab.
Waste Cost Calculation

If a nonzero waste percentage is specified in the Scrap Factor box of a material row in the Materials table for a
production order on the Production Order Details (AM209000) form, the system increases the material cost by the
specified percentage.
For example, suppose that the production of an item uses wooden boards, which are cut, and 5% waste is
expected. Further suppose that 6 meters of wooden boards are needed for producing one finished item and the
unit cost of the material is $0.50. You specify 0.05 as the scrap factor, and the system calculates the waste cost as
follows: 6 * 0.5 * 0.05, which is $0.15 per finished item. The total material cost for the cutting operation will
be $0.65 per finished item.
Scrap and Waste In Production: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for processing
scrap and waste during item production, and to understand (and change, if needed) the settings that affect the
processing workflow.
We recommend that before you initially process scrap and waste, you make sure that the needed features have
been enabled, settings have been specified and entities have been created, as summarized in the following
checklist.

Chart of Accounts (GL202500) The GL account to be used for posting scrap costs has
been created.
Reason Codes (CS211000) The reason code that shop-floor employees will speci-
fy when entering scrap quantities has been created.
The reason code is required only for operations with
the Write-Off or Quarantine scrap action.
Production Order Types (AM201100) The needed settings of scrap storage have been speci-
fied for each production order type with the Regular or
Disassemble function.
Work Centers (AM207000) A work center for each operation that may have scrap
or waste as an output has been created. For the work
center, in the Scrap Action Default box on the Gener-
al tab, the appropriate option is selected.
Bill of Material (AM208000) The bill of material has been created, and in the Op-
erations table, the needed option is selected in the
Scrap Action column of each operation row. In addi-
tion, in the Scrap Factor column on the Materials tab,
the scrap percentage is specified for the materials for
which waste must be included in the material cost.
Item Warehouse Details (IN204500) The scrap warehouse and location have been speci-
fied on the Manufacturing tab of the needed form, de-
Stock Items
pending on the option selected in the Scrap Source
Warehouses box of the Production Order Types form of a production
order type with the Regular or Disassemble function.
The scrap warehouse and location are needed only
when multiple warehouses or warehouse locations are
used in the system and when movement of scrapped
items to storage is tracked (that is, the scrap action for
some or all production operations is Quarantine).

If you want the system to regard scrapped items as completed items and mark the operations of a production
order as completed when the sum of completed items and scrapped items equals the quantity to produce of
the production order, you select the Include Scrap in Completions check box on the Production Preferences
(AM102000) form. For more information, see Configuration of Scrap, Waste, and By-Products in Production: General
InformationConfiguration of Scrap and Waste in Production: General Information.
To make sure that all configuration has been performed correctly, we recommend that in your system, you manage
item production that may also produce scrap or waste by performing instructions similar to those described
in Scrap and Waste in Production: To Process a Production Order with No Scrap Settings and Scrap and Waste in
Production: To Process a Production Order That Includes Quarantined Scrap.
Scrap and Waste in Production: To Process a Production Order with No Scrap

Settings
The following activity will walk you through the process of recording item production that includes scrapped items
when no specific actions are required for scrapped items.
Story
Suppose that the GoodFood One Restaurant has ordered three juicers from the SweetLife Fruits & Jams company.
Further suppose that during juicer assembly, a shop-floor employee assembled one of the juicers but found out
that it does not work. The production manager asked the employee to record this juicer as scrap. Because the
customer expects to have all three juicers at the same time, the employee assembled one extra juicer because the
broken juicer must be scrapped and cannot be used to fulfill the customer's order.
Suppose that scrap is very rare on this shop floor, so scrapped items are not tracked by a warehouse and the scrap
cost is applied to the cost of a production order.
Acting as a production manager, you will create a production order for producing three juicers and process all
related transactions. In a production environment, a shop-floor employee would create a labor transaction on their
own. To streamline this activity, you will enter this transaction as a production manager.
defined.
• On the Stock Items (IN202500) form, the CFJFRTSCR, PULPCONT1L, JUICECUP05L, MRBASE, FNSIEVE, and
• On the Bill of Material (AM208000) form, the bill of material for the CFJFRTSCR stock item has been created.
has been created.
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJFRTSCR item.
production orders.
production orders.
Process Overview
In this activity, to process the documents and transactions related to the production of the juicers with scrapped
items and no scrap action, you will do the following:
3. On the Labor (AM301000) form, record the labor spent on the juicer assembly, the quantity of produced
items, and the quantity of scrapped items.
4. On the Production Order Maintenance form, review the production order balance aer you have completed
the assembly operation.
6. On the Production Order Maintenance form, review the production order balance aer you have closed the
order.
System Preparation
Do the following:
System Preparation
Before you start performing the activity, do the following in a company with the U100 dataset preloaded:
1. As prerequisites to the current activity, perform the Configuration of Scrap, Waste, and By-Products in
Production: Implementation ActivityConfiguration of Scrap and Waste in Production: Implementation Activity so
that the system is ready for processing the production of juicers with the recording of scrap.
2. Launch the Acumatica ERP website, and sign in to the company. You should sign in as the production
manager by using the peters username and the 123 password.

To create the production order for the three juicers, do the following:
• Order Type: RO
• Inventory ID: CFJFRTSCR
• Warehouse: WORKHOUSE (inserted automatically)
• Location: MGI (inserted automatically)
• Order Date: Today's date (inserted automatically)
• Hold: Cleared
3. On the General tab, do the following:
a. In the Qty. to Produce box, specify 3.
b. In the Costing Method box, make sure that Estimated is selected.
Step 2: Issuing Materials for the Operation

5. Open the Production Order Maintenance form with the production order you created earlier in this activity.
6. Make sure that the status of the production order has been changed to In Process.
Step 3: Recording the Labor, Produced Items, and Scrapped Items for the Operation
juicer assembly and assembled three juicers for one hour; one of the juicers does not works and must be recorded
as scrap. To fulfill the production order, Carlos assembled one more juicer for 20 minutes. To record the time spent
on juicer assembly, the assembled quantity of juicers, and the scrapped juicer, do the following:
2. Add the columns with scrap settings to the table as follows:
a. In the table header, click the Column Configurator icon on the le to open the Column Configurator
dialog box.
b. Move the following columns to the Selected Columns list:
• Scrap Action
• Qty is Scrap
c. Click OK to save your changes and close the dialog box.
d. Make sure that these columns have appeared in the table.
• Order Type: RO
• Shi: 0001
• Quantity: 3
5. Enter the scrap quantity as follows:
a. In the Scrap Action column, select No Action.
You need to change the scrap action for the purposes of this activity because for the assembly operation
of the production order, the Quarantine action is specified, which is copied from the work center settings.
b. In the Qty Scrapped column, type 1.
b. In the Description box, specify Recording the time for assembly of 3 juicers, the
completed quantity, and the scrapped quantity.

To review the production order balance now that you have recorded the completion of the assembly operation, do
the following on the Production Order Maintenance (AM201500) form:
2. In the Summary area, make sure that the order status is Completed.
3. On the General tab, make sure that the following box values are displayed:
• Qty. Complete: 3
• Qty. Scrapped: 1
a. In the Actual section, make sure that the values listed in the following table are displayed.
Box Value Comment
Labor Time 1 h 50 m The actual labor time includes the time the
worker spent for the scrapped item.
Labor 36.67 The actual labor cost includes the cost of the
extra time spent for the scrapped item.
Tool 0.88 The actual tool cost includes the cost of the
tools applied to the scrapped item.
Fixed Overhead 15.00 The actual fixed overhead cost does not de-
pend on the quantity and time entered in the
labor transaction and is equal to the planned
cost.
Variable Overhead 11.00 The actual variable overhead cost depends on

the labor time, and the cost is affected by the
increased labor time.
WIP Total 1456.06 The WIP total is calculated as the cost applied
to the production order minus the scrap costs
and minus the costs in adjustment transac-
tions that were created manually (if any).
Box Value Comment
MFG to Inventory 1091.88 This is the total cost of the completed items
that is used when the items are moved to
stock by using an inventory receipt.
b. In the Variance section, make sure that the value of the WIP Balance box is 364.18 (see the following
screenshot), which is the difference between the values of the WIP Total and MFG to Inventory boxes.
Figure: The balances of the completed production order

changed to Closed.
Step 6: Reviewing the Production Order Balance aer Closing

To review the production order balance aer you have closed the production order, while you are still viewing the
production order you created earlier in this activity on the Production Order Maintenance (AM201500) form, do the
following:
1. Go to the Totals tab (see the screenshot below).
2. In the Actual section, make sure that the WIP Total value is the same as the MFG to Inventory value.
3. In the Variance section, make sure that the WIP Balance box contains 0.00.
4. In the Actual section, notice that the amount of the WIP balance has been moved to the WIP Adjustment GL
account and is displayed as a negative value (–364.18) in the Adjustments box.
Figure: The balances of the closed production order
You have successfully created the production order for the assembly of three juicers, recorded the scrapped item,
and processed all the transactions related to the production.
Scrap and Waste in Production: To Process a Production Order That Includes

Quarantined Scrap
The following activity will walk you through the process of recording item production that includes scrapped items;
the cost of scrapped items must be written off to a specific GL account, and the scrapped items must be moved to a
specific warehouse location (quarantined).
Story
Suppose that based on the analyzed demand from previous periods of sales, the sales department of SweetLife
has asked the production department to produce three juicers. Further suppose that during juicer assembly, a
shop-floor employee assembled one of the juicers but found out that it does not work. The production manager
asked the employee to record this juicer as scrap and to move the juicer to the dedicated warehouse location for
quarantined scrap. According to the system settings, the cost of the scrapped item will be moved to a specific GL
account.
Also suppose that the quantity of scrapped items can be included in the quantity of completed items because
although one of the juicers is defective and must be moved to quarantine to be inspected, a completely new juicer
does not need to be produced.
Acting as a production manager, you will create a production order for producing three juicers and process all
related transactions. In a production environment, a shop-floor employee would create a labor transaction on their
own. To streamline this activity, you will enter this transaction as a production manager.
defined.
• On the Reason Codes (CS211000) form, a reason code for scrap has been created.
• On the Warehouses (IN204000) form, a warehouse location for scrap has been created.
• On the Production Order Types (AM201100) form, the default settings for quarantine warehouse and
warehouse location where scrap must be moved have been specified.
• On the Bill of Material (AM208000) form, the bill of material for the CFJFRTSCR stock item has been created.
has been created.
• On the Reason Codes (CS211000) form, you have created a reason code for scrap.
• On the Warehouses (IN204000) form, you have created a warehouse location for scrap.
• On the Production Order Types (AM201100) form, you have specified the default settings for quarantine
warehouse and warehouse location where scrap must be moved.
• On the Bill of Material (AM208000) form, you have created the bill of material for the CFJFRTSCR item.
production orders.
production orders.
Process Overview
In this activity, to process the documents and transactions related to the production of the juicers with quarantined
scrap, you will do the following:
1. On the Production Preferences (AM102000) form, select the check box that causes the scrapped quantity to
be added to the completed quantity.
4. On the Labor (AM301000) form, record the labor spent on the juicer assembly, the quantity of produced
items, and the quantity of scrapped items.
5. On the Production Order Maintenance form, review the production order balances aer you have completed
the assembly operation.
6. On the WIP Adjustment (AM308000) and Receipts (IN301000) forms, review the scrap-related transactions,
which the system generated when you released the labor transaction.
System Preparation
Do the following:
System Preparation
Before you start performing the activity, do the following in a company with the U100 dataset preloaded:
1. As prerequisites to the current activity, perform the Configuration of Scrap, Waste, and By-Products in
Production: Implementation ActivityConfiguration of Scrap and Waste in Production: Implementation Activity so
that the system is ready for processing the production of juicers with the recording of scrap.
2. Launch the Acumatica ERP website, and sign in to the company. You should sign in as the production
manager by using the peters username and the 123 password.
Step 1: Setting Up the Scrapped Quantity to Be Included in the Completed Quantity

You will select the check box that causes the scrap quantity to be added to the quantity of completed items in
production orders. Do the following:
1. Open the Production Preferences (AM102000) form.
2. In the Data Entry Settings section, select the Include Scrap in Completions check box.

To create the production order for the three juicers, do the following:
• Order Type: RO
• Inventory ID: CFJFRTSCR
• Location: MGI (inserted automatically)
• Order Date: Today's date (inserted automatically)
• Hold: Cleared
a. In the Qty. to Produce box, specify 3.
b. In the Costing Method box, make sure that Estimated is selected.
c. In the Scrap Warehouse box, make sure that WORKHOUSE is selected. The system copied this value
based on the settings of the RO production order type on the Production Order Types (AM201100) form.
d. In the Scrap Location box, make sure that SCRAP is selected. The system also copied this value from the
settings of the RO production order type.
Step 3: Issuing Materials for the Operation


5. Open the Production Order Maintenance form with the production order you created earlier in this activity.
6. Make sure that the status of the production order has been changed to In Process.
Step 4: Releasing a Labor Transaction

juicer assembly, assembled three juicers for one hour, tested the juicers, and found out that one juicer does not
work. This item must be entered as a scrapped item. To record the time spent on juicer assembly, the assembled
quantity of juicers, and the scrapped juicer, do the following:
2. In the table, make sure that the following columns are displayed:
• Scrap Action
• Qty is Scrap
If the columns are not displayed, add the columns by using the Column Configurator dialog box.
• Order Type: RO
• Shi: 0001
• Quantity: 2
5. Add another row for the scrapped item, and in the row, specify the following settings:
• Order Type: RO
• Shi: 0001
• Labor Time: 00:20 (the time the worker spent on the scrapped juicer)
• Scrap Action: Quarantine (inserted automatically)
• Reason Code: SCRAP
• Quantity: 1
• Location: SCRAP (inserted automatically)
• Qty Scrapped: 1 (copied this value from the Quantity column)
• Qty is Scrap: Selected (selected automatically when you specified the reason code and the scrapped
quantity)
b. In the Description box, specify Recording the time for assembly of 3 juicers, the
completed quantity, and the scrapped quantity.

To review the production order balance now that you have recorded the completion of the assembly operation, do
the following on the Production Order Maintenance (AM201500) form:
2. In the Summary area, make sure that the order status is Completed.
3. On the General tab, make sure that the following settings are displayed:
• Qty. Complete: 2
• Qty. Scrapped: 1
Notice that the sum of the completed and scrapped items is 3, which equals the quantity to produce.
a. In the Actual section, make sure that the value of the Scrap box is 482.39.
b. Make sure that the WIP Total and MFG to Inventory boxes contain 964.78.
Figure: The balances of the completed production order

c. In the Variance section, make sure that all boxes contain 0.00, which means that the planned costs are
equal to the actual costs.
Step 6: Reviewing the Scrap-Related Transactions

When you released the labor transaction, the system created a WIP adjustment transaction to move the cost of
the scrapped item to the 51600 GL account and an inventory receipt transaction to move the scrapped item to the
SCRAP warehouse location. To review the transactions, do the following:
1. While you are still viewing the production order on the Production Order Maintenance (AM201500) form, open
the Events tab.
2. In the row with the WIP Adjustment document type, click the link in the Batch Nbr. column. The system
opens the WIP Adjustment (AM308000) form in a new window with the WIP adjustment selected.
3. In the only row, make sure of the following:
• The Cost Adj column contains the cost of the scrapped item.
• The Reason Code column contains SCRAP, which you specified in the labor transaction.
• The Account column contains 51600, which is the GL account for scrap costs; the system copied the GL
account from the reason code settings.
• The GL Batch Nbr. column contains the reference number of the GL batch related to this transaction.
(This column may be hidden by default.)
4. On the Receipts (IN301000) form, open the receipt with today's date and a total quantity of 1.
5. On the Details tab, make sure that the only line contains the following settings:
• Location: SCRAP
• Quantity: 1
• Ext. Cost.: 482.39
• Reason Code: SCRAP
6. On the Financial tab, make sure that the reference number of the related GL batch is displayed.

changed to Closed.
You have successfully created the production order for the assembly of three juicers, recorded the scrapped item,
and processed all the transactions related to the production.
Scrap and Waste in Production: Generated Transactions
If the system is configured so that scrap costs are posted to a specific GL account or a scrapped quantity is moved
to a specific warehouse, when you process production orders and the related transactions to record scrap costs,
the system also updates GL balances. Details about the transactions are described in the following sections.
Transactions Generated for Written-Off Scrap Costs

When a scrap action for an operation of a production order is Write Off and a shop-floor employee enters the scrap
quantity in a labor transaction on the Labor (AM301000) form or a move transaction on the Move (AM302000) form,
the system creates a WIP adjustment transaction on the WIP Adjustment (AM308000) form to move the scrap cost
from the Work in Process GL account to a Scrap Expense GL account. For this transaction, the system generates a
batch of the general ledger transactions shown in the following table.
Scrap Expense The reason code for scrap on Amount 0.00

the Reason Codes (CS211000)
form
Work in Process The posting class settings on 0.00 Amount

form
You can view the reference number of the GL batch in the GL Batch Nbr column (which is hidden by default) on the
WIP Adjustment form.
Transactions Generated for Quarantined Scrap

When a scrap action for an operation of a production order is Quarantine and a shop-floor employee enters the
scrap quantity in a labor transaction on the Labor (AM301000) form or a move transaction on the Move (AM302000)
form, the system creates the following transactions:
• A WIP adjustment transaction on the WIP Adjustment (AM308000) form to move the scrap cost from the Work
in Process GL account to a Scrap Expense GL account
• An inventory receipt transaction on the Receipts (IN301000) form to record the movement of the scrapped
items from the shop floor to the warehouse and warehouse location specified in the labor or move
transaction.
For the movement of the scrap cost, the system generates a batch of the general ledger transactions shown in the
following table.
Scrap Expense The reason code for scrap on Amount 0.00

the Reason Codes (CS211000)
form
Work in Process The posting class settings on 0.00 Amount

form
You can view the reference number of the GL batch in the GL Batch Nbr column (which is hidden by default) on the
WIP Adjustment form.
For the movement of the scrapped quantity to a warehouse, the system generates a batch of the general ledger
transactions shown in the following table.
Inventory The posting class set- Amount 0.00

tings on the Posting
Classes form
Scrap Expense The reason code for 0.00 Amount

scrap on the Reason
Codes form
You can view the reference number of the GL batch on the Financial tab of the Receipts form.
Production Management | 150
Production Management
The production management functionality of Acumatica ERP Manufacturing Edition provides you with easy entry
of production orders, quick release of planned production orders, ability to use alternate BOMs and routing using
revisions, an event history, and easy release of materials.
This chapter contains all the information you need to configure and use production management functionality.
Disassembly Process
Sometimes the products you produce need to be issued out of inventory and disassembled to salvage their
components. The item may be obsolete, returned non-functional from a customer, have appearance flaws that
would not be accepted. or maybe purchased just for the value of a component. The disassembly process allow
users to manage and track the disassembly process of a product, capture related costs, and put the usable
component parts back into inventory. Defective or non-recoverable components can be scrapped. Disassemble
type production orders are used to capture the costs incurred and a single-step disassembly transaction, which can
be processed by using the Disassembly (AM301500) form, used to record the inventory issue, scrap, and component
returns to stock.
Features
The following features are provided:
• Generates an issue transaction for the item being disassembled and a receipt for the components salvaged.
• Allows for scrap of disassembled component materials.
• Create a new disassemble production order based on disassemble order type.
• Create a disassembly transaction directly on the Disassembly (AM301500) form (and select a disassembly
production order) or on the Production Order Maintenance (AM201500) form.
• The source for materials to be returned by the disassemble process can be a bill of material or copied from
another production order.
• Disassembly entry allows for batch correction (reverse previous disassembly entry).
• By-products not supported for disassemble orders.
• Allows actual labor entry.
• Copies predefined attributes from the order type, bill of material, and source production orders to the
disassemble orders.
• Allow for entry of attribute values for disassembly transactions.
• Allows for override of the unit cost of materials returned to stock.
Processing Disassemble Production Orders

Although production orders are used for disassembly the processing steps have been simplified.
• A disassembly transaction is performed in a single step. The item to disassembly is issued from inventory
and the salvaged components received into inventory.
• The Release Materials and Generate Orders for Subassemblies commands cannot be used for
disassemble production orders.
• The disassembly transaction will generate Inventory Issues and Receipt for the Disassembly transaction and
Inventory Adjustments for correction transactions.
• Disassemble production orders can be selected only on the Disassembly (AM301500) form. (On this form,
only disassemble orders can be selected).
• Move and material transactions are not required and the forms do not allow the selection of disassemble
production orders.
• Configuration entry performed on the Configuration Entry (AM306000) form cannot be run for disassembly
production orders. However, you can disassemble a configured item by using the production order that
made it as the source.
• Labor transactions do allow selection of disassembly order types, but restrict entry to any quantity related
fields. Disassembly orders do not require operations. Unlike Move/Labor transactions which are operation
specific, the disassembly entry does not provide an entry for operation number for the production item.
• Disassemble orders use the same production order status codes as regular orders.
Configuration Requirements
The disassembly process is the part of production management. Before you can use the process the you must
create a production order type with the Disassemble function on the Production Order Types (AM201100) form.
• The order type can use a different numbering sequence and GL accounts.
• Define the following on the Production Preferences (AM102000) form:
• The Disassembly Numbering Sequence for the disassembly transactions.
• The optional Default Disassembly Order Type.
You may want to create a separate bill of material for disassembly production orders otherwise
you may be adding additional costs for operations marked for backflush. Alternatively, remove the
unnecessary operations, clear backflush, and/or set their run and machine times to zero.
Accounting
The costing method for disassemble production order is Actual. Any difference between the value of inventory
issued and returned or scrap is booked to WIP Variance account when the production order is closed. When
releasing the disassembly transaction the following accounting entries are generated:
• Credit Inventory and debit Work in Process account for the cost of the item being disassembled.
• Debit Inventory and credit Work in Process for the component returned to stock.
• Credit Work in Process and debit the scrap expense account for components scrapped.
• Credit Work in Process and debit the inventory account for components scrapped.
• Debit Work in Process and credit the expense accounts for labor, overhead, tools, and/machines.
Rework/Repair Orders
A rework or repair order can be used to issue an existing item from inventory, do something to it, and return it to
stock with the same or different inventory id. There are a number of reasons why this may be necessary:
• The item is an old revision and needs to be upgraded.
• A component from a supplier was found to be defective and needs to be replaced.
• It was returned by a customer or someone else and needs to be inspected and repaired if necessary.
• It can be converted into a different item that someone wants.
• You want to disassemble it for it's parts and dispose it.
Create a Repair/Rework Bill of Material

If you frequently do repair work for your customers you might create a repair bill of material for the stock item. You
would list the operations to be performed and if required, any materials always used in the process. By having a
special bill of material you can also add notes, attach procedures, or add attributes to the bill that will be copied
to the production order based on the production order type settings specified on the Production Order Types
(AM201100) form.
Create a Production Order Type

On the Production Order Types (AM201100) form, you create an order type for repair and rework orders to help
identify them and to use different settings, such as:
• Numbering Sequence
• WIP and WIP Variance Accounts (only if Posting Class is not used)
• Default Costing Method
• Copy Notes Settings
• Data Entry Settings
Create the Production Order

To start you need to create a production order for the item you plan to receive into inventory. If the item has a bill of
material you can decide if you want to use an existing bill, either the default or a special repair bill, to start and then
amend it as necessary by using the Production Order Details (AM209000) form. You delete unneeded operations with
their materials; change, delete, or add materials; modify overhead and/or tools as required. Be sure to review the
backflush check boxes for an operation or material and clear them when necessary.
Alternatively, you can remove the BOM ID on the References tab of the Production Order Maintenance (AM201500)
form. If you do this, you will need to create at least one operation in order to report the quantity completed and
issue materials. The first material to add is the inventory item to issue to the production order which can be the
same as the item being reworked.
If known if advance, you can add other materials to the details or simply issue them as needed during the rework
process; there is no restriction on materials being issued that are not in the production details. If some materials
are recoverable and are known in advance, make the quantity required a negative and a receipt will be created to
return the item to inventory when you use the Materials Wizard (opened from the Materials (AM300000) form) to
create a materials batch.
Whether or not you use an existing bill of material or manually enter the production details you will
need to add the item being issued from inventory for repair and this can be the same item you will
return to stock or dispose. Although you cannot specify an inventory item as a component of itself
in a bill of material because it would cause a circular reference in MRP Regeneration or the Cost Roll
process, you can do this for a production order.
If you are using posting classes defined on the Posting Classes (IN206000) form to specify default WIP and WIP
Variance accounts, you can override these settings on the References tab of the Production Order Maintenance
form.
Returning Materials to Stock

If there are components that are removed and can be used elsewhere or need to be returned to vendor, you can
enter a negative quantity on the Materials (AM300000) form. The cost of an item returned to stock is dependent on
the Default Returns Cost settings for warehouses. If the materials need further processing (inspection, disposal,
repair, return to vendor, etc.), you should indicate a warehouse bin location that is not included in the quantity
available calculations and excluded from MRP.
The cost of materials returned to stock will credit the work in process account specified on the production order
and debit the inventory account associated with each inventory item.
Returning Materials to Vendors

Aer returning the item to stock, you use the Purchase Receipts (PO302000) form to create a vendor return.
For more information about vendor returns, see Purchase Returns at the Original Cost: General Information and
Purchase Returns at the Calculated Cost: General Information.
Posting the Completion or Disposal

If the repairs were successful, then you can receive the unit to stock by creating a move or labor transaction. If the
unit is lot- or serial-tracked you can use the same lot or serial number or the new one, that is, you can add a suffix to
indicate it has been repaired.
If the repairs were not completely successful, then you can enter the scrap quantity on the Move or Labor
transaction to complete the production order. Using this method can leave a balance for the WIP amount on the
production order. Alternatively, you could receive the item into a disposal location and use an Inventory Issue with
an appropriate reason code to charge the costs to whatever account you desire.
Closing the Production Order

The final step is to close production orders by using the Close Production Orders (AM506000) form to zero out any
WIP balance and to post those costs to the WIP Variance account. You can update the production order to change
the WIP Variance account before closing the order.
Reversal of Production Receipts
When a production order receipt is incorrect you can adjust production order and the inventory on hand balance
by creating and releasing a negative move transaction on the Move (AM302000) form. This also applies to labor
transactions on the Labor (AM301000) form when a quantity completed is reported. The receipt transaction cost
have been incorrect for a number reasons:
• The quantity may have been wrong.
• The lot or serial numbers were incorrect.
• The receipt cost was wrong because transactions were not reported. This is particularly important when you
are using Actual Costing.
Creating the Move or Labor Batch

You can directly enter the transaction or paste the original batch into the form. In either case the quantity to be
reversed is entered as a negative. The following must be observed:
1. You cannot reverse more than you have completed on the last operation.
2. If you are reversing labor also, you cannot reverse more than the actual hours reported.
3. You cannot drive the on hand balance of the warehouse location negative if the Allow Negative Inventory
check box is cleared on the Item Classes (IN201000) form.
4. If the inventory item is lot controlled, you must select an existing lot and the quantity cannot exceed the on
hand balance. For multiple lots, you must enter each lot on a separate line.
5. If the inventory item is serialized, you must enter each serial number on a separate line.
6. If the inventory item has a FIFO valuation method, you must select the receipt number to adjust and the
quantity cannot exceed the receipt quantity. If more than one receipt number, each receipt must be on a
separate line.
These business rules are validated and enforced by the inventory adjustment on the Adjustments (IN303000) form.
Transaction Processing Details

If the transaction is valid, then:
• The Inventory Adjustment batch is released and updates the on hand balance and unit cost.
• The production order Quantity Completed and Quantity Remaining are adjusted
• The production order total for MFG to Inventory is reduced by the extended cost.
• The production order total for WIP Total is increased by the extended cost.
• A cost batch is created to credit WIP and debit the labor (when the backflush is checked), overhead,
machine, and tool costs.
Materials batches created by the initial transaction because of backflushing will not be reversed.
Period Closing Tasks
There is no closing procedure for production management itself but because of its integration with inventory
and general ledger functional areas there are processes that should be completed before closing the integrated
modules.
Release Production Transaction Batches

There could be transactions that have been entered but not released. Their status can be Balanced or Hold.
• To process balanced batches
• The Release AM Documents (AM503000) form lists all of the transaction batches that have a status of
Balanced. You can open the batch from this form to review the data and release the batch from the form
or just select the batches to process.
• To find batches on hold, do the following:
• Use the Production Batch Register (AM622000) report and add the AMBatch.Status = On Hold
filter on the Additional Filtering Conditions tab.
If you are looking for all unreleased transactions, you can add a second line to the report
filter Or AMBatchStatus = Balanced.
• Use the Transactions By Production Order (AM000011) report to find the all of the unreleased batches.
Close Production Orders

Closing completed production order zeros out the WIP balance and generates a WIP adjustment transaction on the
WIP Adjustment (AM308000) form. The Close Production Orders (AM506000) form lists the production orders that
have been completed. Any order with a significant WIP Balance should be reviewed to determine if transactions
were not posted or there have been data entry errors. A production order cannot be closed if it is in an unreleased
transaction batch. Even if a production order has a status of Completed, additional transactions may be entered to
correct the actuals.
Transactions posted to production orders aer they have been completed do not update the cost
statistics for the item produced. If the received costs must be updated you may be able to reverse the
move or labor transaction, post the missing transactions, and do the move labor transactions if the
item produced still has a sufficient hand balance.
Material Requirements Planning | 156
Material Requirements Planning

Balancing supply and demand is critical to any manufacturing organization. Material requirements planning in
Acumatica ERP Manufacturing Edition provides powerful planning tools that help your organization to satisfy
customer requirements while maintaining optimal inventory levels.
In this chapter, you will find details about material requirements planning.
Material Requirements Planning: General Information
Material requirements planning (MRP) helps your organization to balance item quantities on demand and supply
documents by managing production based on data analysis. Acumatica ERP Manufacturing Edition provides you
with the tools to maintain the data underlying MRP, run MRP, and analyze the results. This topic describes the
material requirements planning process and the related processes.
For details about configuring MRP, see MRP Configuration: General Information.
The MRP functionality is available only when the Material Requirements Planning feature is enabled on the Enable/
Disable Features (CS100000) form.
Learning Objectives
In this chapter, you will learn how to run material requirements planning, analyze its results, and create production
orders, purchase orders, and transfer orders based on the results.
You perform material requirements planning when you would like to plan production based on demand and supply
data.
Performing of Material Requirements Planning

Generally, it is recommended that you run MRP before each business day, aer all of the previous day's sales
and purchase orders have been entered and its transactions affecting inventory have been posted. Because
this is a very resource-dependent process, it should be run in a time frame that does not conflict with database
maintenance processes.
You do the following to perform material requirements planning:
1. Process and release all documents and transactions that affect inventory, such as sales invoices, purchase
receipts, and production orders.
2. Run MRP regeneration by using the Regenerate MRP (AM505000) form. (We recommend that you schedule
the running of MRP. For details, see MRP Configuration: General Information.)
3. Review exception messages by using the MRP Exceptions (AM403000) form.
4. Correct the planned dates of documents, if needed.
5. Review the results of MRP regeneration by using the MRP Display (AM400000) form.
6. Create the required documents (such as production orders, purchase orders, or transfer orders) by using the
same form.
Workflow of Material Requirements Planning

The typical process of material requirements planning involves the actions and documents shown in the following
diagram.
MRP Exception Analysis

Exception messages provide the reason for the exception according to MRP settings or suggest actions that
you should take to balance supply and demand. You can view the exception messages on the MRP Exceptions
(AM403000) form aer MRP has been regenerated. The types of exception messages that the system displays on this
form are the following:
• Defer: You can defer the supply document (which can be a production order, a purchase order, or a transfer
order) to a later date because the order date is outside the period specified in the Days Before box but still
within the period specified in the Grace Period box on the MRP Preferences (AM100000) form.
• Delete: You can delete the supply document; the document date does not fall within the grace period
specified on the MRP Preferences form, so the order is not needed.
• Expedite: You should expedite the supply document so that it meets the ship dates because the document
date is within the period specified in the Grace Period box but outside the period specified in the Days Aer
box on the MRP Preferences form.
• Order on Hold: You may want to consider the supply document that is on hold to be a supply document.
• Late Order: You may want to exclude this document from the potential supply because the document date is
outside of the grace period defined on the MRP Preferences form.
• Transfer Available: You can create a transfer order to move the items required for shipping from another
warehouse. This exception message is displayed when the needed item quantity is unavailable in the
warehouse that is specified in the demand document but is available in that warehouse and only for past
due demand documents.
• Order Without Sched. Shipment Date: You may want to consider the blanket sales order to be a supply
document even though the scheduled shipment date is unspecified either in any line of the order or in any
line detail (if details have been added to any order lines).
• Transfer without Repl. Warehouse: You need to specify a warehouse in the Replenishment Warehouse
box on the Replenishment tab of the Item Warehouse Details (IN204500) form for the item and source
warehouse combination if you want to create a transfer order for the item.
• Circular Transfer: You need to change the transfer settings for the item on the Item Warehouse Details form so
that one or more warehouses do not make a closed loop for transferring the item.
Creation of Documents Suggested by MRP

When MRP is regenerated (manually or automatically), the system creates a list of potential supply orders to meet
the demand, or planned orders, which you then can convert to supply documents—that is, purchase, production,
or transfer orders. Planned orders are temporary documents; the system deletes the planned orders once you
convert them to supply documents. You can view the list of planned orders and create the supply documents by
using the MRP Display (AM400000) form.
You can create any type of supply document regardless of the source (Purchase or Manufacturing) specified for the
planned order. That is, you can create a purchase order or transfer order for an item with a source of Manufacturing.
Material Requirements Planning: Process Details
When material requirements planning (MRP) is performed, the system analyzes particular data based on MRP
settings and existing open documents that may influence the planning. In this topic, you will find information
about how MRP works in Acumatica ERP Manufacturing Edition.
Data Used in MRP

During MRP, the system analyzes supply and demand documents. Demand documents are documents that
generate demand for items and cause items to be issued from one of the company's warehouses. The demand
document may be a sales order, a forecast, or a production order for materials included in an item to be produced.
Supply documents are documents that supply items required in production and cause receiving items in one of
the company's warehouses. The supply document may be a purchase order or a production order for an item to be
produced.
The system also considers the other data stored in the system that may affect item availability. The extended list of
documents and data used in MRP is the following:
• Forecasts
• Sales orders that are not processed until completion, including open transfer orders and blanket sales
orders
• Shipments with not issued items
• Inventory on hand
• MPS orders
• Production orders that are not processed till completion
• Purchase orders that are not processed till completion
You manage the set of entities included in planing at the warehouse level. For details, see MRP Configuration:
General Information.
Components Used for MRP

During material requirements planning, the system analyzes which components of items to be produced will be
needed and suggests creating purchase orders if it discovers any shortage. The system determines the needed
components as follows:
• For production orders, the material details with a quantity remaining are always used.
• For planned orders, the most recent active revision of the bill of material, whose identifier is specified in the
Planning BOM ID box on the Manufacturing tab of the Stock Items (IN202500) is used. If this box is empty,
the bill of material specified in the Default BOM ID box on the same tab is used.
• For master production schedule (MPS) orders, the bill of material specified in the order is used.
Additionally, the system uses the effective start date and effective end date specified for each material line in the
bill of material to determine if a component is effective at the time when planned orders are generated.
The system selects the active bill of material based on the effective dates of the BOM revision. For example, if a
revision exists for a future start date, it will be used for planned orders with a start date on or aer this date.
Order of Creating Planning Orders

During MRP, the system analyzes the hierarchy of items based on the bills of material assigned to items and starts
creating planning orders from the top-level items. It generates low-level codes for each item and component.
The top-level items, such as items to be produced, are assigned the zero code. Then the system analyzes the
components of the top-level items and assigns them the 1 code. If any of the components is a subassembly, which
also should be produced, the system then analyzes its components and assigns them the 2 code. This procedure is
repeated until the lowest level of components is reached.
Dates on Supply and Demand Orders Used in MRP

The system uses the following dates specified in supply and demand documents during MRP:
• Sales orders and transfer orders: The Ship On date in each document line on the Sales Orders (SO301000)
• Purchase orders: The Promised date in each document line on the Purchase Orders (PO301000)
• Production orders: The Start Date of each operation on the Production Order Details (AM209000) form
• MPS orders: The Start Date of each operation on the MPS Listing (AM000004) form
Consolidation of Demand Documents

If the Use Days of Supply to Consolidate Orders check box is selected in the Consolidation section of the MRP
Preferences (AM100000) form, the system consolidates items with the same ID from multiple demand documents
into a single planned order during MRP. (For more information, see MRP Configuration: System Settings.) The
system uses the earliest requested date from the demand documents of the group as the action date of the
planned order.
Material Requirements Planning: Forecasts and Master Production Schedule
Forecasts and the master production schedule (MPS) provide data for material requirements planning (MRP). In this
topic, you will find details about forecasts and the MPS in Acumatica ERP Manufacturing Edition.
Master Production Schedule

A master production schedule (MPS) is a plan for the production of finished goods in the nearest period of time
(such as a week or a month). In the schedule, you specify which items must be produced and when they should
be produced. A master production schedule should take into consideration forecasts, sales order backlog, desired
inventory levels, storage constraints, and production resources. MPS orders may depend on open production
orders. In this case, the system reduces the quantity of the MPS order by the quantity of the item in the open
production orders. To make the MPS orders dependent on production orders, you select the Dependent check box
for the needed MPS type on the MPS Type (AM203000) form.
You create MPS orders manually by using the Master Production Schedule (AM201000) form.
Forecasts
A forecast predicts future demand (that is, sales orders that will be placed by customers) based on historical data.
Forecast may depend on seasonality.
You can generate forecasts automatically by using the Generate Forecast (AM502000) form or create a forecast
manually by using the Forecast (AM202000) form. Forecasts may depend on the sales orders created in the system;
that is, the quantity of items in the sales orders will reduce the forecast quantity. For dependent forecasts, you
select the check box in the Dependent column on the Forecast form. For example, suppose that the forecast is an
item quantity of 200 for September 1 to September 30, and sales orders with promise dates between September 1
and September 30 have a total open quantity of 150. Then the remaining forecast of 50 is used by MRP.
If you specify a particular customer on a forecast, this forecast will be used by only sales orders for that customer.
We do not recommend mixing both customer specific and non-specific forecasts for an inventory item because
the both forecasts will be applied to sales orders for that customer. You could, however, extend the non-specific
forecast to include the customer-specific forecast.
Material Requirements Planning: Planning Transfers in MRP
In your production environment, items may be stored in multiple warehouses, such as when items are produced
in one warehouse but stored and shipped in another warehouse. In this case, you may want the system to
create planned orders for the transfer of items during material requirements planning (MRP). In Acumatica ERP
Manufacturing Edition, the system creates planned orders for available item transfers during MRP if proper settings
have been specified, as described in MRP Configuration: General Information.
In the following sections, you will read about planned orders for transfers that the system creates during MRP.
Planned Orders for Transfers

The system generates a planned transfer order for an item during MRP when both of the following are true:
• The available item quantity in the warehouse specified in a demand document is insufficient to meet the
demand
• The item can be transferred from a different (transfer) warehouse according to the item settings. That is,
Transfer is specified in the Replenishment Source box of the Replenishment tab on the Item Warehouse
Details (IN204500) form for the combination of the item and the transfer warehouse
For a planned transfer order, the system creates the following records on the MRP Display (AM400000) form:
• The demand document (such as a sales order) that contains the item. This record has the Transfer source
and the transfer warehouse specified.
• The planned transfer order itself. This record has the Planned Transfer Demand type.
Suppose that your organization assembles juicers and has warehouses in New York, Ohio, and New Jersey. In
the New York warehouse, which is a sales center, juicers are shipped to customers. In the Ohio warehouse, which
is a production center, the juicers are assembled and stored. When the juicers are out of stock in the New York
warehouse, they are produced in the Ohio warehouse and transferred from this warehouse. In the New Jersey
warehouse, the purchased materials for the juicers are received from vendors and stored. If any materials are out of
stock in the Ohio warehouse, they are transferred from the New Jersey warehouse.
Further suppose that in Acumatica ERP Manufacturing Edition, on the Item Warehouse Details form, the
replenishment source of the juicers in the New York warehouse has been set as Transfer, and the Ohio warehouse
has been specified as the replenishment warehouse. Also, the replenishment source for materials in the Ohio
warehouse has been set as Transfer, and the New Jersey warehouse has been specified as the replenishment
warehouse. Material requirements planning is automatically run every night, and a planning engineer analyzes
demand and supply for juicers based on the MRP results.
Now suppose that one of your customers would like to buy 10 juicers for its new restaurants. A sales manager
has created a sales order for the juicers. Further suppose that you have three juicers in the New York warehouse
and five juicers in the Ohio warehouse. To meet the customer's demand, you need to produce two juicers, but the
materials are out of stock in the Ohio warehouse and must be transferred from the New Jersey warehouse.
When the planning engineer analyzes the MRP results, the engineer sees the following supply records related to the
sales order:
• A planned production order to produce two juicers in the Ohio warehouse
• A planned transfer order to transfer materials for two juicers from the New Jersey warehouse to the Ohio
warehouse
• A planned transfer order to transfer seven juicers from the Ohio warehouse to the New York warehouse
Calculation of an Action Date for Planned Transfer Orders

If the transfer lead time between the warehouse selected in a demand document and the transfer warehouse
has been specified during the system configuration, then the system subtracts the transfer lead time from the
requested date in the demand document when calculating the action date for the planned transfer order. For
example, suppose that transferring of items between warehouses takes two days. If a sales order has a requested
date of January 30, then the action date for the planned transfer order is January 28.
You can specify the transfer lead time between warehouses on the Manufacturing tab of the
Warehouses (IN204000) form. You can also override this time on the Manufacturing tab of the Item
Warehouse Details (IN204500) form for a particular item.
Creation of a Transfer Order Based on Planned Orders

If you decide to transfer items according to the suggested documents resulting from the MRP process, on the MRP
Display (AM400000) form, you select the needed records in the table and click Transfer on the form toolbar. The
system creates a transfer order on the Sales Orders (SO301000) form with a number of lines on the Details tab that
is equal to the number of the selected records and a Ship On date for each line that is the same as the action date
of each planned transfer order that you selected.
You can create a transfer order for a planned record of any type.
Material Requirements Planning: Implementation Checklist
The following sections provide details that you can use to ensure that the system is configured properly for material
requirements planning, and to understand (and change, if needed) the settings that affect the processing workflow.
We recommend that before you initially perform material requirements planning, you make sure the needed
features have been enabled, settings have been specified, and entities have been created, as summarized in
the following checklist. You can perform a sample configuration of MRP, as described in MRP Configuration:
Implementation Activity.
Enable/Disable Features (CS100000) The Material Requirements Planning feature has been
enabled.
Numbering Sequences (CS201010) The numbering sequences for planning orders, MPS
orders, and forecast have been created.
We recommend that you create a sepa-

rate numbering sequence for planning
orders to distinguish these orders from
regular production orders in the system.
Production Order Types (AM201100) At least one production order type with the Planning
function has been created.
Work Calendar (CS209000) Work calendars that will be used in MRP have been
created.
MPS Type (AM203000) At least one MPS type has been created.
MRP Preferences (AM100000) The system settings that affect the MRP process have
been specified.
MRP Buckets (AM201200) The MRP buckets have been created.
Warehouses (IN204000) The needed settings for the warehouse and warehouse
locations involved in MRP have been specified.
Stock Items (IN202500) For items that should be included in MRP and are
stored in only one warehouse, MRP and replenishment
settings have been specified.
Item Warehouse Details (IN204500) For items that are stored in multiple warehouses, MRP
and replenishment settings for warehouse-stock item
pairs have been specified.
Other Settings That Affect the Processing

You can affect the material requirements processing by specifying additional settings on the MRP Preferences
(AM100000) form as follows:
• To include sales orders, purchase orders, and production orders that have the On Hold status in material
requirements processing, select the Include On Hold Sales Orders, Include On Hold Purchase Orders, and
Include On Hold Production Orders check boxes in the General section.
• To make the system calculate lead times for a planned order based on the run units and run times specified
for each operation of a bill of material on the Bill of Material (AM208000) form, you select the Use Fixed
Manufacturing Times check box in the General section.
• You may want the system to consolidate items with the same ID from multiple demand documents into
a single planned order during MRP. To do this, you select the Use Days of Supply to Consolidate Orders
check box in the Consolidation section.
• You may want the system to consolidate items with the same ID from multiple demand documents with
deferred due dates into a single planned order. To do this, you select the Use Long-Term Consolidation
Bucket check box in the Consolidation section. Then you specify the following settings:
• Consolidate Aer (Days): The delay period aer which the system starts consolidating items in demand
documents
• Bucket (Days): The number of days within which the due dates in the demand documents must fall
To make sure that all configuration has been performed correctly, we recommend that in your system, you run
material requirements planning by performing instructions similar to those described in Material Requirements
Planning: Process Activity.
Material Requirements Planning: Process Activity
The following activity will walk you through the process of running material requirements planning (MRP).
Story
Suppose that GoodFood One Restaurant ordered five citrus juicers from SweetLife Fruits & Jams. The company
does not have the juicers in stock, so the juicers must be assembled to satisfy the customer's order. The company
also does not have the components required for the juicer assembly in stock, so the components must be ordered
from the Jalooza Inc. vendor. The default lead time of the vendor is seven days.
Acting as the sales manager, you need to create the sales order with the juicers and then create a production order
to request the production of the juicers. Acting as the planning manager, you need to run material requirements
planning, analyze the results, and take the required actions to cause the juicers to be produced and shipped to the
customer by the requested date.
• On the Customers (AR303000) form, the GOODFOOD customer has been created.
• On the Vendors (AP303000) form, the JALOOZA vendor has been configured.
SPLGUARD stock items have been predefined.
• On the Production Order Types (AM201100) form, the PL production order type for planning production
orders has been created.
• On the MRP Preferences (AM100000) form, PL has been specified as the default order type for planning
production orders.
• On the Production Order Types (AM201100) form, you have created the PL production order type for planning
production orders.
• On the MRP Preferences (AM100000) form, you have specified PL as the default order type for planning
production orders.
Process Overview
In this activity, to perform material requirements planning and process the results, you will do the following:
1. On the Sales Orders (SO301000) form, you will create a sales order with a citrus juicer to generate demand
for MRP analysis.
2. On the same form, you will create a production order linked to the sales order to generate the supply that
will satisfy the customer's order.
3. On the Regenerate MRP (AM505000) form, you will run material requirements planning, and then on the
MRP Exceptions (AM403000) form, you will view the list of exception messages.
4. On the MRP Display (AM40000) form, you will view the list of actions the system has suggested as a result of
material requirements planning and create a purchase order for the materials required to produce the citrus
juicers.
5. On the Regenerate MRP form, you will rerun material requirements planning, and on the MRP Exceptions
form, you will view the changes in the list of exception messages.
6. On the Sales Orders form, you will change the requested date for the juicers to be shipped to the customer;
on the Purchase Orders (PO301000) form, you will change the promise date to an earlier date to meet the
date the customer wanted the juicers to be shipped; on the Production Order Maintenance (AM201500) form,
you will change the production end date (at which the juicers will be ready for shipping).
7. On the Regenerate MRP form, you will rerun material requirements planning, and on the MRP Exceptions
form, you will make sure that no exception messages are listed.
System Preparation
Do the following:
System Preparation
Do the following:
b. Production Order Types: To Create a Planning Production Order Type so that a production order type for
planning orders has been created in this company.
2. Launch the Acumatica ERP website, and sign in to a company with the U100 dataset preloaded. You should
sign in as the sales and planning manager by using the peters username and the 123 password.
Step 1: Creating a Sales Order

To create a sales order for the GoodFood One Restaurant customer with five citrus juicers, do the following:
1. On the Sales Orders (SO301000) form, add a new record.
• Customer: GOODFOOD
• Requested On: Today's date plus 1 day
• Description: Sale of 5 citrus juicers to GoodFood One Restaurant

3. On the Details tab, add a new row and specify the following settings in the row:
• Quantity: 5
• Unit Price: 2000
Step 2: Creating a Production Order

To create a production order from the sales order, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu (under
Manufacturing), click Create Production Orders.
2. In the Production Orders dialog box, which opens, select the unlabeled check box in the only row, and click
Create. The system creates the production order and closes the dialog box.
3. In the Production Nbr. column of the Details tab for the only line, make sure that the system has added the
reference number of the production order.
4. In the column, click the link to open the production order on the Production Order Maintenance (AM201500)
form.
5. In the End Date box of the General tab, make sure that the today's date plus 6 days is specified.
Step 3: Running MRP and Viewing Exception Messages

To run material requirements planning and view exception messages, do the following:
1. Open the Regenerate MRP (AM505000) form.
2. On the form toolbar, click Process. Wait till the log records appear in the table.
3. Open the MRP Exceptions (AM403000) form.
4. Make sure that no exception messages are displayed in the table.
Step 4: Creating a Purchase Order

To create a purchase order for the components, do the following:
1. Open the MRP Display (AM40000) form.
2. Make sure that the table contains five rows of the Production Material type (see the following screenshot).
These rows correspond to the components required for the juicer assembly. In the Source column, notice
that Purchase is specified, which is the replenishment source for the items.
Figure: The MRP Display form
3. Select the unlabeled check box in each of the five rows.

4. On the form toolbar, click Purchase to create a purchase order for the components.
5. In the Create Purchase Order dialog box, which opens, make sure that in the Vendor box, the JALOOZA
vendor is selected, and in the table, all five components are listed.
6. Click Create. The system creates the purchase order and shows its type and reference number in the
Purchase Order Created dialog box, which opens.
8. Open the created purchase order on the Purchase Orders (PO301000) form.
9. Make sure that the Promised On box contains the date that is the today's date plus 7 days, which is the
default lead time of the JALOOZA vendor. This purchase order does not satisfy the demand of the sales order
because the components will be delivered later than the customer expected to receive the juicers.
Step 5: Rerunning MRP and Viewing Exception Messages

You will view how the list of MRP exception messages has changed because of the creation of the purchase order.
Do the following:
2. On the form toolbar, click Process and wait till the system completes processing.
4. Make sure that the Expedite messages for the component lines from the purchase order have appeared
in the list. This means that to satisfy the demand, you need to negotiate an earlier delivery date with the
vendor or a later shipping date with the customer (or both).
Step 6: Changing the Dates in the Documents

Suppose that you have negotiated with the vendor an earlier delivery date of 4 days aer the today's date for the
juicer components. Do the following to change the date in the purchase order:
1. On the Purchase Orders (PO301000) form, open the purchase order that you created earlier in this activity.
2. In the Promised On box of the Summary area, change the value to the today's date plus 4 days.
3. In the dialog box with the warning message that appears, click Yes.
Step 7: Rerunning MRP and Viewing Exceptions

You will rerun MRP and make sure that all exception messages have been processed. Do the following:
2. On the form toolbar, click Process and wait till the system completes processing.
4. Make sure that no exception messages are displayed in the list.
You have successfully processed all the exception messages.
Material Requirements Planning: Related Report and Inquiry Forms
information about material requirements planning.
Printing the List of Suggested Documents for Planning

To prepare a printable list of planned orders the system creates when you regenerate MRP, you can use the MRP
Display (AM632000) report. You can also view the list of these documents on the MRP Display (AM400000) form.
Viewing Documents that Include a Particular Stock Item

To view the list of supply and demand documents that include a specific stock item in a specific warehouse, you
can use the Detail Inquiry (AM404000) form. On this form, the system displays only the documents that have been
created during the last MRP regeneration process.
Viewing the List of MPS Orders

To view the list of orders generated by the master production schedule (MPS) for all stock items of for a particular
item-warehouse pair, you can use the MPS Listing (AM000004) form.
Viewing Generated Forecasts

To view the forecasts generated by using the Generate Forecast (AM502000) form for all stock items or a particular
item-warehouse pair, you can use the Forecast Listing (AM000005) form.
Viewing MRP Regeneration Results for Stock Items by Period

To view the results of MRP regeneration for a specific item-warehouse pair grouped by periods (or buckets), you can
use the MRP Requirements by Item (AM402000) form.
Material Requirements Planning: MRP Processor
Step Description
Initialization The first step the FRG performs is an Initialization phase. Certain variables are initialized.
A connection is made to the database. Parameters are read from the MRP Preferences
(AM100000) form.
Set Low Level Codes The next step is to set the low-level codes of all the inventory items. Due to this MRP
processes the highest level items that may generate demand for the lower items.
First Pass First Pass is the information-gathering phase. The MRP Processor will go out and bring to-
gether all the various supplies and demands for inventory.
First Pass first gathers current inventory values, what the current quantity on hand is.
The safety stock is removed from this value; MRP treats safety stock as if those quantities
were not available.
First Pass then determines where it will get future supplies. This may be Finished Good
Items on Open Production Orders or it may Open Purchase Orders. It will then look at de-
mands from Sales Orders, Shippers, and Material Requirements on Purchase Orders.
First Pass will process the Master Planning Schedule (MPS). It first updates the MPS infor-
mation. Those MPS records that fall outside of the MPS Time Fence are marked as inac-
tive. In addition, existing Production Orders may consume the MPS. The Production Or-
der can consume the MPS even though that Production Order is completed and closed. A
Production Order will consume the MPS based on the scheduled End Date of the Produc-
tion Order.
Forecasts Forecasts are processed when each level is processed. Therefore, if the forecast is depen-
dent, all requirements may consume the forecast. This allows the user to not only fore-
cast at the sales order level, but also forecast at lower levels.
Adjust Quantities The next step is to reconcile existing supplies with existing demands at each level. If we
have a sales order for 100 units and a production order that is making 100 units in time,
then MRP does not have to plan anything for that sales order.
The key to this routine is that to remember MRP is extremely date sensitive. In oth-
er words, in the above example, if that production order was not going to make those
units for another 60 days then MRP does need to plan something else for that sales or-
der so that it ships in time. MRP uses the Grace Period value on the MRP Preferences
(AM100000) form to determine if that supply can be used for the current demand.
Step Description
Blowdown Once all the existing data is reconciled, the blowdown routine will now plan MRP orders.
This routine is looking at all demand items that are not being supplied in time for the lev-
el being processed. These are being planned out. If a Reorder Qty. is set for an Inventory
Item, MRP will plan its orders in multiples of that reorder quantity. If the item is a manu-
factured item, MRP will explode through its bill of material and create more requirements
for its materials that will be processed at a lower level.
The key to this phase is to plan accurate action dates. The system will calculate cumula-
tive lead times so that if a sales order needs to ship on March 22nd, that means the pro-
duction order must be created on March 10th. This also means that the purchase order
for the raw material that we do not have needs to be placed by March 5th. During this
phase, MRP is writing all of its requirements to the MRP details table. The details are re-
viewed by using the MRP Display (AM400000) and MRP Exceptions (AM403000) forms.
Completion Finally, once all of the requirements are planned, all the data is brought together into the
MRP plan table. This table is used so you can view all of the requirements for an item us-
ing the Detail Inquiry (AM404000) form.
Material Requirements Planning: MRP Procedures
In this topic, you will find descriptions of the typical procedures required for material requirements planning.
Daily Procedures
Most businesses will need to perform the MRP regeneration on a daily basis. The frequency in which the process
is run is dependent on the transactions processed each day. MRP looks at all open demand and supply and needs
to have the most accurate and up to date information in order to produce accurate recommendations on what to
make or buy. Procedures that must be performed on the daily basis are listed in the following table.
Procedure Form Description
Process and release all dis- • Sales invoices

tribution and manufacturing • Purchase receipts
transactions
• Inventory transactions
• Manufacturing transactions
Update promise dates Having unrealistic promise dates impacts the

planned order recommendations.
• Sales orders
• Production orders
• Purchase orders
Run MRP regeneration Regenerate MRP (AM505000) This process should be run before the next
business day in most cases. It can be run at
any time, but typically it is scheduled to be run
at a fixed time before each business day.
Review exception messages MRP Exceptions (AM403000) Exception messages are generated for exist-
ing supply each time the MRP regeneration
process is run. They need to be attended to
particularly when they suggest an expedite.
• Expedite
• Late
• Cancel
• On Hold
• Transfer
• Defer
Review MRP display MRP Display (AM400000) The MRP display lists the recommended sup-
ply orders to create.
Periodic Procedures
Procedures listed in the following table need to be reviewed on a regular basis.
Review forecasts Forecast Listing (AM000005) Is the forecast still reasonable compared to
the actual sales? You can use the Generate
Forecast (AM502000) form to use sales history
to suggest a new forecast.
Review MPS orders MPS Listing (AM000004) Has the production plan changed?
Review replenishment para- Calculate Replenishment Para- You need to review the following:
meters meters (IN508500)
• Safety stock or reorder point
• Lot sizes
Other Manufacturing Functionality | 172
Other Manufacturing Functionality

In this chapter, you will find information about such functionality of Acumatica ERP Manufacturing Edition as
backflushing, outside processing, and recording of by-products and scrap.
Using Attributes in Manufacturing
Attributes created on the Attributes (CS205000) form are used for multiple purposes in Acumatica ERP. In many
cases they eliminate for customizing forms and when attached to a record, for example, a stock item record, they
are automatically available for use in inquiries. You can use attributes in manufacturing forms as well.
Using Attributes in Bills of Material and Production Orders

Attributes can be attached to bills of material header and/or operations and are copied onto the production order
when the order is created. Attributes can be specified for each production order type on the Production Order
Types (AM201100) form. Attributes can also be added to a production order manually by using the Production Order
Maintenance (AM201500) form.
Attributes created at the BOM level become order level attributes for the production order. If an order level
attribute is enabled for data entry it is available when reporting all operations of the production order. For
example, you could create a required attribute for a quality control check for all operations or to record a process
value.
A user can enter attribute values for a production order and operation when creating a labor transaction on
the Labor (AM301000) form or a move transaction on the Move (AM302000) form. If an attribute is marked as
Transaction Required, it must be entered. The attribute values entered in these transaction are specific to the
transaction.
Using Attributes in Product Configurator

Attributes have the following purposes in the product configurator:
• They can be used to collect data used in formulas to calculate the quantity required for an option. For
example, calculating the quantity required based on an attribute value for length.
• They can be used to capture a value used in production. For example, the text for printing or engraving on a
custom piece.
• They can be used to with rules to include or exclude features and options.
Attributes and their values used on the Configuration Entry (AM306000) form are copied to the production order
created as view only.
Manufacturing Data Collection
Production transactions may be entered using hand held devices supporting the Acumatica mobile app similar
to transactions for sale orders, purchasing, and inventory. The Data Entry rules specified for the production order
types on the Production Order Types (AM201100) form are enforced.
Transactions Supported
The following transactions are available:
• Scan materials on the Scan Materials (AM300030) form
• Scan moves on the Scan Move (AM302010) form

• Scan labor on the Scan Labor (AM302020) form
Setup and Configuration

The Manufacturing Data Collection feature is optional and must be enabled on the Enable/Disable Features
(CS100000) form.
You configure the default options for this feature on the Production Preferences (AM102000) form.
The User Settings on each transaction manage settings specific for the current working mode.
In addition, production employees can clock on and off production orders using the mobile version of the Clock
Entry (AM102000) form without having the Manufacturing Data Collection feature enabled.
Importing Master Data into Manufacturing
You can import master data related to manufacturing by using import scenarios on the Import by Scenario
(SM206036) form. In this topic, you will find information that will help you to import data. Also, you will find the
Excel spreadsheets that you can use during import.
The format of all time values (Setup, Run, Machine, and Move) is specified in the Operation Time
Format box on the BOM Preferences form. Times are now entered or displayed as in days, hours, and
minutes. Regardless of the format, you can enter the time as 0000 for HHMM or 000000 for DDHHMM.
Time values are actually stored as minutes in the tables. For importing, enter the time as HHMM; e,g.
0010 for 10 minutes, 0130 for 1 hour 30 minutes, 011013 for 1 day, 10 hours, 13 minutes.
General Information
Almost all of the master data is related to bills of material functionality consisting of the bills of material for each
assembly and their supporting data such as work centers, tools, machines, and overhead. For details, see Importing
Bills of Material Master Data.
Data providers and import scenarios are provided for each of the following; the provider and scenario have the
same name and all use Excel as the provider type. The sample Excel files are provided at the end of this topic. You
should import your data in the same order as in the following table.
Master Data Form Provider / Import Scenario
Machines (AM204500) Import Machines
Tools (AM205500) Import Tools
Work Centers (AM207000) Import Work Centers
Bill of Material (AM208000) Import BOM
Additionally, you must specify BOM preferences on the BOM Preferences (AM101000) form and enter the following
required data first in order to import work centers.
Required Data
The following data is required even if you do not intend to include labor and indirect costs for your bills of material
and to post them to production orders:
• Work Calendar (CS209000): Defines the hours available per day and is used to calculate both fixed and
variable lead times in MRP and Production Management. You enter the calendar to use for shis of a work
center, for fixed lead times in Production Preferences, and for purchasing in MRP Preferences.
• Shifts (AM205000): Machines are used to factor labor rates.
• Labor Codes (AM206500): Define the GL accounts and subaccounts for direct and indirect labor expense.
Data providers and import scenarios are not supplied for Shis, Labor Codes, or Overhead since most users will have
only a few of each. If you need to create one, then enter one of each type on the appropriate form and export the
data to Excel. You then can use that spreadsheet to create the data provider and import scenario since it will have
all of the columns available and the correct values for drop-down lists and check boxes. In Acumatica ERP, you
enter the drop-down list caption and not codes and either True (selected) or False (cleared) for check boxes. Your
reseller can assist you in creating data providers and import scenarios.
Optional Data
The following data are completely optional:
• Tools (AM205500): Can be entered as an additional cost element in a bill of material
• Machines (AM204500): Can be entered as an additional cost element for work centers
• Overhead (AM202500): Can be entered as an additional cost element for both work centers and bills of
material.
Once you have entered the required and optional data the next step is to create or import your work centers. In bills
of material, components, as wells as tools, are tied to operations and operations require a work center.
Importing Machines, Tools, or Work Centers

The import scenarios for the following entities will default values for required form elements not supplied or le
blank in the spreadsheet. To override the default value, specify a value in the spreadsheet.
Form Element Value
Machines > Active True
Machines > Down False
Machines > Efficiency 1.00 (100%)
Tools > Active True
Tools > Unit Cost 0 (zero)
Tools > Total Cost 0 (zero)
Work Center > Active True
Work Center > Outside Processing False
Work Center > Backflush Matls False

Form Element Value
Work Center > Backflush Labor False
Sample Excel Files

Machines
Tools
Work Centers
Bills of Material - Operations and Materials
Importing Bills of Material Master Data
In this topic, you will read about importing master data related to bills of material.
Importing Bills of Material

Steps, Tools, Reference Designators, and Overhead data are not included in the Import BOM provider or scenario but
can be added if desired.
The keys to the bill of master data are BOMID and RevisionID and both are required. Additionally, the
Hold column should be specified as either True or False.
BOM ID
BOM ID is up to 15 alphanumeric characters in length and its length is defined on the Numbering Sequences
(CS201010 form. You can use manual or automatic numbering. For the automatic numbering you can use an
alphabetic prefix; that is, to use a start number like BOM00000. If you have an external PDM or drawing system, you
might want to synchronize the data between the external system and Acumatica ERP by using the same identity
scheme. Keep in mind however that the BOM ID must be unique; that is, the same BOM ID cannot be used for
another inventory id or warehouse.
Note the following:

• If you use automatic numbering for the BOM ID, then rerunning the import for the same data
will create another bill of material with a different BOM ID. For this reason, we recommend that
you select the Manual Numbering check box for the initial load. Generate in your spreadsheet
a BOM ID conforming to the numbering sequence you plan to use and aer your final import
you can set the Last Number to the appropriate value. The values in the BOM ID and Revision
columns should be the same for each line associated with a particular bill or material.
• This import scenario cannot be used to update existing bills of material so if a bill of material
was imported incorrectly then you should delete it by using the Bill of Material (AM208000)
form. On the Import by Scenario (SM206036) form, use the TOGGLE ACTIVATION and TOGGLE
PROCESSING buttons to clear the Active and Processed check boxes respectively for all rows
and then find the lines that need to be imported and select the Active check box for all of lines
of a bill of material.
Effective Start Date

The effective start date of a new bill of material is the system date and cannot be overridden on the form but it can
be included in the import data. The import mapping defaults the element to the current Acumatica ERP business
date using the @Today parameter because all key fields must be specified on an import scenario.
Inventory Subitems
By default, the subitem elements are inactive in the both the data provider and import scenario. If you are using
subitems, then select the Active boxes in both the provider and import scenario. The following elements are
related to subitems:
• Subitem: The subitem ID for the assembly in the BOM Summary area
• Matl Subitem: The subitem for the material on the Materials area.
Required Fields
In the following table, you can find the fields that must be filled on import.
Target Object Filed / Action Name
BOM Summary BOM ID
BOM Summary Inventory ID
BOM Summary Subitem (only if enabled)
BOM Summary Warehouse
Operations Open Nbr
Operations Work Center
Operations Operation Description
You can clear the Active check box for

this field in the import scenario to copy it
from the work center
Operations Backflush Labor (Default to Flash if null)

Materials Inventory Id
If there are no materials for an operation,

all materials columns need to be blank in
the row.
Target Object Filed / Action Name
Materials Subitem (only if enabled)
Materials UOM

this field in the import scenario to copy
it from the base UOM of the stock or non-
stocki tem.
Materials Backflush (True or False)

Additional Fields
For these fields you can only leave blank if you make them inactive in the import scenario and they will be
defaulted.
Target Object Field / Action Name Default
Operations Setup Time 0 (zero)
Operations Run Units 0 (zero)
Operations Run Time 01:00 (1 hour)
Operations Machine Units 0 (zero)
Operations Machine Time 01:00 (1 hour)
Operation Queue Time 0 (zero)
Materials Qty Required 1
Integration with Projects
The following features are only available when the Projects feature is enabled on the Enable/Disable Features
(CS100000) form and PROD is selected in the Visibility Settings section on the Projects Preferences (PM101000)
form.
• Includes project/task fields on production orders and estimates.
• Projects are updated by production transactions when the production order work in process or an inventory
item has an account group used by the Project module and the Production Order has the Update Project box
checked.
• Production orders can be created from a project task on the Projects (PM301000) form when the project is
active and the task status is In Planning or Active.
• Both the project and task must have a status of Active to process production transactions.
• Option on production order to reference a project, but not update it.
• Production orders created for a sales order copy the project references.
• Projects may be updated from labor transactions if the production order references a project and update
project is checked. The process or creating labor time activities performed on the Create Labor Time
Activities (AM513000) is used to create the employee time activities transactions.
For examples of integrating production management with projects, you can download the Project Integration
Examples file.
Project Form Changes

The PROD check box has been added to the Visibility Settings section on the Projects Preferences (PM101000).
You have the flexibility to decide if specific projects and tasks are visible for production orders and estimates. The
following project management forms have enhancements to support the production order integration.
• Projects Preferences
• Project Templates (PM208000)
• Project Template Tasks (PM208010)
• Projects (PM301000)
• Project Tasks (PM302000)
For more information, you can download the Project Visibility Enhancements file.
Additional Changes
• The production order selector used by multiple forms includes columns for project, task, and cost .
• The following forms similarly have been enhanced to show project, task, and cost code:
• Close Production Orders (AM506000)
• Production Summary (AM000006)
• Release Production Orders (AM500000)
Hints
The work in process asset account associated with each production order collects all of the manufacturing
expenses (materials, labor, overhead, scrap, etc.). The work in process and inventory asset accounts are the only
accounts that are posted with project transactions. Expense transactions (labor, overhead, scrap, etc.) do not post
to projects. It is strongly recommended to create a work in process account(s) to be only used for production orders
in order to facilitate reconciliation with the GL.
• You should not purchase items you intend to issue to production orders that reference a project and the
Update Project check box on the production order is selected otherwise you would charge the project
twice.
• For the above reason, purchase orders created on the Critical Materials (AM401000) form do not reference
the project from the production order. Projects are updated when the materials are issued to the production
order and the Update Project check box for the production order is selected.
• Inventory items can be issued or received to any valid warehouse location; that is, transactions do not
require project-specific warehouse locations.
• Estimates do not create accounting transactions and therefore do not update projects.
• Project references on estimates do not update the corresponding project references on opportunities or
sales orders.
• If you have both project and non-project production orders it may make sense to create separate
order types on the Production Order Types (AM201100) form to ensure the correct settings for account
numbers and costing methods. If you do this, you could also clear the default order type on the Production
Preferences (AM102000) form to force the users to choose the correct order type.
Using Manufacturing Data in Inquiries and Reports
This is not a complete list of all of the Data Access Classes (DAC) used by the Manufacturing forms for Acumatica
ERP. All DAC and the underlying database tables start with AM; for example JAMS.AM.AMBatch is the DAC and
AMBatch is the table.
All columns added to Acumatica ERP forms as a customization are stored in extension tables. The name of an
extension table is <base table>AMExtension; such as InventoryItemAMExtension. Each added
column has AM as the prefix, such as AMBOMID. For example, if you wanted to get a list of the bills of material by a
warehouse you would access the PX.Objects.IN.INItemSite DAC and use the AMBOMID column.
Production Transactions
The following tables contain all of the production transactions. You should always have the AMBatch table in
generic inquiries if you wish to open the original document. A batch consists only of transactions of the same
document type.
DAC Description Columns to Use for Joins
AMBatch Transaction Batch Header BatNbr, DocType
AMMTran Transaction Details BatNbr, DocType, LineNbr, OrderType,

ProdOrdId
AMMTranSplit Contains the lot or serial numbers issued BatNbr, DocType, LineNbr, SplitLineNbr
or received.
AMMTranAt- Attributes collected for transactions BatNbr, DocType, LineNbr, TranLineNbr,

tribute OrderType, ProdOrdId, OperNbr
Table: Document Type

The document type (DocType) and original document codes used are listed in the following table. For generic
inquires you can select the Schema check box and select the label.
Code Label
M Material: Inventory issue and return issue transactions. If the transaction was created by
a move to backflush materials the table has references to the original batch number and
document type.
O Move: Operation completions and receipts to inventory. A move will create inventory re-
ceipts and cost transactions when required.
L Labor: Operation completions, receipts to inventory, labor hours. A move will create in-
ventory receipts and cost transactions when required
C Cost: labor, overhead, machine, and tooling costs. Cost transactions create GL transac-
tions
Code Label
W WIP Adjustment: These are created when the production order WIP Totals are adjusted by
a reversal of a production receipt, a scrap write-off, or by cancelling or closing a produc-
tion order. A GL transaction is created by the adjustment.
D Disassembly: These are used for disassembly production orders to issue the item and ad-
just/receive the components.
V Vendor Shipment: This is only used as the original document type for materials transac-
tions created by a vendor shipment.
Table: Transaction Types

Transactions types listed in the following table can be used to further select the data in the AMTran or
AMTranSplit tables. For example, to create an inquiry or report of all scrap expenses you would select the WIP
Adjustment document type (W) and the transaction types of Scrap Quarantine (XSQ) and Scrap Write-Off (XSW).
TranType Description Used by DocType
ADJ Adjustment D, L, O
DSY Disassembly D
FGR Return FG L, O
III Issue M
OWC Oper. Mfg to Inventory C
RCP Receipt D, l, M
RET Return Matl M
XBL Backflush Labor C
XFO Fixed Overhead C
XIL Indirect Labor C
XLA Labor C
XMC Machine C
XSQ Scrap Quarantine W
XSW Scrap Write-Off W
XTL Tool C
XVO Variable Overhead C
XVV WIP Variance W
XXX WIP Adjustment W

Production Management
In the following table, you can find the key tables used for production orders.
AMOrderType Production Order Type OrderType
AMProdItem Production Order Header; contains the bal- OrderType, ProdOrdId, InventoryID
ance (WIPTotal), completed amounts (WIP-
Comp), and status (StatusID)
AMProdTotal Plan and Actual totals by cost element OrderType, ProdOrdId
Prior to Manufactuting Edition 2018R2 OperNbr was part of the key for the following columns.
AMProdOper Operations OrderType, ProdOrdId, OperNbr
AMProdMatl Materials for Operation OrderType, ProdOrdId, OperNbr, Invento-

ryID
AMProdAt- Attributes OrderType, ProdOrdId, AttributeId,

tribute (OperNbr)
AMProdOvhd Overhead OrderType, ProdOrdId, OperNbr, OvhdID
AMProdStep Steps OrderType, ProdOrdId, OperNbr, StepID
AMProdTool Tools OrderType, ProdOrdId, OperNbr, ToolID
For Manufacturing Edition 2018R2 and above OperNbr has been replaced with OperationID.
AMProdOper Operations OrderType, ProdOrdId, OperationID
AMProdMatl Materials for Operation OrderType, ProdOrdId, OperationID, Inven-

toryID
AMProdAt- Attributes OrderType, ProdOrdId, AttributeId, (Opera-

tribute tionID)
AMProdOvhd Overhead OrderType, ProdOrdId, OperationID,

OvhdID
AMProdStep Steps OrderType, ProdOrdId, OperationID,

StepID
AMProdTool Tools OrderType, ProdOrdId, OperationID, ToolID
For Manufacturing Edition 2019R2 the following tables have been added.
AMVendorShip- Vendor Shipment Header ShipmentNbr

ment
AMVendorShip- The address of the vendor location from AddressID

mentAddress the header ShipAdressID.
AMVendorShip- The vendor contact from the header Ship- ContactID

mentContact ContactID
AMVen- Vendor Shipment Lines ShipmentNbr, LineNbr

dorShipLine
AMVen- Lot/serials for shipment line. ShipmentNbr, LineNbr, SplitLineNbr

dorShipLineS-
plit
AMClockItem A single record for each production em- EmployeeID

ployee showing if they are clocked in and
what production order they are or were
working on.
AMClockTran Listing of all clocked out transactions EmployeeID
Production Configurator Master Files
AMFeature Feature header FeatureID
AMFeatureOp- Options for a Feature FeatureID, LineNbr, InventoryID

tion
AMFeatureAt- Attributes for a Feature FeatureID, LineNbr, AttributeID

tribute
AMConfigura- Configuration Definition ConfigurationID, Revision

tion
AMConfigura- Features for configuration ConfigurationID, Revision, LineNbr, Fea-

tionFeature tureID
AMConfigura- Options for a feature for a configuration ConfigurationID, Revision, ConfigFeatureLi-

tionOption neNbr, LineNbr, InventoryID, OperNbr
AMConfigura- Attributes for a configuration ConfigurationID, Revision, LineNbr, Attrib-

tionAttribute uteID
AMConfigura- Reserved for future use ConfigurationID, Revision, DefaultID

tionDefault
Product Configurator Results

AMConfigura- Configuration Results Header with refer- ConfigResultsId, ConfigurationID, Revision,
tionResults ences to the sales order line and produc- CustomerID, OrdTypeRef, OrdNbrRef, Ord-
tion order if applicable. LineRef , ProdOrderType, ProdOrdNBr
AMConfigRe- Features for a configuration result. ConfigResultsId, ConfigurationID, Revision,

sultsFeature FeatureLineNbr
AMConfigRe- Options selected for each feature for a con- ConfigResultsId, ConfigurationID, Revision,
sultsOption figuration result. FeatureLineNbr, InventoryID
AMConfigRe- Attributes and their values for a configura- ConfigResultsId, ConfigurationID, Revision,
sultsAttribute tion result. These are copied to the produc- LineNbr, AttributeLineNbr, AttributeID
tion order.
Using Configuration Results in a Report

For example, to produce a query of all sales order lines with a configured item you can use
AMConfigurationResults and link it to SOLine by using the following: OrdTypeRef = OrderType,
OrdNbrRef = OrderNbr, and OrdLineRef = LineNbr.
Getting a list of the options selected for a configuration result is a bit more complex. Link the data as follows:
• AMConfigResultsOption to AMConfigurationResults by using ConfigResultsId
• AMConfigResultsOption to AMConfigResultsFeature by using ConfigResultsId,
FeatureLineNbr. Use the Included flag to get only the options that were selected.
• AMConfigResultsFeature to AMConfigurationFeature by using
ConfigurationID, Revision, and AMConfigResultsFeature FeatureLineNbr =
AMConfigurationFeature.LineNbr to get the FeatureID
Joining Configuration Results to Sales and CRM Documents
For sales orders, you use the following:
• AMConfigurationResults to SOLine
• ordTypeRef to orderType
• ordNbrRef to orderNbr
• ordLineRef to LineNbr
For CRM opportunities or CRM quote, you use the following:
The products table is linked to the CRQuote by the QuoteID because the details are contained in
the opportunity.
• AMConfigurationResults to CROpportunityProducts
• OpportunityQuoteID to QuoteID
• OpportunityLineNbr to LineNbr
Bill of Material
In the following table, the primary tables for the bill of material master data are listed. The bill of material table
structure was redesigned in 2018R2 Manufacturing Edition.
Prior to Manufactuting Edition 2018R2 EffStartDate was part of the key for the following columns.
AMBomItem Bill of material header BOMID, EffStartDate, InventoryID
AMBomOper Operations BOMID, EffStartDate, OperNbr, WCID
AMBOMMatl Materials for an operation BOMID, EffStartDate, OperNbr InventoryID
AMBomOvhd Overheads for an operation BOMID, EffStartDate, OperNbr OvhdID
AMBomRef Reference Designators for a material of the BOMID, EffStartDate, OperNbr. MatlLineID
operations
AMBomStep Steps BOMID, EffStartDate, OperNbr
AMBomTool Tools for an operation BOMID, EffStartDate, OperNbr, ToolID
AMBomAttribute Attributes for a bill of material BOMID, AttributeID, (OperNbr)
For Manufacturing Edition 2018R2 and above RevisionID is now part of the key for the following columns.
OperNbr has been replaced with OperationID.
AMBomItem Bill of material header BOMID, RevisionID, InventoryID
AMBomOper Operations BOMID, RevisionID, OperationID, WCID
AMBOMMatl Materials for an operation BOMID, RevisionID, OperationID, Invento-

ryID
AMBomOvhd Overheads for an operation BOMID, RevisionID, OperationID, OvhdID
AMBomRef Reference Designators for a material of the BOMID, RevisionID, OperationID.

operations MatlLineID
AMBomStep Steps BOMID, RevisionID, OperationID
AMBomTool Tools for an operation BOMID, RevisionID, OperationID, ToolID
AMBomAttribute Attributes for a bill of material BOMID, RevisionID, (OperationID)
AMBOMCostHis- Bill of Material Cost Roll History BOMID, RevisionID, StartDate

tory
The following tables are not linked to the bill of material tables.
AMLaborCode Labor Codes LaborCodeID
AMMach Machines MachID
AMOverhead Overheads OvhdID
AMShift Shis for a work center WCID, ShiID

AMShiftMst Shi Master ShiID
AMToolMst Tool Master ToolID
AMWC Work Centers WCID
AMWCMach Machines for a work center WCID, MachID
AMWCOvhd Overheads for a work center WCID, OvhdID
Engineering Change Control

The Engineering Change Requests (ECR) and Engineering Change Orders (ECO) can be found in a single DAC
AMECOItem.
The pending bills of material are in the bill of material tables with the BOMID equal to the ECR or ECO number and
the RevisionID will be -ECR or -ECO.
Estimating | 186
Estimating
The estimating functionality of Acumatica ERP Manufacturing Edition provides users with the ability to create
quick and detailed manufacturing estimates with improved estimate accuracy and turnaround times. Users can
accurately calculate costs and prices for new or existing parts by using material costs, work center rates, overheads,
and other data. The part is integrated with customer management, sales orders, bill of material, and production
management.
This chapter contains all the information you need to configure and use estimations in Acumatica ERP.
Estimating: General Information
The estimating functionality of Acumatica ERP Manufacturing Edition provides the ability to create quick or
detailed manufacturing estimates for improved estimate accuracy and turnaround times. An estimate is for a
single inventory or non-inventory item. You build an estimate from bills of materials, production orders, or other
estimates to accurately calculate costs and prices for new or existing parts using material costs, work center rates,
overheads, and other cost data. Or you can start by entering just summary cost data and later on start adding the
details.
Estimating is designed to supplement and enhance the customer management processes from opportunity,
through quoting, to sales order. It also supplements engineering from design, through building a prototype, and
final conversion to a standard product with a bill of material.
The estimating functionality is available only when the Estimating feature in the Manufacturing group of features is
enabled on the Enable/Disable Features (CS100000) form.
Scenarios
1. A direct estimate, which is not linked to a quote, sales order, or opportunity
2. An estimate created from a quote or sales order
3. An estimate created from an opportunity
Features
• Estimate data is tracked through revisions.
• Estimate detail can be created by copying an existing estimate revision, bill of material, or production order.
• Estimates can be printed.
• Notes and files can be attached to an estimate.
• Estimates can be entered directly or created from an opportunity, quote, or sales order.
• Non-inventory items can be converted to stock or non-stock items.
• Margin or selling price can be altered in a convenient way.
• Various levels and combination of estimate details provides you with ability of quick or detailed entry.
• Estimates can be converted to standard sales order lines.
• A bill of material can be created from an estimate.
• A production order can be created from an estimate or sales order line converted from an estimate.
• Estimates are not multilevel; that is one estimate cannot be referenced by another estimate.
Estimating | 187
Cost Levels and Calculations

Estimate costs can be defined at the following levels: detail, operation, and estimate. The costs for an estimate
always update the parent level totals. This includes any changes on the estimate or the estimate operation pages.
The concept for calculating the cost types is the same as currently calculated for production planned costs on a
production order with an exception that labor is broken out into fixed and variable. The extended information
about the estimate cost levels is the following:
• Detail
• The lowest level of detail, which is represented by the Material, Tools, and Overhead tabs of the
Estimate Operation (AM304000) form.
• When you modify cost on these levels, the system will roll up these costs to the cost of the parent
operation.
• The detail level cannot exist without an operation level because details are linked to an operation.
• Operation
• The middle level of an estimate.
• All detail level costs roll up to the estimate level unless the Override check box is selected for a specific
cost type.
• When a cost type has the Override check box selected, any value can be entered. No updates will
automatically calculate the value that has been overridden.
• Operations define the labor and machine costs related to the run rates and work center/machine costs.
• The operation level cannot exist without an estimate level as operations are linked to an estimate.
• Estimate
• The summary and highest level of an estimate.
• All operation level costs roll up to the estimate level unless the Override check box is selected for a
specific cost type.
• When a cost type has the Override check box selected, any value can be entered. No updates will
automatically calculate the value that has been overridden.
The summarized order of calculating costs for estimates or estimate operations is the following:
1. For each operation, fixed labor, variable labor, machine, material, tools, and overhead are rolled up and
update the operation cost type field if not set to override.
2. Sum each operation cost type and update the estimate cost type fields if not set to override.
3. Sum all cost types to show total cost.
4. Divide total cost by order quantity to set the unit cost field
5. If unit price override is selected: calculate margin percent
6. If unit price override is cleared: calculate unit price
7. If the estimate is referenced on a sales order or opportunity and the estimate reference is not completed or
canceled, then the source order must also have its pricing recalculated using the reference graph.
Estimating: Implementation Checklist
The estimating functionality uses master data from the bills of material forms for estimating labor, overhead,
tooling, and machine costs. Therefore you need to define this elements and create the necessary work centers
before operation details.
Estimating | 188
Estimating Configuration Check List
No. Task Description
1 Enable the estimating feature On the Enable/Disable Features (CS100000) form, make sure
that the Estimating feature is enabled under the Manufac-
turing Suite group of features.
2 Create the required estimate classes Use the Estimate Classes (AM206000) form to define them.
You must specify a class when you build an estimate.
3 Define the numbering sequence for the Create a numbering sequence for estimate IDs on the Num-
estimation ID bering Sequences (CS201010) form and specify the se-
quence on the Estimate Preferences (AM103000) form.
4 Define work centers Use the Work Centers (AM207000) form to define the areas
where work will be performed. Normally these are areas
of a warehouse intended to be used in the production pro-
cessing such as assembly, cutting, painting, and testing.
These can also be used to track outside processing. These
track standard labor rates (optional), overheads (optional)
and machines (optional). You cannot add an estimate oper-
ation details on the Estimate Operation (AM304000) form un-
less you define a work center.
5 Complete the estimate setup Use the Estimate Preferences (AM103000) form. This must be
completed before you can use the estimating functionality.
6 Optionally create notification tem- Estimates use Employees (EP203000) records to indicate the
plates Owner and/or Engineer of an estimate. You can use busi-
ness events functionality to track changes of estimates. For
details, see Using Business Events.
7 Determine if estimates will be used on On the Customer Management Preferences (CR101000) form,
customer management forms select the Allow Estimating check box. For details on mod-
ification of the printing form for opportunity quotes, see Es-
timating: Modifying the Opportunity Quote Form to Include Es-
timates.
8 Determine if estimates will be used in On the Order Types (SO201000) form, select the Allow Esti-
sales orders mating check box. Typically, estimates are used for orders
with the Quote type because they may contain non-invento-
ry items. For details on modification of the printing form for
sales quotes, see Estimating: Modifying the Sales Quote to In-
clude Estimates.
Estimating: Implementation Activity
In the following implementation activity, you will learn how to configure estimating functionality.
Estimating | 189
Process Overview
In this activity, you will create an estimate class by using the Estimate Classes (AM206000) form. You will also
specify the default settings by using the Estimate Preferences (AM103000) form; the system will apply these settings
to new estimates.
System Preparation
Before you start configuring estimates, do the following:
1. Launch the Acumatica ERP website, and sign in to a company with the SalesDemo dataset preloaded. You
should sign in as the system administrator with the admin username and the password for this user valid for
your instance password.
2. Make sure that the Estimating feature in the Manufacturing group of features has been enabled on the
Step 1: Creating an Estimate Class

To create an estimate class that will provide default settings for new estimates, do the following:
1. Open the Estimate Classes (AM206000) form.
2. Specify the following settings:
• Class ID: DEFAULT
• Description: Default estimate class
• Item Class: MFGFG
• Tax Category: EXEMPT
• Engineer: Empty
• Lead Time (Days): 15
• Order Qty: 1
• Labor Markup Pct: 10
• Machine Markup Pct: 10
• Material Markup Pct: 20
• Tool Markup Pct: 20
• Overhead Markup Pct: 20
• Subcontract Markup Pct: 10
Step 2: Specifying the Default Estimate Settings

To specify default estimate settings, do the following:
1. Open the Estimate Preferences (AM103000) form.
2. Specify the following:
• Estimate Number Sequence: AMESTIMATE
• Default Revision: A
• Default Estimate Class: DEFAULT
• Default Work Center: WC10
• Default Prod. Order Type: RO
Estimating | 190
• New Revision Is Primary: Selected

• Update All Revisions: Selected
• Update Price Info: Selected
Estimating: Process Activity
The following activity will walk you through the estimating-related processes.
Process Overview
In this activity, to perform processes related to estimates, you will do the following:
1. On the Estimate (AM303000) form, create an estimate.
2. On the Estimate Operation (AM304000) form, specify operation details.
3. On the Create Inventory Items (AM507000) form, create stock items from non-inventory items.
4. On the Estimate form, create a bill of material based on the estimate.
5. On the same form, create a production order based on the estimate.
6. On the same form, create an estimate and replace its details with the details of another estimate.
System Preparation
Do the following:
1. As prerequisites to the current activity, perform the Estimating: Implementation Activity activity so that the
needed settings relates to estimates have been specified.
2. Launch the Acumatica ERP website, and sign in to the company in which the prerequisite activity has been
performed. You should sign in as the implementation consultant by using the admin username and the
password for this user valid for your instance.
4. Make sure that the Estimating feature in the Manufacturing group of features has been enabled on the
Step 1: Creating an Estimate

To create an estimate, do the following:
1. On the Estimate (AM303000) form, add a new record.
2. In the Summary area, specify the following:

• Revision: A (automatically specified)
• Inventory ID: NEWITEM (This item does not exist in the system.)
• Item Description: New Item
Estimating | 191
• Estimate Class: DEFAULT (automatically selected)

3. On the Totals tab, make sure that the following has been done:
• In the UOM box of the Order Qty section, EA has been selected.
• In the Markup section, the box values have been copied from the settings of the DEFAULT estimate
class.
4. On the Operations tab, do the following:
b. In the row, specify the following:
• Work Center: WC10 (automatically selected)
• Setup Time: 02:00
• Run Units: 15
• Run Time: 01:00
c. On the form toolbar, click Save.
Step 2: Specifying Operation Details

To specify operation details, do the following:
1. While you are still viewing the estimate on the Estimate (AM303000) form, in the Operation ID column
on the Operations tab, click the link with the 010 operation ID. The system opens the Estimate Operation
(AM304000) form for the operation in the new browser tab.
2. On the Material tab, click Add Row.
3. In the row, specify the following:
• Inventory ID: WIDGET01
• Qty. Required: 1 (automatically specified)
• Warehouse: RETAIL
4. On the same tab, click Add Row to add another material row.
• Inventory ID: NEWMTL (This ID does not exist in the system, so you need to type it in the box.)
• Description: New material
• Item Class: WIDGETS
• Qty. Required: 1 (automatically specified)
• UOM: EA
• Unit Cost: 70.00
• Backflush: Cleared
• Warehouse: RETAIL
• Non-Inventory: Selected
6. On the Overhead tab, click Add Row.
• Overhead ID: ADMIN
• Factor: 1
Estimating | 192
Step 3: Creating Stock Items for Non-Inventory Items

To create stock items for non-inventory items, do the following:
1. On the Estimate (AM303000) form, open the estimate you created earlier in this activity.
2. On the More menu (under Estimate Management), click Create Inventory Items. The system opens the
Create Inventory Items (AM507000) form in a new browser window.
3. In the Estimate ID box, make sure that the estimate you created earlier in this activity is specified.
4. In the Revision box, make sure that A is specified.
5. Make sure that two rows (for the new item and new material) are displayed in the table.
6. On the form toolbar, click Process All.
The system opens the Processing dialog box and creates stock items from non-inventory items.
7. Close the Processing dialog box.
Step 4: Creating a Bill of Material Based on an Estimate

To create a bill of material based on the estimate, do the following on the Estimate (AM303000) form:
1. Open the estimate you created earlier in this activity.
2. On the More menu, click Create BOM.
3. In the Create BOM dialog box, which opens, do the following:
a. In the Revision box, make sure that A is selected.
b. In the Warehouse box, select RETAIL.
c. Click Create. The system opens the Bill of Material (AM208000) form in a new browser window with the
new bill of material and the box values copied from the estimate.
d. On the form toolbar, click Save.
Step 5: Creating a Production Order Based on an Estimate

To create a production order based on the estimate, while you are still viewing the estimate on the Estimate
(AM303000) form, the do the following:
1. On the More menu, click Create Production Order.
2. In the Create Production Order dialog box, which opens, do the following:
a. In the Order Type box, make sure that RO is selected.
b. In the Warehouse box, select RETAIL.
c. In the Location box, make sure that STORAGE is specified.
d. Click Create. The system creates the production order and opens it on the Production Order Maintenance
(AM201500) form in a new browser window.
3. In the Source box of the References tab (the Source section), make sure that Estimate is specified. This
means that the production order has been created based on an estimate.
Estimating | 193
Step 6: Replacing Estimate Details with the Details of Another Estimate

To replace details of a new estimate by details of another estimate, do the following:
1. On the Estimate (AM303000) form, add a new record.
2. In the Revision box, make sure that A is specified.
3. In the Inventory ID box, select MGWIDGET.
5. On the More menu (under Estimate Management), click Create by Copying.
6. In the Copy From dialog box, which opens, do the following:
a. In the Copy From box, make sure that Estimate is selected.
b. In the Estimate ID box, select the estimate you created earlier in this activity.
c. In the Revision box, select A.
d. Select the Override Inventory ID box.
e. Click Copy. The system copies the settings of the specified estimate to the current estimate.
7. In the Inventory ID box, make sure that NEWITEM is selected.
Estimating: How to Use Estimates with Orders and Opportunities
This topic describes the processes and forms that provide you with the ability to use estimates with sales
orders and opportunities. When the Estimating feature is enabled on the Enable/Disable Features (CS100000)
form, elements that provide the ability to work with estimated become visible on the Sales Orders (SO301000),
Opportunities (CR304000), and Sales Quotes (CR304500) forms.
Sales orders are maintained by using the Sales Orders form and the order type determines the template used; for
example, a template can be a quote, sales order, or sales order with allocation. You must enable estimates for each
order type you wish to use by selecting the Allow Estimating check box on the General tab of the Order Types
(SO201000) form. Typically, you would only use estimates in quotes because you cannot ship an estimate; the
estimate item must be converted to a stock item first.
To make the estimates functionality available on the Opportunities and Sales Quotes forms, you select the Allow
Estimating check box on the General Settings tab of the Customer Management Preferences (CR101000) form.
Estimating: Modifying the Sales Quote to Include Estimates
The modified version of the Quote (SO641000) report that includes estimates is provided. The following are the
modifications made to the report by using Acumatica Report Designer:
• The SO6411AM.rpx subreport has been added, which contains the details of each line from the Estimates
tab of the Sales Orders (SO301000) form.
• The total extended price of the estimates has been added to the Totals area.
Because most clients modify the standard printable forms to suit their needs, the customized report is not installed
so as not to overwrite your modified report. You can choose to make the same or similar changes we made to
the printable form (which the report provides) to your own form or if you have not made changes yet, install the
customized version of the report and subreport and tailor them to your needs.
Estimating | 194
Report Files
The printable form for quotes consists of the main SO641000.rpx report and the SO6411AM.rpx subreport.
The modified version of the main report has the SO641000AM.rpx name and can be found in the site/
ReportsDefault folder along with the subreport.
You can download the main report and subreport by using the following links:
• Quote Form Main Report
• Quote Form Subreport
How to Modify a Custom Quote Report

You can download the following document for detailed instructions on how to add the estimate details subreport
and estimate totals to the main report by using Acumatica Report Designer: Adding a Subreport.
You can modify the SO6411AM.rpx subreport if required. The subreport can be opened from the server or from
the site/ReportsDefault folder.
How to Use the Modified Report

If you have not modified the Quote (SO641000) report and wish to use the modified version as is or as the starting
point for your changes, then you can copy the main report to the server or the site/ReportsCustomized
folder. You can modify the report by using Acumatica Report Designer in one of the following ways:
• If you have access to the server file system, you copy the SO6410AM.rpx file from the site/
ReportsDefault folder to the site/ReportsCustomized and rename it to SO641000.rpx.
• If you do not have access to the server file system, you do either of the following:
• Open the SO6410AM.rpx file from the server and save it to the server as SO641000.rpx; we strongly
recommend you save it as a new version.
• Download the SO64100AM.rpx file from this topic.
Report Sample
You can download the following sample of the printable form: Sample Sales Quote with Estimate lines.
Estimating: Modifying the Opportunity Quote Form to Include Estimates
A modified version of the Sales Quote (CR604500) report that includes estimates is provided. The following are the
modifications made to the report by using Acumatica Report Designer:
• The CR6045AM.rpx subreport has been added, which contains the details of each line from the Estimates
tab of the Sales Quotes (CR304500) form.
• The total extended price of estimates has been added to the Totals area.
Because most clients modify the standard printable forms to suit their needs, the customized report is not installed
so as not to overwrite your modified report. You can choose to make the same or similar changes we made to the
printable form to your own report or if you have not made changes yet, install the customized version of the report
and subreport and tailor them to your needs.
Estimating | 195
Report Files
The printable form of the sales quotes consists of the main CR604500.rpx report and the CR6045AM.rpx
subreport. The modified version of the main report has the CR6045AM.rpx and can be found in the site/
ReportsDefault folder along with the subreport.
You can download the copy of the main report by using the following link: Sales Quote Form.
How to Modify Your Custom Quote Report

You can download the following document for detailed instructions on how to add the estimate details subreport
and estimate totals to the main report by using Acumatica Report Designer:Adding a Subreport.
You can modify the SO6411AM.rpx subreport also if desired. The subreport can be opened from the server or
opened from the site/ReportsDefault folder.
How to Use the Modified Report

If you have not modified the Sales Quote (CR604500) report and wish to use the modified version as is or
as the starting point for your changes, then you can copy the main report to the server or to the site/
ReportsCustomized folder and modify the report by using Acumatica Report Designer. You can make the
report copy in either of the following ways:
• Open the CR6045AM.rpx file from the server and rename it to CR604500.rpx; we strongly recommend
you save it as a new version.
• Download the CR604500.rpx file from this topic.
Product Configurator | 196
Product Configurator
The product configurator part of Acumatica ERP Manufacturing Edition is a rules-based system that provides you
with the ability to configure and build custom products to order. This functionality is optional for the Manufacturing
Edition and is integrated with the bills of material and production management functionality.
The product configurator benefits your organization in the following ways:
• Provides the organization with the ability to respond to customer inquiries more quickly and accurately
• Gives users without deep product knowledge the ability to correctly configure and price products
• Eliminates the need to create stock items and bills of material for every variation of a product offering
• Reduces storage space because configured products are built or assembled to order
• Is fully integrated with the inventory and order management functionality of Acumatica ERP
• Provides the ability for products to be configured in opportunities and sales orders
In this chapter, you will read about using the product configurator in Acumatica ERP.
Product Configurator: General Information
The product configurator translates product knowledge into a set of rules to guide an end user through all of the
steps necessary to produce a valid product and its options. You can use the configurator in both sales orders and
production orders. A configure to order (CTO) item must be a stock item. The Configuration Maintenance (AM207500)
form is used to define configurations.
This functionality is available when the Product Configurator feature in the Manufacturing group of features is
Revision Control
Configuration definitions are stored as non-date driven configuration revisions. This provides you with the ability
to work on a new configuration definition for the same inventory item while the active revision is being used by end
users.
Features
Features are lists of options available for user selection. Labels are used to identity the feature. You can navigate
whatever way you select by using the Features pane on the Configuration Entry (AM306000) form.
A feature can specify the minimum and maximum options a user can select. Rules are used when an option
selected for a feature may restrict the options available for another feature. For example, selecting a fabric option
may restrict the options available to select for the color feature. Features can also be hidden when user selection is
not required, for example once the options for the color and fabric features are selected, the inventory item to use
is determined in a hidden feature.
Options
Options can be either a list of selections, stock items, or non-stock items. An inventory item associated with an
option becomes a material component of the configuration. You can use subassemblies as options and mark an
item as phantom; the subassembly, and optionally its routing, is exploded during production order creation and
added to the list of components.
In the following diagram, you can see the relationships between options and features.
Figure: Relationships between features and options
Attributes
You can add attributes to features and configurations. Attributes can be used for multiple purposes, such as the
following:
• They can be used as lists of available values in a configuration or a user can enter attribute values manually.
Rules can use attribute values to determine allowed options.
• They can be assigned variables and used in formulas such as a width dimension and a height dimension
used to calculate the area of material required.
• They can be used to gather information used in the manufacturing or assembly process, for example, switch
settings or dimensions.
• You enter a formula in the list of attributes that you wish to display during configuration entry and forbid
manual typing of values.
Configuration Rules
Configuration rules apply to and drive both quantity (that is, dimensions) and features (that is, options). Rules are
used to present the user with option choices based on other options they have selected. For example, the options
for fabric change based on the color option selection. Option selection can be enforced by minimum and maximum
criteria for the number of options a user can select. Rules can specify minimum quantity, maximum quantity, or lot
sizes.
Rules can also be used with attributes to include or exclude features or options.
Rules are optional; a feature might just require a user to select from a list such as storage or memory options.
Formula Support
Dimensions are handled by using formulas for designated fields, such as computing the square meters of fabric
required based on the entered linear dimensions. Formulas can be expressed for any numeric field including
quantities and attributes.
Configuration Keys
A configuration key identifies what values out of a configuration define its uniqueness compared to other
completed configurations of the same configuration ID. A key value is an output of a completed configuration entry
which can be preselected before entering a configuration to bring up the same configuration completed in the past
using the same key. The key can be a numbering sequence unique to each configuration result or a formula using
attribute values.
Additionally, formulas may be used to create a key description and a transaction description.
Completion
A configuration is completed when all required features have been selected and all rules are validated and the user
indicates that they are finished. This provides the user with the ability to save a configuration in progress without
having to abandon data entry.
Output
The output of a configuration consists of the selected features and quantities, attributes and values, and configured
item price. The options are combined with the template bill of material of the CTO item to build the production
order details.
Product Configurator: Processes and Functions
In this topic, you will read about processes related to product configuration.
Defining a Configured Item

Each item to be configured must be setup as a configured item, source of manufacturing, contain a bill of material,
and have an active revision configuration definition. You set up these values as follows:
1. On the Bill of Material (AM208000) form, you create an active bill of material (BOM) for an item–warehouse
pair. This bill of material will be used as a template to add materials to each of the operations.
2. On the Configuration Maintenance (AM207500) form, you create a configuration with an active revision for the
stock item and BOM.
3. On the Item Warehouse Details (IN204500) form, you do the following:
• In the Inventory ID box, you select the stock item.
• In the Warehouse box, you select the warehouse.
• On the Replenishment tab, you make sure that Manufacturing is selected in the Replenishment Source
box.
• In the Default BOM ID box on the Manufacturing tab, you select the BOM linked to configuration
definition.
• In the Configuration ID box on the same tab, you select the configuration to be assigned for the item.
If the record for the needed item–warehouse pair does not exist, you specify the default BOM
ID and the configuration ID in the same boxes of the Manufacturing tab on the Stock Items
(IN202500) form.
Labels
You can create labels to make selections more user-friendly. The concept of labels is similar to an ID and CD
configuration in the Acumatica ERP database, such as Inventory ID and Inventory CD: Inventory ID
is the database key but the Inventory CD can be changed. This concept provides you with the ability to select
rules, attributes, and other parameters based on the label value (visible string label) but the stored value in the
database is the ID-like value (non-visible integer value). Due to this you can rename the label while keeping the
related data connected without needing to update all necessary tables.
Formulas
To support dimensional configurations of certain fields by using the Configuration Maintenance (AM207500) form,
you can enter formulas. The formula concept is the same as used in Acumatica Report Designer and general
inquiries. The configuration maintenance provides you with the ability to enter a fixed value or a formula value to
be calculated during configuration entry on the Configuration Entry (AM306000) form. The calculation of formulas
in configuration entry is constantly updated when rules are processed and values are changed. Formulas are
only visible on the Configuration Maintenance form and never displayed on the Configuration Entry form. On
the Configuration Entry form, boxes that contain formulas will always contain a value as a result of the formula
execution. The Formula Editor Dialog Box is used for building formulas. Aer entering a formula, you should click
Validate in the editor.
Rules Processing
Rules are controlled by three types: Exclude, Include, and Require. When rules are processed you only see the
available remaining options. You can select attributes, features, and options in any order. For example, one
user might select color as an important choice and select it first. Another user might select the fabric first as the
importance. For additional information, see Product Configurator: Rule Processing.
Supplemental Items
Supplemental items are supporting option items selected during configuration entry and indicated as a
supplemental item in the configuration definition. When supplemental items are selected and the configuration
entry is complete the options will be added to a quote or sales order as a new line item. The concept is a supporting
item that is shipped and sold separately from the configured item. These line items cannot be edited by the user
in the quote or sales order. Supplemental item price and cost does not get rolled into the configured item. For
additional information, see Product Configurator: Supplemental Items.
Configuration Keys
The concept for configuration keys is to define a completed configuration entry with a selectable value for future
configuration. It also supports the selections of subitems when the subitem feature is enabled. Configuration keys
are generated at the completion of a configuration and recalculated if adjustments to a configuration entry are
made. Completions of configuration entries are made when the user clicks the finish button. A user can select a
configuration key before starting a new configuration entry to preload the selections or attributes used from the
last completed configuration entry with the same configuration key. Only those features and options not selected
to Results Copy will not be included in the preloaded configuration.
Pricing
The standard Acumatica ERP pricing logic is used for the parent item, including items in parent bill of material, and
the options selected. For more information, see Sales Prices: General Information.
Cost
Factors that impact costing are the same as those used for calculation the cost of produced items. Cost factors are
labor, machine, material, tools, and overhead and are not individual, configurable components. These cost factors
are attached to the BOM as fixed entries. The only configurable cost factor is material which may vary depending on
the configuration results through selected options and multilevel configurations. Cost is determined only when a
production order is created.
For more information about costs, see Production Cost Drivers: General Information.
Production Order Details

When a production order is created for a configured item, the Production Order Details (AM209000) form displays
the operations defined in the bill of material of the configured item. The operations may have materials, steps,
overhead, and tools predefined. The materials selected by a configuration are attached to their defined operations.
Product Configurator: Rule Processing
This topic describes rules that can be used with configurations.
Types of Rules
You can create rules of the following types: Exclude, Include, and Require. When rules are processed, you can only
see the available remaining options. Selection of attributes, features, and options can go in any order. For example,
one user might choose color as their first choice. Another user might select the fabric as their first choice.
Rules are triggered by the source feature, any option or a specific option being selected, or the conditional value of
an attribute. Then rule type determines what action to take against the target feature and its options as follows:
• Exclude: All of the options or specific options of a feature cannot be selected. The options are not displayed
unless the user chooses to see them.
• Include: All of the options or specific options of a feature are automatically selected.
• Require: An option selection must be made for the target feature.
• Validate: The attribute value must meet a condition. This type is available only for attributes.
Rule Examples
Example 1: Excluding an Option Based on Another Option
• Feature A has Options A1, A2, and A3
• Feature B has Options B1 and B2. Option B2 must be unavailable for selection when Option A1 is selected.
The rule for Feature A to exclude Option B2 for Feature B is displayed in the following table.
Rule Source Target Feature Target Option

Exclude A1 Feature B B2
Because you can select features in any order, you need to have a rule for Feature B also to exclude Option A1 if
Option B2 is selected, as shown in the following table.
You can use this rule with the same feature, for example, to make Option A2 unavailable when Option
A1 is selected.

Exclude B2 Feature A A1
You can use Include instead of Exclude when an option is to be automatically selected based on the
selection of another option.
Using ANY and ALL

<ANY> is used for the Source feature when any option selection will trigger the rule. <ALL> is used to include or
exclude all Target feature options.
For example, suppose that any option selected for Feature A must exclude Feature B Option B2, as shown in the
following table.

Exclude <ANY> Feature B B2
Further suppose that if Option A1 of Feature A is selected, then all options for Feature B must be excluded and
Feature B must be unavailable for selection. The following table displays this rule.

Exclude A1 Feature B <ALL>
In the example above, if the source were <ANY>, then Feature A and Feature B would be mutually exclusive. If
the rule was of the Include type, then all options of Feature B would be added when Option A1 of Feature A was
selected.
Including an Option Based on an Attribute Value

When you define attributes on the Attributes (CS205000) form, you can enter a list of valid values for attributes with
the Combo and Multi Select Combo control types. You can also use attribute values specified in the Value ID column
in rules.
For example, suppose that you have an attribute with the list of colors (see the following table).
Value ID Description
R Rudy Red
B Baby Blue
G Lime Green
Based on the color selection, you want to include Option B2 of Feature B when the red color (Value ID = R) is
selected. The rule will be the following.
Rule Condition Value 1 Target Feature Target Option

Include Equals ='R' Feature B B2
Attribute values are text fields so they need to be in single quotes to validate by using the Equal operation or
converted to decimals to validate by using the Between, Greater, or Less operations.
Validating an Attribute Value
You may need to validate an attribute value. Since attributes are text fields, you need to convert them to decimals
in the Value boxes by using the CDec(x) conversion function. The Target Feature and Target Option boxes are
unavailable for rules of the Validate type.
For example, suppose that a user must enter a value between 1 and 5; such as 1, 1.5, 4.33, 5. The rule is the
following.
Rule Condition Value 1 Value 2 Target Feature Target Option

Validate Is Between CDec(1) CDec(5) N/A N/A
Rule Concepts
• Rules are triggered by option selection or attribute value changing:
• Rules for features can be triggered by a single option or any option being selected.
• Source and Target feature can be same.
• Rules for attributes can be triggered by the conditional value of the attribute.
• Rules for features and attributes can target a single option or all options.
• Features and their options can be selected in any order. When defining a configuration you need to account
for the dependency of options; that is, if B2 is excluded when A1 is selected, then A1 is excluded when B2 is
selected.
• Deleting options will revert all rules previously applied during that deleted options selection.
• If the option was included from another rules, the parent rule or rules will also need to be reverted.
• These are most likely include options. The parent and child rules of the include option being deleted
will all be reverted as this implementation considers the Include rule type to be treated like an include
required rule.
• When rules are triggered, the processing of each should be included in a recordable action to allow undo of
parent and child processed rules. For example:
• User selects Option 1 of Feature 1 which has a rule that includes Option 3 of Feature 2.
• User selects Option 5 of Feature 6 which also has a rule that includes Option 3 of Feature 2.
• If the user removes Option 3 of Feature 2 from being selected Option 1 of Feature 1 and Option 5 of
Feature 6 are also reversed.
• If Option 3 of Feature 2 had child rules, they would also be removed.
• The rule trigger for features or options is the change in option selections. Selected or Included to apply rules
and Unselected or Excluded to reverse any previously applied rules.
• The trigger for attribute rules are the change in attribute values.
• Attribute rules are applied before option rules when configuration entry orders are started.
• Options with the Fixed check box selected cannot be excluded by any rule. A user could write rules that
would attempt to include, exclude, or require this type of option but all rules processing would ignore
application to the options with the Fixed check box selected.
Order of Rules
Rules are validated in the following order:
1. Selected or cleared option
2. Rule type: Exclude, Include, Require (in that order).
3. Source option with <ANY> being last
4. Sort order of applied feature
5. Applied option with <ALL> being last
6. Repeat step 1 for each sub rule that needs to be processed as a result of any include or exclude rule
previously executed.
7. Exclude rules will override include rules when multiple rules are executed against an option.
8. Include rules cannot override exclude rules when multiple rules are executed against an option.
9. Rules that exclude/include entire features also run each rule against each option if one exists:
• Example: Feature 1 was excluded by a rule on Option 2 in Feature 4. Option 1 within Feature 1 has a rule
to exclude an option from Feature 2 which needs to be executed when Feature 1 was excluded the same
was as if Feature 1 was specifically excluded.
10.Required rules that have an empty applied option (<ALL>) do not get applied to all options like Include or
Exclude rules do. Instead, the Required flag is set on the feature forcing a selection of any option while the
selection still fits within the selection/quantity requirements.
11.Attribute rules run as they are sorted in the rules grid.
12.Attribute rules only execute if the condition is true. If the condition was previously true and the user changes
a value or the overall condition from the result of a formula value is no longer true, all rules are reversed that
were previously applied from that rule.
13.Rules processing is chained to each feature/option rule executed from a previous rules execution:
• Example: Option 1 of Feature 1 has a rule that includes Option 3 of Feature 2. Option 3 also has an
exclude on Feature 4. When the rule for including Option 3 execute it also needs to run any rules attached
to it such as excluding all of Feature 4.
14.Options within a feature can only be selected once. If a user needs more than 1 of a specific option, the qty
required field is used to indicate the number of units required.
15.The Option selection panel is used to include the set of selections.
16.The status of attributes, features, and options are updated at the end of each rules processing.
17.Defaults are applied the first time the configuration entry order is started. The order of execution are
attribute defaults and any related rules then the order the options exist on the entry defaults page. Each
default processes the rules the same way if a user entered the option selections in that same order.
18.If an option was auto-included from the processing of a rule, the system should prevent a user from
removing it and should give a proper message indicating the source selected option.
19.If an option was added by a user, and a user selects an option which makes the previously selected option
now excluded, the user should see a message indicating if the selection should continue with the exclusion
or cancel the selection.
Product Configurator: Managing Configurations
This topic describes ways to manage configurations.

Managing Configurations and Revisions

Configuration definitions are linked to a single bill of material which in turn makes each definition specific to an
inventory item and warehouse. The following rules are applied to configuration definitions:
• You can have multiple bills of material for an inventory item and warehouse.
• You can have multiple configuration definitions for a bill of material.
• Only one configuration definition can be the default for a stock item and warehouse but you can change the
default to another active configuration definition.
A configuration definition revision can have the following statuses:
• Pending: This is the status for a new configuration. You can test the configuration but it cannot be used in
sales orders or production orders and it cannot be the default configuration for an inventory item. You can
only delete configuration definitions with this status.
• Active: This is the only status allowed for configuration entry and specified as a default.
• Inactive: This configuration definition cannot be used for new sales orders and production orders. However,
you can reconfigure existing orders that are using this configuration and revision.
There can be only one revision with the Active status, one revision with the Pending status, and multiple revisions
with the Inactive status. You change revision statuses as follows:
• Before creating a new revision, you must change the status of the current revision with the Pending status to
Active or Inactive.
• If you want to change the revision status to Active or Pending, you must first change the status of the current
revision with the Active or Pending status to Inactive.
The following table displays the possible status changes for revisions of a configuration definition.
Status From/To Pending Active Inactive
Pending N/A Allowed Allowed
Active Allowed N/A Allowed
Active with orders Not Allowed N/A Allowed
Inactive Allowed Allowed N/A
Fixing Incorrectly Configured Orders

Each configuration result has the configuration ID and revision level used, and although the configuration
definition may be inactive, you can reconfigure the order and that definition and revision will be used. On the
References tab of the Production Order Maintenance (AM201500) form, if the source of the item is a configuration,
you can view the configuration ID and revision. At this time, you can only delete and reenter the sales order line but
first delete the production order. For production orders, you can delete and recreate if no activity has occurred, or if
in process, correct the production details for any incorrect materials similar to adjusting the order because the bill
of material was incorrect.
Copying Sales Documents with Configured Items

Additional columns have been added to the Details tab of the Sales Orders (SO301000) form to display information
about configurable items. These include a column to identify if an item is configurable and if the configuration is
complete and columns to link any supplemental items to their parent configured items. In the latter, if you delete
the line for a configured item, the supplemental items are deleted also; deletion of a supplemental item is disabled.
When you copy a sales order with configurable items by using the Copy Order command on the More menu of the
Sales Orders form, you select the Copy Configurations check box in the Copy To dialog box that opens. The system
will copy configuration and any supplemental items appropriately and you can configure the copied lines.
Product Configurator: Supplemental Items
Supplemental items are supporting option items selected during configuration entry and indicated as a
supplemental item in the configuration definition. When supplemental items are selected and the configuration
entry is complete the options will be added to a quote, sales order, or opportunity as a new line item. The concept
is a supporting item that is shipped and sold separately from the configured item. Supplemental item price and
cost do not get rolled into the configured item price. The sales order lines for supplemental items are linked to and
controlled by the sales order line for the configured item:
• The sales order line quantity ordered for supplemental item is the quantity required for the option times the
quantity ordered for the configured line.
• The sales order line) for supplemental items are deleted if the sales order line for the configured item is
deleted. You may have to refresh the details table or save the order to see the updated lines.
• A change to the configuration, whether in the sales order or in an associated production order will add or
remove the sales order lines for any supplemental items associated with the configured sales order line and
recalculate the order quantity.
• Changing the order quantity for the configured item will not change the order quantity for the associated
supplemental items.
• You can change the quantity, warehouse, price, and other parameters for supplemental items.
Examples
Consider supplemental items as materials not required to build the configured item but are selected based on the
configured item and should be shipped with it:
• A desktop computer where the monitor and keyboard are separate inventory items that must be picked
and shipped with the sales order. The monitor and keyboard selections may affect the configuration of the
computer components but they are components themselves for the production order for the computer.
• Accessories such as power cords, cables, installation CD's, and manuals for equipment that are included
with the configured item.
• Miscellaneous charges for rush orders, extra fees for services, or packaging and shipping charges.
You indicate supplemental items on the Configuration Maintenance (AM207500) form by selecting the material type
for an option of a feature. Since supplemental items will not be components on a production order, the operation
number is not required. All other capabilities such as calculation of the quantity required and rules are available.
Product Configurator: Implementation Checklist
Before you start using the product configurator functionality, you must configure the system as described in the
following table.
1 Enable the Product Configurator fea- On the Enable/Disable Features (CS100000) form, make sure
ture that the Product Configurator feature is enabled under the
Manufacturing Suite group of features.
2 Define the numbering sequences for Create numbering sequences for the configuration ID and
the configuration data defaults ID by using the Numbering Sequences (CS201010)
form.
3 Specify preferences Use the Configurator Preferences (AM104000) form. This

must be completed before you can use the functionality.
4 Create stock items Use the Stock Items (IN202500) form to create the items.
Once you have built a configuration you will need to select
the configuration ID of the active revision. Do the same on
the Item Warehouse Details (IN204500) form. Stock items
should have a lot or serial class specified,where the lot or
serial number is assigned upon receipt to help the system
in selecting the proper item to allocate or ship. You can use
the sales order number and line as the lot or serial number
(such as SO123456/3) because the number is the reference
in the production order. Alternatively, you can use the pro-
duction order number as the lot or serial number because it
is referenced in the sales order line.
5 Create bills of material for configured The bill of material defines the manufacturing process and
items fixed materials for each configured stock item. Use the Bill
of Material (AM208000) form to create the bill. The bill need
to have a least one operation in order to attach the selected
inventory items to the configuration. A fixed material is one
always used to build the configured item.
6 Define the attributes you will use in Attributes are optional are used to capture the data en-
configurations tered. When you add an attribute to a configuration defini-
tion you assign each a variable that can be used for formu-
las. The configurator uses the same attributes used else-
where in Acumatica ERP. Create the data using the Attributes
(CS205000) form.
7 Define the features and their options Defined the features and options on the Features
you will use for your configured items. (AM203500) form. Features can be used in multiple configu-
rations. The options are inventory items available for each
feature as well as non-inventory items used for calculations,
8 Build and test the configuration You use the Configuration Maintenance (AM207500) from to
define configurations. You add features, modify the list of
options as required, add attributes, pricing rules, and add
rules. Once built, you can test the configuration directly
from the form. When your satisfied, you make the configura-
tion and its revision active and add the configuration ID on
the Stock Items and Item Warehouse Details forms.
10 Configure the Order Types You must select the Allow Configuration Entry and Allow
Production Orders check boxes for a sales order type on
the Order Types (SO201000) form for which you will use the
product configurator and create production orders. For in-
formation on printing the configuration options selected on
sales order forms, see Product Configurator: Adding Configu-
ration Data to Forms.
11 Configure the CRM Preferences On the Customer Management Preferences (CR101000) form,
select the Allow Configuration Entry check box for oppor-
tunities. For information on printing the estimate details in
CRM quotes, see Estimating: Modifying the Opportunity Quote
Form to Include Estimates.
Product Configurator: Production Management Integration
Production orders are used to build the configured product. The production order can be created directly from a
sales order, as described in Production Processing: Production for Sales, or directly by using the Production Order
Maintenance (AM201500) form. Production orders can also be created by using the MRP Display (AM400000) form
or Critical Materials (AM401000) form. However, they will only contain the template bill of material and must be
configured by using the Configuration Entry (AM306000) form that can be accessed by clicking the Configure button
on the References tab of the Production Order Maintenance form.
You can plan bills of material, as described in Bills of Material: Planning BOMs, for configure to order (CTO) inventory
items.
The following diagram displays how production orders are integrated with the order management functionality
and other parts of Acumatica ERP Manufacturing Edition.
Figure: Relations between production orders and other entities and documents
The process of creating production order combines the template bill of material with the material options selected
during the configuration process. As with standard bills of material, a material option can be a phantom and
accordingly the components of the phantom replace the phantom in the production order details and optionally
insert the operations of the phantom.
Product Configurator: Implementation Activity
In the following implementation activity, you will learn how to implement the product configuration functionality.
Process Overview
1. On the Configurator Preferences (AM104000) form, review the default settings of production configuration
functionality.
2. On the Configuration Maintenance (AM207500) form, create a new revision of an existing configuration and
add rules.
3. On the Configuration Entry (AM306000) form, test the configuration.
System Preparation
Before you start implementing the product configuration functionality, do the following:
your instance.
2. Make sure that the Product Configurator feature in the Manufacturing group of features has been enabled on
the Enable/Disable Features (CS100000) form.
Step 1: Reviewing Default Settings of Product Configurator

To review default settings of the product configurator, do the following:
1. Open the Configurator Preferences (AM104000) form.
2. In the General section, make sure that the following settings are specified:
• Config Numbering Sequence: AMCONFIG
• Default Revision: A
• Config Key Format: No Keys (that is, a configuration key is not required)
• Default Key Number Sequence: Empty
• Completion Required Before Production: Selected (that is, a user will have to complete the
configuration before creating a production order)
3. In the Price section, make sure that the following settings are specified:
• Hide Price Details: Cleared (that is, the price details will be displayed when a user configures items)
• Rollup: Children All (that is, the system will calculate the selling price as the rolled up selling price of each
option, including all fixed materials in the bill of material)
• Override Default on Configuration: Selected (that is, the user can override the calculated price rollup
for a configuration)
• Calculate: Aer Selection (that is, the system calculates the selling price each time the user selects an
option or enters a quantity)
• Override Default on Configuration: Selected (that is, the user can override the calculation method of a
selling price for a particular configuration)
4. In the Order Fields section, make sure that all check boxes are selected. This means that the corresponding
boxes of a sales order line will be available for editing.
Step 2: Setting Up a Configuration

To set up a configuration, do the following:
1. Open the Configuration Maintenance (AM207500) form.
2. In the Configuration ID box, select AMC000002, which is the configuration for the AMDOORDH01 item.
3. In the Revision box, type B to add a new revision of the configuration and be able to change the details.
5. On the Features tab, add rules to features as follows:
a. Click the row with the JAMB feature and on the Rules tab of the lower table, add the rules listed in the
following table.
Rule Source Option Target Feature Target Option
Include F/J Pine, 18x90 2 Piece ARCHITRAVE FJ Pine Ex 40x25 Pro-

filed
Include FJ Pine 115x30 Arkline ARCHITRAVE FJ Pine Ex 75x25 Pro-

filed
Exclude FJ Pine 115x30 Arkline ARCHITRAVE FJ Pine Ex 100x25 Pro-

filed
Require Undershot Jamb HARDWARE AMDOORHDSS
b. Click the row with the ARCHITRAVE feature and on the Rules tab of the lower table, add the rules listed in
the following table.
Exclude FJ Pine Ex 100x25 Pro- DOORS Horizon SQ10 1980 x

filed 510
Include FJ Pine Ex 75x25 Pro- HARDWARE AMDOORHDE1

filed
Require FJ Pine Ex 40x25 Pro- HARDWARE AMDOORHDE2

filed
c. Click the row with the DOORS feature and on the Rules tab of the lower table, add the rules listed in the
following table.
Exclude EPS S/C HARDWARE AMDOORHDD2
Exclude Solid Core JAMB J2P38/90 Set A


7. On the Attributes tab, add rules to attributes according to the following table.
Rule Condition Value 1 Value 2
Label: Jamb thickness, Attribute ID: Units
Validate Is Between =CDbl(1.25) =CDbl(3)
Label: Height waste, Attribute ID: Units
Validate Is Greater Than or Equal =CDbl(0)

To
Label: Width waste, Attribute ID: Units

To
Label: Architrave height, Attribute ID: Units

To
Validate Is Less Than or Equal To =CDbl(180)
Label: Architrave height waste, Attribute ID: Units

To
Label: Architrave width waste, Attribute ID: Units

To
Step 3: Testing the Configuration

To test the configuration, do the following:
1. While you are still viewing the configuration on the Configuration Maintenance (AM207500) form, on the More
menu, click Test Configuration.
2. In the Configuration Entry (AM306000) form, which opens in the popup window, do the following:
a. On the Features pane, click JAMBS.
b. On the Options tab, select the unlabeled check box in the row with the FJ Pine 115x30 Arkline option. The
system displays this option under the JAMB feature on the Features pane.
c. Make sure that the system added the FJ Pine Ex 75x25 Profiled option under the ARCHITRAVE feature
because of the Include rule you added for the JAMB feature and the FJ Pine 115x30 Arkline option.
d. Make sure that the system also added the AMDOORHDE1 option under the HARDWARE feature according
to the rule you added for the ARCHITRAVE feature and the FJ Pine Ex 75x25 Profiled option.
e. On the Features pane, click DOORS.
f. On the Options tab, select the unlabeled check box in the row with the Horizon SQ10 1980 x 760 option.
The system displays this option under the DOORS feature on the Features pane.
g. On the Attributes tab, view the warning message displayed for the Jamb thickness attribute. According
to the rule for this attribute, its value must be between 1.25 and 3 but the value of the attribute is 5.
h. Change the value of the attribute to 3. Make sure that the warning message disappeared.
j. On the form toolbar, click Finish to indicate that you finished testing, and close the form.
You have successfully implemented the product configuration.
Product Configurator: To Create a Sales Order with a Configurable Item
The following activity will walk you through the process of creating a sales order with a configurable item.
Process Overview
1. On the Order Types (SO201000) form, you will review the settings of the SO order type to make sure that the
settings required for adding configurable items and creating production orders have been specified.
2. On the Sales Orders (SO301000) form, you will create a sales order and add a configurable item to the order.
You will also select the needed options for features of the item on the Configuration Entry (AM306000) form.
3. On the same form, you will create a production order for the item and on the Production Order Details
(AM209000) form, you will make sure that the options you selected have been added as materials.
System Preparation
Before you start creating a sales order with a configurable item, do the following:
1. As a prerequisite activity, in the company to which you are signed in, be sure you have set up the product
configuration as described in Product Configurator: Implementation Activity.
2. Launch the Acumatica ERP website, and sign in to the company in which the prerequisite activity has been
performed. You should sign in as the implementation consultant by using the admin username and the
password for this user valid for your instance.
4. Make sure that the Product Configurator feature in the Manufacturing group of features has been enabled on
the Enable/Disable Features (CS100000) form.
Step 1: Reviewing Settings of the SO Order Type

To make sure that the SO order type has the settings needed for creating sales orders with configurable items, do
the following:
1. Open the Order Types (SO201000) form.
2. In the Order Type box, select SO.

3. On the General tab (the Manufacturing Settings section), make sure that the following check boxes are
selected:
• Allow Production Orders - Approved
• Allow Production Orders - Hold
• Allow Configuration Entry
This means that you can assign production orders to sales orders of this type and add configurable items to
the orders.

To create a sales order with the configurable item, do the following:
1. On the Sales Orders (SO301000) form, create a new record.
2. In the Summary area, specify the following:

• Order Type: SO
• Customer: ABCSTUDIOS
• Description: Sale of a configurable item
• Requested On: Today's date
3. On the table toolbar of the Details tab, click Add Row.
• Branch: PRODWHOLE
• Inventory ID: AMDOORDH01
• Warehouse: WHOLESALE (automatically selected)
• Quantity: 1
Notice that the system selected the check box in the Configurable column of the line, which indicates that
the item is configurable.
6. On the table toolbar, click Configure. The system opens the Configuration Entry (AM306000) form in the
popup window and displays the list of features for the AMDOORDH01 item on the Features pane.
7. Select the option for the JAMB feature as follows:
a. On the Features pane, click JAMB.
b. On the Options tab, select the check box in the Included column of the FJ Pine 40x10 19 Single BevelF
row.
8. Select the option for the ARCHITRAVE feature as follows:
a. On the Features pane, click ARCHITRAVE.
b. On the Options tab, select the check box in the Included column of the FJ Pine Ex 50x25 Profiled row.
9. Select the option for the DOORS feature as follows:
a. On the Features pane, click DOORS.
b. On the Options tab, select the check box in the Included column of the Horizon SQ10 1980 x 510 row.
10.Select the option for the HARDWARE feature as follows:
a. On the Features pane, click HARDWARE.

b. On the Options tab, select the check box in the Included column of the AMDOORHDB2 row.
12.On the form toolbar, click Finish to complete the configuration, and close the form.

To create a production order from the sales order, do the following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the More menu, click
Create Production Orders.
2. In the Production Orders dialog box, which opens, select the check box in the unlabeled column of the
only row and click Create. The system creates a production order, closes the dialog box, and displays the
reference number of the production order in the Production Nbr. column of the line on the Details tab.
3. On the Production Order Details (AM209000) form, open the created production order to review its details.
4. In the Operations table, click each operation row from 0010 to 0040 and on the Materials tab of the lower
table, make sure that the options you selected in Step 2 have been added as materials.
You have created a sales order with the configurable item and created a production order for this item.
Product Configurator: Adding Configuration Data to Forms
This topic is intended to provide some methods to print the configuration results data on customer and prospect
facing forms such as Sales Order, CRM Quote, Invoice, etc. The configuration results data is created and assigned a
unique id when the configuration is saved on the related document. The relationships of the tables are described in
Using Manufacturing Data in Inquiries and Reports.
Sales Documents
To print the configuration data on sales documents a subreport can be used. The main report needs to pass
the order type, order number, and line number to the subreport. In most cases, the options selected during
configuration would be printed. If desired the attribute values could also be printed.
The sales form (Quote, Sale Order, and Invoice) have the same column layout of line number, inventory id,
description, quantity, UOM, unit price, discount, and extended price. The Shipment Confirmation (SO642000) report
removes the pricing information but the line number and inventory id and description are in the same location.
Therefore the same subreport could be used for all four forms using visible expressions to suppress the pricing
information if price is to be shown on the other three forms.
The following reports are provided:
• SO6410AM - Example of the Quote (SO641000) report with the Estimates subreport. This could be used in a
similar way to add the Configurator subreport.
• SO6411AM - Subreport for estimates
• SO6410PC - Subreport to print product configurator options that can be used for quotes, sales orders, and
invoices.
Subreport to Print Options for Sales Documents

From the main report, you create the collection of columns to pass to the subreport:
• SOLine.OrderType
• SOLine.OrderNbr
• SOLine.LineNbr
These same columns must be defined in the susbreport as parameters and used as filters as follows:
• The following filters can be used to only print selected features or options:
• AMConfigurationOption.PrintResults Equals 1
• AMConfigurationFeaturen.PrintResults Equals 1
• The last filter below, selects only those options that were selected for this configuration. Without it, all
options would be shown.
• AMConfigResultsOption.Included Equals 1
For the example of a sales order form with configuration options, you can download the Sales Order with
Configuration Options file.
Product Configurator: Pricing and Cost
Pricing for product configuration is calculated and processed based on configuration pricing settings specified on
the Price tab of the Configuration Maintenance (AM207500) form. This topic describes the values available in boxes
on this tab and costs.
Price Tab Reference
Element Description
Rollup The source of the configured total price. In this box, you can select any of the following
values:
• Parent: You select this value of the price is fixed.
• Children All: The children of the order (stock and non-stock items). All material already
existing in the bill of material is included in the price.
• Children CFG: The children of the order (stock and non-stock items). The existing mate-
rial is not added to the price.
• Parent/Children: Both the parent and children. This value combines the Parent and
Children All values.
Calculate The moment when the prices are calculated. In this box, you can select any of the follow-
ing values:
• On Completion: At the end of configuration
• After Selections: After each option selection and attribute value change
The standard Acumatica ERP pricing logic is used for the parent item, including items in parent bill of material, and
the options selected. For more information, see Sales Prices: General Information.
You can download the following file for an example of pricing: Pricing Example.
Cost
Factors that impact costing are the same as currently implemented in Manufacturing Edition. Cost factors are
the following: labor, machine, material, tools, and overhead. These factors are not individual, configurable
components. The cost factors are attached to bill of material as fixed entries. The only configurable cost factor
is material which may vary depending on the configuration results through selected options and multilevel
configurations.
Advanced Planning and Scheduling | 216
Advanced Planning and Scheduling

The advanced planning and scheduling (APS) part of Acumatica ERP Manufacturing Edition provides you with the
ability to manage and monitor your shop floor schedule. APS forms and procedure are included in production
management.
APS provides the following capabilities:
• Finite capacity scheduling
• Rough cut capacity planning
• Work center schedules and utilization
• Machine schedule and utilization
• Tool scheduling and usage
In this chapter, you will read about using APS in Acumatica ERP.
Advanced Planning and Scheduling: General Information
Advanced planning and scheduling (APS) provides the first elements of finite scheduling. This gives you a
competitive and operational advantage if it is implemented and executed correctly. This functionality is available
only when the Advanced Planning and Scheduling feature in the Manufacturing group of features is enabled on the
In this topic, you will read about implementation of advanced planning and scheduling and the related processes.
APS Implementation
You need to do the following to prepare the system to using APS:
1. In the Block Size box on the Production Preferences (AM102000) form, select the size of the schedule block
size.
2. If you want to schedule machines, select the Machine Scheduling check box.
3. If you want to schedule tools, select the Tool Scheduling check box.
4. On the Work Calendar (CS209000) form, create work calendars to use for each work center and machines.
5. On the Shifts (AM205000) form, create shis to use for each work center.
6. On the Machines (AM204500) form, create machines to be used in each work center.
7. On the Tools (AM205500) form, create tools to be used for operations.
8. On the Work Centers (AM207000) form, add the shis and calendars and specify the basis for capacity for
each of your work centers.
9. Add the machines to the work centers if machine scheduling is used in your organization.
10.On the Bill of Material (AM208000) form, specify the setup time, run units, and run time for each operation in
your bill of material. The units and time depend on the basis for capacity specified for each work center.
11.Specify the tools required for each operation.
12.On the APS Maintenance Process (AM512000) form, run the APS maintenance process to build the work
center schedules.
Maintenance Process
The purpose of the advanced planning and scheduling maintenance process is to rebuild and refresh work center
schedules. To run the process, you use the APS Maintenance Process (AM512000) form.
You run this process in the following cases:
• During the first implementation of advanced planning and scheduling aer you have defined work centers
and their capacities.
• When you changed the calendar working hours, added shis, added break times, or changed calendar
exception days for work centers. Currently it does not remove break times from the work center, but it will
add new ones.
• When you have changed the schedule block size on the Production Preferences (AM102000) form.
• Periodically to clean and remove old schedules.
The process will fill the empty schedule days for each work center for the next 180 days and adjust the schedule
time blocks. This process can be scheduled to run automatically by using automation schedules.
Rough Cut Planning Process

The rough-cut planning process finite schedules open and planned production orders.
The system loads and schedules orders in the following sequence:
• By the dispatch priority ascending
• By the constraint date ascending
• By the production order number ascending
The availability of material is considered. Supply orders (that is, purchase orders, transfer orders, and production
orders) that are allocated to the order being scheduled constrain the order start date as follows:
• If a supply order line is allocated to the production order, then the supply order promise date is the first day
an order can be scheduled.
• If material is not already allocated, then allocate available material as Production Demand Prepared.
• Finally, look for supply orders without allocations and use their promise date as a start date constraint. The
supply orders are not allocated to the production order.
To run rough-cut planning, you use the Rough Cut Planning (AM501000) form and select the orders you wish to
schedule. The system will only schedule orders that can be manufactured, if there is a material shortage or some
other issue the order will not be scheduled. Once scheduled, the items will remain on the Rough Cut Planning form.
For more information about advanced scheduling, see Advanced Planning and Scheduling: Scheduling Details.
For details about defining capacity, see Advanced Planning and Scheduling: Capacity Definition.
Advanced Planning and Scheduling: Capacity Definition
This topic explains how capacity is calculated for work centers in Acumatica ERP Manufacturing Edition.
Working Calendars
A working calendar defines the starting and ending times for each working day and break times, such as lunch. A
work calendar can have exceptions for days not worked, such as holidays or shutdown periods, or non-working
days that are work days, such as unplanned overtime on a weekend not normally worked. You create working
calendars by using the Work Calendar (CS209000) form.
Each work center can have multiple shis and each shi has a working calendar. You specify a working calendar for
each shi of a work center in the Calendar ID column of the Shis tab on the Work Centers (AM207000) form.
When you create machines on the Machines (AM204500) form, you need to specify a working calendar for machine
operation in the Calendar ID box. The system uses this calendar during scheduling when the Machine Scheduling
check box is selected on the Production Preferences (AM102000) form. For correct scheduling, you must specify the
calendar with the same working hours as the calendar for the work center to which the machine is assigned.
Work Centers
The daily capacity for a work center is the total number of working hours for all shis. The value of the Basis for
Capacity box on the General tab of the Work Centers (AM207000) form determines which settings the system uses
when scheduling operations in each work center. In this box, you can select either of the following values:
• Crew Size: The system uses the crew size and efficiency specified in the Crew Size and Efficiency boxes on
the Shis tab of the Work Centers form; it also uses the run time and run units specified in the Run Time
and Run Units columns, correspondingly, of the Operations table on the Bill of Material (AM208000) form.
• Machines: The system uses the machine time and machine units specified in the Machine Time and
Machine Units columns, respectively, of the Operations table of the Bill of Material form.
If multiple work centers are set up with the Machines basis for capacity and the same machine has
been added to the settings of more than one of these work centers, the system will not schedule
operations for those work centers at the same time.
Schedule Blocks
To simplify the scheduling process and to accommodate different types of manufacturing, schedule blocks are
used in finite scheduling. The size of the schedule block is defined on the Production Preferences (AM102000) form
and applies to all work centers. The block size can be as small as 5 minutes or as large as 1 hour with options for 10,
15, and 30 minutes.
Advanced Planning and Scheduling: Scheduling Details
In this topic, you will read about scheduling details in advanced planning and scheduling (APS).
Scheduling Method
In conjunction with the constraint date, this determines the sequence by which the operations of the production
order are scheduled. You can select any of the following scheduling methods in the Scheduling Method box on the
General tab of the Production Order Maintenance (AM201500) form:
• Finish On: The operations are scheduled backwards from the constraint date. Production orders created
from a sales order, or orders created as linked orders from a parent order, has this value selected by default.
For sales orders, the constraint date is one day earlier than the scheduled ship date.
• Start On: The operations are scheduled forward from the constraint date.
• User Dates: This value provides you with the ability to define the start and end dates of the production order.
This is a way for the user to override the manufacturing lead times or to use any calendar dates including
non-working days.
Constraint Date
This is a particular date by which the production order is needed or needs to be started. It is only entered when the
scheduling method is either Finish On or Start On.
You specify the constraint date on the General tab of the Production Order Maintenance (AM201500) form.
Dispatch Priority
Dispatch priority is used in APS to load the production orders and operations in priority sequence. Orders with the
same priority are loaded by the constraint date. Orders with the highest priority are scheduled first. One (1) is the
highest priority and ten (10) is the lowest.
You specify the dispatch priority on the General tab of the Production Order Maintenance (AM201500) form.
Infinite Capacity Planning

Production order operations starting and ending dates are calculated solely on the basis of operation duration. In
APS, the system uses infinite capacity planning for production orders whose end date is beyond 120 days from the
date when the planning is initiated.
Also, the system uses infinite planning when creating planning orders during material requirements planning. For
more details about calculating operation and production order dates, see MRP Configuration: System Settings.
Finite Capacity Planning

Production orders can be scheduled and rescheduled respecting the capacity and current load of work centers,
machine, and tools and the availability of materials. If the scheduling method is Finish On, the operations are
scheduled backwards until the calculated operation start date is in the past. From that point the sequence is
reversed and the operations are forward-scheduled.
You have the option to exclude the validation for available materials as follows:
• For an entire production order type by clearing the Check for Material Availability check box
on the Production Order Types (AM201100) form.
• For specific materials by clearing the Check for Material Availability check box on the
Manufacturing tab of the Stock Items (IN202500) form.
Operations are always scheduled in contiguous blocks skipping over non-working hours and schedule breaks. See
the following example:
• A work center has capacity available today starting at 11 a.m. with a noon to 1 p.m. lunch break and a shi
ending at 5 p.m.; so 5 hours remaining capacity and 8 hours available tomorrow.
• The schedule blocks are 1 hour.
• An operation has a duration of 9 hours.
The following table shows the schedule blocks consumed by the operation.
Schedule Date Schedule Blocks Start Time End Time
Today 1 11:00 AM 12:00 PM
Today Lunch Break 12:00 PM 01:00 PM
Today 4 01:00 PM 05:00 PM
Tomorrow 4 08:00 AM 12:00 PM
Finite scheduling may result in the following issues:

• Gaps may appear between operations when a resource is not available on the desired time slot. For
example, an operation requires 8 hours of a resource and a contiguous block of time is not available for the
next operation. This may not be the desirable when the next operation must be started immediately aer
completion of the previous operation.
• The calculated finish date of the production order may be aer the required date for a sales order or linked
production order.
• If all material is not available for the order, either in stock or allocated from a supply order, the order will not
be scheduled.
• If machine scheduling is used, the machine may not be available although the work center is available.
• If tool scheduling is used, the tools required may not be available although the work center is available and
the machine is available.
For more information about the calculation of the duration of operations, see Advanced Planning and Scheduling:
Operation Lead Time.
Firm Scheduling of Production Orders

You can prevent a production order from being rescheduled if strict production dates are important for the
production order (for example, because of the commitment with the customer). You can firm the order—that is,
fix the production dates. When you run finite scheduling of production orders, the system does not reschedule the
firmed production orders.
To firm any number of production orders, on the Rough Cut Planning (AM501000) form, you do the following:
1. Select the check box in the unlabeled column of each row that contains a production order to be firmed.
2. In the Action box of the Selection area, select Firm.
3. Click Process on the form toolbar. The system firms the dates of the processed production orders and
changes the schedule status of the orders to Firm.
To undo firm for a production order, you perform the same steps but select the Undo Firm action.
Firm production orders are hidden from the Rough Cut Planning form by default—that is, the Exclude Firm Orders
check box in the Selection area is selected—but you can display these orders by clearing the check box.
You can also firm production orders by using the Production Schedule Board (AM215555) form.
Advanced Planning and Scheduling: Operation Lead Time
When the system schedules production orders by using advanced planning and scheduling on the Rough Cut
Planning (AM501000) form, it calculates the duration of each operation (that is, the operation lead time). These
calculations determine the start and end dates and times of the operation and the whole production order.
In advanced planning and scheduling, the system does not use fixed manufacturing lead times.
In the following sections, you will find details about the calculation of the operation lead time.
Components of the Operation Lead Time

The lead time of an operation of a production order is based on the settings in the Operations table of the
Production Order Details (AM209000) form. The lead time of each operation consists of the following components:
• Worker throughput: The quantity of item units produced during a certain period of time when machines
are not involved in the operation. The system determines that machines are not involved when Crew Size is
selected in the Basis for Capacity box on the Work Centers (AM207000) form for the work center specified in
the operation row. In the Run Time column of the row, you specify the period of time (such as 01:00 for one
hour), and in the Run Units column, you specify the quantity of item units that workers produce during this
period of time (such as 5).
• Machine throughput: The quantity of item units produced during a certain period of time when machines
are used in the operation. The system determines that machines are involved when Machines is selected in
the Basis for Capacity box on the Work Centers form for the work center specified in the operation row. In
the Machine Time column of the row, you specify the period of time, and in the Machine Units column, you
specify the quantity of item units that workers produce during this period of time by using the machine.
• Setup time: The time it takes to prepare to start the operation, which is specified in the Setup Time column
of the operation row. For example, to prepare for the operation, workers may need to print drawings or take
parts from a stock room. Based on this value, the system adds a fixed labor cost to the cost of the produced
item, regardless of the size of the order.
• Queue time: The time a semi-finished item has to wait in the work center before workers can start
processing the item. For example, the previous operation may take less time than the current operation,
so the item needs to be stacked before the current operation is started. This time is specified in the Queue
Time column of the operation row. The system extends the operation's lead time and the production order's
lead time by the queue time.
• Move time: The time for a semi-finished item to be moved from the work center where the current operation
is performed to the work center where the next operation will be performed. For example, the work centers
may be located in different buildings, and it may take significant time to move the items from one building
to the other. This time is specified in the Move Time column of the operation row. The system delays the
start of the next operation and extends the production order lead time by the move time.
• Finish time: The time required for the semi-finished item to be prepared for the next operation when the
current operation has been finished. For example, the item being produced may need time to dry, cure,
or age. This time is specified in the Finish Time column of the operation row. The system extends the
operation's lead time and the production order lead time by the finish time.
Further in the topic, you can find details about the queue time, move time, and finish time.
Calculation of the Operation Lead Time

The system uses the following formula for calculating the lead time of each operation during scheduling
production orders the Rough Cut Planning (AM501000) form.
Setup Time + (Qty. to Produce * (Run Time / (Run Units * Work Center Capacity))) + Move
Time + Queue Time + Finish Time
Work Center Capacity is calculated as follows: Crew Size * Efficiency. The crew size and efficiency are
specified on the Work Centers (AM207000) form.
For example, suppose that the operation of sticking labels on jam jars is performed in the WC10 work center, and
the throughput of the operation is 10 jars per hour (that is, run time is 1 hour, and run units are 10). Also suppose
that 0 is specified for all additional times (such as queue time or move time) that make up the lead time of the
operation. Further suppose that one employee, Martha, works in the WC10 work center with 100% efficiency. If a
production order for 20 jars has been created in the system, by the system's calculations, Martha will be able to
process this number of jars in 2 hours.
Then suppose that Martha has been moved to another operation, and a new employee, Kim, has started to stick
labels. Because Kim is not yet familiar with this operation, a planning manager sets the efficiency to 80%. With this
setting, by the system's calculations, the sticking operation for the production order with 20 jars is expected to take
2.5 hours.
Further suppose that a packing operation is performed aer the sticking operation. Also, the work center where the
packing operation takes place is idle, so to reduce the idle time, the planning manager decides to involve a second
employee, Ben, in sticking labels in the WC10 work center. Because Ben and Kim are new to the sticking operation,
their efficiency is still set to 80%. By the system's calculations, the sticking operation for 20 jars will now take 1.25
hours.
Settings of Operation Lead Time

You specify the following settings to configure the calculation of operation lead time of a production order as
follows:
1. On the Production Preferences (AM102000) form, in the corresponding boxes of the Scheduling section, you
specify the default values for the queue time, finish time, and move time, which the system will use as the
default times for new work centers.
2. On the Work Centers (AM207000) form, you specify the following settings for each work center:
• In the Basis for Capacity box on the General tab, you specify which throughput settings (run units and
time, or machine units and time) the system will use for operations in this work center.
• On the same tab, you specify the values for the queue time, finish time, and move time that the system
will use as the default times when the work center is selected in newly added operations of bills of
material or production orders.
• In the Calendar ID column on the Shis tab, you specify the work calendar the system will use for
calculating lead times for operations performed in this work center.
• In the Crew Size and Efficiency columns of the same tab, you specify the needed values if the basis for
capacity is the crew size.
3. On the Bill of Material (AM208000) form, in the Operations table, you specify the lead time components for
each operation when you create a bill of material.
Queue Time
You can specify the queue time of an operation to account for potential delays in the start of the operation, which
can be useful if these delays are planned or regular. During scheduling, the system extends the operation's lead
time and the production order's lead time by the queue time. During advanced planning and scheduling, the
system also does the following when a nonzero queue time is specified for a particular operation:
• Delays the start time of the operation.
• If the queue time is specified for the first operation in the routing, does one of the following with the
production order, depending on the value in the Scheduling Method box on the Production Order
Maintenance (AM201500) form:
• Start On: Delays the start time of the first operation and therefore delays the finish time (and possibly
date) of the production order. For example, suppose that the initial start date of a production order is
January 5, the finish date is January 6, and a queue time of one day is specified for the first operation.
When the system schedules the production order, it keeps January 5 as the start date of the production
order and changes the finish date to January 7 to account for the queue time.
• Finish On: Moves the start date of the entire production order to the earlier date. For example, suppose
that the initial start date of a production order is January 5, the finish date is January 6, and a queue
time of one day is specified for the first operation. When the system schedules the production order, it
keeps January 6 as the finish date and changes the start date to January 4 to account for the queue time.
The system does not increase the occupation time of the crew, machine, tool, or work center resources by the value
of the queue time.
Finish Time
You can specify the finish time for an operation to account for the time needed to finalize the operation before
workers can move the items to the next operation. During scheduling, the system extends the operation's lead time
and the production order's lead time by the finish time. During advanced planning and scheduling, the system also
does the following when a nonzero finish time is specified for a particular operation:
• Increases the occupation time of the work center resource where the operation takes place
• Starts counting the finish time when a user records an operation as completed
The system does not increase the occupation time of the crew, machine, or tool resources by the value of the finish
time.
Move Time
You can specify the move time for an operation so that the system considers the time needed to move items in
production between the work center where the current operation was performed and the work center where the
next operation will be performed. During scheduling, the system delays the start of the next operation and extends
the production order lead time by the move time.
During advanced planning and scheduling, when a nonzero move time is specified for the last operation in the
routing, the system also does the following with the production order, depending on the value in the Scheduling
Method box on the Production Order Maintenance (AM201500) form:
• Start On: Delays the finish time (and possibly date) of the entire production order. For example, suppose
that the initial start date of a production order is January 5, the finish date is January 6, and a move time
of one day is specified for the last operation. When the system schedules the production order, it keeps
January 5 as the start date of the production order and changes the finish date to January 7 to account for
the move time.
• Finish On: Moves the scheduled start date of the production order to the earlier date. For example, suppose
that the initial start date of a production order is January 5, the finish date is January 6, and a move time
of one day is specified for the last operation. When the system schedules the production order, it keeps
January 6 as the finish date and changes the start date to January 4 to account for the move time.
The system does not increase the occupation time of the crew, machine, tool, or work center resources by the value
of the move time.
Advanced Planning and Scheduling: Production Schedule Board
You can view the production schedule in a graphical format by using the Production Schedule Board (AM215555)
form. On this form, a Gantt chart illustrates the schedule for the selected production orders over time.
This topic describes the graphical parts of the Production Schedule Board form.
Parts of the Schedule Board

The schedule board consists of the following parts, whose numbers correspond to those in the screenshot below:
1. The form toolbar. For descriptions of these buttons, see Production Schedule Board.
2. The Selection area. The elements in this area are described in Production Schedule Board.
3. The upper pane, which has the Production Orders tab. The tab displays the list of production orders that
meet the selection criteria, and the Gantt chart for each production order. For details, see the Production
Orders Tab (Upper Pane) section below.
4. The lower pane, which has the Work Centers and Machines tabs. These tabs contain lists of all work centers
and machines, showing histograms with details about the available and scheduled capacity for each work
center and machine. For more information, see the Work Centers and Machines Tabs (Lower Pane) section
below.
Figure: The parts of the Production Schedule Board form
Production Orders Tab (Upper Pane)

The Production Orders tab (in the upper pane) displays production orders and their schedules. This tab consists of
the following parts, whose numbers correspond to those in the screenshot below:
1. The upper pane toolbar. For descriptions of its elements, see the Upper Pane Toolbar section below.
2. The list of production orders. For descriptions of its columns, see Production Schedule Board.
3. The Gantt chart with details about the operations of each production order. For the chart description, see
the Gantt Chart for Production Orders section below.
Figure: Production Orders tab
Upper Pane Toolbar

The pane toolbar is located in the top right corner of the upper pane. The toolbar elements are described in the
following table.
Element Icon Description
Full Screen A button you click to display the panes in full screen mode. In this mode,
the system hides the form title bar and the Selection area.
Maximize A button you click to hide the lower pane and display only the upper
pane.
Late Orders A button you click to display only production orders with commitment
dates that have passed.
Timescale A box that displays the current timescale for the Gantt chart. In the box,
you can select any of the following options:
• Months
• Weeks
• Days
• Hours
Gantt Chart for Production Orders

The Gantt chart for production orders, which is shown on the Production Orders tab of the upper pane, displays
information about the scheduled operations in production orders (see the following screenshot).
Figure: The Gantt chart for production orders
Any of the following graphical elements may be used on the chart:

• A bar, which represents an operation of a production order and is displayed as follows:
• The length corresponds to the duration of the operation—that is, the start date and time, and end date
and time.
• The label displays the operation number.
• The color represents the option specified in the Color Coding box of the Selection area. If Production
Order Status is selected, for instance, each color corresponds to a particular order status.
• A diamond shape, which indicates that the production order is linked to a sales order. The system compares
the Requested On date of the sales order, which is in the Summary area of the Sales Orders (SO301000)
form, to the End Date in the production order, which is on the General tab of the Production Order
Maintenance (AM201500) form. Based on this comparison, the color of the shape means one of the following:
• Green: The date the items are requested on in the sales order is later than the End Date in the production
order. That is, the production order meets the date commitment.
• Yellow: The date the items are requested on in the sales order is the same as the End Date in the
production order. That is, the production schedule is tight, and production dates should not be shied
later to meet the commitment.
• Red: The date the items are requested on in the sales order is earlier than the End Date in the production
order. That is, the production order does not meet the commitment.
• A lightening bolt icon, which indicates that the on-hand quantity of some materials required for the
operation is insufficient.
• A white circle shape, which indicates that the operation is performed outside of the organization.
You can point to a graphical element and view the details of the scheduled operation and the related production
order (see the following screenshot).
Figure: Information about an operation
Work Centers and Machines Tabs (Lower Pane)

The Work Centers and Machines tabs (in the lower pane) display lists of work centers and machines, respectively,
and histograms for their schedules. These tabs consist of the following elements, whose numbers correspond to
those on the Work Centers tab in the screenshot below:
1. The list of work centers (or machines on the Machines tab). For descriptions of the columns, see Production
Schedule Board.
2. The histogram for the work centers (or machines on the Machines tab).
Figure: The Work Centers tab
The histograms for work centers and machines consist of bars. The height of each bar represents the workload of
the work center or machine resource for a particular timescale unit. The red line represents the maximum capacity
of each work center or machine resource. You can point to the bar to view details about the work center or machine
workload (see the following screenshot).
Figure: Work center workload
Advanced Planning and Scheduling: Process Activity
The following activity will walk you through the process of advanced scheduling production orders.
Process Overview
1. On the Production Order Maintenance (AM201500) form, you will create a production order to be scheduled.
2. On the APS Maintenance Process (AM512000) form, you will run the maintenance process of advanced
planning and scheduling.
3. On the Rough Cut Planning (AM501000) form, you will schedule the created production order.
4. On the Work Center Schedule (AM000001) form, you will view how the system scheduled the production
order considering other open production orders.
System Preparation
Before you start making changes to a bill of material by using engineering change control, do the following:
your instance.
2. Make sure that the Advanced Planning and Scheduling feature in the Manufacturing group of features has
been enabled on the Enable/Disable Features (CS100000) form.

To create a production order to be scheduled, do the following:
2. In the Inventory ID box of the Summary area, select MGWIDGET.

3. In the Qty. to Produce box on the General tab, enter 5.
5. Memorize or write down the number in the Production Nbr. box. You will need this value in the following
steps.
Step 2: Performing APS Maintenance

To update work center schedule and clean up history before running scheduling, do the following:
1. Open the APS Maintenance Process (AM512000) form.
2. In the Selection area, select the following check boxes:
• Update Work Center Schedule from Calendar
• Cleanup History
3. On the form toolbar, click Process. Wait till the system performs maintenance. On the Process History tab,
the system updates the dates and user logins in the Work Center Schedule and History Cleanup sections.
Step 3: Scheduling the Production Orders

To schedule the production order, do the following:
1. Open the Rough Cut Planning (AM501000) form.
2. In the Selection area, make sure that the Release Orders check box is cleared.
3. Make sure that the Exclude Planning Orders and Exclude Firm Orders check boxed are selected.
4. Schedule the production order you created earlier in this activity as follows:
a. Select the check box in the unlabeled column of the row for the production order.
b. In the Action box of the Selection area, make sure that Schedule is selected.
c. On the form toolbar, click Process.
The system opens the Processing dialog box and runs the process of the production order scheduling.
d. Close the Processing dialog box.
Step 4: Viewing Work Center Schedule

To review the schedule of work centers where the MGWIDGET will be produced, do the following:
1. Open the Work Center Schedule (AM000001) form.
2. In the Selection area, select the following:
• Order Type: RO
• Production Nbr.: The number of the production order you created earlier in this activity.
In the table, the system displays only rows related to the selected production order.
3. In the row for the WC10 work center, make sure that the system scheduled 5 blocks (30 minutes each) and
specified the start and end time of the operation.
4. In the row for the WC100 work center, make sure that the system scheduled 3 blocks (30 minutes each) and
specified the start and date time of the operation
You have scheduled the created production order by using advanced planning and scheduling.
Processing Capable to Promise | 231
Processing Capable to Promise

To build customer loyalty, an organization that produces items must be able to promise the customer a shipping
date that can be delivered upon. During the process of entering a sales order, the customer provides the requested
date to the customer service manager, and the customer wants confirmation that the order will be fulfilled by this
date. If the date cannot be met, the customer service manager needs to give the customer a realistic projected date
when this order will be fulfilled.
Acumatica ERP Manufacturing Edition provides the capable-to-promise (CTP) functionality, which enables
companies to commit to shipping dates for customer orders based on production, resource capacity, and
inventory.
In this chapter, you will find information about configuring the system for users to be able to use the CTP
functionality and about calculating the projected dates for ordered items.
Capable to Promise: General Information
Acumatica ERP Manufacturing Edition provides the capable-to-promise (CTP) functionality, which is valuable for
your organization if you use advanced planning and scheduling. This functionality provides you with the ability
to commit to shipping dates for customer orders with the system taking into account production and on resource
capacity and inventory on production, resource capacity, and inventory.
When you use the CTP functionality, the system determines when shipping will be possible by using finite
scheduling. The system takes into consideration the constraints of the manufacturing system that might hinder
production, such as the accessibility of necessary resources, the lead times for acquiring raw materials or
purchased parts, and the ability to acquire the resources needed for subassemblies or lower-level components.
This functionality is available only when the Advanced Planning and Scheduling feature is enabled on the Enable/
Disable Features (CS100000) form.
Learning Objectives
• Prepare the system for using the capable-to-promise functionality
• Perform the calculation of projected dates (also referred to as CTP dates) for items in sales orders
Applicable Scenario
You may need to calculate the CTP dates for items of a sales order when your organization uses the advanced
planning and scheduling functionality of Acumatica ERP Manufacturing Edition and wants be able to give the
customers a realistic projected shipping date during sales order creation.
Calculation of Projected Dates for a Sales Order

When you create a sales order on the Sales Orders (SO301000) form with items to be produced, you can specify
the date by which the customer expects to receive each item in the Requested On column of the Document
Details tab. You can then estimate the projected date when the requested quantity of items can be shipped to
the customer. To do this, you click Process CTP on the More menu, which causes the system to open the Process
Capable to Promise (AM515000) form with the lines of the sales order whose items have the CTP Item check box
selected on the Manufacturing tab of the Stock Items (IN202500) form.
The Process CTP command is available when all of the following conditions are met:
• The Advanced Planning and Scheduling feature is enabled on the Enable/Disable Features
(CS100000) form.
• The type of the sales order has the Allow Production Orders - Approved and Allow
Production Orders - Hold check boxes selected in the Manufacturing Settings section of the
General tab on the Order Types (SO201000) form.
• The sales order has the On Hold or Open status.
On the Process Capable to Promise form, you can select one line or multiple lines of the sales order (by selecting
the unlabeled Included check box for each line), select Process CTP in the Action box, and click Process on the
form toolbar to calculate the projected dates for the items in the selected lines. When the system finishes the
calculation, the projected dates are displayed in the CTP Date column. During the calculation of the projected date,
the system creates a planning order, which can be viewed on the Production Order Details (AM209000) form.
The system also inserts the planning order’s type and number in the Prod. Order Type and Prod. Order Nbr.
columns, respectively, of the Process Capable to Promise form. On the form, you can accept the dates by selecting
the needed lines of the sales order (using the Included check boxes), selecting the Accept action, and clicking
Process on the form toolbar. For each accepted line, the system deletes the planning order, creates a production
order (whose type and number are displayed in the Prod. Order Type and Prod. Order Number columns,
respectively), and selects the check box in the CTP Accepted column.
If any CTP dates do not meet the date requested by the customer, you can reject the dates by selecting the needed
lines of the sales order (using the Included check boxes), selecting the Reject action, and clicking Process on the
form toolbar. For each rejected line, the system deletes the planning order. In this case, you can negotiate with the
customer to agree on new dates when the items in the order can be shipped; you can then update the requested
dates in the sales order.
Also, you may want to find out how many of the item you can actually ship to the customer by the requested date.
You can click the quantity in the Open Qty. column of the needed line to open the Quantity Available dialog box,
which displays the available quantities of the item.
Workflow of Generating Capable-to-Promise Dates for Sales Orders

The typical workflow of generating capable-to-promise dates for sales orders involves the actions and generated
documents shown in the following diagram.
Capable to Promise: Implementation Checklist
The following sections provide details you can use to ensure that the system is configured properly for using the
capable-to-promise (CTP) functionality.
We recommend that before you initially run the calculation of projected dates for sales orders, you make sure the
needed features have been enabled, settings have been specified, and entities have been created, as summarized
in the following checklist. You can perform the instructions similar to those described in Capable to Promise:
Implementation Activity to configure the system.
Enable/Disable Features (CS100000) The Advanced Planning and Scheduling feature has
been enabled.
Numbering Sequences (CS201000) The numbering sequence has been created for the
CTP-related planning orders to be created by the CTP
process.

rate numbering sequence for these plan-
ning to distinguish them from the plan-
ning orders unrelated to CTP.
Production Order Types (AM201100) The production order type has been created for the
CTP-related planning orders, and the following recom-
mended settings have been specified:
• Function: Planning
• Order Numbering Sequence: The specific number-
ing sequence for CTP-related planning orders
• Exclude from MRP: Cleared

rate order type for all CTP-related plan-
ning orders.
Production Preferences (AM102000) The order type for the CTP-related planning orders has
been specified in the Capable to Promise Order Type
box in the Data Entry Settings section of the General
Settings tab.
Stock Items (IN202500) The CTP Item check box has been selected on the
Manufacturing tab (General section) for all stock
items for which you want to calculate projected dates.
Order Types (SO201000) The Allow Production Orders - Approved and Allow
Production Orders - Hold check boxes have been se-
lected in the Manufacturing Settings section of the
General tab for the sales order type for which project-
ed dates should be calculated.
To make sure that all configuration has been performed correctly, we recommend that in your system, you
calculate the projected dates for items in sales order by performing instructions similar to those described in
Capable to Promise: Process Activity.
Capable to Promise: Implementation Activity
In the following implementation activity, you will learn how to configure the system so that you can use the
capable-to-promise (CTP) functionality.
Story
Suppose that SweetLife Fruits & Jams has decided to use the capable-to-promise functionality so that sales
managers can provide customers with accurate dates when ordered items will be shipped. You will act in the role of
the implementation manager who needs to prepare the system for the use of the CTP functionality.
You need to create a separate order type for CTP-related planning orders and specify this order type in the
production settings. You also need to set up the configurable citrus juicer stock item so that the system can include
the stock item in calculation of CTP dates.
• On the Numbering Sequences (CS201010) form, the AMCTP numbering sequence
• On the Stock Items (IN202500) form, the CFJCITRUS stock item
Process Overview
In this activity, to specify the settings and create the entity related to the capable-to-promise functionality, you will
do the following:
1. On the Production Order Types (AM201100) form, create a production order type to be used by the CTP
functionality for creating planning orders.
2. On the Production Preferences (AM102000) form, specify the created production order type as the default
order type for CTP-related planning orders.
3. On the Stock Items (IN202500) form, set up the configurable citrus juicer stock item and include the item in
calculation of CTP dates.
System Preparation
Before you start preparing the system to process CTP, do the following:
1. As a prerequisite to the current activity, complete Bills of Material: Implementation Activity and the all
prerequisite activities to configure manufacturing functionality in the company with the U100 dataset
preloaded.
2. As a prerequisite to the current activity, complete Production Order Types: To Create a Regular Production
Order Type so that the system can use this production order type for creating regular production orders.
3. Sign in to the company in which the prerequisite activities have been performed as a system administrator
by using the gibbs username and 123 password.
4. Make sure that the Advanced Planning and Scheduling feature has been enabled on the Enable/Disable
Features (CS100000) form.
Step 1: Creating a Production Order Type Dedicated to CTP

To create a production order type that the system will use for new CTP-related planning orders, do the following:
1. Open the Production Order Types (AM201100) form.
a. Order Type: CP
b. Active: Selected
c. Description: CTP planning orders
d. Function: Planning
a. In the Order Numbering Sequence box of the Numbering Settings section, select AMCTP.
b. In the Account Settings section, select the following accounts:
• Work in Process Account: 12400
• WIP Variance Account: 51500
c. In the Order Defaults section, do the following:
a. In the Costing Method box, select Estimated.
b. Select the Exclude from MRP check box.
d. In the Copy BOM Notes section, select all the check boxes so that the system copies the notes to
production orders of the type.
Step 2: Specifying Production Preferences

Now that you have created an order type for planning orders to be created during the calculation of projected
dates, you will specify this type as the default type for these orders in the production settings. Do the following:
1. Open the Production Preferences (AM102000) form.
2. In the Capable to Promise Order Type box of the General tab (Data Entry Settings section), select CP.
Step 3: Specifying Settings of Stock Items

To indicate that projected dates can be calculated for the configurable citrus juicer stock item, do the following:
1. Open the Stock Items (IN202500) form.
2. In the Inventory ID box, select CFJCITRUS.
3. On the Manufacturing tab (General section), select the CTP Item check box.
In this activity, you have created the production order type to be used by the CTP process, specified this type in
production preferences, and marked the configurable citrus juicer stock item to be used by the CTP process.
Capable to Promise: Process Activity
The following activity will walk you through the process of calculating projected dates for producing ordered items
by using the capable-to-promise functionality.
Story
Suppose that on January 30, 2023, the Thai Food Restaurant customer has ordered two configurable citrus juicers
and 10 pounds of oranges from the main office of SweetLife. Further suppose that the customer wanted the
juicers to be shipped in three weeks. You, as the customer service manager, need to make sure that the production
department can produce the juicers by the requested date and negotiate a new shipping datewith the customer if
the requested shipping date cannot be met.
In the U100 dataset, for the purposes of this activity, the following tasks have been performed:
• On the Order Types (SO201000) form, the SO sales order type has been predefined and activated.
• On the Customers (AR303000) form, the TOMYUM customer has been predefined.
• On the Stock Items (IN202500) form, the CFJCITRUS and ORANGES stock items have been predefined.
• On the Warehouses (IN204000) form, the WORKHOUSE and WHOLESALE warehouses have been predefined.
Process Overview
In this activity, to calculate the projected date by using the capable-to-promise functionality, on the Sales Orders
(SO301000) form, you will create a sales order with the items the customer has ordered and use the Process CTP
command to open the Process Capable to Promise (AM515000) form for the sales order. On this form, the system
will calculate the projected date for the configurable citrus juicers, and you will view available quantities of the
juicer and reject the projected date. Then on the Sales Orders form, you will change the requested date for the
configurable citrus juicer and again open the Process Capable to Promise form. On this form, the system will
recalculate the projected date, which you will accept. Finally, on the Sales Orders form, you will view the changes
the system made to the sales order.
System Preparation
Do the following:
1. As a prerequisite to the current activity, complete Capable to Promise: Implementation Activity, so that the
system is configured for you to use the capable-to-promise (CTP) functionality in a company with the U100
dataset preloaded.
2. Sign in to the company in which the prerequisite activities have been performed as a customer service
manager by using the blevy username and 123 password.
business date in your system is set to 1/30/2023. If a different date is displayed, click the Business Date menu
button, and select 1/30/2023 on the calendar. For simplicity, in this activity, you will create and process all
documents in the system on this business date.
4. On the Enable/Disable Features (CS100000) form, make sure that the Advanced Planning and Scheduling
feature has been enabled.
5. On the General tab (Manufacturing Settings section) of the Order Types (SO201000) form for the SO order
type, make sure that the Allow Production Orders - Approved and Allow Production Orders - Hold check
boxes have been selected.

To create a sales order, do the following:
1. Open the Sales Orders (SO301000) form.
a. Order Type: SO
b. Customer: TOMYUM
c. Date: 1/30/2023
d. Requested On: 1/30/2023
e. Description: Sale of 2 configurable juicers for fruit and 10 pounds of
oranges
4. On the Details tab, add rows with the settings shown in the following table.
Inventory ID Warehouse Quantity Unit Price Requested On

CFJCITRUS WORKHOUSE 2 3000.00 02/19/2023
ORANGES WHOLESALE 10 2.1500 1/30/2023
You have created the sales order, and now you will calculate the projected date for the CFJCITRUS item. The
ORANGES item has not been configured to be included in calculation of CTP dates so you could immediately create
a shipment for this item, which is outside of the scope of this activity.
Step 2: Calculating the Projected Date

To calculate the projected date on which the CFJCITRUS stock item can be shipped to the customer, do the
following:
1. While you are still viewing the sales order on the Sales Orders (SO301000) form, on the form toolbar, click
Process CTP on the More menu. The system opens the Process Capable to Promise (AM515000) form with
the line for the CFJCITRUS stock item shown in the table.
For the ORANGES item, the CTP Item check box is cleared on the Manufacturing tab of the
Stock Items (IN202500) form; therefore the line with this item is not displayed on the form.
2. Make sure that Process CTP is selected in the Actions box of the Selection area.
3. Select the check box in the unlabeled column of the CFJCITRUS line.
4. On the form toolbar, click Process; wait while the system completes the processing.
Notice that the system has specified the type and reference number of the planning order (which the system
has created during processing) in the Prod. Order Type and Prod. Order Nbr. columns. In the CTP Date
column, notice that the system has calculated the projected date as 3/2/2023, which is 12 days later than the
customer expected the juicers to be shipped.
Step 3: Viewing the Available Quantities

Suppose that you would like to see if any configurable citrus juicers are available in a warehouse or in production,
so that you can negotiate a new requested date with the customer. Do the following on the Process Capable to
Promise (AM515000) form, which is still open:
1. In the row with the CFJCITRUS stock item, click the link in the Open Qty. column.
2. In the Quantity Available dialog box, which opens, notice that all quantities except Requested are 0. This
means that the CFJCITRUS stock item is not currently available.
3. Close the dialog box.
Step 4: Rejecting the Projected Date

Suppose that you have decided to reject the projected date, call the customer, and negotiate the new requested
date. Do the following on the Process Capable to Promise (AM515000) form, which is still open:
1. In the Action box of the Selection area, select Reject.
3. On the form toolbar, click Process; wait while the system completes the processing. The system has deleted
the planning order and cleared the Prod. Order Type, Prod. Order Nbr., and CTP Date columns for the line
with the CFJCITRUS item.
Now you need to negotiate a new requested date with the customer.
Step 5: Recalculating the Projected Date

Suppose that the customer has agreed to receive the juicers on 3/2/2023 and you need to recalculate the projected
date and send the order to production. Do the following:
1. Open the Sales Orders (SO301000) form with the sales order you created in Step 1.
You will not change the requested date in the line for the CFJCITRUS stock item because it will
be changed automatically when you accept the CTP date.
2. On the form toolbar, click Process CTP on the More menu. The system opens the Process Capable to
Promise (AM515000) form with the line for the CFJCITRUS stock item shown in the table.
3. Make sure that Process CTP is selected in the Actions box of the Selection area.
Notice that the system has again specified the type and reference number of the planning order (which the
system has created during processing) in the Prod. Order Type and Prod. Order Nbr. columns. In the CTP
Date column, notice that the system has calculated the same projected date, 3/2/2023, as it did in Step 2.
Now you can accept the projected date and send the order to production.
Step 6: Accepting the Projected Date

To accept the projected date, do the following on the Process Capable to Promise (AM515000) form, which is still
open:
1. In the Action box of the Selection area, select Accept.
4. Make sure that the system has done the following:
• Inserted the type and reference number of the production order that has been created in the Prod.
Order Type and Prod. Order Nbr. columns, respectively.
Note: You can click the number in the Prod. Order Nbr. column to view the production
order on the Production Order Details (AM209000) form.
• Selected the CTP Accepted check box.

• Copied the CTP date to the Requested On and Ship On columns.
• Copied the original requested date to the Original Request Date column.
You have accepted the projected date, and now you will view the changes the system made in the sales order.
Step 7: Viewing the Sales Order

To view the changes the system made in the sales order when you accepted the CTP date, do the following:
1. Open the Sales Orders (SO301000) form with the sales order you created in Step 1.
2. In the Requested On and Ship On columns of the CFJCITRUS line of the Details tab, make sure that the
3/2/2023 date is specified (which is the accepted projected date).
3. In the Production Nbr. column, make sure that the system has copied the production order number created
when you accepted the projected date. You can click the link to view the production order on the Production
Order Maintenance (AM201500) form.
You have successfully calculated and accepted the projected dates for the customer's order by using the capable-
to-promise functionality.
Engineering Change Control | 241
Engineering Change Control

Engineering change control (ECC), a part of Acumatica ERP Manufacturing Edition, is an essential requirement for
maintaining control of manufacturing master data in a rapidly changing world. The primary purpose of ECC is to
control changes to bills of material. The ECC functionality gives users the following capabilities:
• Tracking pending changes and reviewing the change history
• Coordinating between purchasing, production, and inventory
• Managing version control and updates to bills of material and routing
• Controlling effective dates, which specify when changes take effect
In this chapter, you will find information about ECC.
Engineering Change Control: General Information
Engineering change control (ECC) is an essential requirement for maintaining control of manufacturing master
data in a rapidly changing world. The primary purpose of ECC is to control changes to bills of material. For a rapidly
changing or heavily regulated manufacturing company, ECC will assist and monitor the process of changing a bill of
material (BOM) and gaining approval if required.
You can use engineering change control functionality only if the Engineering Change Control feature in the
Manufacturing group of features is enabled on the Enable/Disable Features (CS100000) form.
In this topic, you will read about ECC in Acumatica ERP Manufacturing Edition.
ECC Functionality
Engineering change control provides the following abilities:
• Automates, controls, and organizes all change requests, plans, and actual changes to a bill of material.
• Full control from an engineering change request (ECR) to an engineering change order (ECO) to updating the
bill of material.
• The ability to create multiple engineering change orders from multiple approved engineering change
requests with the option to merge ECRs for the same bill of material and revision to a single ECO.
• The ability to use approval and assignment maps to control the approval process for both change requests
and change orders. You can specify if approvals are required for either or both ECRs and ECOs.
• Create notification templates on the Email Templates (SM204003) form to inform users of the statuses of an
ECR, ECO, and bill of material updates.
The following restrictions apply if the Require ECR/ECO for New BOM Revisions check box is selected on the BOM
Preferences (AM101000) form:
• You cannot select the Hold check box for a bill of material (BOM) to edit it directly. You must use the ECR or
ECO process to update BOMs once an ECR is created for the BOM.
• You can optionally forbid manual creation of a new revision for a bill of material and force all new revisions
to be created by the ECC process.
Direct Creation of Engineering Change Orders

If you organization has a small engineering team, you may find it undesirable to create an engineering change
request as a prerequisite to creating an engineering change order. The team may want to eliminate the extra step of
reviewing and generating the ECO and avoid storing unnecessary data in the system.
To allow the direct creation of ECOs, you clear the Require ECR before Creating ECO check box on the BOM
Preferences (AM101000) form. With this check box cleared, you can create an ECO directly on the Engineering
Change Order (AM215000) form by clicking Add New Record on the form toolbar.
Once the check box has been cleared, we do not recommend selecting it again because this may
cause the engineering change control functionality to work improperly.
ECC Workflow
In the following diagram, you can view the workflow of engineering change control with the following settings on
the BOM Preferences (AM101000) form:
• Require ECR before Creating ECO: Selected
• ECR Require Approval: Selected
• ECO Require Approval: Selected
Figure: Workflow of engineering change control
To initiate changes in an existing bill of material, you perform the following steps:
1. Create an ECR by using the Engineering Change Request (AM210000) form. The ECR status is On Hold.
2. Submit the ECR. The ECR status is changed to Pending Approval.
3. Acting as an approver, approve the ECR. The ECR status is changed to Approved.
4. Initiate the creation of the ECO based on the ECR. The ECR status is changed to Completed.
5. Open the created ECO on the Engineering Change Order (AM215000) form.
6. Review the ECO details and submit the ECO. The ECO status is changed to Pending Approval.
7. Acting as an approver, approve the ECO. The ECO status is changed to Approved.
8. Initiate the creation of the bill of material revision from the ECO. The ECO status is changed to Completed.
Engineering Change Control: Implementation Checklist
The following sections provides details that you can use to ensure that engineering change control is configured
properly.
We recommend that before you start using engineering change control, you make sure the needed features have
been enabled, settings have been specified, and entities have been created, as summarized in the following
checklist.
Enable/Disable Features (CS100000) The Engineering Change Control feature is enabled un-
der the Manufacturing group of features.
Numbering Sequences (CS201010) The numbering sequences have been created for the
identifiers of engineering change requests and engi-
neering change orders.
BOM Preferences (AM101000) The following settings have been specified on the Gen-
eral tab (Numbering Settings):
• The numbering sequence for ECRs in the ECR Num-
bering Sequence box
• The numbering sequence for ECOs in the ECO Num-
bering Sequence box
Email Templates (SM204003) The corresponding notification templates have been

created if you want to inform users about any of the
following events:
• An ECR or ECO has been created.
• An ECR or ECO is waiting for an approval.
• An ECR or ECO has been approved.
• An ECR or ECO has been rejected.

You can affect the workflow of engineering change control by doing any of the following on the BOM Preferences
(AM101000) form:
• If you want to restrict the creation of new revisions of bills of material based on engineering change requests
or engineering change orders so that the revisions can be created only by using an ECR or an ECO, you select
the Require ECR/ECO for New BOM Revisions check box in the Data Entry Settings section of the General
tab.
• If you want to allow engineers to create engineering change orders without creating engineering change
requests, you clear the Require ECR Before Creating ECO check box in the Data Entry Settings section of
the General tab.
• If you want to use approvals for engineering change requests, on the ECR Approval tab, you select the ECR
Require Approval check box, and in the table, you add the needed approval map for ECRs, which is created
on the Assignment and Approval Maps (EP205500) form.
• If you want to use approvals for engineering change orders, on the ECO Approval tab, you select the ECO
Require Approval check box, and in the table, you add the approval map for ECOs, which is created on the
Assignment and Approval Maps form.
Engineering Change Control: Implementation Activity
In the following implementation activity, you will learn how to configure engineering change control.
Process Overview
In this activity, you will review the settings related to engineering change control by using the BOM Preferences
(AM101000) form.
System Preparation
Before you start implementing the product configuration functionality, do the following:
your instance.
2. Make sure that the Engineering Change Control feature in the Manufacturing group of features has been
Step: Reviewing ECC Settings

To review the default settings of engineering change control, do the following:
1. Open the BOM Preferences (AM101000) form.
2. On the General tab, make sure that the following settings related to engineering change control have been
specified:
• ECR Numbering Sequence: AMECR
• ECO Numbering Sequence: AMECO
• Require ECR before Creating ECO: Selected
With this setting, a user must create an engineering change request first and then create an engineering
change order based on the request.
• Require ECR/ECO for New BOM Revisions: Cleared
With this setting, a user can create new revisions of bills of material based on ECR or ECO directly on the
Bill of Material (AM208000) form.
3. On the ECR Approval tab, make sure that the following has been specified:
• The ECR Require Approval check box is selected.
• The Engineering Change Request approval map has been added to the table.
4. On the ECO Approval tab, make sure that the following has been specified:
• The ECO Require Approval check box is selected.
• The Engineering Change Order approval map has been added to the table.
Engineering Change Control: Process Activity
The following activity will walk you through the process of making changes in a bill of material by using engineering
change control.
Process Overview
1. On the Engineering Change Request (AM210000) form, you will create an engineering change request for
changes in the bill of material and approve the request.
2. On the Engineering Change Order (AM215000) form, you will create an engineering change order based on
the engineering change request and approve the order.
3. On the same form you will commit changes from the engineering change order to the bill of material.
System Preparation
Before you start making changes to a bill of material by using engineering change control, do the following:
your instance.
3. Make sure that the Engineering Change Control feature in the Manufacturing group of features has been
Step 1: Creating an Engineering Change Request

To create an engineering change request for changes in a bill of material, do the following:
1. On the Engineering Change Request (AM210000) form, add a new record.
2. In the BOM ID box of the Summary area, select BOM000001.

3. In the BOM Revision box, select A.
4. In the Description box, enter Assemble Printed Circuit Board with inspection.
6. On the table toolbar of the Operations tab, click Add Row.
• Work Center: WC100
• Run Units: 10
• Run Time: 01:00
8. Make sure that all other values of time boxes (except Machine Time) are 00:00.
9. Make sure that the value of the Change Status is Inserted.
11.On the form toolbar, click Submit to confirm that you completed making changes in the request.
12.On the form toolbar, click Approve to approve the changes made in the request.
Step 2: Creating an Engineering Change Order

To create an engineering change order based on the engineering change request, do the following:
1. While you are still viewing the engineering change request on the Engineering Change Request (AM210000)
form, on the form toolbar, click Create ECO. The system opens the Engineering Change Order (AM215000)
form for the new order and copies details from the request.

3. On the form toolbar, click Submit to confirm the order details.
4. On the form toolbar, click Approve to approve the order.
Step 3: Committing Changes to BOM

To commit changes from the engineering change order to the bill of material, do the following:
1. While you are still viewing the engineering change order on the Engineering Change Order (AM215000) form,
on the form toolbar, click Commit Changes to BOM. The system opens the Bill of Material (AM208000) form
with the new revision of the BOM000001 bill of material.
2. In the Revision box, make sure that the system specified E as the revision identifier.
3. Clear the Hold check box and make sure that the system has changed the status to Active.
You have successfully created a new revision of a bill of material by using engineering change control.
Appendix | 247
Appendix
The appendix provides some reference information relevant for this document. The additional information in this
section is a useful source for readers who need some reference material that is related to system forms and tables,
as well as running reports.
In this section:
• Reports
• Form Toolbar
• Table Toolbar
• Glossary
Reports
In addition to offering a comprehensive collection of reports, Acumatica ERP gives you a high degree of control over
each report.
On a typical report form, described in Report Form, you can adjust the report settings to meet your specific
informational needs. You can specify sorting and filtering options and select the data by using report-specific
settings—such as financial period, ledger, and account—and configure additional processing settings for each
report. The settings can be saved as a report template for later use. For details, see To Run a Report and To Create a
Report Template.
Aer you run a report, the prepared report appears on your screen. You can print the report, export the report to a
file, or send the report by email.
This chapter describes a typical report form and the main tasks related to using reports.
In This Chapter
• Report Form
• To Run a Report
• To Modify a Filter on a Report Form
• To Create a Report Template
Report Form
Before you run a report, you set a variety of parameters on the report form. You can select a template or manually
make selections that affect the information collected. Also, you can specify appropriate settings to print or email
the finished report.
The following screenshot shows a typical report form.
Appendix | 248
Figure: Parameters View of Report Form
1. Report Form Toolbar

2. Template Area
3. Details Area
Report Form Toolbar

The following table lists the buttons of the report form toolbar when you are configuring a report.
Button Description
Cancel Clears any changes you have made and restores default settings.
Run Report Initiates data collection for the report and displays the generated report.
Save Template Gives you the ability to save the currently selected report as a template with all the select-
ed settings.
Remove Tem- Removes the previously saved template.

plate
This button is available only when you select a template.
Schedule Tem- Opens the Select Schedule Name Dialog Box dialog box, which you can use to schedule re-
plate port processing.
This button is available only when you select a template.
Table: Select Schedule Name Dialog Box
Element Description
Schedule The schedule for report processing. Select an existing schedule, or leave the box blank
and click OK to open the Automation Schedules (SM205020) form to create a new sched-
ule for running the report. For more information on scheduling, see Automated Process-
ing: General Information in the Acumatica ERP System Administration Guide.
Appendix | 249
Element Description
Merge Reports A check box that indicates (if selected) that this report will be merged with the other re-
ports selected for merging into one net report when processed.
You can check the reports that will be merged when processed on the Send
Reports (SM205060) form.
Merging Order The number of the report in the net report.
Report Toolbar
The following table lists the buttons of the toolbar aer you run the configured report.
Buttons Icon Description
Parameters Navigates back to the report form to let you change the report parameters.
Refresh Refreshes the information displayed in the report (if any data changes were made).
Groups Adds to the report a le pane where the report structure is shown. Click a report node
to highlight the pertinent data in the right pane.
View PDF / Displays the report as a PDF, or displays the report in HTML format. The available but-
View HTML ton depends on the current report view; if you're viewing a PDF, for instance, you will
see the View HTML button.
/
First Displays the first page of the report.
Previous Displays the previous page.
Next Displays the next page.
Last Displays the last page of the report.
Print Opens the browser dialog box so you can print the report.
Appendix | 250
Send Opens the Email Activity dialog box, which you use to send the report file (in the cho-
sen format) to the specified email address.
Export Enables you to export the data in the chosen format (Excel or PDF).
Template Area
Use the elements in this area to select an existing template and then use the template, share it with other users, or
use it as your default report settings.
The Template area elements, which are available for all reports, are described in the following table.
Table: Template Area Elements
Element Description
Template The template to be used for the report. If any templates were created and saved, you can
select a template to use its settings for the report.
Default A check box that indicates (if selected) that the selected template is marked as the default
one for you. A default template cannot be shared.
Shared A check box that indicates (if selected) that the selected template is shared with other
users. A shared template cannot be marked as the default.
Locale A locale that you select to indicate to the system that the report should be prepared with
the data translated to the language associated with this locale. This box is displayed if
there are multiple active locales in the system. For details, see Locales and Languages.
Report Parameters Tab

The Report Parameters tab includes sections where you can specify the contents of the report depending on the
current report and vary in the following regards:
• How many elements and which elements are available on a particular report
• Whether elements contain default values
• Whether specific elements require values to be selected
• Whether elements may be le blank to let you display a broader range of data
Additional Sort and Filters Tab

The Additional Sort and Filter tab contains additional sorting and filtering conditions:
• Additional sorting conditions: Defines the sorting order. You can add a line, select one of the report-
specific properties, and select the Descending or Ascending sort order for the column.
• Additional filtering conditions: Defines the report filter. You can add a line, select one of the report-
specific properties, and define a condition and its value. The list of conditions include one-operand and
two-operand conditions. To create a more complicated logical expression, you can use brackets and logical
operations between brackets. For more information on creating filters, see Managing Advanced Filters. For
detailed procedures on using ad hoc filters, see Working with Reports: Process Activity.
Appendix | 251
Print and Email Settings Tab

If you plan to print the report or save the report as a PDF, select the appropriate settings in the Print Settings area.
Table: Print Settings Section
Element Description
Deleted Records Selects the visibility of the data deleted from the database.
Print All Pages Causes all pages of the report to be printed.
Print in PDF format Displays the report in PDF format.
Compress PDF file Indicates that the system will generate a compressed PDF.
Embed fonts in PDF file Indicates that the system will generate the PDF with fonts embedded.
If you plan to send the report as an email, in the Email Settings area, specify the format in which the report will be
sent, as well as the email subject, the recipients of copies of the report, and the email account of the recipient.
Table: Email Settings Section
Field Description
Format The format (HTML, PDF, or Excel) in which the report will be emailed.
Merge function for reports in Excel format is not supported. If you want to
merge a report with other reports and send an aggregated report by email,
you should select either the HTML or PDF format for the report.
Email Account The email address of the recipient.
CC An additional addressee to receive a carbon copy (CC) of the email.
BCC The email address of a person to receive a blind carbon copy (BCC) of the email; an address
entered in this box will be hidden from other recipients.
Subject The subject of the email.
Report Versions Tab

If the report has multiple versions, you can select one of them.
This tab displays the data only to users assigned with report designer user role.
Report versions are designed in the Report Designer. To activate editing report versions, give the user report
designer role.
Table: Report Versions Tab Toolbar
Button Description
Refresh Refreshes the list of report versions.

Appendix | 252
Button Description
Select Temporarily activates the selected report version.
Related Links
• To Run a Report
• To Create a Report Template
• Types of Filters
• Automation Schedule Statuses
Report
Once you click Run Report, the prepared report appears on your screen. You can print the report, export the report
to a file, or send the report by email.
The prepared report is displayed in the report view of the report form. For more information about setting up the
report parameters and the parameters view of the report form, see Report Form.
Report Toolbar
The following table lists report toolbar buttons.
Parameters Navigates back to the report form to let you change the report parameters.
Refresh Refreshes the information displayed in the report (if any data changes were made).
Groups Adds to the report a le pane where the report structure is shown. Click a report node
to highlight the pertinent data in the right pane.
View PDF / Displays the report as a PDF, or displays the report in HTML format. The available but-
View HTML ton depends on the current report view; if you're viewing a PDF, for instance, you will
see the View HTML button.
/
First Displays the first page of the report.
Previous Displays the previous page.

Appendix | 253
Next Displays the next page.
Last Displays the last page of the report.
Print Opens the browser dialog box so you can print the report.
Send Opens the Email Activity dialog box, which you use to send the report file (in the cho-
sen format) to the specified email address.
Export Enables you to export the data in the chosen format (Excel or PDF).
Related Links
• Filters
• Report
Form Toolbar
The form toolbar, available on most forms, is located near the top of the form, under the form title (and subtitle, if
the form has one), as shown in the following screenshot.
The form toolbar includes the following:
• Standard buttons (see Item 1 in the following screenshot), with the particular set of buttons depending on
the specific form
• On some forms, form-specific buttons (Item 2)
• On some form, the More button (Item 3); clicking this button opens the More menu (Item 4), which contains
additional form-specific commands
Figure: The form toolbar and the More menu

Appendix | 254
You use the standard buttons on the form toolbar to navigate through entities that were created by using the
current form, insert or delete an entity, use the clipboard, save the data you have entered, or cancel your work on
the form.
A form toolbar on a particular form may include form-specific buttons in addition to standard buttons; it may also
(or instead) include commands on the More menu. These form-specific buttons and commands provide navigation
to related forms, invoke specific actions, and perform modifications or processing related to the functionality of the
form.
Standard Form Toolbar Buttons

The following table lists the standard buttons of the form toolbar. A form toolbar may include some or all of these
buttons.
Table: Standard Form Toolbar Buttons
Button Icon Description
Discard Changes Discards any unsaved changes made to the entity, and navigates to the list of
and Close records that is related to the current form.
If the system opened the current form in a pop-up window (from

a different form), this button is not displayed. To return to the
original form, click Close.
Save & Close Saves the changes made to the entity, and navigates to the list of records that
is related to the current form.
Save Saves the changes made to the entity.
Cancel Depending on the context, does one of the following:

• Discards any unsaved changes you have made to entities and retrieves the
last saved version.
• Clears all changes and restores the default settings.
Add New Record Clears any values you've specified on the form, restores any default values,
and initiates the creation of a new entity.
Delete Deletes the currently selected entity, clears any values you have specified on
the form, and populates elements with the default values that the system in-
serts when a new entity is created.
You can delete an entity only if it is not linked with another enti-
ty.
Appendix | 255
Clipboard Provides menu commands you can use to do the following:

• Copy: Copy the selected entity to the clipboard.
• Paste: Paste an entity or template from the clipboard.
• Save as Template: Create a template based on the selected entity.
• Import from XML: Import an entity or a template from an .xml file.
• Export to XML: Export the selected entity to an .xml file.
For more information on templates and copy-and-paste operations in
Acumatica ERP, see Using Forms. For more information on importing and ex-
porting .xml files, see Importing and Exporting Data to Excel and XML in the
Acumatica ERP User Guide.
Go to First Record Displays the first entity (in the list of entities of the specific type) and its de-
tails.
Go to Previous Displays the previous entity and its details.

Record
Go to Next Record Displays the next entity and its details.
Go to Last Record Displays the last entity (in the list of entities of the specific type) and its de-
tails.
View Schedule Gives you the ability to schedule the processing. For more information, see
Automated Processing: General Information.
Inquiry Form Toolbar Buttons

Acumatica ERP inquiry forms present data in a tabular format; they may also have selection criteria you can use
to filter the data in the table. Predefined inquiry forms are provided as part of Acumatica ERP out of the box, and
inquiry forms can be designed by a user with the appropriate access rights by using the Generic Inquiry tool (for
details, see Managing Generic Inquiries in the Acumatica ERP Reporting Tools Guide). A form toolbar of an inquiry
form contains both the standard form toolbar buttons (described in the table above) and the additional buttons
described below.
Refresh Refreshes the inquiry data in the table.
Cancel Clears all changes (including selection criteria that has been specified, if the
generic inquiry form has this criteria) and restores the default settings.
Appendix | 256
Add New Record Initiates the creation of a new entity.
Edit Opens the applicable data entry form with the selected record.
Fit to Screen Expands the form to fit on the screen and adjusts the column widths propor-
tionally.
Export to Excel Exports the data to an Excel file. For more information, see Integration with Ex-
cel in the Acumatica ERP Getting Started Guide.
Filter Settings Opens the Filter Settings dialog box, which you can use to define a new filter.
After the filter has been created and saved, the corresponding tab appears on
the table. For more information about filtering, see Filters.
The More Menu and Form-Specific Buttons

If there are multiple form-specific commands on the form toolbar, they are displayed on a single menu—the More
menu—and listed under descriptive categories, which makes it easier to find the needed menu command. On the
More menu, you can easily define your favorite menu commands, which eases access to them.
On some forms, the system places a button (which is highlighted in green) on the form toolbar for the expected next
command, which represents the likely next step to be performed on the selected record. The following screenshot,
which shows the Cash Transactions (CA304000) form, illustrates an example of the form toolbar and the More menu,
which contains categories and menu commands.
Figure: The form toolbar of the Transactions form
The numbered items in the screenshot indicate the following:

1. A highlighted button for the expected next command, which represents the next logical step to be
performed on the record selected on the form
2. Another button for a command that is commonly performed on the form
3. The More button, which you click to open the More menu
Appendix | 257
4. The More menu with most form-specific menu commands and descriptive categories on it
5. The star icon, which is used to mark the individual user's favorite commands on the form
6. An unavailable command
Favorite Commands
Based on your role in the company and your job duties, you may use some commands more oen than others.
On the form toolbar, you can specify these commands as favorites. This will cause the system to duplicate the
commands as form toolbar buttons, easing access to them.
To add a command to the form toolbar as a button, you open the More menu, hover over the needed command,
and click the star icon when it appears. The yellow color of the star indicates that the command has been added
to your favorites, and a button for the command appears on the form toolbar immediately. The following example
shows two commands that have been added to the user's favorites on the Invoices and Memos (AR301000) form
and thus added as buttons on the form toolbar.
Figure: Favorite commands on the More menu and the corresponding toolbar buttons
Favorites are individual to each user account, specific to a particular form, and preserved across user sessions.
Highlighted Buttons and Commands

On some forms, the system applies predefined logic to commands for specific records. Based on this logic, the
system may place a button on the form toolbar, highlight it using some color, or do both of these things.
If a command is the expected next command (that is, the command that is most likely to be clicked for a record
with the current status), it is shown both on the form toolbar and on the More menu. The primary command on the
form toolbar is highlighted in green (see Item 1 in the following screenshot), and on the More menu, it is marked
with a green dot (Item 2). Below is an example of a cash transaction on the Cash Transactions (CA304000) form that
has the On Hold status (Item 3). Before you can process it, you need to remove it from hold. Because Remove Hold
is the next logical command, it is displayed as a button on the form toolbar and highlighted in green.
Appendix | 258
Figure: The highlighted command and the corresponding status
Unavailable Commands on the More Menu

By default, on the More menu, the system displays all commands that could be available for the form, based on the
system configuration. Some of these commands may be unavailable (that is, they are listed but cannot be clicked).
These are the commands that are not applicable to the record based on its current status or other factors.
The Responsive Form Toolbar and More Menu

The form toolbar and the More menu have a responsive layout, meaning that they dynamically adjust to different
screen sizes. When there is enough space, buttons for highlighted and favorite commands are displayed on the
form toolbar. When the screen size decreases, the system moves the commands off the form toolbar one by one but
keeps them on the More menu.
If there are multiple categories on the More menu, the categories and menu commands can be displayed in
multiple columns on the More menu, depending on the screen size and the number of categories. When the
screen size decreases, the system moves some categories and menu commands to the le to decrease the number
of columns, and in the screens of the smallest size, all categories are displayed in one column. Below are two
examples of the same menu in different screen sizes for a record on the Bills and Adjustments (AP301000) form.
Appendix | 259
Figure: The form toolbar and More menu on a wide screen
Figure: The form toolbar and More menu on a narrow screen

Appendix | 260
Related Links
• Integration with Excel
• To Copy a Document Contents to a New Document
• To Create a Document with a Template
Table Toolbar
Each table on an Acumatica ERP form, tab, dialog box, or page has a table toolbar, which contains the buttons
you can use to work with the details or objects of the table. A toolbar, shown in the following screenshot, includes
buttons that are specific to the table, standard buttons that most table toolbars have, and the search box (for some
tables; for others, the search box is displayed in the filtering area).
Figure: Table toolbar
Standard Table Toolbar Buttons

The following table describes the standard table toolbar buttons. A table toolbar may include some or all of those
buttons. If a table toolbar includes table-specific buttons, they are described in the reference help topic.
Refresh Refreshes the data in the table.
Switch Between Controls how the elements are displayed: in a table (grid) with rows and columns;
Grid and Form or as separately arranged elements for one table row, with navigation tools you use
to move between row data.
Add Row Appends a new row to the table so you can define a new detail or object. The new
row may contain some default values.
Delete Row Deletes the selected row.

Appendix | 261
Move Row Up Moves the selected row one position up.
Move Row Down Moves the selected row one position down.
Fit to Screen Adjusts the table to the screen width and makes the column width proportional.
Export to Excel Exports the data in the table to an Excel file. For more information, see Integration
with Excel in the Acumatica ERP Getting Started Guide.
Filter Settings Opens the Filter Settings dialog box, which you can use to define a new advanced
filter. After you create and save the filter, the corresponding tab appears on the ta-
ble.
For more information about filtering, see Filters. For details on the Filter Settings
dialog box, see Filter Settings Dialog Box.
Load Records Opens the File Upload dialog box, described in detail below, so you can locate and
from File upload a local file for import. You can use this option to import data from an Excel
spreadsheet (.xlsx) or .csv file. For the detailed procedure, see To Import Data
from a Local File to a Table.
Search A box in which you can type a word, part of a word, or multiple words. As you type,
the system filters the contents of the table to display only rows that contain the
string you have typed in any column.
Download Downloads the selected file.
File Upload Dialog Box

With the File Upload dialog box, you select a file of one of the supported formats (.csv or .xlsx) to import data
from the file.
Element Description
File Path The path to the file you want to upload.

To select the file, click Browse, and then find and select the file you want to upload.
The dialog box has the following button.
Upload Closes the dialog box and opens the Common Settings dialog box, where you specify the
import settings.
Appendix | 262
Common Settings Dialog Box

In the Common Settings dialog box, which opens if you click Upload in the File Upload dialog box, you specify the
import settings for a file that you has selected in the File Upload dialog box.
Element Description
Separator Chars The character that is used as the separator in the imported file.
By default, the comma is used as the separator. You specify the separator character if the
imported file uses any other separator.
This box appears only if you import data from a .csv file.
Null Value Optional. The value that is used to mark an empty column in the imported file. You speci-
fy the null value if the value in the imported file differs from the empty string.
Encoding The encoding that is used in the imported file.

This box appears only if you import data from a .csv file.
Culture The regional format that has been used to display the time, currency, and other measure-
ments in the imported file.
Mode The mode defining which rows of the uploaded file will be imported into the table. The
following options are available:
• Update Existing: The rows already present in the table will be updated, and the rows
not present in the table will be added.
• Bypass Existing: Only the new rows that are not present in the table will be imported.
The rows that are already present in the table will not be updated.
• Insert All Records: All the rows from the file will be imported into the table.
If you select this option, you may get duplicated rows because the sys-
tem won't check for duplicates when importing rows from the file.
The dialog box has the following buttons.
OK Closes the dialog box and opens the Columns dialog box.
Cancel Closes the dialog box without importing the data from the file.
Columns Dialog Box

In the Columns dialog box, which opens if you click OK in the Common Settings dialog box, you match the
columns in the imported file that you have selected in the File Upload dialog box to the columns in the Acumatica
ERP table to which you are importing data.
Element Description
Column Name The name of the column in the uploaded file.
Property Name The name of the corresponding column in the table in Acumatica ERP.
Appendix | 263
Element Description
The dialog box has the following buttons.
OK Closes the dialog box and imports the selected file.
Cancel Closes the dialog box without importing the data from the file.
Related Links
• Tables
• Integration with Excel
• To Import Data from a Local File to a Table

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End-User Guide

Production Processing: Related Report and Inquiry Forms..........................................................................77

Material Requirements Planning: Planning Transfers in MRP..................................................................... 160

Advanced Planning and Scheduling: Scheduling Details............................................................................ 218

© 2022 Acumatica, Inc.

ALL RIGHTS RESERVED.

Soware Version: 2022 R2

Managing Production Cost Drivers

Production Cost Drivers: General Information

Cost Drivers in Manufacturing

Tool and Machine Costs

Production Cost Drivers: Configuration Prerequisites

Enabling the Needed Features

Configuring the System

Production Cost Drivers: Implementation Activity

Step 1: Creating Labor Codes

Step 2: Creating Overhead Entities

Step 3: Creating Tools

Step 4: Creating a Machine

Managing Work Centers

Work Centers: General Information

Work Center Creation

Work Centers: Substitution of Work Centers

Substitution of Work Centers

Work Centers: Configuration Prerequisites

Enabling the Needed Feature

Configuring the System

Work Centers: Implementation Activity

Step 1: Creating a Work Calendar

2. In the Calendar ID box of the Summary area, type OVERTIME.

Step 2: Creating Shis

7. On the form toolbar, click Save.

Step 3: Creating a Work Center for Juicer Assembly

Step 4: Creating a Work Center for a Machine

6. On the Machines tab, do the following:

Work Centers: Related Forms

Viewing the Capacity of a Work Center

Viewing Open Operations for a Work Center

Viewing Production Schedules for Each Work Center

Managing Bills of Material

Bills of Material: General Information

Bills of Material and Stock Items

Bill of Material Settings

Inactivation of Bills of Material

Deletion of Bills of Material

Bills of Material: Operations

Operations in Bills of Material

Materials Used in Operations

Calculation of the Quantity of Material Required for Production

Table: Example of calculating the required quantity of materials

Material Required Quantity Batch Size Total Quantity

Apples 2 pounds 1 20 pounds

Sugar 5 pounds 5 10 pounds

Dish-washing liquid 0.8 liquid ounces 0 0.8 liquid ounces

Bills of Material: Multilevel BOMs

Creation of a Multilevel BOM

BOM Creation on the Engineering Workbench Form

Modification of the BOM Structure in the Tree

• Change the order of materials within an operation