Post on 16-Sep-2015
description
transcript
Exact products are being innovated and developed on a continuous basis. Be aware that these training materials are therefore
subject to change and that any versions printed or saved as a local copy may be outdated.
Exact Online Manufacturing Training manual
Exact Online Manufacturing 2
1 Introduction 4
1.1 Welcome 4
1.1 Certification 4
1.2 Objectives 4
1.3 About this training Error! Bookmark not defined.
1.4 Preparation 5
2 Unique Lamps 7
3 Settings, master data and roles & rights 8
3.1 General ledgers 9
3.2 Settings 10
3.3 Master data 11
3.4 Roles & Rights 20
4 Stock driven and order driven manufacturing 25
5 Stock driven manufacturing 26
5.1 Bill of materials 26
5.2 Shop order 26
5.3 Shop floor planning 28
5.4 Print shop order 29
5.5 Shop order card 29
5.6 Purchase materials 32
5.7 Issue materials 32
5.8 Time entry 33
5.9 Purchase subcontracts 34
5.10 Finish shop order 35
5.11 Complete shop order 36
5.12 Backflush 36
6 Order driven manufacturing 41
6.1 Quotation 41
6.2 Process quotation 46
6.3 Update cost price in item 46
Exact Online Manufacturing 3
6.4 Sales order 46
6.5 Shop order 46
7 Overviews and costing 53
7.1 Manufacturing dashboard 53
7.2 Shop order card 54
7.3 Status overview 54
7.4 Cost overview 54
7.5 Production analysis 55
7.6 Shop order results 55
7.7 Backflush overview 55
7.1 Transactions 56
8 Assignment keys 59
Exact Online Manufacturing 4
1 Introduction
1.1 Welcome
Welcome to the functional training Exact Online Manufacturing. In this training the Manufacturing solution
of Exact Online is explained. This training takes two days and can be done as self-study.
1.1 Certification
This (functional) training course is part of the Specialised Certification Exact Online Manufacturing. In order
to follow this training you must have passed the Cloud Accountant Certification and the Specialised
Certification Exact Online Wholesale. This two day training course can be done as self-study.
1.2 Objectives
After completing this training course, you will be able to:
Explain the settings for Manufacturing in Exact Online.
Explain how the master data is set up for Manufacturing in Exact Online.
Explain the roles & rights relevant for Manufacturing in Exact Online.
Explain the processes in Manufacturing: stock controlled and order controlled.
Explain the (possible) steps in the stock controlled process within Manufacturing in Exact Online.
Explain how to set up a Bill of materials (BOM) in Exact Online.
Explain how to enter, issue, plan, receive, enter time-entry and complete a shop order.
Explain what back-flush is and how it works in Exact Online.
Explain how to outsource an operation in Exact Online.
Explain the (possible) steps in the order controlled process within Manufacturing in Exact Online.
Explain how to enter a quotation including volume discounts in Exact Online.
Explain how to calculate prices for produced items in Exact Online.
Explain how to accept the quotation, create the sales order and shop order in Exact Online.
Explain the different overviews used for Manufacturing in Exact Online.
Explain how to work with the Manufacturing Dashboard in Exact Online.
Explain the journal entries created in the different steps in the Manufacturing process in Exact
Online.
Explain the functionality of purchase prices lists, stock ageing and cluster picking list.
Explain how to work with assembly orders.
Explain the use of multiple warehouses, item locations and storage locations.
Explain how to set up and work with serial/batch.
Explain how to use the MRP overview.
Explain how to set up and work with multi-level bills of materials.
Explain how to use the cost price calculations.
Exact Online Manufacturing 5
1.3 Exact Online Manufacturing Basic versus Advanced versus Premium
Exact Online Manufacturing offers a basic and an advanced solution. The basic solution is mainly about job
shops and is aimed at small repetitive manufacturers. The advanced solution is aimed at small and medium
repetitive manufacturers requiring more advanced logistics. In time Exact Online manufacturing will also
offer a premium solution. This premium solution is aimed at small and medium repetitive manufacturers
requiring mature planning functions.
1.4 About this training
In this training the different aspects of the manufacturing process in Exact Online are explained.
In part I the basic solution of Exact Online Manufacturing is explained. First the master data and settings
are described, followed by the manufacturing process, which can be stock controlled or order controlled. In
the different steps the journal entries are explained as well as the dashboard and different overviews.
In part II the advanced solution of Exact Online Manufacturing is explained. In this advanced part the
following features are explained: multiple warehouses and storage locations, serial/batch, assembly
orders, MRP, multi level of BOM and cost price calculation.
In each chapter the functionality is explained, after which assignments are offered to practice with it. At
the end of the manual the answers to the assignments are described, so this training can also be done as
self-study.
An imaginary manufacturing company is used to explain the processes and to do the assignments. In the
next chapter this company, called Unique Lamps, is introduced.
This training is developed in an English subscription of Exact Online, this means that for
manufacturing the Anglo-Saxon bookkeeping method is used. In countries where the Perpetual
or Non-Perpetual bookkeeping method is used for manufacturing this training will not be
applicable.
1.5 Preparation
In the assignments you will set up and work with a Manufacturing company. You can already create this
Manufacturing company in Exact Online, follow the next steps:
- Copy the following link into a new internet browser window:
https://start.exactonline.co.uk/docs/websitesubscription.aspx?bcaction=0&type=10&language=EN&fixedter
m=%7b1c010e0a-913a-4a57-a711-
92b7a7f0db0f%7d&docbasename=websitecontainer&Accountant=%7bb1f77ae5-fe94-4482-ba39-
908026db1cef%7d
- Fill in the form and make sure to use the following data:
First name & Name: Your first name and last name
Company name: Your last names Manufacturing Company
E-mail: Your e-mail address
User name: Your name +MFG (note this down)
Exact Online Manufacturing 6
Password: something you will remember (note this down)
- For other fields, use any data you want.
- Click SE ND to send in the form.
- In the confirmation screen, you can see the login information. Write this down and click LOGIN .
This will bring you to the Exact Online login screen. You can always reach this login page to access
your company by navigating to https://start.exactonline.co.uk.
Please be aware that you always use the UK Exact Online environment to access this training
company.
- LOGIN to your company with your credentials.
- Because you used the link above to create your company, your company is automatically linked to
the accountant Your Accountancy Firm (Training), which is confirmed in this screen. Click
CONT INUE DIREC TLY , I WI LL DE FI NE T HE COO P ER AT I ON L ATE R .
- Click NE XT to start setting up your company.
- Click I WANT TO SE T U P T H IS C OMPANY V I A A TEMP L ATE .
- Choose the template named TEMPLATE: M ANUFAC T URI NG ACCO UN T ANC Y P ROGR AM
(YOU R ACCOU NT ANCY F I R M (TR AINING ) . This will prefill your company with the data you
need to complete the assignments.
- When the company is setup click NEX T to start working in it.
Your company is now ready and you can start working on the assignments. The Exact Online subscription
that is created via this link, is an Exact environment that can be used for this training. Please do not change
the subscription. It will expire after one month.
Exact Online Manufacturing 7
2 Unique Lamps
One of BoHos largest suppliers is Unique
Lamps. The company is located in Delft and is owned by Nick Young. He started creating lamps as a hobby,
which eventually resulted into a successful small business. In 2005 he started his own company, which
quickly grew and now has 10 employees.
Unique Lamps manufactures different types of lamps: floor, wall, ceiling and table lamps. Most of the
lamps consist of a base, a stem and a lamp shade. The base and stem are usually made of metal, the lamp
shade is made of different fabrics.
The design of the lamps is quite quirky and unique, thus the name. Even though Unique Lamps creates
several of its assortments in bulk, each lamp has the look and feel of a one-off creation. Unique Lamps has
also created commissioned pieces customized to suit specific settings upon request. Unique Lamps have
been featured in several online and print magazines including Style Magnet and inspirebohemia.com.
To produce a lamp first the base and stem have to be melted into the right shape. Next the base, stem and
lamp shade are assembled. Sometimes the base and stem are painted, but this process is outsourced.
Exact Online Manufacturing 8
Part 1 Manufacturing Basic
Exact Online Manufacturing 9
3 Settings, master data and roles & rights
Before you can start to work in a new company it needs to be set up. Most of the master data is handled in
the Exact Online Essentials and Exact Online Wholesale Distribution training. In this chapter the specific
master data, roles and rights and settings for Exact Online Manufacturing are explained. First an overview
of the general ledgers in Exact Online Manufacturing is shown.
3.1 General ledgers
In Exact Online Manufacturing a lot of general ledgers are used in the settings, item groups and production
areas. Below an overview is shown of all the general ledgers that can be used:
General Ledger Used in: Balance/P/L Type Debit / credit
Work in progress Settings B/S Other assets Debit
Manufacturing variance Settings P/L Other costs Debit
Stock of raw materials Item groups
(raw materials)
B/S Inventory Debit
Stock of finished goods Item groups
(finished goods)
B/S Inventory Debit
Purchase variance Item groups
(raw materials)
P/L Other costs Debit
Cost of goods sold Item groups (2x) P/L Cost of goods
sold
Debit
Revenue Item groups (2x) P/L Revenue Credit
Cost of subcontracting Item groups
(subcontracted
work)
P/L General Debit
Labour applied Production areas P/L General Debit
General burden applied Production areas P/L General Debit
Machine burden applied Production areas P/L General Debit
Labour burden applied Production areas P/L General Debit
Exact Online Manufacturing 10
3.2 Settings
For Manufacturing the following settings are important:
3.2.1 Financial tab
In the FINANCI AL tab in the section G/L ACCOU NT S: L I NK S two general ledgers have to be linked for
Manufacturing:
WORK I N P ROGRE SS : this balance general ledger is used to book the costs of consumed material,
utilized hours, subcontracted work and finished items during the production process.
MANUFAC TU RI NG V ARI AN CE : when the production order is completed the balance of the WOR K
IN PROG RE SS ledger is transferred to this profit and loss ledger.
3.2.2 Manufacturing tab
In the MANU FACT UR ING tab you can specify the following settings:
General
SHO P O RDE R NUMBE R : this indicates the next shop order number that will be used when a new
shop order is created. You can change this number. When a number is specified that is already in
use, the system will automatically use the next consecutive available number.
SH I FT DU R ATIO N : this settings allows you to specify the default total time of a shift. This value is
used to:
o Calculate values displayed in the capacity graph;
o Calculate time entry;
o Calculate the shop order end date in the shop floor planning.
APP RO VE: T IME ENTR IE S : when this option is enabled, the time entries need to be approved
after entry: in the TIME E NT RY O VER VIE W screen the SUBMIT button creates the time entries in
the draft status and they have to be approved to get the final status. When this option is disabled
the TIME E NT RY O VER VIE W screen has a F INAL button that creates the time entries in a final
status directly.
REMAI NING HO UR S C ALC U LAT ION B ASI S : this option indicates how calculations are displayed
in different reports, including the Gannt Chart, Shop Order Status Report and the Performance
Analysis. You can choose from the following options:
o Estimates: provides data based on the total estimated time minus the time that was
actually consumed.
o Calculated estimates: provides data based on the quantity of items reported in time
entry (for example, you have completed 5 of 15 items) and uses the estimated run
times supplied in the shop order routings to calculate the remaining hours for the
parts to be completed.
o Actuals: provides data based on actual time entries.
Exact Online Manufacturing 11
Quotation
MAR KUP TYPE : this option is used to define the default markup method that is used for
manufacturing quotations. You can choose from the following options:
o MAR KUP ALL : this option will allow you to mark up both the labour hours and the
direct purchases. Direct purchases include materials and subcontracts. The
percentages used for the mark up can be entered in the PURCH ASE M AR KUP and
LABO UR M ARKU P fields.
o PRO FIT PERCE NT : this option calculates the quotation price based on the profit
percent that you indicate in the PRO FI T field.
o MAR KUP PU RCH ASE S : this option will allow you to mark up only the direct
purchases (the materials and subcontracts). The percentage entered in the
PURC H ASE MARKU P field will be used for this. The inside operations can be charged
for a fixed rate that can be specified in the applied work centre.
Backflush
EMPLOYEE : the employee used for the time entries of the backflush operations. It is advisable to
create a separate employee for this.
DEFAUL T BAC K FLU SH : OPE RATIO NS: If this check box is selected, when you add a routing line to
a shop order, manufacturing bill of material, or quotation, the time will automatically be entered for
the operation step.
DEFAUL T BAC K FLU SH : MATERI AL : When this box is checked it will automatically issue raw
materials as you put finished goods in stock.
3.3 Master data
Master data can be created and maintained in the manufacturing menu or via [COM PANY , MASTE R
DAT A] . In the manufacturing process the following master data has to be set up:
3.3.1 Units
Units can be used when you create an item. A unit shows per which quantity you purchase or sell the item;
per box, gram, meter, dozen, liter or pallet. The purchase unit can differ from the sales unit, for example
when an item is purchased in a box and sold per piece. Also different sales prices can be created per unit,
for example an item is sold per bottle or per crate. When a transaction has been made with the item, the
unit cannot be changed anymore.
3.3.2 Item groups
Each item is linked to an item group. It is common that companies maintain different accounts for different
categories of items. For manufacturing companies different accounts can be used for stock of raw
materials and stock of finished goods, so separate item groups have to be created for raw materials and
finished goods.
In the item group for the raw materials the general ledger purchase variance should be linked to the
PRICE DI FFERE NCE S field. Exact Online Manufacturing supports manufacturing accounting based on
Exact Online Manufacturing 12
standard cost prices. The purchase variances are recorded. However, production costing reports are based
on the actual purchase prices of the purchase orders linked to shop orders. When you link the purchase
variance ledger to the item group this will also be involved.
When you want to make use of subcontracted (outsourced) work, it is best to also create a separate item
group for subcontracted work. In this item group, one general ledger Cost of subcontracting is created
(P/L, type general), which is linked to both the STOCK /C OST S and the PRI CE DI FFERENCE S field. The
item group is linked to the item used for the subcontracted work.
3.3.3 Production Areas
Production areas are groups of work centres. Work centres are facilities where similar functions such as
welding, milling or heat treatments take place. A production area usually consists of one or more machines
that serve similar or identical functions and are grouped into production areas to help you in capacity
planning and scheduling.
When you create a production area a code and description have to be entered. If you would like this
production area to be assigned by default to all newly created work centres, select the DE FAULT check
box. Only one production area can be designed as the default.
In the FINANCI AL section general ledgers have to be linked, these ledgers are used when you create
manufacturing time entries. If you do not specify a general ledger account for one of the burden types and
a manufacturing time entry is created, no journal entry is created. The following types are included:
Labour applied
General burden applied
Machine burden applied
Labour burden applied
3.3.4 Work centres
Operations on a manufactured part are performed in a work centre. Work centres are used to specify one
or more machines, assembly centers or workers. Multiple work centres together form the production
area.
Exact Online Manufacturing 13
When you create a work centre, a PRO DUC TIO N A RE A can be linked. In the T YPE field the type of work
centre can be selected, you can choose from Machine, Person or Cell.
If in the Manufacturing settings the QUOT ATIO N MARK UP MET H OD is set to MAR KUP PU RC HASE S ,
you can define a SELL R ATE that will be used in quotations.
You can also define labour and burden rates for the work centre.
In the LABOU R RATE S section the following rates can be defined:
SETU P L ABO UR : the estimated hourly rate required to setup the work centre to run parts.
RU N L ABOU R : the estimated hourly rate required to run parts through the work centre.
In the BURDE N R ATE S section the following rates can be defined:
MACH INE BU RDE N : the hourly rate that represents the estimated work centre related costs to run
the day to day operations that are attributed to the work centre.
GENER AL BU RDE N : the hourly rate that represents the estimated administrative costs to run daily
operations that are attributed to the work centre.
LABO UR BU RDE N : the hourly rate that represents the estimated labour costs to run this work
centre.
LABO UR BU RDE N AS % O F LABO UR : when this option is enabled, the labour burden field above
represents a percentage. You can enter a percentage of the labour costs that represent the
estimated employee related costs that are attributed to the work centre.
3.3.5 Operations
Operations are tasks or performance of work. These tasks may include assembly, preparation for the next
task and inspections. Operations are used in shop order routings.
Exact Online Manufacturing 14
When you create an operation a RESOURCE TY PE can be selected, this can be a work centre or a supplier.
When the option WORK CE NT RE is selected then in the next field the work centre can be selected to
which this operation belongs.
In the DEFAUL T RE SOU RCE : ES T IM ATE S section setup and run estimates can be defined related to the
resource you have specified in the DEFAULT RE SOU RCE section. The values entered here will be used
when the operation is selected for routings.
The option SUP PLIE R can be used to indicate that this operation is outsourced and in the next field a
supplier can be selected. When the option S UPPL IER is selected the screen changes and at the bottom of
the screen information about this operation at the supplier can be entered, such as purchase unit and lead
days.
Exact Online Manufacturing 15
When an outsourced operation is created, an item for this operation is also created. The default
item group is linked to this item; this has to be changed to the item group that is created for
subcontracted work.
3.3.6 Items Bill of materials
To manufacture an item both raw materials and finished good items have to be created in Exact Online. For
the finished good items the attribute MAKE has to be enabled. For these goods no supplier has to be
linked, because they are not purchased, but manufactured within the company.
A bill of materials is a list of all raw materials and sub-assemblies that are used to manufacture an item.
Also the bill of materials contains all the routing lines that are required to produce the item.
Exact Online Manufacturing 16
In the item maintenance of the finished good select the B ILL O F MATER I ALS T A B and click the link AD D
NEW to create a new bill of materials.
The VER SION NUM BER is an automatically generated field. Each time you modify the bill of materials, the
VER SIO N NUMBE R will be adjusted sequentially to the next number. The VER SIO N D ATE is used to track
changes that are made to the bill of materials. If you modify the bill of materials, the VERSION D ATE will
be updated.
There are several ST ATU S options:
ACT IVE : only a bill of materials that is active can be used in a shop order. There can be multiple
active versions of a bill of materials. When a shop order is created, the DE FAULT bill of materials
will be used, but this can be adjusted
ENGI NEER ING CH ANGE P END ING : this status is used to indicate that a change was made to the
bill of materials. All bills of material with a status of E NGI NEERING C HANGE P ENDI NG will be
shown as an alert on the Manufacturing dashboard to alert you that a bill of materials needs to be
reviewed.
ENGI NEER ING CH ANGE A P PRO VED: this status is used to indicate that a change was made to the
bill of materials and approved.
HI STO RIC : when a new version of a bill of material is created, approve and set to ACT IV E , the
status of the other version(s) will be adjusted to H ISTOR IC .
The BATCH QU ANT ITY indicates the total quantity of the item that will be produced through this bill of
materials.
The LEAD TIME is used to calculate the delivery date in a sales order and the planned date in a production
order. The date will be filled with the order date + lead time.
In the REMARK S section any additional remarks for this BOM can be entered. This remark is visible on the
shop order page and can be added to the shop paper layout.
Exact Online Manufacturing 17
When the bill of materials is saved the operations and materials that are used in the bill of materials can be
defined via the ROU TI NG and MATER IAL S tab.
Operations
In the ROU TI NG tab select the EDI T link to add the operations that are required and the sequential order
in which they have to be performed.
Each routing step includes information about work centres or suppliers that are used to complete the
operation and provides you with total costs and planned hours for each routing step based on the setup
and run times, or unit costs given.
Exact Online Manufacturing 18
In the lines the operations can be selected and on the right side the PL ANNING panel displays the default
properties from the maintenance of the operation. The options are dynamic. If the operation is an inside
operation the options are setup amount per time unit, run amount per time unit, efficiency percentage,
attended percentage, setup time and run time.
If the operation is outsourced and performed by a supplier, the options are unit costs/per piece, lead days,
minimum charge, total cost and total quantity.
Exact Online Manufacturing 19
For both types of operations it is important that the price (setup, or run or unit cost) is filled,
otherwise no journal entry will be created when the time entries are approved.
The AR ROW UP and AR ROW DOW N buttons can be used to rearrange the sequence of routing steps.
Material
In the materials tab select the EDIT link to add materials to a bill of materials.
In the lines the items can be selected, the QUANTIT Y RE QUI RE D can be entered and the CALCUL ATO R
TYPE .
The C ALCUL ATOR T YPE represents the quantity of material units needed per planned quantity. This can
be a fixed quantity per shop order, for each time the finished good is created. It can also be materials per
piece, which means a quantity depending on the quantity of finished goods that is planned.
The other options can be selected when dealing with dimensional items.
Exact Online Manufacturing 20
When the option BACK FL USH is enabled, this item does not need to be issued: the issues are
automatically realized when the finished goods are entered.
When all materials and operations are linked to the bill of materials, select the update button, so the cost
price of the item is updated with the calculated cost price.
It is important the cost price field is updated, because if the cost price of the item is
0,00, no journal entry is created when the shop order is finished, see also chapter 5.10.
3.3.6.1 Report
In the maintenance of the bill of materials the REPO RT button can be used to view, export and print all
materials or routing steps of a bill of materials. Select the REPOR T button and then M ATE RI AL S to view
the list of materials. Select the REPO RT button and then ROUTI NG to view the list of routing steps.
In both cases select the TOOL S option to export or print this overview.
3.3.6.2 Where-used
In the item maintenance of the raw material in the W H ERE -U SED tab you can see in which bill(s) of
materials this item is used.
This tab displays the first five parent items in which this item is used. Click the SHO W ALL link to view all
parent items that use this item.
3.4 Roles & Rights
In menu [COMP ANY, M AST ER D AT A , USE R S, ROLES] the MANU FACT URI NG and I NVE NTORY T AB S
have some important roles for manufacturing in Exact Online.
Exact Online Manufacturing 21
Employee
The employee roles determine access to time entry activities.
APP RO VE T IME ENTR IES : this role allows a user to approve and manage manufacturing entries.
MAI NT AI N EMPL OYEES : this role allows a user to create employees, edit employees and view
employee salary information.
TIME E NT RY : this role allows a user to create daily time entries.
Shop order
The shop order roles determine how a user can interact with the creation and maintenance of shop orders.
COMPLETE SHO P O RDE RS : this role allows a user to complete shop orders.
ENTE R SHO P O RDE RS : this role allows a user to create new shop orders and edit existing shop
orders.
MANUFAC TU RI NG M ASTE R D AT A : this allows a user to modify the manufacturing settings,
specify new job titles when creating employees and modify XML imports regarding manufacturing.
Work centre
The work centre roles determine how users can interact with features related to the manufacturing work
centres.
MAI NT AI N O PER AT IO NS: this role allows a user to create new operations and edit existing
operations.
MAI NT AI N PRO DUC TIO N AREAS: this role allows a user to create new production areas and edit
existing production areas.
MAI NT AI N WOR K CE NT RE S : this role allows a user to create new work centres and edit existing
work centres.
In the INVE NTORY tab the role VIE W B ILL O F M ATE RI A L S is important. This determines if a person can
view and maintain the bill of materials for an item.
Exact Online Manufacturing 22
Set up database
Make sure you have a database with an Exact Online Manufacturing subscription and the
TEMPLATE: M ANU FACTU R ING ACC OU NT ANCY PRO G RAM ( YOU R ACCOU NTANC Y
FI RM (T R AI NI NG ) template (see paragraph 1.5). Some master data and settings still have
to be created.
Create 3 item groups:
Item group 1: Finished goods:
link general ledger 41000 to R EVENUE
link general ledger 51000 to COST OF GOO DS SO LD
link general ledger 15210 to STOCK/ COST S
link general ledger 64060 to P RICE DI FFERE NCES
Item group 2: Raw materials:
link general ledger 41005 to R EVENUE
link general ledger 51004 to COST OF GOO DS SO LD
link general ledger 15205 to STOCK /CO ST S
link general ledger 64055 to P RICE DI FFERE NCES
Item group 3: Subcontracted work
link general ledger 41010 to R EVENUE
link general ledger 51005 to COST OF GOO DS SO LD
link general ledger 51006 to STOCK/ COST S
link general ledger 51006 to P RICE DI FFERE NCES
Create employee John Smith [ MANUFAC TU RI NG , EMPLO YEES , CRE ATE ] . You dont
have to link a user to the employee.
Also create employee Backflush. You dont have to link a user.
In the settings in the FI NANC IAL tab link the following ledgers:
Offset G/L Inventory: Stock count: 51035
Invoices/goods to be received: 21020
Goods in transit: 21025
Stock Revaluation: 51045
Work in progress: 19010
Manufacturing variance: 65000
In the MANU FACT UR ING tab set the following settings:
In the SHOP OR DER NUMBE R field enter: 2015001.
Set the SHI FT D UR ATIO N to 8 hours.
Enable the option APPRO VE: T IME E NT RIE S .
In the option REMAINING H OUR S C ALCUL ATIO N B ASI S select ESTIM ATE S.
In the option QUOTATIO N: MAR KUP TY PE select M ARK UP ALL .
Enter 10%, 15% and 20% in the percentage fields.
In the option BACKFL USH: E MPLOYEE link the employee BACKFLUSH.
Exact Online Manufacturing 23
You dont have to link default backflush operations or materials.
Make sure that the current financial year is created. [COM PANY NAME/M AST E R
DAT A/ FI NANCI AL/ PERIO D- DATE TABLE]
Production area, work centres and operations
Unique lamps manufactures different types of lamps. To produce these lamps materials are
needed, but also tasks are performed on different machines and in different areas. The lamps
are melted and assembled. Some lamps are also painted, which is outsourced. In this
assignment we will set up the production area, work centres and operations.
Create the production areas MELT and ASSEMBLE and link the general ledgers 64010,
64020, 64030 and 64040 in the FI NANCI AL section.
Create the work centres MELT and ASSEMBLE:
Work
centre
Production
area
Type Setup
labour
Run
labour
Machine
burden
General
burden
Labour
burden
MELT MELT Machine 2.00 1.00 1.00 1.50 0.50
ASSEMBLE ASSEMBLE Person 0.10 1.50 0.20 0.50 1.00
Create supplier Best Paintings, fill in the address data as you like.
Create the following operations (and units if they do not exist):
Operation Resource
type
Resource Setup Setup
unit
Run Run method
MELT Work
centre
MELT 5 Minutes 2 Minutes/item
ASSEMBLE Work
centre
ASSEMBLE 0 4 Minutes/item
Operation Resource
type
Resource Purchase
unit
Minimum
charge
Vat
code
Lead
days
PAINT Supplier Best
paintings
Piece 10 0 4
Exact Online Manufacturing 24
Item Bill of materials
One of the lamps that Unique lamps manufactures is the FLOORLAMP1. It consists of a base,
a stem and a lamp shade. First the base and stem are melted, next the base, stem and lamp
shade are assembled. In this assignment we will create the items and the Bill of materials for
the lamp.
Create supplier Dagi Metals B.V. and Fantastic Fabrics.
Create items BASE and STEM. Link supplier Dagi Metals B.V. and item group 2. Cost price
and purchase price of the BASE is 2,- and of the STEM is 1,-. Link VAT code 01 and
enable the options PURC H ASE and STOCK . For both set the REOR DE R POI NT to 40 and
the MAX IMUM STOC K to 200.
Create item LAMPSHADE, link item group 2 and supplier Fantastic Fabrics, the cost price
and purchase price is 5,-. Link VAT code 01 and enable the options PURC HASE and
STOC K . Set the REOR DER P OINT to 40 and MAXIM UM STOC K to 200.
Create item FLOORLAMP1 and link it to item group 1. Enable the options STOCK , SALES
and MAKE . Link VAT code 01. Set the REOR DE R POI NT to 20 and the MAXIM UM
STOC K to 60. The sales price is 75,-.
Create a stock count to replenish the STEM, BASE and LAMPSHADE to the maximum stock
position of 200 pieces.
One FLOORLAMP1 is manufactured consisting of one base, one stem and one lampshade.
The time to melt the base and stem is 2 minutes per piece and it has a setup time of 5
minutes. After this it takes 3 minutes per lamp to assemble the base, stem and lampshade.
Create the bill of materials of item FLOORLAMP1. The lead time is 1 day.
? What is the CALCUL ATED C OST PR IC E of the FLOORLAMP1?
Select the UP DATE button to update the cost price of the item with the CALCUL ATED
COST PR ICE of the bill of materials.
Item Bill of materials
FLOORLAMP2 is manufactured of the same raw materials as the FLOORLAMP1, but the base
and stem are painted BEFO R E the lamp is assembled. This process is outsourced at supplier
Best painting and the costs are 4,- per lamp, with a minimum charge of 10.00.
Create item FLOORLAMP2, set the REORDE R POI NT to 10 and the MAXIMUM STOCK to
30. Sales price is 90,-.
Create the bill of materials with a lead time of 1 day.
Make sure the cost price of the item is updated with the cost price of the bill of materials.
? Can you explain the cost price of the FLOORLAMP2? ------------------------------------------------------------------------------------------------------------------------------
Now that the bills of material are created, in the next chapters the process will be explained. The manufacturing process can be stock driven or order driven.
Exact Online Manufacturing 25
4 Stock driven and order driven manufacturing
The following picture shows the overall process of manufacturing.
Exact Online Manufacturing offers production functions for both stock driven as well as order driven
manufacturing.
Stock driven manufacturing
Stock driven manufacturing means that production is done based on stock. The company purchases
materials and produces the end product purely on the basis of the stock levels. In the picture above the
quotation process is skipped and the process starts with the planning process, the creation of a shop order,
in which the quantity is based on the stock level.
Order driven manufacturing
Order driven manufacturing means that the production will not start until an order is received from the
customer. In the picture above the process starts with the quotation process, a quotation is created in
which a price is calculated based on the customers requirements. When the terms are accepted the
quotation results in a sales order. The sales order is the base for the production.
In chapter 5 the process for stock driven manufacturing is described. Next in chapter 6 the process for
order driven manufacturing is described.
Exact Online Manufacturing 26
5 Stock driven manufacturing
With stock driven manufacturing the process is initiated based on the stock level. The customer has no
(direct) influence on what and how much is produced. The process contains the following steps, not all
steps are always taken and also the sequence can differ:
5.1 Bill of materials
The bill of materials contains all the materials and operations necessary to manufacture the finished good.
This is described in chapter 3.3.6.
5.2 Shop order
In a stock driven manufacturing environment shop orders are created based on the stock levels. The
DEMAND PLANNI NG can be used to see for which items production is needed and to generate shop
orders. Shop orders can also be created manually.
5.2.1 Demand planning
The DEM AND PL ANNING allows you to plan production based on projected stock. The projected stock is
calculated by the actual stock, demand from customer sales orders and planned production. The projected
stock is compared with the stock information values that you provide on the item card: REOR DER PO INT
and MAXIMUM STOCK .
Exact Online Manufacturing 27
In the filters section you can select an item group or item or if nothing is selected all items with the
property MAKE enabled are considered. In the stock level field you can filter the demand planning results
based on the current stock levels of different items. Click the DRO P-D OW N AR ROW to narrow the item
results to a stock level that falls within the selected category.
The screens allows you to generate shop orders to bring the projected stock levels up to predefined
required levels. In the OPTIO NS section you can define the behaviour of the SHOP OR D ER creation.
With the PLANNED QU ANTI TY option you can influence the quantity of the created shop order. If B RI NG
PROJECTE D STOC K UP T O 0 is selected, the resulting new shop order will calculate the planned to a
value that will bring the selected item stock up to 0. If BRI NG P ROJECTE D STOC K UP TO MAXIMUM
STOC K is selected, the resulting new shop order will calculate the planned quantity to a value that will
bring the selected item stock up to the maximum stock value as defined in the item card. This calculation is
achieved by subtracting the items maximum stock value from the current projected stock.
The PL ANNE D DATE option allows you to specify how the planned date is calculated for the new shop
orders. It SET TO DATE O F FI RST PL ANNED O UT D ATE is selected, the planned date on the new shop
order will be set to the earliest date that occurs between these two options:
Earliest delivery date of the item
Shop order requirement date
If SET TO CUR RE NT D ATE is selected the planned date on the new shop order will be set to the current
calendar date.
Select the item(s) for which production is needed and choose the CRE ATE SHOP O R DER button.
Exact Online Manufacturing 28
5.2.2 Create shop order
A shop order can also be created manually via the SH OP ORDE R button in the MANUFAC TU RI NG
DASHBO ARD or via [M ANU FACT URI NG , PLAN NI NG , C R EATE SHOP O R DER ].
In the ITEM field select the item that needs to be manufactured and in the PLANNE D QU ANT ITY field
enter the quantity that needs to be manufactured.
When you want to gain insight into the costs and profit per cost unit and cost center, you can link a cost
center and cost unit in the COST ANALY SI S section.
By default, the current date is displayed in the ENTRY D ATE the PLANNE D DATE field will be calculated
based on the lead time of the bill of materials. With the CALEND AR icon the ENT RY DATE and PLANNED
DATE can be changed for the shop order.
The REM ARK S section can be used to enter additional remarks for this specific shop order. The remarks
will be visible on the shop order page.
5.3 Shop floor planning
When the shop order is created, it can be planned. This can be done via [M ANUFAC TUR ING , PLAN NI NG ,
SHO P FLOO R PL ANNING] or via the PL ANNI NG link in the ROU TI NG SECT IO N on the shop order card.
Exact Online Manufacturing 29
You can define start and end dates for each operation and track the progress of the shop orders. The chart
allows you to drill into the details of every shop order; if you see that an order is behind schedule, you can
navigate directly to that shop order to view details on time entry and routings. By hovering your mouse on
the routing lines you can view detailed planning and time entry information, such as the dates it is planned,
the percentage completed and the quantity completed.
5.4 Print shop order
It is possible to print a shop order, to hand over to the warehouse employees that perform the actual
production. This is not mandatory and can be done via the SHOP O RDE R CARD using the PR INT button
or via [M ANU FAC TU RI NG , PLAN NI NG, P RI NT SHOP P AP E R] .
5.5 Shop order card
The shop order card is not a step in the manufacturing process, but it is generated when the shop order is
created. Most actions performed in the process can be started from the shop order card. The shop order
card can be found in menu [MANUFAC TU RI NG, PL AN NING , C H ANGE SHOP OR DE R] . The shop order
card is a central place where you can easily view and access information about the shop order.
Exact Online Manufacturing 30
Status
The ST ATU S SEC TIO N provides you with insight in the current state of the shop order. There are three
status options that are maintained by the system, they include:
OPEN : when a shop order is created, the system automatically sets the status to open. The open
status indicates that no activity has taken place regarding the shop order. This means that no shop
order stock receipts have been issued, no materials have been issued, no purchase orders have
been created for shop order materials and no time entries have been entered for routing lines.
IN PROCE SS : this status indicates that activity has taken place and work is underway.
Activities that will place a shop order in the IN P ROGRE SS status include:
o A shop order material is either on order or has been partially issued.
o A time entry has been entered and processed.
o A shop order stock receipt has been generated.
FI NI SHED : this status indicates that the planned quantity amount in the shop order has been
accounted for. There are no remaining hours left on the shop order.
In addition to system maintained status options, there are several status options that the user can define,
these include:
IN PLANNI NG : a user defined state that you can use to indicate a planning status of your assigned
category and definition.
RELEASE D : a user defined state that you can use to indicate a release status of your assigned
category and definition.
ON HOLD : this status locks a shop order. When a shop order is on hold, no transactions or changes
are allowed to the shop order.
Exact Online Manufacturing 31
You can also see warning signs in the ST ATU S section.
The top one indicates if the shop order is still on schedule, if the planned date of the shop order can be
achieved.
The second one indicates if the delivery date of the sales order can be achieved.
Quick action
In the QUICK ACT ION section displays icons that are direct links to common manufacturing processes.
When you use one of the quick links from a shop order card to start a certain process, all the relevant shop
order information will be automatically populated in your action.
In the OVER VIEW section shows a list of linked orders, materials or tasks. Select one to open the section.
The ROU TI NG SEC TIO N provides a graphical display of both scheduled and unscheduled routing lines for
the shop order. On top of the section you see a number displayed as long as the routing lines are not
planned. When the routing lines are planned, you can see the date(s) displayed on top of the section.
You can view detailed planning and time entry information of any line in the chart by hovering your mouse
on the desired line.
The MATER IALS section displays all of the materials that are required for the shop order. When you click
the MATER IAL S link the M AI NTE NANCE: MATE RI A L S screen opens where you can place additional
materials on the shop order.
The PU RCH ASE SEC TIO N displays purchase orders that are linked to the shop order and their status. Also
purchase orders can be created from here using the AD D link.
The I SSUES SEC TIO N displays all material issue records and transactions that have been made for the
shop order and materials can be issued using the AD D link.
Exact Online Manufacturing 32
The F INISHE D ITEM S section provides you with a real time total of the number of items that are finished,
ready to ship and delivered.
The T IME section displays all of the time entries that have been made for the shop order. The SHOP
ORDE R: T IME REPOR T can be opened from here using the T IME link and the DAI LY T IME ENTR Y
SCREE N where you can create a new time entry for the shop order using the AD D link.
5.6 Purchase materials
When there is not enough stock of raw materials to manufacture the shop order, a purchase order advice
can be generated via the PUR CHASE M ATERI AL S button in the QUICK ACTIO N section.
When the purchase orders are created, the status of the shop order changes to IN P R OGRESS . When the
items are received, the status of the materials in the MATE RI AL S SECTI ON changes to FI NI SHED ,
meaning the materials are received.
5.7 Issue materials
When the raw materials are received the shop order can be manufactured. When the materials were
ordered for this shop order they are issued automatically when they are received. When the raw materials
were already on stock (and were not purchased for this shop order) they need to be issued. This creates a
transaction that record the movement of stock of the shop order and will reduce the I N STOC K balance of
the item. The raw materials can be issued via the I SSUE MATE RI ALS button on the QUICK ACT IO N
section or via the ISSUES link on the right.
In the shop order card you can select the ISSUE D link, this will display the materials issued and the entry
number of the transaction created. When you select the ENTRY NO. link you can view the transaction that
is created.
When the goods are issued the following journal entry is created:
Debit Credit
Work in progress X
Stock raw materials X
Exact Online Manufacturing 33
5.8 Time entry
To register the time the employees have spent on a shop order time entries can be entered. This can be
done via the TIME E NT RY picture in the quick action section or via the AD D link in the time section on the
shop order card.
Enter the employee, the operation and in the activity column choose setup time or run time. The planned
hours are prefilled and you can enter the actual time.
On the right site of the screen you can choose whether you want to enter the time entries per day of per
employee.
When the time entries are saved, they will get the draft status and can still be edited. When they are
submitted, it indicates they are completed and ready for review and approval.
In the manufacturing settings you can indicate if the time entries need to be approved, if so, the status of
the routing line is only updated after they are approved. Also the transactions are created when the time
entries are approved. When time entries do not need to be approved, the status is updated and
transactions are created when the time entries are submitted.
In the ROUTI NG SEC TIO N of the shop order card you can now not only see the blue planned routing line,
but also a green realized routing line. By hovering your mouse on the green line you can see the finished
status, the percentage, the quantity and the last employee for who time entries have been made.
Also in the TIME section the performed operations are displayed:
Exact Online Manufacturing 34
The following journal entry is created when a time entry is approved:
Debit Credit
Work in progress X
Labour applied X
General burden applied X
Machine burden applied X
Labour burden applied X
The description of the operation used in the time entry is also displayed in the journal entry.
5.9 Purchase subcontracts
When a shop order involves one or more operations that need to be performed by an outsourced supplier,
the goods need to be sent to the supplier. A purchase order is created to give the supplier the order to
perform the tasks. On the purchase order the operation is displayed, this is what the supplier will charge
the company for the task.
The following steps can be performed for the purchase subcontract:
In the shop order card select the PURC H ASE SUBCO NT R ACT S picture to create the purchase
order.
The purchase order can be printed, which will function as a delivery note and can be sent to the
supplier with the work in progress. This can be done via [M ANU FAC TU RI NG , RE AL IZ AT ION,
PRI NT SUBCO NT R ACT DE L I VERY NOTE S ]. No journal entry is created for this.
When the supplier has performed the task the purchase order can be received.
The following journal entry is created when the operation of a subcontract is received:
Debit Credit
Subcontracted costs X
Invoices/goods to be received X
and
Work in progress X
Subcontracted costs X
Exact Online Manufacturing 35
Also a purchase invoice has to be created. The following journal entry will be created for the purchase
invoice:
Debit Credit
Invoices/goods to be received X
VAT to claim X
Creditors X
5.10 Finish shop order
When all the items are manufactured the shop order can be finished, using the FI NI SH SHO P O RDE R
picture in the QU ICK AC TI ON SECT IO N or via [M ANUFACT UR ING , RE AL IZ ATIO N, F I NI SH SHO P
ORDE R S] .
In the FINI SH D ATE field the date can be entered on which the items are finished.
The quantity finished items can be entered in the QUANT ITY TO RECEI VE column and in the
DI SPO SI TIO N column you can indicate what you want to do with the quantity that is received, the options
are:
DELI VER: launches the goods delivery screen. This option can only be selected when there is an
open sales order for this item, otherwise a message will appear: Not all selected shop orders to ship
have a related sales order.
ST AGE FO R DELI VERY : updates the RE ADY TO SH IP quantity on the shop order in the FI NI SHED
ITEMS tab.
The actual stock is not updated and no journal entry is created.
PUT IN STOCK : updates your stock and creates a stock transaction.
Exact Online Manufacturing 36
When the item in a shop order is finished, the following journal entry is created:
Debit Credit
Stock finished goods X
Work in progress X
It can occur that after finishing the shop order the stock quantity is updated, but no journal
entry is created. This happens because the cost price of the finished item is 0,00. So when the
bill of materials is linked to the item, select the UP D ATE button in the bill of material to make
sure the cost price is filled.
5.11 Complete shop order
A shop can be completed when all tasks are performed on the shop order. This also means the purchase
invoice has to be linked to the shop order, otherwise a message will appear. When the shop order is
completed, the status will change to COMPLETED and no action can be performed anymore.
The following journal entry is created when a shop order is completed:
Debit Credit
Manufacturing variance X
Work in progress X
5.12 Backflush
Backflushing is a manufacturing method through which you can issue materials and generate time entries
automatically when production has been posted against a shop order. Backflushing uses the completed
quantity to automatically calculate quantities that were used and will reduce inventory by that amount.
This is best used in shop order with a short turn around (from raw material to finished product), because
the stock position of the raw material is only up to date when the product is finished. It is also used for bulk
items, such as screws, that are used in large amounts and for which it is not desirable to count them piece
by piece.
The backflush option can be defined in the bill of materials, both for materials and operations. When in a
bill of materials the backflush option is enabled for a raw material, it is not possible to generate a purchase
order for this item from the shop order.
Exact Online Manufacturing 37
Shop order - Demand planning
Once a week purchase agent Thomas Hardy checks the stock to see which items need to be
manufactured.
Check the DEM AND PL ANNI NG . Set the option PLANNE D QU ANT ITY to B RI NG
PROJECTE D STOCK UP T O MAX IMUM.
Select item FLOORLAMP1 and click the button CREATE SH OP OR DER .
Check the shop order card that is created.
? For how many make items is a shop order created? -------------------------------------------------------------------------------------------------------------------
? What is the planned date? And what triggers this? -------------------------------------------------------------------------------------------------------------------
Enter the assignment number in the description of the shop order.
? Check the shop order card. What is the status of the shop order? -------------------------------------------------------------------------------------------------------------------
Shop order - Demand planning Link Sales Orders
Create a Sales Order for customer Cuppa Coffee for 45 pieces FLOORLAMP1.
Make sure the delivery date of the Sales Order is two weeks from todays date.
Confirm the Sales Order to your customer.
Check the DEM AND PL ANNI NG and make sure that the option L INK SALES OR DE RS is
enabled and the PLANNE D D ATE is set to: SE T TO D ATE OF FI R ST PLANNED OU T
DATE .
Create the Shop order for FLOORLAMP1.
Enter the assignment number in the description of the shop order.
? What is the planned date for the Shop Order that was just created? -------------------------------------------------------------------------------------------------------------------
? Is there a Sales Order linked to the Shop Order? -------------------------------------------------------------------------------------------------------------------
Shop Floor Planning
Plan both shop orders on the promised date: plan the individual operations one day after
each other. (if there is a weekend in between then exclude Saturday and Sunday in your
planning)
Check the RO UTI NG section in the shop order card for shop order 20000001.
? How much production time do you think is available per day? -------------------------------------------------------------------------------------------------------------------
Exact Online Manufacturing 38
Print Shop paper
Go to the layout maintenance and select SHO P P APE R . Make sure you choose to create a
NEW L AYO UT and select the option to START FROM AN EXAC T O NLI NE TEMPL ATE .
Click the button USE T HI S TE MPLATE at the SHO P OR DE R and save the template for
the shop order.
Go to the menu to print the shop order and select the layout you just linked.
Make sure the option Release shop order(s) is enabled.
Print the shop paper for shop order 20000001.
? What is the status of shop order 20000001? -----------------------------------------------------------------------------------------------------------------------
Issue raw materials
Issue the materials from the shop order card of shop order 20000001.
Check the issues section in the shop order card.
? Which journal entry is created for the issue of the raw materials?
? What is the status of the shop order? ------------------------------------------------------------------------------------------------------------------- -----
Enter realized time
Enter the time entries for John Smith for shop order 20000001.
Use the column HO UR S to enter the realized hours.
MELT: setup time 0.08 hours, run time 2.00 hours (select the correct date according to the
planning).
ASSEMBLE: no setup time, run time 3.50 hours (select the correct date according to the
planning)
Submit the time entry.
Approve the time entry.
Check the RO UTI NG section of the shop order card of shop order 20000001.
? What do the colors mean? -------------------------------------------------------------------------------------------------------------------
? Are you still on schedule with this shop order? -------------------------------------------------------------------------------------------------------------------
? Which journal entries are created for the time entries? Check the TR ANSACT IONS overview [M ANU FACT URI NG, REPO R T S, T RANSACT IO NS] to see all journal entries
created for a shop order.
Finish the shop order, in the DI SPO SI TIO N column select the option PUT I N STOC K .
? What is the status of the shop order? -------------------------------------------------------------------------------------------------------------------
? Check the item transaction list. Is the stock updated?
Exact Online Manufacturing 39
-------------------------------------------------------------------------------------------------------------------
? Which journal entry is created? ----------------------------------------------------------------------------------------------------------------------------- -
------------------------------------------------------------------------------------------------------------------------------
? Complete the shop order. What happens? ------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
? Which journal entry is created? Check the overview Transactions [M ANUFAC TU RI NG, REPOR T S, T RA NSACT IONS] to see all journal entries created for a shop order.
----------------------------------------------------------------------------------------------------------------------------- -
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
Shop order - subcontracts
Thomas Hardy also notices that the stock for FLOORLAMP2 needs to be refilled.
Create a shop order for 30 lamps (manually).
Plan the shop order, there should be at least 4 days in between MELT and ASSEMBLE,
because the lead time of the painting is 4 days.
Issue the materials for the shop order. Enter the time entries for the MELT operation, the
time planned is the actual time spent.
Generate the subcontract.
? Which item is used in the purchase order? ----------------------------------------------------------------------------------------------------------------------------- -
------------------------------------------------------------------------------------------------------------------------------
? Why is there a DELI VER Y NO TE button in the purchase order? ----------------------------------------------------------------------------------------------------------------------------- -
------------------------------------------------------------------------------------------------------------------------------
Go to layout maintenance in Manufacturing.
Select the Purchase Order link and click NEW to create a new layout.
Select START FROM AN E XACT O NLI NE TEMP LATE .
Click the button USE T HI S TE MPLATE for the UI TBE STEE D WE RK PAKBO N .
Save the template.
Now go the purchase order for the subcontracted work and send the delivery note to the
supplier with the layout you just created.
Receive the purchase order back from the supplier.
Check the transactions overview [MANU FACT UR ING , RE PORT S, TR ANSAC TIO NS ].
? Which entry is created for the receipt of the PAINT operation? (Check the TR ANSAC TIO NS overview as well as the general ledger Subcontracted costs.)
------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------
? Check the RO UTI NG section on the shop order card. Is the operation on time?
Exact Online Manufacturing 40
----------------------------------------------------------------------------------------------------------------------------- -
Enter the time entry for ASSEMBLE, the actual run time was 1,8 hours.
Approve the time entries.
Finish the shop order, put the items in stock.
? What do you need to do before you can complete the shop order?
Backflush
Make a copy of FLOORLAMP1 and name it FLOORLAMP1BF. Enable the option BILL OF
MATE RI AL S.
In the bill of materials enable the option BACK FLU SH for all the raw materials and
operations.
Enter a shop order for 20 lamps.
The 20 lamps are manufactured, finish the shop order and in the DISPOSIT ION column
select the option PUT IN ST OCK .
? Check the transaction list [P U RCH ASE, I NVE NTOR Y , T RANSAC TIO N L IST ] of item FLOORLAMP1BF, is the stock updated?
-------------------------------------------------------------------------------------------------------------------
? Check the transaction list of item BASE, is the stock updated (reduced with 20 bases)? -------------------------------------------------------------------------------------------------------------------
Check the T RANSACT ION overview [M ANUFAC TUR I NG, REPO R T S, T RANSACT IONS ] .
? Are there also entries created for the performed operations? -------------------------------------------------------------------------------------------------------------------
Exact Online Manufacturing 41
6 Order driven manufacturing
Order driven manufacturing means that production will not start until a request is received with the
requirements of the customer. At this point a quotation is sent with the calculated price. When the
customer accepts the terms, the required components are ordered and the production can start. The end
product is custom-made for the customer.
The process can contain the following steps:
6.1 Quotation
The order driven manufacturing process starts with a quotation. In the quotation the raw materials can be
linked and a price can be calculated for the items. The bill of materials does not need to be created first.
A quotation can be entered via [CRM , QUO TATIO NS, C R EATE] . The quotation process is described in
the training for Exact Online Wholesale Distribution; with an Exact Online Manufacturing subscription there
are five extra columns in the quotation lines: DET AIL S , AL ERT S , BOM , ROUT ING, MATER I AL S .
In these columns the materials and operations can be linked manually, so the price of the finished item can
be calculated and quantity discounts or net prices can be defined, which can be offered to the customer.
It is also possible to copy the materials and routing from an existing BOM to an item on a
quotation by clicking in the BOM column. This option makes it easier to create a quotation and
to provide the most accurate price quotation to the customer.
In the quotation line you can enter the requested item, this may have to be created first.
The DOCUME NT S column displays the quantity of documents that are linked to the quotation. When the
hyperlink is selected the documents can be viewed, this can be for example a detailed description of the
design of the finished item. When a shop order is generated from this quotation, later on in the process,
the documents are also linked to the shop order.
Notes
It is also possible to enter extra notes in the quotation lines: important comments about the item. To be
able to use this, the REMARK and COPY REM ARK fields have to be enabled in the item maintenance. This
can be done using the CUSTO MIZE button in the GENERAL tab.
Exact Online Manufacturing 42
In the REMAR KS field the extra comments about the item can be entered. When the COPY REM AR K S
option is enabled, the text is also copied to the quotation.
In the quotation enable the NOTE S field (via the C USTO MIZE button), so the field is displayed in the
quotation lines.
When you select the NOTE S button in the quotation line, a screen with the text appears. When necessary
this can be adjusted.
The text can also be printed on the quotation layout.
Materials
In the MATER IAL S column select the link and the QUOT AT ION: M ATERI AL S screen appears.
Exact Online Manufacturing 43
In this screen you can select the raw materials needed to manufacture the item.
When an item is selected, the U NI T COST is filled and you can enter the QU ANTI TY REQUIRE D . In the
next column you can indicate if the quantity of this item is a fixed quantity for each time this end product is
manufactured (FI XE D ) or if this quantity counts for each piece that is manufactured (MATE RI AL S PER
PIECE ).
The other options can be used when working with dimensional items. This is beyond the scope of this
training course.
If you want the item to be backflushed, you can enable the B ACK FLU SH option. When all materials are
linked, you can SAVE and CLOSE the screen.
With the button COPY FROM it is also possible to copy the materials from a BOM version of the item or an
item that might be quite similar from a material perspective.
When you add materials to a quotation, the item price is automatically populated in the materials line
item. Clicking the UP D ATE WIT H ITEM ST AND AR D CO ST button, launches a check against the current
cost price associated to each material item as it is defined in each item's page.
If you manually update the price of an item on the QUOT AT ION | MATER IAL S P AGE and click
the UPD ATE WI TH ITEM ST A ND AR D CO ST button, no change in cost price will be made to
the manually updated line item (s). Manually modified material line items will retain the cost
price you entered regardless of what is specified on the item page.
Routing
In the quotation line in the ROUTI NG column select the link to open the QUOT AT ION: ROU TI N G screen,
in which the operations can be selected.
Exact Online Manufacturing 44
This screen looks similar to the ROU TI NG SC REEN of the bill of materials in item maintenance. In the lines
select the operations, enable BAC KFL USH if needed and on the right site of the screen enter the SET UP
and RUN TIME . The ARRO W UP and AR ROW DO WN buttons on the left site of the operations can be
used to rearrange the sequence of the routing steps. When all routing steps are defined SAVE and CLOSE
the screen.
Once again the button COPY FROM allows you to copy routing steps from another items BOM.
Calculate
When both the materials are linked and the routing steps are defined, select the link in the DET AIL S
column, which will open the QUO TATIO N: QU ANT IT IE S screen.
In this screen the price(s) can be determined. First select the CALC ULATE P RICE S button to calculate the
price based on the raw materials and routing steps, this will be displayed in the CALCUL ATED PRICE field:
When this is not done, you will see a warning sign in the AL ERT S column:
Exact Online Manufacturing 45
When the prices are calculated this sign will disappear again.
The calculated price is based on the cost price of the materials, the rates defined in the work centres linked
to the operations and the markup percentages. You can enter both a PURCH ASE M AR K UP % for the
materials and subcontracts and a LABOU R MARK UP % for the operations. Depending on the
CALCUL ATIO N MET HO D , which is defined in the manufacturing settings (see 3.2.2), the system will
determine the CALC UL ATE D PRICE .
When the option USE C ALCU LATE D is enabled the calculated prices is also taken over in the UNI T P RICE
column. When the column U SE CALCUL ATED is disabled, you can manually enter a unit price.
You can also use volume prices, for different quantities. You can add extra lines and change the markup
percentage(s) and the system will calculate the price. The lines with the highest quantity will be displayed
in the quotation screen, but all the lines can be displayed on the quotation layout. When all data is entered
the quotation can be (final) printed and sent to the customer.
When the customer accepts the quotation, the quotations can be processed into a sales order.
COPY BOM TO A QUOT AT I ON
Instead of entering all materials and routing manually in the quotation it is also possible to copy the
material and/or routing steps from the BOM directly in the quotation. Especially when a lot of materials
and routing steps are necessary this offers a fast and accurate way of creating the quotation.
This functionality is similar to clicking on the button COPY FROM in the routing or materials screen.
When clicking in the BOM column, the CUSTOM COPY | BILL O F M ATE RI AL S screen is shown.
For the items that needs to be quoted the correct BOM version can be selected and you can indicate if the
routing and/or materials from this BOM version should be included. In the section COPY you can indicate if
the routing and material from this BOM should be added to the materials and routing steps that are
already entered in the BOM or if the existing routing steps and material should be replaced.
Exact Online Manufacturing 46
When the button COPY is used, then automatically the routing and materials columns in the quotation line
are filled. It is then possible to make adjustments to the material or routing steps.
When all data is entered correctly, the quotation can de final printed.
6.1 Print quotation
When the quotation is entered, it can be sent to the customer. It is also possible to use word merge when
the quotation is printed.
6.2 Process quotation
The quotation can be processed in [SALE S, QUOT AT IO NS, PROCE SS] . When the ACCEPT button is
selected, you can indicate if you want the system to create a sales order and/or a shop order.
A separate shop order is created for each quotation line in the quotation for which there are materials
and/or a routing linked.
6.3 Update cost price in item
The CO ST PRICE field in the item maintenance of the end-product has to be filled. When the cost price is
0.00 no entry will be created when the shop order is finished or when the goods are delivered.
When there is already a cost price, but this is not the correct one, the correct value can be entered in the
NEW CO ST P RICE field. In this case also the STOCK RE VALU ATIO N link has to be selected to update
existing transactions and to activate the new cost price.
6.4 Sales order
In the sales order the delivery date and quantity can be adjusted, which will also be updated in the shop
order.
6.5 Shop order
From here on the shop order process is for the greater part the same as for the stock driven manufacturing
process.
Exact Online Manufacturing 47
6.5.1 Purchase materials
With order driven manufacturing the process starts when the customer requests the end-product. This
usually means the raw materials are not on stock, but ordered when the shop order is created. The raw
materials can be purchased via the PURC H ASE MATER I AL S button in the QUIC K ACT I ONS section in the
shop order.
The system will suggest the quantities that are needed to produce this shop order and will not consider
available stock. You can see the available stock in I N STOC K column and adjust the quantity when there is
already enough stock. Select the CREATE P URC H ASE OR D E RS button to create the purchase order(s).
6.5.2 Issue shop order
When the raw materials of a shop order are already on stock they need to be issued. When the raw
materials are received on a purchase order that was created for this shop order, they are automatically
issued when the receipt is processed. You can see this in the shop order card in the I SSUE D section when
the SH OW ALL link is selected.
The transaction type of these lines is RE QUI REMENT ISSU E .
When the goods are issued the following journal entry is created:
Debit Credit
Work in progress X
Stock raw materials X
6.5.3 Shop floor planning, subcontracting, time entry
The shop floor planning, subcontracting and time entry steps are all the same as for the stock driven
process.
Exact Online Manufacturing 48
6.5.4 Finish shop order
When the shop order is finished, you can indicate what you want to do with the finished item(s), in the
DI SPO SI TIO N column: DE L I VER , STAGE FOR DEL IVE RY and PUT I N STOC K . (see also chapter 5.10). In
the order driven process where the shop order is created based on a quotation and sales order, it is
advisable to select the DELI V ER option.
This will launch the goods delivery screen and the sales order can be delivered right away.
A journal entry for the finished item is now created as well as an entry for the goods delivery.
When the item of a shop order is finished, the following journal entry is created:
Debit Credit
Stock finished goods X
Work in progress X
For the goods delivery the following journal entry is created:
Debit Credit
Cost of goods sold X
Stock X
6.5.5 Complete shop order
When all tasks are performed on the shop order, it can be completed. This will change the status to
COMPLETED and no action can be performed anymore.
The following journal entry is created when a shop order is completed:
Debit Credit
Manufacturing variance X
Work in progress X
Exact Online Manufacturing 49
6.5.6 Issue reversal
Issue reversal can be used to remove materials from a shop order and put them back in inventory. This can
be handy when for example less raw material was needed to manufacture the product.
In the issue reversal menu [M ANU FAC TU RI NG , RE AL IZ ATIO N, SHOW ALL , I SSUE R EVER SAL] you will
find an overview of all the items that are issued per shop order. The raw material that need to be placed
back on stock can be selected and a NEW issue reversal can be done.
In the issue reversal screen in the return column you can indicate the quantity to be returned.
The following transaction will be created for the reversal:
Debit Credit
Stock raw materials X
Work in progress X
The report I SSUE RE VER SAL HI STO RY [M ANU FACT URI NG , RE AL IZATIO N, SH OW ALL , I SSUE
REVE RSAL H ISTOR Y] acts as a report for all issue reversals.
6.5.7 Finish reversal
Finish reversal is helpful when finished items from a shop order have to be returned.
In the finish reversal menu [ MANUFAC TU RI NG, REAL IZ AT ION, S HOW ALL , F I NI SH REVE R SAL] you
will find an overview of all the items that are finished per shop order. The finished goods that need to be
taken out of stock can be selected and a NEW finish reversal can be done.
Exact Online Manufacturing 50
In the finish reversal screen in the reversal quantity column you can indicate the quantity to be returned.
The following transaction will be created for the reversal:
Debit Credit
Work in progress X
Stock finished goods X
The report FI NISH RE VER SAL HI STOR Y [M ANU FACT URI NG , RE AL IZ AT IO N, SH OW ALL , F I NI SH
REVE RSAL H ISTOR Y] acts as a report for all finish reversals.
Quotation
Customer The Museum Cafe calls, they are interested in a custom made table lamp and want
to know what the price is. If they can get a nice price, they will order 50 lamps at once.
The table lamp consists of 1 base, a short stem and 1 special lampshade which is made of a
special lace fabric. The item base already exists in the database, the other items have to be
created.
Create item STEMSHORT, link supplier Dagi Metals B.V. and item group 2. Cost price and
purchase price are 1,-. Enable the option PURCH ASE .
Create item LAMPSHADESPECIAL, link supplier Fantastic Fabrics and item group 2. Cost
price and purchase price are 5,-. Enable the option PURCHASE .
Enter a quotation for The Museum Cafe, via the C RM menu.
In the first line select F2 and new and create item TABLELAMP1. Link item group 1 and VAT
code 01 and enable the option MAKE . Save the item.
In the MATER IAL S column, in the quote, add the raw materials. Select the button
UPD ATE WI TH ST AND AR D COST PR ICE and C ALCUL AT E PRICE S.
In the ROUTI NG column add the operation MELT and ASSEMBLE:
- MELT: setup time 2 minutes, run time 5 minutes.
- ASSEMBLE: run time 5 minutes per item.
Close the ROU TI NG screen and select the link in the DE TAILS column. Calculate the
prices.
We will quote The Museum Cafe for a quantity of 1, 5 and 50 pieces. Select the DET AIL S
link. First enter a quantity of 1, set the purchase and labour markup to 30% and calculate
the price. The quantity of 5 will go for a purchase markup of 10% and labour markup of
Exact Online Manufacturing 51
15%. The quoted quantity of 50 will have a purchase markup of 0% and a labour markup of
0%.
? What are the cost prices for the different quantities?
? What are the calculated prices?
Round off the prices to the nearest whole or half GBP above the calculated price and enter
it in the unit price field.
Make sure the line with the quantity of 50 is selected.
Close the screen and FI NAL P RI NT the quotation.
? Which prices are shown on the quotation?
Sales order and shop order
The customer calls, they agree with the quotation and want to order 50 table lamps.
Accept the quotation for 50 lamps, enable both the option CREATE SALES OR DER and
CREATE SHO P O RDE R .
In the item maintenance of TABLELAMP1 make sure the cost price has the correct value
(8.60).
? Is there a Bill of Materials linked to the item TABLELAMP1?
Plan the shop order [MANU FACT URI NG , PLANNI NG , SH OP FLO OR PLANNI NG ] : plan
the operations one day after each other, starting two days from today.
Materials
Now that the shop order is created, the materials can be ordered.
Purchase the materials for this shop order, [M AN U FAC TU RI NG, CH ANGE S HOP
ORDE R, P U RCH ASE M ATE R IAL S , C REATE PU RC HASE O RDE R S ] .
Print the purchase orders and receive the materials.
On the shop order card in the ISSUE D section select the SH OW AL L link.
? Can you see if the raw materials are issued?
Time entry
Enter the time realized for this shop order for employee John Smith:
MELT: setup 0.08 hours and run time 4.17 hours.
ASSEMBLE: no setup time and run time 4.30 hours.
Approve the time entry [M ANU FACTU RI NG , T IME REP ORTI NG , AP PRO VE] .
? Which journal entries are created for the time entry?
Exact Online Manufacturing 52
Finish
Finish the shop order, select the option DELIVE R .
? Which entry is created for finishing the item?
? Which entry is created for the delivery of the Sales Order?
Change sales order
Create a copy of the quotation in assignment 13, final print it and accept it (create the
sales order and the shop order for 50 lamps).
Check the shop order card.
? What is the PLANNED D ATE ?
The sales order has to be delivered in two weeks, adjust the delivery date in the sales
order line.
? Check the shop order, what is the PLANNE D D ATE now?
Issued less than expected
Create a stock count to make sure you have at least 100 BASES, STEMS and LAMPSHADES
on stock.
Create a Shop Order for 10 FLOORLAMP1.
Issue the raw materials.
Enter and approve the time entries for the operations.
During production you discover that you actually need less raw material than expected.
Therefore you would like to adjust the issued amount for the Shop Order.
Go to [MANU FAC TUR ING, REAL IZ ATIO N, ISSUE RE VE R SAL ]
Select the line for the Base and return 1 BASE then click PR OCESS .
? How many BASES are delivered? ------------------------------------------------------------------------------------------------------------------
? Is a financial entry created for the return of the raw material? ------------------------------------------------------------------------------------------------------------------
Exact Online Manufacturing 53
7 Overviews
In the Manufacturing subscription there are several overviews you can use to gain insight in the status of
production or insight in the costs or revenue. In this chapter some overviews are described. The reports
can be found in [MANUFAC T URI NG , REPORTS,. . ] .
7.1 Manufacturing dashboard
The M ANU FAC TU RI NG D ASHBO AR D provides you with a selection of key components, designed to give
you at-a glance, real time insight into the key processes of manufacturing. You can easily see areas that
require attention and may be behind schedule, as well as areas that are doing well and are ahead of
schedule.
The dashboard components and links give you direct access to shop orders and entry items.
Quick links
The QUIC K L I NK S section gives you direct access to common manufacturing processes.
Shop capacity
The SHO P C AP ACI TY charts represent the current capacity of the entire shop grouped by production area.
Capacity is calculated by the shift duration you specify multiplied by a 5 day work week, multiplied by the
number of work centres in the production area. You can hover your mouse over each bar in the graph to
get detailed information. Not planned indicates that routing lines have not been assigned start and end
dates. Clicking on the bar in the graph will launch a detailed capacity chart of the production area, showing
the capacity of each work centre in the production area.
Exact Online Manufacturing 54
Top 10 orders in process
This section displays the top ten sales orders, which are attached to shop orders which have not yet been
shipped entirely and are due in the next six weeks. The progress indicator provides a visual representation
of the progress and current status of the shop order. Links provided in this section allow you direct access
to the sa