BeOne Solutions have a comprehensive set of reports to meet any of your warehouse and inventory reporting needs. Detailed reports on stock transactions and inventory valuations, inventory counts, production planning, and material requirements provide the information necessary to make quick and effective management decisions.
BeOne Solutions supports all of your core requirements for production activities by enabling you to accurately and effectively manage bills of materials (BOMs), production orders, and material requirements.
The application simplifies definition and management of BOMs for production, assembly, and sales. For example, with a production bill of materials, you can readily document the type, quantity, and price of materials needed to manufacture the final products, as well as quantity availability. Once BOMs have been defined, production orders can be created and released based on them. Component needs, costs, and materials availability are automatically added to your work orders, enforcing accurate allocation of raw materials to products and volume control.
Production orders allow you to initiate and track the production process and effectively move the materials used in the process through your organization. For example, once a production order is released to the shop floor and automatically issue transactions for components needed to produce the parts.
On the other hand, material requirements planning (MRP) functionality allows you to plan your material requirements and maintain an optimum production plan for complex, multilevel production processes. It replaces informal, ad hoc production scheduling with a more structured process using data from various sources across your business to create an accurate picture of your production and supply chain. Sources of data include:
- Bills of materials
- Inventory data
- Inputs from scheduled production and purchase orders
- Demand inputs from actual and forecasted orders.
You can specify timelines, stocks, and even data sources to be considered in planning. Inecom Solutions then takes this data, assembles it, and creates recommendations regarding your material needs – what you’ll need and how much and when you’ll need it. Once these recommendations are reviewed, the MRP functionality can automatically generate production and purchase orders needed to manufacture a final product in the quantity and time specified by the production schedule, taking into consideration all requirements for product components.
SAP Business One delivers integrated manufacturing and production functionality right out of the box. The production functionality is fully integrated into SAP Business One’s inventory, financial, and material requirements planning (MRP) features, giving end-to-end visibility of the production process from sales order to finished goods.
Purchasing or Operations team members who regularly set up your bill of materials and inventory items can use the standard functionality through the Item Master. You can define BOMs with multiple levels, including all sub-assemblies and raw materials that are required to assemble and produce the finished product. Define line items as items, resources, or include text, and group line items based on process flow. The basic types of BOMs are:
- Sales BOM : both the finished product and the components appear in the sales order document
- Assembly BOM : just the finished product appears in the sales order document
- Template BOM : the components simply appear as a list of items in a sales document
- Production BOM : This BOM is used in the production order document. The parent item is the finished goods, and the children are the components. You can add labor as one of the components, this will be a non inventory item with a standard cost.
SAP Business One can automatically create production orders based on sales orders, forecasts, and stocking rules. You can also create purchase orders on the fly, using the different BOM types as templates and linking them back to sales orders for tracking in make-to-order environments.
Component items can be issued manually or using the automatic backflush, creating real-time WIP and variance postings. Once the production order has been initiated, the software changes the status to Released, allowing a partial or full completion report of the production order or cancellation.
As you receive the product from production, the finished product is created. SAP Business One automatically updates inventory, reconciling the finished product with its components. This can be done individually or for a group of production orders completed at one time.
Once the finished product is created, the updated summary tab shows:
- The costs of the finished product
- The cost of the components
- Any variance that may have been created
- A drill-down arrow to the inventory posting for the components and the finished product
- The number of planned items
- The number of completed items
- The number of rejected items
Within SAP Business One you can manage and plan resource time and production capacity. You can capture machine, labor or other types of resources with associated costs in the Resource Master Data, and can linked to fixed assets and employee data. Capture time per Resource Units. Accounts to be used are defined in advanced account determination.
Resource Capacity allows a view of capacities by different types. This visibility of available capacity helps you to avoid bottlenecks and optimize production plan. Resource costs are included in the final product cost.
Once manufacturing is complete, the production order summary tab sums up the order details, components total cost, the finished goods cost and whether there is any variance between them when you use standard cost method. A production order may have one of the following statuses:
- Planned : The production order is not yet released to the shop floor for manufacturing.
- Released : The production order has been released to the shop floor for work.
- Manual : The manual status is used to issue components to the shop floor. You can also update the component items as long as there are no transactions for the selected component.
- Closed : With this status, no new transactions can be added to the order. You close the production order when all planned quantities are completed.