Shop Order Overview

A Shop Order is created when a part or equipment must be manufactured in-house rather than purchased from a vendor. Shop Orders are also generated by the system as a part of the Material Requisitioning system.

There are two basic models for Shop Order creation and processing: Inventory Centric and Job Centric. The Inventory Centric model would typically be used for firms that specialized in the assembly or refurbishing of equipment. The Job Centric model would typically be used by firms that assemble extremely complicated, customized machine tools requiring multiple sub-assemblies.

Shop Orders Created By Material Requisitioning

These shop orders are generated by the system. See Material Requisitioning - Overview and Setup for details.

Inventory Centric Shop Orders

1. The following registry setting should be in place (unless your customization file implements the same function): Registry Entry Shop Order Mode .

2. In this mode, the system will automatically create a Job record and a Cost Code record for the shop order you are creating. These records will be based on the model found in the existing Job record with Id=new (note that new must be all lower case) and its associated Cost Code, Mat. A Cost Category, Mat, should also exist: this will be the default Cost Category for history entries for the new item.

3. With your registry setting and template records in place, you are ready to create a Shop Order . When you save the record, the system will automatically create the Job and Job Cost records, and allocate parts inventory.

4. If needed, obtain parts and then run the Start Backorder Filling function.

5. Following this model, a Shop Order is closed by entering the Date Closed and Close Cost in the Shop Order Viewer . Note that the Close Cost must equal the BOM Total Cost (from the detail view). You may adjust these detail unit costs as needed. The manufactured item(s) will be transferred to the Location specified in Shop Over viewer. Parts and components will be relieved from the Transfer From location.

Job-Centric Shop Orders

Typically, a Shop Order would first be created when a Client Order is placed for an item that must be manufactured to order. If this item includes subcomponents that must also be manufactured, Shop Orders for these items would be created in turn. Since Shop Orders are linked to a specific Job, job costing information for the item and all of its components will be tracked.

The PO Reorder Advice Report is used to generate the information regarding items that must be manufactured (i.e., require Shop Orders) as well as items that must be purchased from vendors (i.e., require Purchase Orders).

1. A Client Order is taken for a manufactured item (we'll refer it as gadget1 in this example).

2. If this item is to be considered a separate job, the following job costing records should be created by the appropriate personnel:

 Job (required)
 Job Cost Code(s)(required)
 Billing Item(s)(required)
 Cost Code Level 1(optional)
 Cost Code Level 2(optional)

If this job belongs to a new project, a new Project record would be created as well. In some situations, a new Job Type, Cost Category or Discipline might also need to be created.

3. A shop order Location record must be created if you do not already have one for this job. The Location refers to a physical place for the assembly, and enables the system to provide cost tracking as items are transferred in and out of the location. You may wish to set up your Location Id's to correspond to your Job Id's for easy reference.

4. When the PO Reorder Advice Report is run, gadget1 will appear on it.

5. Since gadget1 is a manufactured item, a Shop Order for this item must be created for it. The system will automatically use gadget1's Bill of Material to fill in the Shop Order's detail regarding any finished parts and/or subassemblies required.

6. At this point, Purchase Orders should be issued for any finished goods that are needed for this shop order.

7. As finished goods are received (via the Inventory Receipts Journal) for items purchased to this job, they will be initially stocked the main warehouse location.

8. Any finished goods now on the shelf that are required for gadget1 should be allocated to this job by running the Fill Shop Backorder function.

9. Run the Print (Shop) Transfer Tickets report to instruct your warehouse personnel to physically move stock from the main warehouse location to the gadget1 assembly location.

10. Run the Record Transfer Tickets function to log the actual transfer into the system; the items will now appear the gadget1 assembly location on Inventory Item Location (LOC)tab.

11. When a Shop Order (for gadget1 or one of its subassemblies) is completed, its Close Cost and Date Closed fields should be filled in. When the record is saved, the system will relieve inventory components at the assembly location and add the completed assembly at the main stocking location.

12. Next, the Close Shop Orders Function is run to complete as much of the financial information as possible (WIP to Finished Goods). As expenses for this job are vouchered, this function may be run again as needed or as part your standard month end close. The Job Summary Report identifies items with positive WIP that should be closed.

13. Additional Shop Orders should be created for any manufactured sub-assemblies needed for gadget1. For example, if gadget1suba (a manufactured item) appeared on gadget1's Bill of Materials, you would also create a Shop Order for gadget1suba (repeating steps 5-12 as needed for this subassembly). This cycle will be repeated as many times as required until all underlying sub-assemblies have been "exploded" into their component parts, manufactured, and closed.

14. When gadget1 has been finally been completed, refer to the Client Order Overview for details on completing and shipping the Client Order.