Purchasing a Component Directly to a Manufacturing Order

Within Fourth Shift, purchasing items to receive into inventory is a straightforward process.  To start, create a purchase order header that identifies the supplier. Then, add a line for the item to be purchased including the item, quantity, price, delivery date, and line-type ‘P’, the most-commonly used in this situation. However, there are other line-types that can be used on purchase orders. Most buyers are familiar with ‘G’ type lines for expense or general ledger purchases or ‘S’ type lines for sub-contract manufacturing purchases. But, have you ever used the ‘M’ type line for direct purchases to work-in-progress (WIP) for a manufacturing order (MO)? Let’s briefly explore how this works.

Rework Manufacturing Orders in Fourth Shift

Is your business really capturing every cost associated with production? What happens if products need to be reworked or repaired due to errors in production, or engineering changes that didn’t get caught in time? Let’s take a look at rework manufacturing orders (MO) and how they can be used to capture incremental production costs you may be missing to complete your total financial picture of the shop floor.