Manufacturing settings

General section

Default WIP method

Select Production to use the work in progress (WIP) method in production costing. This means the WIP general ledger (G/L) account will be used to record actual issue/receive financial transactions during the production process. Select No: WIP to not use the WIP method in production costing. This means all the actual issue/receive financial transactions will be recorded directly in the production cost G/L account.

Use production result

Select this check box to use the production result G/L account to book the balance of the production cost, revenue and waste G/L accounts. If you do not select this check box, the production result G/L account will not be used when production completes. With this, the balance of the production cost, revenue and waste G/L accounts will remain in the three accounts.

Production based purchasing

Select this check box to charge any price differences between the purchase order and the purchase invoice raised for a manufacturing production order to the WIP or production cost account. For more information, see Production based purchasing.

GL for extra material issue

Select Production cost to book the extra issue of material costs to the production cost G/L account or Production waste to book the extra issue of material costs to the production waste G/L account.

Production order status section

Use authorise

Select this check box to require production orders to be authorized before they can be released and printed. Hence, authorization of production orders is mandatory in the production order process.

Print: Required

Select this check box to require every production order to be printed after it has been released. Hence, printing of production orders is mandatory in the production order process.

Release: Required

Select this check box to require production orders to be released before they can be printed. With this, the production order release is mandatory in the production order process.

Use finish

Select this check box to require production orders to be set to the Finished status before they can be completed.

Print section

Receipt labels

Select this check box to print labels after receiving production items. For more information, see Entering and modifying production receipts.

Use multiple layouts

Select this check box to use multiple layouts for printing of production orders. For example, you can print a production order of different layouts for the production floor, the finance department and the warehouse. In addition, you can also print more than one copy of the same layout. If you enable this function, you can maintain the multiple layouts linked to specific collective layouts in System ➔ Logistics ➔ Layouts ➔ Multiple layouts for production sheets. This menu path will not be available if you do not select the check box.

Backflush section

Backflush is defined as the automatic issuance/realization of components, parts and hours used to produce an end product. Thus, manual realization is not necessary.

Items

Select this check box and the standard items will be automatically set to Backflush in the maintenance of Bill of Materials (BOM) for a manufactured (make) item.

Labour hours

Select this check box and the labor hour items will be automatically set to Backflush in the maintenance of BOM for a manufactured (make) item.

Machine hours

Select this check box and the machine hour items will be automatically set to Backflush in the maintenance of BOM for a manufactured (make) item.

By-products

Select this to enable the selection of check boxes in both the Backflush and By-product columns under the BOM tab in the BOMs maintenance screen and the Production orders entry screen.

Planning section

Planning Person

This is the default setting to enable the phantom person to perform unlimited labor hour planning and realization in project and manufacturing. By default, the person ID of the phantom person is set to -3.

Material: Allocation section

Allocate: on

Select one of the following options to perform the automatic allocation of materials for production orders. This setting determines at what stage of a production order cycle the automatic allocation of materials will take place.

• None – Select this option if you do not wish to perform the allocation of materials automatically.
• Authorized – Select this option to automatically allocate materials when the production order is authorized. Once selected, Automatic allocation method is enabled.
• Released – Select this option to automatically allocate materials when the production order is released. Once selected, Automatic allocation method is enabled.

Automatic allocation method

Select one of the following methods to perform the automatic allocation of materials for production orders:

• Allocation – Select this option to perform automatic stock allocation only. By default, this option is selected. The automatic stock allocation functionality is synchronized with the manual allocation functionality whereby you can perform automatic allocation for serial or batch items apart from other items even when the warehouse location setting is enabled.
• Enrichment – Select this option to perform automatic stock allocation together with the automatic enrichment method. The automatic stock enrichment functionality is enabled only when you select Enrichment at Automatic allocation method, and when you select the Check stock check box in the Fulfilment section in Order settings. For more information, see Order settings. With automatic enrichment, the serial or batch numbers as well as warehouse locations will be assigned during the authorization or issuance of production orders based on the option selected at Allocate: on.

Note: This is enabled only if you select Authorized or Released at Allocate: On.

Allocation: Copy project

Select this check box to copy projects when allocating stock. When this check box is selected, there are various scenarios when items are allocated and unallocated:

1. Allocation: The project code is created automatically in the production order. This project code will then be copied from the production order to the interbranch transfer or free stock.
   Unallocation: The project code in the interbranch transfer or free stock will be removed if it is the same as the project code in the production order.
2. Allocation: The project code is created automatically in the production order. This project code will be copied to the purchase order lines. The project code in the purchase order header will display the last project code displayed in the purchase order line. Once the purchase order is closed, the project in the purchase order header will not be automatically set to active if the project type is production order.
   Unallocation: The project code in the purchase order will be removed if it is the same as the project code in the production order.
3. Allocation: Different project codes are created for the main and sub production orders. Parent-child relationship is created between the orders for back-to-back order.
   Unallocation: Parent-child relationship will be removed if there is any.

If this check box is not selected, there are various scenarios when items are allocated and unallocated:

1. Allocation: The project code is created automatically in the production order but will not be copied to the interbranch transfer, free stock, or purchase order. Parent-child relationship will not be created between the production order and interbranch transfer, free stock, or purchase order.
   Unallocation: The project code in the interbranch transfer, free stock, or purchase order will not be removed.
2. Allocation: Different project codes are created for the main and sub production orders. Parent-child relationship will not be created between the orders.
   Unallocation: The project code in the supply order will not be removed.

Operations section

Operations

Select this check box to use operations in production. If this function is enabled, you can create and maintain the operations that are used to produce the finish goods by going to Manufacturing ➔ Setup ➔ Operations. This menu path will not be available if you do not select this check box. By selecting the Operations check box, the Manufacturing ➔ Entries ➔ Operations control menu path will be enabled.

For more information see Affected menu path with operations setting.

Percentage complete calculation basis

Select Manually, Hours realized, or Operation quantity completed to define how the percentages of completion for operations are calculated. This field is enabled only if the Operations check box is selected.

For more information on the calculations, see Calculation of percentage of completion of operations.

Remaining hours calculation basis

Select Estimates or Actuals to define how the remaining set up and labor hours for operations are calculated. This field is enabled only if the Operations check box is selected.

For more information on the calculations, see Exact Visual scheduler - Calculation of remaining setup and run hours of operations.

Recalculate APP section

Receipts: Recalculate APP

Select this check box to recalculate the average purchase price (APP) of the end product by dividing the total stock value with the total quantity of the stock at the completion of a production order.

Note: The Receipts: Recalculate APP check box is enabled only if you select Average Purchase Price or Real time APP at Valuation method in Inventory settings at System ➔ General ➔ Settings.

Engineering change section

Use engineering change management

Select this check box to use the engineering change management (ECM) function in Manufacturing ➔ Entries ➔ Engineering change. With this function enabled, any changes to the existing BOM will create an ECM activity workflow. This workflow will need to be approved or rejected. In addition, a Microsoft Excel report will be created to record the changes in the BOM. The BOM which is undergoing changes and pending approval cannot be used to create a production order.

Generate project

Select this check box to generate an internal project whenever there is an engineering change in the BOM.

Engineering change for new BOM

Select this check box to use the engineering change management (ECM) function in Manufacturing ➔ Entries ➔ Engineering change for newly created BOMs. This check box is enabled when you select the Use engineering change management check box.

Logbook

Click this to view all the information of the changes you have made in the settings.

Save

Click this to save all the changes you have made in Manufacturing settings. Some changes are only applicable after you restart Exact Globe Next.

Close

Click this to exit.