Advanced Manufacturing

Advanced Manufacturing uses one or more raw goods to produce multiple finished goods. An example is dividing cleaned corn into bags, totes, and screenings. With Advanced Manufacturing this is done in one step.

Typically, a company uses their own production sheet to enter the advanced manufacturing transaction. The production sheet shows each raw product used, each finished good produced, and the quantities of each.

Finished product cost calculations can be generated by raw Product Average Cost or Commodity purchase price. New transactions optionally generate from existing Manufactured Formulas or templates.

  1. Navigate to Accounting / Inventory / Advanced Manufacturing.
  2. On the Select an Advanced Manufactured Entry window, select Add.
  3. Enter the Date, and optionally enter any Comments or Source Ticket for reference.
  4. The Cleanout % is calculated based on the raw materials marked as Clean Out and the finished good products that are marked as Cleaned. The total weight of the Cleaned products divided by the total weight of the Clean Out products equals the percentage of cleaned product. 100% less the percentage of cleaned product is the Cleanout %.
  5. Select the Finished Good Type of Manufactured Formulas or Products. If Manufactured Formulas is selected, only Products with Manufactured Formulas established are available to choose.
  6. Double-click in the Product Name field under Raw Materials to select the Products being used. Enter the Quantity for each Product selected.
    Note: Best practice is to select the Raw Materials first, but this is not required.
  7. If an Assembly should be used, double-click under Assembly # to select it. The Assembly Location, Assembly Lineitem, Lot #, Custid, Unit Cost, and DPR Disposition default based on the selected Assembly. If no Assembly is used, the Lot # may be manually entered, and the Custid may optionally be selected by double-clicking in the column.
    Note: If Grain Bank Products are being used, a customer is required. The Unit Cost defaults to the selected cost for the department of the Product. This cost can be manually changed by typing in the column.
  8. A comment for the line item can be entered in the Comment column if desired.
  9. Check the Clean Out box if the Product should be included in the Cleanout % calculation.
  10. The Extended Cost calculates based on the Quantity and the Unit Cost.
  11. The Dept ID and Prod ID of the Product selected displays.
  12. The Bin Reference may optionally be selected from the drop-down. Bins are set up at Grain / Setup / Bins.
  13. In the top grid, select the finished good products being manufactured by double-clicking on the Product Name column heading. Enter the Quantity being produced.
  14. A Lot Number may be selected from the drop-down or manually entered if applicable. Lot Numbers that are manually entered are saved with the Product.
  15. The Destination is user-defined and may be optionally entered. Once a Destination is entered, it becomes part of the drop-down selection. The Destination may be used to show where the finished good is going.
  16. The Variety and Comment may be manually entered.
  17. If an Owner is required, double-click to select a customer from the list.
    Note: The Destination, Variety, Owner, and Comment only display on the Production Journal in the Advance Manufactured reports.
  18. The Cleaned checkbox determines what Products are included in the Cleanout % calculation.
  19. The Cost Percent checkbox determines if the Product’s Cost Rate as a percentage of the overall cost should be used in calculating the cost. If not checked, a user-defined cost may be entered in the Cost Rate.
  20. Cost Rate is the percentage of total cost of overall Product based on unit weight. The percentage is calculated using percent of line item to overall finished Product(s). The total Cost Rate of all line items with the Cost Percent checkbox selected must equal 100% for the entry to be saved.
  21. The Extended Cost is calculated based on the Quantity and Unit Cost.
  22. The Weight in Lbs is calculated based on the Quantity and Unit Weight designated in the Product file. This is used in the Cost Rate percentage if percentage is used.

The Total Finished Good Cost and the Total Raw Materials Cost must equal before the entry can be saved. Upon selecting Save, a Journal Entry is created and the inventory Amount On Hand is updated.

To keep costs and the DPR the most accurate on a daily basis, it is best practice to enter Advanced Manufacturing transactions either the first thing that day or at the end of the day.

Product Setup

Products being used must have a valid Unit Weight set at Accounting / File / Open / Products on the Profile tab and a valid cost set on the Pricing tab for the cost specified on the Inventory Department at Accounting / Setup / Inventory Departments / G/L Posting / Compute Invoice Cost.

If a Grain-related Product is used, the GL Posting Unit on the Inventory Department setup must be set to Grain Units at Accounting / Setup / Inventory Departments on the Profile tab and a Commodity Ref must be selected on the Product at Accounting / File / Open / Products on the Profile tab.

If a Grain Bank Product is used, the Product must be set up on the Commodity at Grain / Setup / Commodities in the Agvance Grain Bank Product Linked to this Commodity/Location field.

Daily Prove-Out

Run the Production Journal report for a date range, found at Accounting / Inventory / Advanced Manufacturing by selecting Reports. This should correspond to the production sheets used to create the Advanced Manufacturing entries.