Bulk Purchase

We have vendor who manufactures a part that once we receive it, we dis-asseble it and use the parts in different production BOMs to complete a Finished Item. We can only purchase from our vendor in units of the whole kit. Do you have any suggestions on how we can accompolish the following in the easiest manner. 1. Purchase in the Kit 2. What process/program to use to dis assemble the kit 3. Use the components on the production BOM 4. Determine shortages for the components and suggest ordering for th whole. Currently we are purchasing in the kit. Doing a manual Item Journal after receipt to decrease inventory by 1 kit and add inventory of each component. (Can this be automated?) We have added comments to all the component items, that indicate they cannot be purchased individually. This is very manual intensive, and is prone to errors when re-ordering and shortages are discovered. Thank you for help.

Hi Knowlton Well you have a couple of options for making hte process slicker without reverting to modifications, which would probaly be your best option to cut out any manual processing. I have addressed this from the perspective of 3.60 and I have to assume you have the options available to you (and that you are licensed to use them! [:D]) 1. You can create an associated BOM for the purchased item and on the item journal load the kit and use the explode BOM function. You would have to do this slightly backwards - loading a positive amount for the purchased part, then exploding the BOM and then adding the original purchase item as a negative line. 2. You could create Recurring Item Journals for this, then you would only have to alter the associated components quantity, although this could be complicated. 3. Perhaps you could use the explode BOM function on the purchase order. You can asociate a BOM with the purchased item - load the purchased item on the purchase order, at the point of receipt (I am assuming your supplier would not accept the “exploded” purchase order) you can use the explode BOM function and then process the receipt. (You would need to specify the unit costs of the components in this example to enable a reconciliation to the purchase receipt - this method has costing implications for AP to reconcile, but maybe workable. I am unsure of the BOM size, purchase quantity or the mixed component quantity, but these are potential options.

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Originally posted by Sheina 1. Purchase in the Kit 2. What process/program to use to dis assemble the kit Currently we are purchasing in the kit. Doing a manual Item Journal after receipt to decrease inventory by 1 kit and add inventory of each component. (Can this be automated?)


We were having a similar request from one of our customers… now their database (2.6) when purchasing a kit it’s automatically creating the negative adjustment on the kit item and a positive adjustment on the components… all calculated based on the kit BOM and the costs on the components item card… so the answer it’s yes… it can be automated… [:)] Regards,