Actions

This section shows the Actions available in the BOM Production workspace.

Top Tab

Field	Description
Reserve Raw Materials	When you select this action, Maconomy reserves all the raw materials needed for the production in the production transaction. The raw materials are reserved in the “Raw Materials” warehouse. When a raw material is reserved, Maconomy increases the order volume and/or back order volume in the item information card of the raw material and decreases the available inventory of the item correspondingly. If there are not sufficient raw materials for the production, Maconomy alerts you. If your company uses the “By Reservation” back order method, the unavailable raw materials will be put on back order in the item information card. If you use the “By Picking” back order method, the unavailable items will be put on order in the item information card. Back order principle is selected in the System Information window in the Set-Up module. When you select this action on a reverse production transaction, the quantity on order is increased by the number in production in the finished goods warehouse, and the quantity of raw materials increases in the raw materials warehouse. When the action is selected, the field “Reserved” in the card part of the window is automatically completed.
Approve Production	When you select this action, you approve the production of the finished items in the window's table part. Before a production can be approved, you must reserve the raw materials. You can also make a report of the actual raw material usage in the Production Reports window. When you approve a production, Maconomy carries out the following: The BOM parts that are part of the raw materials in the production and that have inventory control are taken out of the raw materials warehouse. The quantity of raw materials and the composition of finished items can be reported in the Production Reports window. The production recipe can hereby be changed. The quantity of raw materials included in the finished items multiplied by the number of finished items produced is removed from the warehouse. If this quantity is not available, Maconomy alerts you. However, the production can be completed, although it leaves a negative inventory for the raw materials. The raw materials are removed from their inventories at current cost. The finished items are added to the warehouse of finished goods. They are added at a cost calculated from the raw materials or at the cost specified for the finished goods warehouse in the table part of the item information card. Cost calculation is selected in the “Cost Calculation” island. Maconomy creates an item journal specifying the reductions and increases in the inventory value accounts affected by the production. If the cost calculation reveals a cost variance, the journal registers the cost adjustment for the finished item in the finished goods warehouse. A cost variance can also occur if some of the component raw materials are without inventory control. This difference is posted to the production account specified by means of a dimension combination in the warehouse information card of the warehouse of finished goods. In reverse production, the finished goods are split into a number of raw materials which are then added to the stock of the raw materials warehouse. The cost of the raw materials is calculated from the cost of the finished item in the finished goods warehouse, using the price ratios specified on the BOM. However, the price ratios can be changed in the window Production Reports.