co-manufacturing module within Cin 7 Core
The co-manufacturing module within Cin 7 Core is designed to work receiving the finished goods from your supplier all at one time. If you receive shipments in stages, and need to account for cost recognition in different periods then the set up of the BOM is slightly different. The “Backflush” method is used to apply to components so then the components only get consumed when the “finished product” is produced. This simplifies the accounting just one stage rather than as consumed as you go along.
Then the general settings for production need to be changed so that a production order is created when an order is authorised. Note that this applies to both sales and purchase so you may have orders created that you do not want. In this case the purchase order replenishment is set to “manual’” whilst the rest are automated.
Then proceed to create a purchase order for the finished good that you wish to place with your co-manufacturer supplier.
Once you authorise then related orders are created.
One is the manufacturing order will be created for all the components that have been set up in BOM from that finished product which the co-manufacturer has to produce.
And the other is the stock transfer that supplies all the components to co-manufacturer for them to assemble.
You can then part issue an invoice from the purchase order which will prompt a corresponding production run from the production order for the part quantity on the invoice.
One the production run is complete it will produce the financials.
Which then correspond to the financials under the partial invoice in the PO.
The second purchase invoice can now be raised which produces a second production run which produces its own financials.
A 3rd invoice can then be produced and so on until the while purchase order is invoiced and received.
The benefit of using the is method is that if the purchase invoice is authorised on different dates, cost recognition can then be achieved in distinct financial periods.
If you need any help with Co-manufacturing Feel free to Email: helpdesk@it-ebs.co.uk
