Assembly

How to Enable the Assembly Feature?

Take note that if you already created an assembly, you cannot disable this feature.

How to Create an Assembly/Bill of Materials

1. Enter a new Product Item. Go to Inventory > Items > Create > New. This item will be the final product.
   
2. Select Product as the Type.
3. Check the Assembly checkbox. The Assembly tab will appear.
   
4. Click the Assembly tab. Here is where we will add or build the list of raw materials needed to build the final product.
   
5. Click the Add button. Enter the Product Item Code or select it from the drop-down list.
   
6. Enter the quantity needed for the final product.
   
7. Enter the Unit of Measure (UoM), if applicable. 
   
8. Enter the estimated waste percentage of the item upon production of the final product, if applicable.
   
9. Repeat steps 5-8 for each item needed to assemble the final product.
   
10. Save.
    
    

Labor/Services

1. Check the Has Labor checkbox. The Labor tab will appear.
2. Click the Labor tab.
   
3. Click the Add button. Enter the Service Item Code or select it from the drop-down list.
4. Enter the number of hours (Units of Measure) needed to finish the final product in the Quantity field. As a reminder, service items are not tracked in inventory.
   
5. Save.
   
   

Building an Assembly (Assembly Build)

1. Go to Inventory > Assembly Builds > Create > New.
   
2. Choose the Assembly Item to build from the drop-down menu. The list of raw materials needed will auto-populate in the Materials tab. Labor/Service items appear in the Labor tab.
   
3. Choose the Location of the build. This is where the inventory of the completed items will be increased.
   
4. Change the Build Date, Quantity, Unit of Measure (UoM) if needed.
   
5. If your assembled item will be assigned a lot or a serial number, click the Lots/Serial Numbers tab and assign them.
   
6. Enter a Memo (optional).
   
7. Save.
   
   

Saving an Assembly Build has an effect on the inventory. The quantities of the items (raw materials) and waste used to build the final product will be decreased from inventory; Residuals and the quantity of the final product indicated on the Assembly Build will be increased.

1. The Assembly Build will fail to post if there are no sufficient raw materials in stock.
   
2. On an Assembly Build, individual items may be added, changed or removed to reflect the actual use at the time of manufacturing.
   
3. An assembly item may contain another item that is an assembly (sub-assembly) on its Bill of Materials. There is no limit to how far deep you can nest assemblies, but they must be built in order from the deepest nested assembly on up.
   

Planned Cost vs Actual Cost

1. This is the estimated cost of building the assembly before you actually build it.
   
2. It’s usually calculated based on the standard cost, average cost, or last purchase cost of the components (depending on system settings).
   
3. Think of it as the "budgeted" or "expected" cost for the build.
   
4. Example: If you plan to build a bicycle and your system estimates that the frame is $50, wheels are $30 each, and labor is $20, then the planned cost = $130.
   
   

1. This is the real cost recorded once the assembly build is posted/processed.
   
2. It comes from the actual component costs pulled from inventory at the time of the build.
   
3. If component costs changed (e.g., the frame in stock cost $55 instead of $50), the actual cost will reflect that difference.
   
4. Example: If the wheels in stock had a higher cost of $35 each, your actual cost = $145 instead of $130.
   
   

1. The difference between planned vs actual cost highlights cost variances, which can reveal:
   
1. Changes in material prices
   
2. Inventory valuation differences
   
3. Efficiency issues in production (e.g., using more or fewer components than planned)
   
4. Profitability impacts
   

1. Planned cost = estimate (what you thought the build would cost)
   
2. Actual cost = reality (what the build really cost)