Partial shipping of a Sales Order, Scrap, and Operations Management

Hello,

I'm dealing with a situation that I'm not sure how to manage. Let me explain:

Suppose I have a Sales Order for a customer, in which I have only one line containing two units of a product that we produce. I also have a Work Ticket linked to that line in the operations management system.

At this point, two finished products and the raw materials required to produce them are committed - one finished product per Sales Order unit and all the raw materials due to the open Work Ticket.

Now, let's say that after finishing production, I realize that one of the two products is damaged beyond repair and can't be sold. I decide to ship and sell only one product to the customer, and dispose of the other.

After shipping one product, I update the registers in the Sales Order module. At this point, only one finished product is still committed (as I didn't ship the other one), but all the raw materials required to produce two finished products are still committed. This is because the quantity of raw materials didn't change, even though I shipped only one product.

My questions are:

  1. Why doesn't the quantity of raw materials change when I ship only a partial quantity of the Sales Order?
  2. How should I handle the fact that the remaining quantity on the Sales Order should be scrapped or disposed of, or handled in some other way in Sage?
  3. Am I doing anything wrong?

Thank you

  • 0

    You really need to review this your your Reseller Consulting Partner.  How this works in Operations Management is all based on your Work Ticket Class, your settings, if you have Dynamic Inventory turned on, if you are tracking WIP, if you issue materials or if you backflush, if you closed the sales order/work ticket "complete" or was it a partial and you will still "make" the other unit.  Partial Completions with Backflush does not issue sufficient raw materials to fulfill the manufacturing of that single unit.  Instead, you will have to use Time Tracker Parts Usage to issue your materials or you can use WT Edit to issue the quantity you already pulled from inventory stock.  Keep in mind, backflushing does not work for the remaining quantity, if you have previously partially issued material.  

    As you can see, complicated questions.  I suggest working with your Consultant.