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Actual consumption of Raw Material is not known in Advance

Posted on by 80

We are facing a problem that we will have to wait to start production orders till the production is completed physically. The reason being we dont know the actual consumption of raw material. Otherwise if we start production orders in the start of production, we will have to make changes in the production BOMs in bulk to accommodate the actual quantity of raw material consumed in production which is a cumbersome task. For an example a leather sheet is issued for manufacturing of shoes of different sizes and styles, after completion we came to know the actual consumption of leather sheet. Hence we create BOMs after the production ends with actual quantity consumed. Any suggestion?

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Actual consumption of Raw Material is not known in Advance

    Hello mnaeembaigAX 

    [quote user="mnaeembaigAX"]Is there any mechanism by which we can put all the material in consumption so that it is started displaying in WIP and cannot be used elsewhere[/quote]

    That's my understanding what the standard application does

    [quote user="mnaeembaigAX"]And when actual values of production are known per SKU then they are posted in the system SKU wise.[/quote]

    Right. 

    It seems that you have problems with your production orders. 

    Can you possibly share some additional details and/or a simplified example supported by some screenprints?

    Many thanks, 

    Ludwig

  • mnaeembaigAX Profile Picture
    mnaeembaigAX 80 on at
    RE: Actual consumption of Raw Material is not known in Advance

    There are a number of variants of each item. Hence almost two to three hundred BOMs are created per physical order. Making changes in BOM values or posting additional picking lists is a cumbersome task. Is there any mechanism by which we can put all the material in consumption so that it is started displaying in WIP and cannot be used elsewhere. And when actual values of production are known per SKU then they are posted in the system SKU wise.

  • Suggested answer
    Ludwig Reinhard Profile Picture
    Ludwig Reinhard Microsoft Employee on at
    RE: Actual consumption of Raw Material is not known in Advance

    Hi,

    Why do you have to wait for the start of the production?

    At the time you start the production the BOM and route are copied into the production order based on the normal consumption that you expect.

    If people use more raw material or need longer than expected, they record those actual transactions as they work on the production order.

    At the end of the production when the actual values are known all previous posting and estimates that have been made on estimated values are replaced by the actual values ensuring that you have the correct costs recorded.

    Does that standard process not work for you?

    Probably have a look at the info material available on MS docs and MS learn.

    Best regards,

    Ludwig

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