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Answered

Assembly Order with different locations for components

Posted on by 5

Hi all,

what is the leanest way to create an assembly order from sales orders having BOM componentes with different locations?

The components are  already combined for the sales item, but the unit cost of the sales item is only reflecting the main component, which is stocked in the location for customer sales (Location A). All other components remain in the location where the assembly took place (Location B) and are "consumed" here by beeing sold.

As the sellable product holds all components (however only having the item cost of the main component) and different locations are only used for record keeping (contract manufacturing in Location B; foreign warehouse in Location A), I'd like to simply create the "real" cost per item by having an assembly order from a sales order.

This is of course not working with the components in Locations A and B at that moment. 

So is there a way to only transfer the required amounts of components from Location B to A at the end of the day to post all sales orders with their assembly orders automatically? The issue is that there is no demand planning for components for Location A as they are actually already there with the main component = sales item.

Thanks in advance

Christian

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Assembly Order with different locations for components

    Christian,

    Send me a picture for the Item Stockkeeping Unit for Location A and Location B. I want to see your setups and then update you.

    Steve

  • Christian1234 Profile Picture
    Christian1234 5 on at
    RE: Assembly Order with different locations for components

    Hi Steven,

    If I set the location on the SKU to A, running the Calculate Plan returns an error:

    The Location does not exist. Identification Fileds and Values:Code=""

    If I try it the other way round: SKU having Location B and Replenishment System "Transfer", Calculate Plan on the Requisition Worksheet works fine, but I cannot select the Transfer from Location Code (the suggested Replnishment System on the Worksheet furthermore remains "Purchase" as on the item card).

    What did I miss?

    Thank you

    Christian

  • Suggested answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Assembly Order with different locations for components

    Christian,

    To make the replenishment Transfer work, have you added Stockkeeping Unit to your Items? Adding SKU will allow you to auto Transfer Items based on the the Stockkeeping Unit under the Replenishment System set this to Transfer on Location A. Location B purchases the Item and when Location needs the Item a Transfer Order executes from B to A.

    pastedimage1613654039076v1.png

    Hope this helps.

    Thanks,

    Steve

  • Christian1234 Profile Picture
    Christian1234 5 on at
    RE: Assembly Order with different locations for components

    Hi Steven,

    items that enter Location A are already assemled, yes. So what I need to do is the assembly here and transfer the components from B to A (which happens manually and not on a daily basis - the assembly order would make that obsolete and give me the correct direct cost per item sold per day). You figured that out perfectly.

    The requsition worksheet seems to match my need as I can only see the "missing" component with the amount to assemble here, after running Calculate Plan.

    What is not working so far is the movement from B to A (I'm changing the Replenishment System from Purchase to Transfer as I don't want to stock another unit of this item, but cannot select the Transfer from Location Code)

    Location Mandatory: Yes

    On the Item Card

    Replenishment: lot-for-lot

    Include Inventory: Yes

    all other fields in Planning: blank

    What's missing here?

    Thanks

    Christian

  • Verified answer
    Community Member Profile Picture
    Community Member Microsoft Employee on at
    RE: Assembly Order with different locations for components

    Christian,

    Question - How are you getting the Selling Assembled Item into Location A already assembled? Are you assembling the Item manually, creating an Assembly Order, Transferring the Components from Location B to Location A, and then posting the Assembly Order complete increate the Selling Item in Location A? Your question sounds like you are assembling the Selling Item but doing it manually and the steps fulfilling the Component Transfer from Location B to Location A and the finishing the Assembly Order selling unit is not occurring.

    Here is what I would do and this is a suggestion:

    1. Assembly Item - If the Assembly Policy field on the item card of an assembly item contains Assemble-to-Order, then the default sales order process assumes that the item is not in inventory and must be assembled for that specific sales order. Therefore, a linked assembly order is automatically created when you add the item to a sales order line.

    2. You can run Requisition Worksheet to create the Transfer Orders for the Location B to Location A components (I am guessing you have SKU and the component is setup to pull from Location B to Location A). Post the Transfer.

    3. Now you can finish the Assembly Order to reflect the Selling Item in Stock and Ship and Invoice the Sales Order.

    If its your policy to keep this item in Stock, then Assemble-to-Stock would be a better setting and running Requisition will drive Assembly Order and Transfers, fulfilling the demand in Location A.

    Hope this helps.

    Thanks,

    Steve

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