Shipment of Subassembly instead of Finish Good

sacmon

One of my customers is manufacturing a product which he usually not sold, but sold subassemblies.
For example, I am manufacturing Bicycle but usually I sold out wheel, rim, spokes etc.
I will create sale order for bicycle, as long as I produce wheel, rim and spokes I will partial ship wheel, rim etc. not bicycle.
In addition to this I have to manage my inventory level for bicycle also and valuation of my bicycle should also be correct.

I think you guys can understand what type of process I am explaining.
Tell me is it possible in Navision?

AdamRoue

You have to know you are selling the sub-assemblies not the finished goods, then you can explode the BOM on teh sales line and it all flows through

sacmon

I already attached BOM to my FG but i already mentioned i have to manage my FG inventory also like for example how many of FG i have in my inventory, how many i have sold out in past and how many are left to ship against any sales order etc.

Please tell me how can i do this in NAV.

sacmon

I have already explode BOM to my FG in sales line, but by exploding BOM, system will replace FG to subassemblies, but i already mentioned i have to manage my FG inventory also like for example how many of FG i have in my inventory, how many i have sold out in past and how many are left to ship against any sales order etc.

Please tell me how can i do this in NAV.

DenSter

You are contradicting yourself. First you say that your customer sells subassemblies, and then when Adam helps you with that, you change it to where they sell GF.

If I understand correctly, you want to be able to have your inventory in FG Items, which are made up of subassemblies that are not completely put together yet? So going with a bike, you have 1 bike on inventory, but it really is a box that contains a frame, some wheels and some paddles? I don't see what the problem is there, you just keep your inventory in FG, you sell in FG, you manufacture in FG, they're just not completely put together in stock. You could probably create some kind of modification that "explodes" the BOM into the subassemblies, but as text lines. You could also do it so that the shipment report explodes the Items on the sales line into subassemblies based on the BOM, like add a dataitem for Production BOM Component.

If you keep sub assemblies in stock, and you manufacture subassemblies, and you don't put the subassemblies together until you sell the bikes then that should not be a big issue either. You could do manufacturing for the subassemblies, and kitting for the FG.

I'm not an expert in either area though, so it might actually be difficult to pull off, but as long as you have a consistent structure in place it should be possible.

AdamRoue

If the need is to have the FG inventory it obviously needs to be manufactured and then booked into stock.

If you are not holding the sub-assemblies but want to sell them are you saying you will disassemble the already completed FG? How do sales know that they can sell a sub assembly, it could be welded in, making it not really sellable at this stage, also how are you actioning the sub-assembly instruction it would be a disassembly and then you have the remaining sub assemblies in stock.

There are many processing issues here as well as information. I suggest you map the business to the software and then find out where the differences are, at the moment you are asking a fairly vague question and then pointing out the issues with the suggestions. I suggest you model this and then work out a more precise question to ask if you have one.

DenSter

AdamRoue wrote:

If the need is to have the FG inventory it obviously needs to be manufactured and then booked into stock.

Of course, but nothing keeps you from putting three different subassemblies into one box, and calling it a finished good. There is no law that says you can't call something finished good until it is welded together.

AdamRoue wrote:

If you are not holding the sub-assemblies but want to sell them are you saying you will disassemble the already completed FG? How do sales know that they can sell a sub assembly, it could be welded in, making it not really sellable at this stage, also how are you actioning the sub-assembly instruction it would be a disassembly and then you have the remaining sub assemblies in stock.

Well that's what I mean, you can manufacture subassemblies to stock, and sell kits of subassemblies, or even the sub assemblies themselves. You can use "Manufacturing" as well as "Kitting".

I'm not suggesting to sell disassembled FG's, that would be ridiculous. I am suggesting that you can manufacture FG, keep stock in FG, sell in FG, but create the shipment report in such a way that it lists the sub assemblies in the report. When you buy a bike for your kid, it comes in a big box, and you have to put it together. The Toys R Us receipt says '1 child bicycle', and the manual lists all the things that should be in the box. All that information is in the system, so it should be possible to get it out onto a shipment report.

The main issue here is that we are getting conflicting information, and I was suggesting two different ways to approach this, the way I interpret the requirement.

sacmon

I can understand this problem is quite strange but now I am explaining this issue in detail scenario:-

My client is making a machine which is very costly in nature and its size is very big and difficult to ship in one container. All the direct materials which are subassemblies of that particular machine can be shipped individually and later on when they received their destination they can assemble their.

In Nav I created an Item BOM and a production BOM for the machine which consisting of direct materials which will be shipped individually. For direct/subassemblies I have created different types of prod. BOM for production.
When a Sales Order comes from a customer, say for 100 qty. I will enter Machine item in Sales Line and start producing subassemblies. I will create production order for machine item and also for different subassembly items through planning engine. Payment terms are linked to different direct materials. As long as one part manufactured (say 2 qty) I will ship it in a container (one part itself huge that can allocate a full container space), for this I have to explode BOM for that machine. By exploding BOM for that particular machine item all the part will explode with their direct materials replacing main machine item. When customer received the parts he assembled himself parts for making a full machine.
Now thing is that by shipping all the direct material (or in the mid of the order) to customer my client wants to know how many machines he has been delivered to his customer.

Actually I have told to my client that this scenario is out of the scope from the system but I just wanted to know is there any work around or via reports I can be able to trace out the machine item which actually does not exist.

Thanks for the response .

AdamRoue

I guess the component parts are not unique per finished goods? If they were you could group them in a manner to know how they interact together, but you still need to reference teh BOM to understand how many went into a finished good item.

I would approach this differently, I would alter the BOM explosion routine to handle the parent item differently, retain it as a configured type, then depending upon lots of scenarios I would post this separately and allow sales reporting on this basis to ascertain teh quantity/value of the finished good item.

Nothing easy in standard will do this, and it depends upon what the client ultimately wants to see, but possible, you just need to specify it properly.

David_Singleton

I am with Daniel on this one, except for one thing. ...

Kits are only in the US version. So the OP probably does not know about kits.

I really can no comprehend why kits have not been released world wide. They add junk like Service Manager into base which is rarely used, but skip something that is needed by the vast majority of Distribution companies, the stated market for the product. In all my year in Navision, every client I have worked with that has proper warehouse and distribution has asked about kit functionality, but only once ever have I heard a request for service.

AdamRoue

Kits are scheduled to go international with the next release I believe, NAV2012 anyone?

AdamRoue

DenSter wrote:

AdamRoue wrote:

If the need is to have the FG inventory it obviously needs to be manufactured and then booked into stock.

Of course, but nothing keeps you from putting three different subassemblies into one box, and calling it a finished good. There is no law that says you can't call something finished good until it is welded together.

AdamRoue wrote:

If you are not holding the sub-assemblies but want to sell them are you saying you will disassemble the already completed FG? How do sales know that they can sell a sub assembly, it could be welded in, making it not really sellable at this stage, also how are you actioning the sub-assembly instruction it would be a disassembly and then you have the remaining sub assemblies in stock.

Well that's what I mean, you can manufacture subassemblies to stock, and sell kits of subassemblies, or even the sub assemblies themselves. You can use "Manufacturing" as well as "Kitting".

I'm not suggesting to sell disassembled FG's, that would be ridiculous. I am suggesting that you can manufacture FG, keep stock in FG, sell in FG, but create the shipment report in such a way that it lists the sub assemblies in the report. When you buy a bike for your kid, it comes in a big box, and you have to put it together. The Toys R Us receipt says '1 child bicycle', and the manual lists all the things that should be in the box. All that information is in the system, so it should be possible to get it out onto a shipment report.

The main issue here is that we are getting conflicting information, and I was suggesting two different ways to approach this, the way I interpret the requirement.

Although directly beneath your post it was not a response to it I think we agree on this and the options open to the poster!

DenSter

AdamRoue wrote:

Although directly beneath your post it was not a response to it I think we agree on this and the options open to the poster!

I wondered about that Steve . Either way I read back my post and saw how I might have been unclear and attempted to clarify.

DenSter

David Singleton wrote:

Kits are only in the US version. So the OP probably does not know about kits.

I thought that Kitting was also included in APAC versions, and that the Indian localization is based on that version. You're right though, it depends on kitting being available.

Although, the BOM structure, not the "Production BOM" but the assembly list functionality, the one that oyu use BOM Journals for, would probably also work in this scenario.