V8 - Assemblies, builds, and the Builds list

SOS Inventory supports both discrete manufacturing and process manufacturing. In both cases, raw materials (inputs) are turned into finished goods (outputs). Where possible, SOS Inventory tries to match the terminology used in the desktop editions of QuickBooks, to lessen the learning curve for existing QuickBooks users and ProAdvisors.

An assembly in SOS Inventory is similar to an assembly in QuickBooks Desktop Pro, Premier, or Enterprise. You can enter a bill of materials (BOM) that specifies the components of the assembly.

To remove inventory of raw materials and increase inventory of finished assemblies, you must use a build transaction. This transaction tells the system that on a certain date you used raw materials to make a finished good.

If you are using a contract manufacturer (third party) to produce a finished good, see Contract manufacturing workflow. 

Assemblies vs processes

In SOS Inventory, an assembly is the output of discrete manufacturing, where raw materials are turned into one or more units of a finished good, based on a bill of materials (BOM). SOS also supports process manufacturing, whereby outputs are produced using a recipe or formula. In SOS, processes are used to describe a more general type of manufacturing that can produce an unlimited number of outputs based on an unlimited number of inputs.

The item type produced by builds are assemblies, while that of processes are inventory items.

As a general rule, first see if your manufacturing workflow can fit the assembly/build model, as it is the simplest approach. If production of an item involves going from one stage to another (e.g, cutting, welding, etc.), a process is the most efficient way to go. It will support virtually any manufacturing configuration.

Assemblies vs kits (item groups)

A kit or item group is a collection of inventory items that are bundled together at the time of purchase or sale. The individual items that make up a kit are still separate items and could be sold individually if needed. In contrast, an assembly is an item that is manufactured (built) from component items.

When you enter a build transaction into the system, the inventory of the assembly item increases and the inventories of its component items decrease, as they are used to build the assembly. Item groups, by contrast, never have any stock in SOS Inventory; only their components do. However, the Available column on the Items list for item groups will display the possible number of kits based on the available quantities of the components.

For more information on configuring and using kits, see the section Kits (item groups).

Builds list

Build records are housed in the Builds list (Operations menu > Production > Builds). This list will show you when a build was initiated, and if you are on the Pro plan, whether the build is still in progress. 

A distinctive option on the Action menu options of the Builds list is Disassemble, which breaks an assembly item down into its component items. The action generates a process transaction in which the assembly item is the input and the component items are the outputs. 

For a general overview of how lists work in SOS Inventory, refer to List functions. See Action and batch action descriptions for more information about the actions available on lists.

Building an assembly

The steps required for building an assembly are:

1. Create an item to represent the finished assembly. 
2. Ensure each component item needed for building that assembly exists in the system. Create any additional components, if needed.
3. Create the bill of materials (BOM) for the assembly.
4. Add a build transaction for the assembly.

SOS Inventory also supports subassembly manufacturing, but a subassembly must be built using a separate build transaction before it can be incorporated into a master assembly. The steps involved in creating a subassembly are the same as those for any assembly. A subassembly is listed in the BOM of an assembly as a component item. SOS supports multi-level BOMs and has no limit to the number of levels.

A valuable tool in assembly production is the Expanded BOM Report. See Using the Expanded BOM report in production planning for more details.

Creating an assembly item and its components

Adding an assembly:

1. Open a new item page (Quick add > Inventory > Item).
2. Enter a unique name for the assembly in the Name field.
    
   infoTIP: It may be helpful to include in the name whether the item is an assembly or subassembly.
3. In the Type dropdown list, choose Assembly.
4. Choose the appropriate accounts to be associated with the assembly item.
5. If the assembly will be tracked with a serial and/or lot number, enable the appropriate box(es).
6. The sales Description field is optional, but if used, the description should be unique.
7. If the assembly is a product that will be sold, enter a value in the Sales price field.
8. Do not enter a value in the Purchase cost field. (The combined purchase cost for all the components in the BOM will make up the cost basis for the assembly.)
9. Complete other fields as desired, then save. The assembly item record will be added to the Items list.

For each new assembly component item:

1. Open a new item page (Quick add > Inventory > Item).
2. Enter a unique name for the component in the Name field.
3. In the Type dropdown list, choose the appropriate type (Inventory, Expense, Assembly, Kit (item group), Service, or Other). If Assembly is selected, it indicates the component is a sub-assembly.
    
   edit_noteNOTE: If an input is an Assembly or Kit (item group) item type, it must have a bill of materials (BOM).
4. Unless the component is also available for sale as a stand-alone item, do not enter a value in the Sales price field.
5. In the Used on section, Manufacturing forms must be checked.
6. Enter the Starting inventory data for the component item, if available.
7. Enter the Purchase cost of the component unless it is an assembly type.
8. Enter data for other fields as desired, then save. The component will be added to the Items list.

Adding a bill of materials (BOM)

A bill of materials (BOM) is the specification of the number and type of components that are used in making an assembly. The BOM specifies the quantity required for each component to make one unit of the finished good. 

To create a BOM:

1. Go to Operations menu > Inventory > Items and find the assembly item record.
2. Select Actions menu and choose Bill of Materials from the dropdown.
3. On the bill of materials page for the assembly item, enter each component item and the quantity needed to build the assembly. Include notes if needed. Labor items and fees should be included in the BOM, as applicable.
    
   warningIMPORTANT: Units of measure are not currently enabled for BOMs. All quantities should be entered in the base unit only.

Adding a build transaction

A build transaction specifies: (1) the assembly item to be produced, along with its quantity; and (2) the component items required to build the assembly, as well as the quantities needed for each component. The system uses the BOM definition for the component quantities.  

If your company has multiple locations, make sure the stock is on hand at the location where the assembly is to be built.

To create a build:

1. Open a new build transaction (either go to Quick add > Build—or go to Operations menu > Production > Builds, then select Add new).
2. Choose the Location where the assembly will be built.
    
3. In the Output table, select the assembly item to be built and the quantity to build. It is important that the output be specified before the inputs.
    
4. Enter assembly components manually in the Inputs table—or click the Update inputs button (located under the Output table) to retrieve the proper components based on the BOM.
   1. If retrieved via the Update inputs button, you can adjust the input quantities and/or items as needed—for example, if you are using a substitute product.
   2. The units of measure specified for input and output items on a build transaction should be each item’s base unit of measure (UOM).
       
5. If you need to change your output quantity after retrieving the inputs, you must select Update inputs again so that the Inputs table information is updated as well.
    
6. Plus and Pro plan customer option: check the Auto serials/Lot numbers box if the assembly will be serial- or lot-tracked so that the system will generate a serial or lot number for the finished assembly.
    
7. Pro plan customers using work centers: In the Work center dropdown list, select Finished goods if the assembly output is complete. (All other options in the dropdown indicate the item is a work in progress and is not available for sale.)
    
8. Finish completing other data fields as needed, then save the build.

Using an inventory item as a build output

A special use of the build transaction allows you to use an inventory item (i.e., typed as an Inventory item instead of Assembly) as an output. For example, you may have an item that is sold as a new product. If it is returned by a customer, you cannot sell it as new, even if the item is in excellent condition. The solution: sell it as a refurbished item, with the original item as the input and the refurbished item as an output. No BOM is needed, as both the input and output items are inventory items.

Using the Expanded BOM report in production planning

The Expanded BOM report (Operations menu > Reports > Production > Expanded BOM report) allows you to view the entire BOM for an assembly, including its subassemblies and their components. This report is invaluable for the purpose of production planning, as it helps you know whether you have enough stock on hand to build the quantities you need for the master assembly and all subassemblies.

The report also shows the total cost structure of the complete finished product and the expected expense of replenishing raw materials.

To set up the Expanded BOM Report, do the following:

1. Under the Input section:
   1. Choose from the Location dropdown where the assembly will be built.
   2. Select from the Item dropdown the assembly item to be manufactured.
   3. Enter the number of assembly units to be manufactured in the Quantity field.
       
2. Under the Options section, check the boxes for Expand subassemblies and Highlight reorders.
    
3. Under the Columns section, move additional Available columns to the Included columns, if desired.
    
4. Under the Actions section, select Display report. At the bottom of the Expanded BOM report page, all components (including those of any sub-assemblies) will be displayed. Components of subassemblies will be indented under the subassembly to which they belong. The On hand column will highlight in red any components that have insufficient quantities to build the number of assemblies entered in Step 1c.
    
   edit_noteNOTE: Items representing labor and contract manufacturing fees always show quantities of zero and are highlighted in red.

The two screenshots below show the filters for the Expanded BOM Report and the displayed report for assembly item Motor Boat.

Using shipments to auto-generate builds

SOS Inventory has the ability to create a build automatically when you ship an item. To use this capability, enable the Auto-build assemblies option on the Inventory settings page (Settings > Inventory settings).

The Auto-build assemblies option only builds the master assembly. This setting does not build subassemblies if using a multilevel BOM.

Disassembling an assembly

The Disassemble feature, available only on SOS Inventory's Pro plan, is an action available for records on the Builds list. Disassemble breaks an assembly item down into its component items. The action generates a process transaction in which the assembly item is the input and the component items are the outputs. After disassembly, the system decreases the on-hand quantities of the assembly and increases the on-hand quantities of the component items. For more details on using this feature, see Creating a process transaction using a build's disassemble action.