V8 - Processes and the Processes list

Processes in SOS Inventory can have an unlimited number of inputs and outputs. This gives you the flexibility to handle a variety of situations:

• Simple manufacturing (multiple inputs into one output).
• Disassembly (where one input turns into many outputs). Process transactions can be used to break down finished goods back into their original components. 
• Complex processes with by-products, such as waste (multiple inputs into multiple outputs). 

Refer to Assemblies vs processes for a brief explanation of how processes differ from assemblies.

If you are using a contract manufacturer (third party) to produce the goods, see Contract manufacturing workflows. 

Processes list

Process transactions are housed on the Processes list (Operations Menu > Production > Processes). This list will show you when a process was initiated, and whether the process is still in progress. 

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.

Creating a process

The steps required for creating a process are:

1. Create an output item for each end product that will be manufactured, including any needed to designate waste products. 
2. Create each input item needed to produce the outputs, including labor and fees.
3. Optional: Create a process template that includes all the items needed for the process, the end products, and the quantities necessary for each. Defining a process template is beneficial if you use the same manufacturing process on a recurring basis. 
4. Create a process transaction to manufacture the output items. If a process template is used, it would be selected for use in the transaction.

Creating process output, waste, and input items

To add a process output item (including a waste item):

1. Open a new item page (go Quick add > Inventory > Item--or go to Operations menu > Inventory > Items, then select Add new).
2. Enter a unique name for the output item in the Name field.
    
   infoTIP: For a waste item, we recommend including some designation in the item name to indicate it is a waste product. For example, if you use an item called Cod as one of the input items for a process, but some of it is wasted during the production process, create a second item called Cod - Waste to represent the waste product. This keeps waste product from getting returned to the Cod inventory and being included with its quantities.  A separate waste item also makes searching and accounting for the waste via an inventory adjustment easy. 
3. The Description field is optional, but if used, the description should be unique.
4. In the Type dropdown list, choose Inventory.
5. If the process output is a product that will be sold, enter a value in the Sales price field.
6. If the output item will be serial and/or lot tracked, enable Track serial numbers and/or Track lot numbers.
7. Choose the appropriate accounts to be associated with the process output item.
8. Enter a value in the Purchase cost field. This field is required for the distribution of costs among the output items.
9. Complete other fields as desired, then save. The process output item will be added to the Items list.

For each new input item:

1. Open a new item page (Quick add > 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).
    
   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. If the output item will be serial and/or lot tracked, enable Track serial numbers and/or Track lot numbers.
6. In the Used on section, Manufacturing forms must be checked.
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.

Creating a process template

A process template in SOS Inventory is like a BOM that is designed for a process. A template is used as a repeatable manufacturing run. It describes the inputs and outputs to be recalled for use later. A template does not remove items from inventory. The inventory is removed/created when a process transaction is created using the template.

To create a process template:

1. Go to the Process Templates list (Company menu > Miscellaneous > Process templates, then select Add new).
2. Enter in the Name field what you want to name this template. Completing the Description field is optional.
3. Enter each output item, as well as the quantity for each. Output items can represent a finished good or materials that will be reused, as well as items to be discarded as waste. If an item is waste, check the box in the Waste column. The Waste column is used only to calculate the expected yield of the process.
4. Enter each input item, as well as the quantity for each. 
5. When finished, the BOM cost total of the output items should be as close as possible (but not necessarily exact) to that of the inputs.
6. Save and close the template when done.

Methods for creating a process transaction

A process transaction in SOS Inventory is a record showing that a specific process took place on a specific date. This transaction is what tells the system that something actually happened. A process transaction can be added directly, generated from a build transaction (to disassemble an assembly), or generated from a work order.

Adding a process transaction manually

1. On the Task bar, go to Quick add > Production > Process--or go to Operations menu > Production > Processes, then select Add new.
2. Choose from the Location dropdown where the manufacturing will be performed.
3. Manually enter the output and input line items--or select the process template to be used for the transaction from the Template dropdown and select Apply. If you are not using a process template, be sure to include any waste item(s) in the Outputs table and check the Waste column box(es).
4. The units of measure specified for input and output items on a process transaction should be in each item’s base unit of measure (UOM). (If a process template is used for the transaction, the template should have been set up using the base UOM of each input and output item.)
5. If the actual manufacturing is to start later than the date on the process transaction, set the Start date for when the manufacturing should begin.
6. If the desired output item quantities need to be changed (e.g., doubled or halved) and you want all the input and output items to keep the same proportions, enter the correct number in the Multiplier field (located below the Inputs table) and select Apply. If you are decreasing the quantity produced, or increasing the quantity produced by a number that is not whole, enter a decimal number in the Multiplier field (e.g., enter .5 to decrease the output by half, or 1.5 to increase the output by half).
7. Check the Auto serials/Lot numbers box if the process outputs will be serial- or lot-tracked, and you want the numbers to be assigned by the system. 
8. If you are using work centers, in the Work center dropdown list, select the appropriate work center for this process. Choose Finished goods if the outputs are items ready for sale. (All other options in the dropdown indicate the outputs are work in progress and are not available for sale.)
9. Finish completing other data fields as needed, then save the transaction.

When you save a process transaction, the inventory of the input items decreases. The inventory of the output items does not increase until the work center is set to Finished goods. The cost of the input items is distributed proportionally across the output items, according to the purchase cost of the output items. Make sure that each of your output items has a purchase cost entered, as an output item with a $0 purchase cost will receive none of the value (unless it is the only output, which will result in it receiving 100 percent of the value).

Creating a process transaction using a build's Disassemble action

The Disassemble action on a build record allows an assembly item to be broken down into its component items. To disassemble an assembly, perform the following steps:

1. Locate the build transaction record containing the assembly item(s) you want to disassemble.
   1. If the assembly is serial tracked, you can find its associated build on the Serial Inventory list by searching for the assembly's serial number. The build transaction reference number is shown in the Serial Inventory list's Description column. The reference number can also be found by going to the Actions Menu and selecting Transaction history.
       
2. In the build's Actions Menu dropdown, select Disassemble. The system will generate a new process transaction from the build. The assembly item will be in the Inputs table, while the assembly components will appear in the Outputs table.
    
3. If needed, adjust the quantities (by using the Multiplier). Remove any labor and fees from the Outputs table. Add any labor and fees required for executing the disassembly in the Inputs table.
    
4. If you are disassembling a product with known broken parts, then mark these output items as waste:
   1. Check the Items list to see whether a waste item exists for each component that will be waste product. If needed, create a new item for each waste product.
   2. Enter each output item that will be waste into the Outputs table.
      1. Enter the quantity of the waste, then check the box in the Waste column.
      2. For the corresponding (non-waste) output item: either lower the quantity to offset that which will go to waste, or delete the item if all of it is waste. 
          
5. Complete other fields as desired. When finished, save the process transaction. Upon saving, SOS Inventory will automatically add in the Comment field of the process transaction--as well as in the Memo column of the Process Transaction list--that the process transaction is a disassembly and reference the associated build transaction number.
    
6. If needed, create an adjustment to remove any waste products from the system.
   1. After saving the adjustment, go to the Adjustments list (Operations menu > Inventory > Adjustments).

After disassembly, the system decreases the on-hand quantities of the assembly and increases the on-hand quantities of the component items.

Creating a process transaction from a work order

Work orders can be used to generate a process transaction, but the procedure is different from that typically used in SOS Inventory to generate a child transaction from its associated parent.  Refer to Generating a build or process transaction from a work order for details.

Waste product and yield percentage

For any output of a process, you can specify the output item as waste.

Based on the percentage of waste items and non-waste items, the system will calculate a yield for your process. This helps you to evaluate materials from different suppliers, for example, to determine which gives you the best outputs in your manufacturing. Waste items go into inventory like any other inventory item, so that they can be tracked and used later as needed.

On the Process templates list, enable the Expected yield column with the Column chooser to display the anticipated yield percentage of any process. The actual yield of a process can be viewed in the Yield column of the Process transactions list. 

If you discard waste product, use an adjustment transaction to remove the waste item quantities from SOS Inventory.