SOS Inventory supports both discrete (assembly) 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 version 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 decrease the inventory of raw materials and increase the 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.
Process manufacturing is not a feature offered within the QuickBooks suite of products. This is where SOS Inventory provides that more complex manufacturing style for customers.
A work order in SOS Inventory is a scheduling tool for manufacturing. You can provide detailed instructions about how to make an item, as well as generate build or process transactions for each item on the work order.
If you are using a contract manufacturer (third party) to produce a finished good, see Contract manufacturing workflows.
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.
Process manufacturing in SOS allows you the advanced functionality of being able to manage waste and track production yields.
A kit or item group is a collection of inventory items that are bundled together at the time of purchase or sale. Item groups are not manufacturable items. 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, while 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.
See Kits (item groups) for more information on configuring and using kits.