V9 VIDEO TUTORIAL

Preparing and using process templates

Video transcript: Preparing and using process templates

In this video, we are going to look at process templates in SOS Inventory: what they are, how they work, and exactly how to set one up. So if you're doing complex manufacturing—meaning multiple inputs, multiple outputs, and possibly waste—process templates are going to save you time, keep your production consistent, and ensure your costing stays accurate.

What is a process template?

In SOS Inventory, a process template is basically your formula or recipe for a process, just like a bill of materials is for an assembly item.

The template describes all the inputs and outputs for the process. But here's the key: The template itself does not add or remove anything from inventory. Inventory changes only happen when you actually run a process transaction based on that template. So think of the template as your saved recipe. You build it one time. Recall it later when you want to run that process. 

So let's go learn how to create a process template.

Creating a process template

To do so, we need to go into the Configuration mode of SOS Inventory. So come to the Taskbar and select Tools and settings and go to Configuration. Here, you can either search for process templates—or you could come to the left area, go to your list, and move down to your Process templates. Here, then, you will find a list of existing process templates in your system.

When you need to add a new template, you simply select +Add; and then, of course, you would put in the Name. Also, the Description, which is optional; but it's great for notes, special instructions, or version numbers, if you have variations of the same process.

Next up, you're going to see your Outputs. Now you're going to start here. These are the items that are produced by the process. They might be finished goods. They might be materials that I can reuse in a future process. Or it could be that it's waste.

Now for waste items, you want to make sure that you check the Waste box over here. Waste is tracked in the template so SOS can calculate your expected yield, but it doesn't automatically remove it from inventory. You still handle that through an adjustment transaction, if you're truly discarding the waste. You'll enter a quantity for each input, and the cost will come from the purchase cost in the item's definition.

Once you have all of your outputs entered, you will then come down and add the inputs. These will be raw materials, sub-assemblies, or labor items that may be used in the process. Again, enter a quantity for each input. Now, if you're using units of measure for an item—whether that be on the input or the outputs in your template—make sure that you're using the base unit of measure, because this will keep your quantities accurate when the process runs. So that is putting it in.

Now let's take a look at a process template I've already created here. If we come into our Chocolate energy bar, notice this is for a run of a thousand. But I want to point out this right here: Notice I have an item in my input that is Flour, and then on my outputs, I actually have an item that is called Flour — waste. For a waste item, we recommend including some designation in the item name to indicate it is a waste product. This keeps waste products from getting returned to the inventory of the original item and being included with its quantities. A separate waste item also makes searching and accounting for the waste via an inventory adjustment very easy to do.

Next, I want to go ahead and exit configuration mode, because I want to show you how to use the template on your process transaction.

Using a process template on a process transaction

So exiting Configuration when we're ready for production, we'll come to the Production area on the Operations menu and select Processes.

Here I simply add a new process, and I would select my template. So we'll go with our Chocolate energy bar, Apply; then of course, check your Location to make sure you have the location that has all of the materials to run the process. From here, notice on this particular template, of course we do have the thousand count for the Chocolate energy bars. We also have our Flour — waste. On this particular process, on my inputs I have items that are lot-tracked. So I want to go ahead and mark and select which lot that I'm going to be taking the items from. So I'll come and select my lots.

Now, if everything ran exactly like it shows on my template, I would simply save. But maybe on this particular run, in addition to the normal bag that we waste cause we drop it, maybe we dropped the second bag. So what I would need to do is I would add a quantity to Waste. So now I've got two bags of flour that were wasted. But because I added the quantity up here, don't forget the input also needs to come up one, because you grab 76 bags of flour for this particular process. Then you would save it.

So that's all there is to using the process template. Just know that when you're using it, you're ensuring that your cost allocation is consistent every time. SOS takes the purchase prices for your outputs and splits the total cost of the inputs proportionately, which flows into QuickBooks for accurate inventory evaluation and cost of goods sold. Without a template, it's easier to miss a detail or enter inconsistent quantities, which can throw off your costing and reporting.  

Process templates are one-time setup that pay off, over and over again. They make your production faster, more consistent, and more accurate. So if you have a process you run regularly, take a few minutes to create a template. It's one of the easiest ways to improve your manufacturing workflow in SOS Inventory.