Revision as of 01:28, 26 April 2010

Adempiere From Manufacturing to Sales

Basic Functionality

Goals:

1. Create Raw Material (RM) and Finished Goods
2. Create Bill of Material (BOM)
3. Setup Standard Cost for RM & Finished Goods
4. Make Sure that FG cost is correct
5. Create Manufacturing Order (MO)
6. Release Manufacturing Order
7. Issue Raw Material(RM) & Receive Finished Goods(FG)
8. Make Shipment to Customer
9. Make Sales Invoice
10. Integration to :
   10.a Material management
   10.b Purchasing
   10.c Accounting
11.Standard Costing :Hints & Tips

Prerequisites

1. Activating Libero Model in the Client window
2. Setting 'Standard Costing' in Accounting Schema
3. Manufacturing Resource :
   3.a Creating Resource Type
   3.b Setting up Manufacturing resources
4. Setting up Business Partners
   4.a Business Partner Group
   4.b Business Partner
5. Products :
   5.a Price List
   5.b Product Category
   5.c Product
   5.d Setting Standard Cost for Raw Materials
6. Manufacturing WorkFlow

Example

1. Finished Good (FG) :Computer Cabinet 27 U Rack Height,600mm width 800 mm Depth. Quantity is 5

2. Raw Material (RM)  :

                  2.a GI 2000 X 1000 X 2.0MM   Quantity is  2   Standard Cost : 10.5
                  2.b GLASS 1921 X 680 X 6MM   Quantity is  3   Standard Cost : 15.25
                  2.c DR-ADF-0008 HANDLE LOCK  Quantity is  1   Standard Cost : 1.75
                  2.d HEX NUT                  Quantity is  10  Standard Cost : 0.75
              Then , the cost of 1 FG is 2 x 10.5 + 3 x 15.25 + 1.75 + 10 x .75 = 76

3. Business Partners :

                   Vendor      : AlphaGarden Industries
                   Customer    : BetaGarden  Trading

Setting up the Prerequisites

Login as : GardenAdmin Role  : GardenWorld Admin

Make sure that the Organization is “*” in the creation of new entries :

For easier access to the windows, I have created the following shortcuts for them :

Activating Libero Model

1. In the client window : From Menu->System Admin->Client Rules->Client :

  In Model Validation Classes field put :org.eevolution.model.LiberoValidator

Accounting Schema Setting

2.2. Setting 'Standard Costing' in Accounting Schema From Performance Analysis->Accounting Rules->Accounting Schema : Make sure that the Costing Method is Standard Costing.It is a must in Libero manufacturing to use Standard Costing.

Creating Resource Type

3.a You need to create the at least one resource type ( only once). In GardenAdim we have default resource types . I will use the Plants Resource with the following settings : From Manufacturing management -> Engineering Management -> Resource Manufacturing -> Resource Type Put Working Time and Working Days . Tick Single Assignment Only

Setting up Manufacturing resources

3.b From Manufacturing management -> Engineering Management -> Resource Manufacturing -> Manufacturing Resource. Manufacturing Resource is anything needed in the production plan. You can identify the availability of it. It can be Plants, Production lines, Work Centers and Work Stations. If you select Manufacturing Resource Type as Plant , then enter Planning Horizon 120.

Setting up Business Partners(BP)

4. Create Business Partners Groups: 1. Customer 2.Vendor We define BP group which suits your needs. In our example we just created two BP group; Customer and Vendor. Here, you could alter the accounting default value for each BP group ( if required ) From Menu->Partner Relations->Business Partner Rules ->Business Partner Group The Business Partner Group window allows you to define the accounting parameters at a group level. If you define the accounting parameters for a group any Business Partner entered using this group will have these accounting parameters automatically populated. You can then make any modifications necessary at the Business Partner level

BP in Grid window

We had the following Business Partners: (Make sure that Default is only for one BP )

Creating Business Partners

To create a new BP from Menu->Business partner rules -> Business Partner

We will fill the must fields .

To Create a new vendor : Press the icon New. Enter the Search Key : AlphaGarden ...example . Hint : It is advised not to use spaces or special characters in searchkey.

                  Name : Garden Industries
Business Partner Group : Vendors
  Press Save Button.
Select the Tab Vendor.Tick the field Vendor and Save.
Select the Tab Location : Press New Button. from the Address field fill the address and save.

Creating Customers

From the same window Business Partners : 
       Enter Search Key : in our example BetaGarden
                    Name: BetaGarden Trading
  Business Partner Group: as Standard Customers
  Select the Tab “Customers “” and Tick the field “Customer “and enter Credit Limit.
  Select the Location Tab and enter Address ( you can leave it blank ) and save : This is must for customers.

Products

We will create Price Lists, Product Categories and Products.

Price Lists

We create 2 types of price list: Purchase PL: Purchase Price List 2010 and Sales PL: Sales Price List 2010. We had chosen Purchase PL as our default price list. Ensure that only one price list is default.For Sales Price List tick the field 'Sales Price List'.For each price list you need to define the price list version from the 'Version' tab.I have put the Purchase Price List as Default . From Menu->Material Management->Material Management Rules->Price List

In GridToggle mode we will have the following price lists

Product Category: (RM) & (FG)

We will create two categories: Raw Materials (RM) and Finished Goods ( FG) From Menu->Material Management->Material Management rules -> Product category

Click the Accounting Tab :Since we did not setup any value in the costing method and costing level at accounting tab, then ADempiere system will read costing method and costing level at the Accounting Schema configuration.( It should be Standard Costing).Do not change the Accounting Method. We can have a look on the accounting defaults especially under Manufacturing title.

Creating Products: (RM) & (FG)

From Menu->Material Management->Material Management rules -> Product

The Product window allows you to define all Products used by an Organization like :
        - Sold to customers,
        - Purchased  from Vendor
        - Used in the manufacture of Finished Goods
 During creating this products, just ensure these things 
           - Set proper product Category
           - Mark Sold field for FG products
           - Mark Purchase field for RM products
           - Mark Stocked for FG & RM
           - Set purchasing information for RM products (Purchasing tab)
           - Set Price Lists for all of products (FG & RM). 
           - Do not alter any accounting setting.But, you are free to change .

Let's Create the Raw Materials :
         From Product Tab  - Press New Record Button
                            - Type Search Key
                            - Type Name
                            - Set Product Category : Raw Material (RM)
                            - Stocked   : Ticked.                 
                            - Purchased :Ticked.                 
                            - Sold      : Un Ticked.                 
                              Save
        From Purchasing Tab - Press New Button In Business Partner enter The vendor ( here AlphaGarden Industries)
                            - In List Price enter 9
         From Price Tab     - In Price List Version (Purchase Price List 2010)
                             

Let's create all the Raw Materials :

                 1 GI 2000 X 1000 X 2.0MM   Quantity is  2   Standard Cost : 10.5      List Price : 9
                 2 GLASS 1921 X 680 X 6MM   Quantity is  3   Standard Cost : 15.25     List Price : 14
                 3 DR-ADF-0008 HANDLE LOCK  Quantity is  1   Standard Cost : 1.75      List Price : 1
                 4 HEX NUT                  Quantity is  10  Standard Cost : 0.75      List Price : 0.50

The list price is less than the standard cost for the raw materials. We will see how Adempiere works with this case.

To Create The finished Good :Computer Cabinet 27 U Rack Height,600mm width 800 mm Depth

               From Product - Tab  Press New Record Button
                            - Type Search Key
                            - Type Name :Computer Cabinet 27 U Rack Height,600mm width 800 mm Depth
                            - Set Product Category : Finished Goods(FG)
                            - Stocked   : Ticked.                 
                            - Purchased : Un Ticked.                 
                            - Sold      : Ticked.                 
                              Save
          From Price Tab     - In Price List Version (Sales Price List 2010)

Setting up Standard Costing for Raw Material (RM)

From Menu -> Performance analysis -> Costing -> Product costs

     - Choose the Raw Material item then swish to product costs Tab then set the cost.
     - Set your cost in Current cost price field.
     - Do this operation for all raw materials.
     Hint : To access this window make sure that 'Show Accounting Tab' is set ( from Tools->Preferences).

Create Bill of Material (BOM)

From Menu -> Manufacturing Management -> Engineering Management -> Bill of Material & Formulas -> Bill of Materials & Formula In the top window of the BOM ;

  -   Press new Button.
  -   Select the finished good.
  -   Type Valid from Date
  -   Valid to : you can leave it empty
  -   BOM Type = Make-To-Order
  -   BOM Use = Manufacturing.

  Press Save Button.

In the bottom window : enter the Raw material & Quantity.

  -   Then create your Raw Material by pressing the Icon New.
  -   Select the Product (RM) . 
  -   Component Type = Component.

Make sure that is ‘Critical Component ‘is selected. Note: Valid from: put old date.

           Valid to: Leave it empty.

      Enter the Quantity of this Raw Material
      Issue Method: Issue.
                    Press Save Icon.

      Repeat step 2 for all Raw Materials for that FG.