Change Production Order Status to Finished
If Item Ledger Entries for Reference Items exist
When Changing Production Order Status to Finished and there are Item Ledger Entries for Reference Item = YES:
- Consumption cancellation will be posted for previous existing Item Ledger Entries;
- After the cancellation is posted, a new consumption will be registered for each line of the Production Order that has the Reference Item on the BOM;
- For these new consumption movements, system will consider the actual output quantity and the respective necessity configured on the Production Order Components (Expected Quantity). To this behavior, it is added a new rule to distribute the lot quantity, meaning that the quantity per lot will be divided equally between all lines from the Production Order.
- All the items in the BOM with Reference Item = NO will be consumed using standard functionalities (or manually or by backflush).
See example below:
Family PORK exists:
In this example, a Family Production Order is created with Quantity = 15.
Family Production Order has the following lines:
| Item | Quantity |
|---|---|
| PORK CHOPS | 15 |
| RIBS | 30 |
| HEAD | 45 |
| LEGS | 150 |
An intermediate consumption for the Reference Item (in this case, Item is PORK) is posted for 250KG. Also, this Reference Item Consumption is divided into 3 lots:
| Lot | Quantity |
|---|---|
| LOT1 | 95 |
| LOT2 | 80 |
| LOT3 | 75 |
Item Ledger Entries are created:
Each of the produced items have in their BOM 1KG of pork per KG of finished item among other raw materials.
The reference item has a Scrap% of 10% when producing Ribs.
When the status of the Released Production Order is changed to Finished:
- Cancellation movements are posted, to cancel the Ref. Item Intermediate Consumption:
System will do the following calculation to post the correct consumption quantity per Production Order Line:
Quantity to consume based on real output:
Pork Chops - 15KG x 1KG = 15KG
Ribs - 30KG x (1KG+10%Scrap) = 33KG
Head - 45KG x 1KG = 45KG
Legs - 150KG x 1KG = 150KG
Calculated total consumption based on real output = 243KG
Proporcional consumption:
Pork Chops - 15KG/243KG ≈ 0.062
Ribs - 33KG/243KG ≈ 0.136
Head - 45KG/243KG ≈ 0.185
Legs - 150KG/243KG ≈ 0.617
Consumption based on what was posted:
Pork Chops - 250 x 0.062 ≈ 15.5KG
Ribs - 250 x 0.136 ≈ 34KG
Head - 250 x 0.185 ≈ 46.25KG
Legs - 250 x 0.617 ≈ 154.25KG
Also, it is needed to divide the Lot quantity equally for each one of the Production Order Lines in order to have a proper cost allocation. This division will consist of multiplying the Lot quantity by the pork consumption for each line and then dividing by the total pork consumption.
Pork Chops:
- LOT1 = 95KG*15.5KG/250KG ≈ 5.86KG
- LOT2 = 80KG*15.5KG/250KG ≈ 4.94KG
- LOT3 = 75KG*15.5KG/250KG ≈ 4.63KG
Ribs:
- LOT1 = 95KG*34KG/250KG ≈ 12.9KG
- LOT2 = 80KG*34KG/250KG ≈ 10.86KG
- LOT3 = 75KG*34KG/250KG ≈ 10.19KG
Head:
- LOT1 = 95KG*46.25KG/250KG ≈ 17.59KG
- LOT2 = 80KG*46.25KG/250KG ≈ 14.82KG
- LOT3 = 75KG*46.25KG/250KG ≈ 13.89KG
Legs:
- LOT1 = 95KG*154.25KG/250KG ≈ 58.64KG
- LOT2 = 80KG*154.25KG/250KG ≈ 49.38KG
- LOT3 = 75KG*154.25KG/250KG ≈ 46.3KG
This exact same behavior also happens for the batch Change Production Order Status.
If Item Ledger Entries for Reference Item don’t exist
If there is no consumption movement posted for the Reference Item, for that Production Order, the system has the standard behavior.