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Exact Online Manufacturing

Training manual

Exact products are being innovated and developed on a continuous basis. Be aware that these training materials are therefore
subject to change and that any versions printed or saved as a local copy may be outdated.

Exact Online Manufacturing 2

1 Introduction

1.1 Welcome

1.1 Certification

1.2 Objectives

1.3 About this training


1.4 Preparation

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5

2 Unique Lamps

3 Settings, master data and roles & rights

3.1 General ledgers

3.2 Settings

10

3.3 Master data

11

3.4 Roles & Rights

20

4 Stock driven and order driven manufacturing

25

5 Stock driven manufacturing

26

5.1 Bill of materials

26

5.2 Shop order

26

5.3 Shop floor planning

28

5.4 Print shop order

29

5.5 Shop order card

29

5.6 Purchase materials

32

5.7 Issue materials

32

5.8 Time entry

33

5.9 Purchase subcontracts

34

5.10 Finish shop order

35

5.11 Complete shop order

36

5.12 Backflush

36

6 Order driven manufacturing

41

6.1 Quotation

41

6.2 Process quotation

46

6.3 Update cost price in item

46

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6.4 Sales order

46

6.5 Shop order

46

7 Overviews and costing

53

7.1 Manufacturing dashboard

53

7.2 Shop order card

54

7.3 Status overview

54

7.4 Cost overview

54

7.5 Production analysis

55

7.6 Shop order results

55

7.7 Backflush overview

55

7.1 Transactions

56

8 Assignment keys

59

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1 Introduction
1.1 Welcome
Welcome to the functional training Exact Online Manufacturing. In this training the Manufacturing solution
of Exact Online is explained. This training takes two days and can be done as self-study.

1.1 Certification
This (functional) training course is part of the Specialised Certification Exact Online Manufacturing. In order
to follow this training you must have passed the Cloud Accountant Certification and the Specialised
Certification Exact Online Wholesale. This two day training course can be done as self-study.

1.2 Objectives
After completing this training course, you will be able to:
Explain the settings for Manufacturing in Exact Online.
Explain how the master data is set up for Manufacturing in Exact Online.
Explain the roles & rights relevant for Manufacturing in Exact Online.
Explain the processes in Manufacturing: stock controlled and order controlled.
Explain the (possible) steps in the stock controlled process within Manufacturing in Exact Online.
Explain how to set up a Bill of materials (BOM) in Exact Online.
Explain how to enter, issue, plan, receive, enter time-entry and complete a shop order.
Explain what back-flush is and how it works in Exact Online.
Explain how to outsource an operation in Exact Online.
Explain the (possible) steps in the order controlled process within Manufacturing in Exact Online.
Explain how to enter a quotation including volume discounts in Exact Online.
Explain how to calculate prices for produced items in Exact Online.
Explain how to accept the quotation, create the sales order and shop order in Exact Online.
Explain the different overviews used for Manufacturing in Exact Online.
Explain how to work with the Manufacturing Dashboard in Exact Online.
Explain the journal entries created in the different steps in the Manufacturing process in Exact
Online.
Explain the functionality of purchase prices lists, stock ageing and cluster picking list.
Explain how to work with assembly orders.
Explain the use of multiple warehouses, item locations and storage locations.
Explain how to set up and work with serial/batch.
Explain how to use the MRP overview.
Explain how to set up and work with multi-level bills of materials.
Explain how to use the cost price calculations.

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1.3 Exact Online Manufacturing Basic versus Advanced versus Premium


Exact Online Manufacturing offers a basic and an advanced solution. The basic solution is mainly about job
shops and is aimed at small repetitive manufacturers. The advanced solution is aimed at small and medium
repetitive manufacturers requiring more advanced logistics. In time Exact Online manufacturing will also
offer a premium solution. This premium solution is aimed at small and medium repetitive manufacturers
requiring mature planning functions.

1.4 About this training


In this training the different aspects of the manufacturing process in Exact Online are explained.
In part I the basic solution of Exact Online Manufacturing is explained. First the master data and settings
are described, followed by the manufacturing process, which can be stock controlled or order controlled. In
the different steps the journal entries are explained as well as the dashboard and different overviews.
In part II the advanced solution of Exact Online Manufacturing is explained. In this advanced part the
following features are explained: multiple warehouses and storage locations, serial/batch, assembly
orders, MRP, multi level of BOM and cost price calculation.
In each chapter the functionality is explained, after which assignments are offered to practice with it. At
the end of the manual the answers to the assignments are described, so this training can also be done as
self-study.
An imaginary manufacturing company is used to explain the processes and to do the assignments. In the
next chapter this company, called Unique Lamps, is introduced.
This training is developed in an English subscription of Exact Online, this means that for
manufacturing the Anglo-Saxon bookkeeping method is used. In countries where the Perpetual
or Non-Perpetual bookkeeping method is used for manufacturing this training will not be
applicable.

1.5 Preparation
In the assignments you will set up and work with a Manufacturing company. You can already create this
Manufacturing company in Exact Online, follow the next steps:
-

Copy the following link into a new internet browser window:


https://start.exactonline.co.uk/docs/websitesubscription.aspx?bcaction=0&type=10&language=EN&fixedter
m=%7b1c010e0a-913a-4a57-a71192b7a7f0db0f%7d&docbasename=websitecontainer&Accountant=%7bb1f77ae5-fe94-4482-ba39908026db1cef%7d

Fill in the form and make sure to use the following data:

First name & Name: Your first name and last name

Company name: Your last names Manufacturing Company

E-mail: Your e-mail address

User name: Your name +MFG (note this down)

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Password: something you will remember (note this down)

For other fields, use any data you want.

Click SE N D to send in the form.

In the confirmation screen, you can see the login information. Write this down and click L O G I N .
This will bring you to the Exact Online login screen. You can always reach this login page to access
your company by navigating to https://start.exactonline.co.uk.
Please be aware that you always use the UK Exact Online environment to access this training
company.

L O G I N to your company with your credentials.

Because you used the link above to create your company, your company is automatically linked to
the accountant Your Accountancy Firm (Training), which is confirmed in this screen. Click
C O N T I N U E D I R E C T L Y , I W I L L D E FI NE T H E C O O P E R AT I O N L AT E R .

Click N E X T to start setting up your company.

Click I W A N T T O SE T U P T H I S C O M P A NY V I A A T E M P L AT E .

Choose the template named T E M P L A T E : M AN U F AC T U R I NG AC C O U N T ANC Y P R O G R AM


( Y O U R A C C O U N T A N C Y F I R M ( T R A I N I NG ) . This will prefill your company with the data you

need to complete the assignments.


-

When the company is setup click NE X T to start working in it.

Your company is now ready and you can start working on the assignments. The Exact Online subscription
that is created via this link, is an Exact environment that can be used for this training. Please do not change
the subscription. It will expire after one month.

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2 Unique Lamps
One of BoHos largest suppliers is Unique
Lamps. The company is located in Delft and is owned by Nick Young. He started creating lamps as a hobby,
which eventually resulted into a successful small business. In 2005 he started his own company, which
quickly grew and now has 10 employees.
Unique Lamps manufactures different types of lamps: floor, wall, ceiling and table lamps. Most of the
lamps consist of a base, a stem and a lamp shade. The base and stem are usually made of metal, the lamp
shade is made of different fabrics.
The design of the lamps is quite quirky and unique, thus the name. Even though Unique Lamps creates
several of its assortments in bulk, each lamp has the look and feel of a one-off creation. Unique Lamps has
also created commissioned pieces customized to suit specific settings upon request. Unique Lamps have
been featured in several online and print magazines including Style Magnet and inspirebohemia.com.
To produce a lamp first the base and stem have to be melted into the right shape. Next the base, stem and
lamp shade are assembled. Sometimes the base and stem are painted, but this process is outsourced.

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Part 1 Manufacturing Basic

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3 Settings, master data and roles & rights


Before you can start to work in a new company it needs to be set up. Most of the master data is handled in
the Exact Online Essentials and Exact Online Wholesale Distribution training. In this chapter the specific
master data, roles and rights and settings for Exact Online Manufacturing are explained. First an overview
of the general ledgers in Exact Online Manufacturing is shown.

3.1 General ledgers


In Exact Online Manufacturing a lot of general ledgers are used in the settings, item groups and production
areas. Below an overview is shown of all the general ledgers that can be used:
General Ledger

Used in:

Balance/P/L

Type

Debit / credit

Work in progress

Settings

B/S

Other assets

Debit

Manufacturing variance

Settings

P/L

Other costs

Debit

Stock of raw materials

Item groups

B/S

Inventory

Debit

B/S

Inventory

Debit

P/L

Other costs

Debit

P/L

Cost of goods

Debit

(raw materials)
Stock of finished goods

Item groups
(finished goods)

Purchase variance

Item groups
(raw materials)

Cost of goods sold

Item groups (2x)

sold
Revenue

Item groups (2x)

P/L

Revenue

Credit

Cost of subcontracting

Item groups

P/L

General

Debit

(subcontracted
work)
Labour applied

Production areas

P/L

General

Debit

General burden applied

Production areas

P/L

General

Debit

Machine burden applied

Production areas

P/L

General

Debit

Labour burden applied

Production areas

P/L

General

Debit

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3.2 Settings
For Manufacturing the following settings are important:

3.2.1 Financial tab


In the F I N A N C I A L tab in the section G / L AC C O U NT S: L I NK S two general ledgers have to be linked for
Manufacturing:
W O R K I N P R O G R E S S : this balance general ledger is used to book the costs of consumed material,
utilized hours, subcontracted work and finished items during the production process.
M A N U F A C T U R I N G V A R I A N C E : when the production order is completed the balance of the W O R K
I N P R O G R E SS ledger is transferred to this profit and loss ledger.

3.2.2 Manufacturing tab


In the M A N U F A C T U R I N G tab you can specify the following settings:
General

SH O P O R D E R N U M B E R : this indicates the next shop order number that will be used when a new
shop order is created. You can change this number. When a number is specified that is already in
use, the system will automatically use the next consecutive available number.
SH I F T D U R A T I O N : this settings allows you to specify the default total time of a shift. This value is
used to:
o

Calculate values displayed in the capacity graph;

Calculate time entry;

Calculate the shop order end date in the shop floor planning.

A P P R O V E : T I M E E N T R I E S : when this option is enabled, the time entries need to be approved


after entry: in the T I M E E N T R Y O V E R V I E W screen the S U B M I T button creates the time entries in
the draft status and they have to be approved to get the final status. When this option is disabled
the T I M E E N T R Y O V E R V I E W screen has a F I N AL button that creates the time entries in a final
status directly.
R E M A I N I N G H O U R S C A L C U L A T I O N B A SI S : this option indicates how calculations are displayed
in different reports, including the Gannt Chart, Shop Order Status Report and the Performance
Analysis. You can choose from the following options:
o

Estimates: provides data based on the total estimated time minus the time that was
actually consumed.

Calculated estimates: provides data based on the quantity of items reported in time
entry (for example, you have completed 5 of 15 items) and uses the estimated run
times supplied in the shop order routings to calculate the remaining hours for the
parts to be completed.

Actuals: provides data based on actual time entries.

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Quotation

M A R K U P T Y P E : this option is used to define the default markup method that is used for
manufacturing quotations. You can choose from the following options:
o

M A R K U P A L L : this option will allow you to mark up both the labour hours and the

direct purchases. Direct purchases include materials and subcontracts. The


percentages used for the mark up can be entered in the P U R C H A SE M AR K U P and
L A B O U R M A R K U P fields.

P R O F I T P E R C E N T : this option calculates the quotation price based on the profit

percent that you indicate in the P R O FI T field.


o

M A R K U P P U R C H A SE S : this option will allow you to mark up only the direct

purchases (the materials and subcontracts). The percentage entered in the


P U R C H A SE M A R K U P field will be used for this. The inside operations can be charged

for a fixed rate that can be specified in the applied work centre.
Backflush

E M P L O Y E E : the employee used for the time entries of the backflush operations. It is advisable to
create a separate employee for this.
D E F A U L T B A C K F L U SH : O P E R A T I O N S : If this check box is selected, when you add a routing line to
a shop order, manufacturing bill of material, or quotation, the time will automatically be entered for
the operation step.
D E F A U L T B A C K F L U SH : M A T E R I A L : When this box is checked it will automatically issue raw
materials as you put finished goods in stock.

3.3 Master data


Master data can be created and maintained in the manufacturing menu or via [ C O M P A NY , M A ST E R
D A T A ] . In the manufacturing process the following master data has to be set up:

3.3.1 Units
Units can be used when you create an item. A unit shows per which quantity you purchase or sell the item;
per box, gram, meter, dozen, liter or pallet. The purchase unit can differ from the sales unit, for example
when an item is purchased in a box and sold per piece. Also different sales prices can be created per unit,
for example an item is sold per bottle or per crate. When a transaction has been made with the item, the
unit cannot be changed anymore.

3.3.2 Item groups


Each item is linked to an item group. It is common that companies maintain different accounts for different
categories of items. For manufacturing companies different accounts can be used for stock of raw
materials and stock of finished goods, so separate item groups have to be created for raw materials and
finished goods.
In the item group for the raw materials the general ledger purchase variance should be linked to the
P R I C E D I F F E R E N C E S field. Exact Online Manufacturing supports manufacturing accounting based on

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standard cost prices. The purchase variances are recorded. However, production costing reports are based
on the actual purchase prices of the purchase orders linked to shop orders. When you link the purchase
variance ledger to the item group this will also be involved.
When you want to make use of subcontracted (outsourced) work, it is best to also create a separate item
group for subcontracted work. In this item group, one general ledger Cost of subcontracting is created
(P/L, type general), which is linked to both the S T O C K / C O ST S and the P R I C E D I F FE R E NC E S field. The
item group is linked to the item used for the subcontracted work.

3.3.3 Production Areas


Production areas are groups of work centres. Work centres are facilities where similar functions such as
welding, milling or heat treatments take place. A production area usually consists of one or more machines
that serve similar or identical functions and are grouped into production areas to help you in capacity
planning and scheduling.

When you create a production area a code and description have to be entered. If you would like this
production area to be assigned by default to all newly created work centres, select the D E FA U L T check
box. Only one production area can be designed as the default.
In the F I N A N C I A L section general ledgers have to be linked, these ledgers are used when you create
manufacturing time entries. If you do not specify a general ledger account for one of the burden types and
a manufacturing time entry is created, no journal entry is created. The following types are included:
Labour applied
General burden applied
Machine burden applied
Labour burden applied

3.3.4 Work centres


Operations on a manufactured part are performed in a work centre. Work centres are used to specify one
or more machines, assembly centers or workers. Multiple work centres together form the production
area.

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When you create a work centre, a P R O D U C T I O N A R E A can be linked. In the T Y P E field the type of work
centre can be selected, you can choose from Machine, Person or Cell.
If in the Manufacturing settings the Q U O T A T I O N M A R K U P M E T H O D is set to M AR K U P P U R C H A SE S ,
you can define a SE L L R A T E that will be used in quotations.
You can also define labour and burden rates for the work centre.
In the L A B O U R R A T E S section the following rates can be defined:
SE T U P L A B O U R : the estimated hourly rate required to setup the work centre to run parts.
R U N L A B O U R : the estimated hourly rate required to run parts through the work centre.
In the B U R D E N R A T E S section the following rates can be defined:
M A C H I N E B U R D E N : the hourly rate that represents the estimated work centre related costs to run
the day to day operations that are attributed to the work centre.
G E N E R A L B U R D E N : the hourly rate that represents the estimated administrative costs to run daily
operations that are attributed to the work centre.
L A B O U R B U R D E N : the hourly rate that represents the estimated labour costs to run this work
centre.
L A B O U R B U R D E N A S % O F L A B O U R : when this option is enabled, the labour burden field above
represents a percentage. You can enter a percentage of the labour costs that represent the
estimated employee related costs that are attributed to the work centre.

3.3.5 Operations
Operations are tasks or performance of work. These tasks may include assembly, preparation for the next
task and inspections. Operations are used in shop order routings.

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When you create an operation a R E SO U R C E T Y P E can be selected, this can be a work centre or a supplier.
When the option W O R K C E N T R E is selected then in the next field the work centre can be selected to
which this operation belongs.
In the D E F A U L T R E SO U R C E : E S T I M A T E S section setup and run estimates can be defined related to the
resource you have specified in the D E F A U L T R E SO U R C E section. The values entered here will be used
when the operation is selected for routings.
The option SU P P L I E R can be used to indicate that this operation is outsourced and in the next field a
supplier can be selected. When the option S U P P L I E R is selected the screen changes and at the bottom of
the screen information about this operation at the supplier can be entered, such as purchase unit and lead
days.

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When an outsourced operation is created, an item for this operation is also created. The default
item group is linked to this item; this has to be changed to the item group that is created for
subcontracted work.

3.3.6 Items Bill of materials


To manufacture an item both raw materials and finished good items have to be created in Exact Online. For
the finished good items the attribute M A K E has to be enabled. For these goods no supplier has to be
linked, because they are not purchased, but manufactured within the company.
A bill of materials is a list of all raw materials and sub-assemblies that are used to manufacture an item.
Also the bill of materials contains all the routing lines that are required to produce the item.

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In the item maintenance of the finished good select the B I L L O F M A T E R I AL S T A B and click the link AD D
N E W to create a new bill of materials.

The V E R S I O N N U M B E R is an automatically generated field. Each time you modify the bill of materials, the
V E R SI O N N U M B E R will be adjusted sequentially to the next number. The V E R SI O N D A T E is used to track

changes that are made to the bill of materials. If you modify the bill of materials, the V E R S I O N D AT E will
be updated.
There are several S T A T U S options:
A C T I V E : only a bill of materials that is active can be used in a shop order. There can be multiple
active versions of a bill of materials. When a shop order is created, the D E FA U L T bill of materials
will be used, but this can be adjusted
E N G I N E E R I N G C H A N G E P E N D I N G : this status is used to indicate that a change was made to the
bill of materials. All bills of material with a status of E NG I N E E R I N G C H A NG E P E N D I NG will be
shown as an alert on the Manufacturing dashboard to alert you that a bill of materials needs to be
reviewed.

E N G I N E E R I N G C H A N G E A P P R O V E D : this status is used to indicate that a change was made to the

bill of materials and approved.

H I ST O R I C : when a new version of a bill of material is created, approve and set to AC T I V E , the

status of the other version(s) will be adjusted to H I S T O R I C .


The B A T C H Q U A N T I T Y indicates the total quantity of the item that will be produced through this bill of
materials.
The L E A D T I M E is used to calculate the delivery date in a sales order and the planned date in a production
order. The date will be filled with the order date + lead time.
In the R E M A R K S section any additional remarks for this BOM can be entered. This remark is visible on the
shop order page and can be added to the shop paper layout.

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When the bill of materials is saved the operations and materials that are used in the bill of materials can be
defined via the R O U T I N G and M A T E R I A L S tab.

Operations

In the R O U T I N G tab select the E D I T link to add the operations that are required and the sequential order
in which they have to be performed.
Each routing step includes information about work centres or suppliers that are used to complete the
operation and provides you with total costs and planned hours for each routing step based on the setup
and run times, or unit costs given.

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In the lines the operations can be selected and on the right side the P L AN N I NG panel displays the default
properties from the maintenance of the operation. The options are dynamic. If the operation is an inside
operation the options are setup amount per time unit, run amount per time unit, efficiency percentage,
attended percentage, setup time and run time.

If the operation is outsourced and performed by a supplier, the options are unit costs/per piece, lead days,
minimum charge, total cost and total quantity.

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For both types of operations it is important that the price (setup, or run or unit cost) is filled,
otherwise no journal entry will be created when the time entries are approved.
The A R R O W U P and A R R O W D O W N buttons can be used to rearrange the sequence of routing steps.

Material
In the materials tab select the E D I T link to add materials to a bill of materials.

In the lines the items can be selected, the Q U A N T I T Y R E QU I R E D can be entered and the C AL C U L AT O R
TYPE.

The C A L C U L A T O R T Y P E represents the quantity of material units needed per planned quantity. This can
be a fixed quantity per shop order, for each time the finished good is created. It can also be materials per
piece, which means a quantity depending on the quantity of finished goods that is planned.
The other options can be selected when dealing with dimensional items.

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When the option B A C K F L U S H is enabled, this item does not need to be issued: the issues are
automatically realized when the finished goods are entered.
When all materials and operations are linked to the bill of materials, select the update button, so the cost
price of the item is updated with the calculated cost price.

It is important the cost price field is updated, because if the cost price of the item is
0,00, no journal entry is created when the shop order is finished, see also chapter 5.10.
3.3.6.1 Report
In the maintenance of the bill of materials the R E P O R T button can be used to view, export and print all
materials or routing steps of a bill of materials. Select the R E P O R T button and then M AT E R I AL S to view
the list of materials. Select the R E P O R T button and then R O U T I NG to view the list of routing steps.
In both cases select the T O O L S option to export or print this overview.

3.3.6.2 Where-used
In the item maintenance of the raw material in the W H E R E - U SE D tab you can see in which bill(s) of
materials this item is used.

This tab displays the first five parent items in which this item is used. Click the SH O W AL L link to view all
parent items that use this item.

3.4 Roles & Rights


In menu [ C O M P A N Y , M A ST E R D A T A , U SE R S, R O L E S ] the M A NU F AC T U R I NG and I NV E N T O R Y T AB S
have some important roles for manufacturing in Exact Online.

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Employee
The employee roles determine access to time entry activities.
A P P R O V E T I M E E N T R I E S : this role allows a user to approve and manage manufacturing entries.
M A I N T A I N E M P L O Y E E S : this role allows a user to create employees, edit employees and view
employee salary information.
T I M E E N T R Y : this role allows a user to create daily time entries.
Shop order
The shop order roles determine how a user can interact with the creation and maintenance of shop orders.
C O M P L E T E SH O P O R D E R S : this role allows a user to complete shop orders.
E N T E R SH O P O R D E R S : this role allows a user to create new shop orders and edit existing shop
orders.
M A N U F A C T U R I N G M A ST E R D A T A : this allows a user to modify the manufacturing settings,
specify new job titles when creating employees and modify XML imports regarding manufacturing.
Work centre
The work centre roles determine how users can interact with features related to the manufacturing work
centres.
M A I N T A I N O P E R A T I O N S: this role allows a user to create new operations and edit existing
operations.
M A I N T A I N P R O D U C T I O N A R E A S: this role allows a user to create new production areas and edit
existing production areas.
M A I N T A I N W O R K C E N T R E S : this role allows a user to create new work centres and edit existing
work centres.
In the I N V E N T O R Y tab the role V I E W B I L L O F M AT E R I A L S is important. This determines if a person can
view and maintain the bill of materials for an item.

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Set up database
Make sure you have a database with an Exact Online Manufacturing subscription and the
T E M P L A T E : M A N U F A C T U R I N G AC C O U NT A NC Y P R O G R AM ( Y O U R AC C O U N T A NC Y
F I R M ( T R A I N I N G ) template (see paragraph 1.5). Some master data and settings still have

to be created.

Create 3 item groups:

Item group 1: Finished goods:


link general ledger 41000 to R E V E N U E
link general ledger 51000 to C O ST O F G O O D S SO L D
link general ledger 15210 to S T O C K / C O S T S
link general ledger 64060 to P R I C E D I F FE R E NC E S

Item group 2: Raw materials:


link general ledger 41005 to R E V E N U E
link general ledger 51004 to C O ST O F G O O D S SO L D
link general ledger 15205 to ST O C K / C O ST S
link general ledger 64055 to P R I C E D I F FE R E NC E S

Item group 3: Subcontracted work


link general ledger 41010 to R E V E N U E
link general ledger 51005 to C O ST O F G O O D S SO L D
link general ledger 51006 to S T O C K / C O S T S
link general ledger 51006 to P R I C E D I F FE R E NC E S

Create employee John Smith [ M AN U F AC T U R I NG , E M P L O Y E E S , C R E A T E ] . You dont


have to link a user to the employee.

Also create employee Backflush. You dont have to link a user.

In the settings in the F I N A N C I A L tab link the following ledgers:

Offset G/L Inventory: Stock count: 51035

Invoices/goods to be received: 21020

Goods in transit: 21025

Stock Revaluation: 51045

Work in progress: 19010

Manufacturing variance: 65000

In the M A N U F A C T U R I N G tab set the following settings:

In the SH O P O R D E R N U M B E R field enter: 2015001.

Set the S H I F T D U R A T I O N to 8 hours.

Enable the option A P P R O V E : T I M E E NT R I E S .

In the option R E M A I N I N G H O U R S C AL C U L A T I O N B A SI S select E S T I M AT E S.

In the option Q U O T A T I O N : M AR K U P T Y P E select M AR K U P AL L .

Enter 10%, 15% and 20% in the percentage fields.

In the option B A C K F L U S H : E M P L O Y E E link the employee BACKFLUSH.

Exact Online Manufacturing 23

You dont have to link default backflush operations or materials.

Make sure that the current financial year is created. [ C O M P A NY N AM E / M A ST E R


DATA/FINANCIAL/PERIO D-DATE TABLE]

Production area, work centres and operations


Unique lamps manufactures different types of lamps. To produce these lamps materials are
needed, but also tasks are performed on different machines and in different areas. The lamps
are melted and assembled. Some lamps are also painted, which is outsourced. In this
assignment we will set up the production area, work centres and operations.

Create the production areas MELT and ASSEMBLE and link the general ledgers 64010,
64020, 64030 and 64040 in the F I N A NC I AL section.

Create the work centres MELT and ASSEMBLE:


Work

Production

centre

area

MELT

MELT

ASSEMBLE

ASSEMBLE

Type

Setup

Run

Machine

General

Labour

labour

labour

burden

burden

burden

Machine

2.00

1.00

1.00

1.50

0.50

Person

0.10

1.50

0.20

0.50

1.00

Create supplier Best Paintings, fill in the address data as you like.

Create the following operations (and units if they do not exist):


Operation

Resource

Resource

Setup

type
MELT

Work

Setup

Run

Run method

Minutes/item

Minutes/item

unit
MELT

Minutes

ASSEMBLE

Resource

Purchase

Minimum

Vat

Lead

unit

charge

code

days

Piece

10

centre
ASSEMBLE

Work
centre

Operation

Resource
type

PAINT

Supplier

Best
paintings

Exact Online Manufacturing 24

Item Bill of materials


One of the lamps that Unique lamps manufactures is the FLOORLAMP1. It consists of a base,
a stem and a lamp shade. First the base and stem are melted, next the base, stem and lamp
shade are assembled. In this assignment we will create the items and the Bill of materials for
the lamp.

Create supplier Dagi Metals B.V. and Fantastic Fabrics.

Create items BASE and STEM. Link supplier Dagi Metals B.V. and item group 2. Cost price
and purchase price of the BASE is 2,- and of the STEM is 1,-. Link VAT code 01 and
enable the options P U R C H A S E and ST O C K . For both set the R E O R D E R P O I N T to 40 and
the M A X I M U M ST O C K to 200.

Create item LAMPSHADE, link item group 2 and supplier Fantastic Fabrics, the cost price
and purchase price is 5,-. Link VAT code 01 and enable the options P U R C H A SE and
ST O C K . Set the R E O R D E R P O I N T to 40 and M AX I M U M ST O C K to 200.

Create item FLOORLAMP1 and link it to item group 1. Enable the options S T O C K , SA L E S
and M A K E . Link VAT code 01. Set the R E O R D E R P O I N T to 20 and the M AX I M U M
ST O C K to 60. The sales price is 75,-.

Create a stock count to replenish the STEM, BASE and LAMPSHADE to the maximum stock
position of 200 pieces.
One FLOORLAMP1 is manufactured consisting of one base, one stem and one lampshade.
The time to melt the base and stem is 2 minutes per piece and it has a setup time of 5
minutes. After this it takes 3 minutes per lamp to assemble the base, stem and lampshade.

Create the bill of materials of item FLOORLAMP1. The lead time is 1 day.

What is the C A L C U L A T E D C O ST P R I C E of the FLOORLAMP1?

Select the U P D A T E button to update the cost price of the item with the C AL C U L A T E D
C O ST P R I C E of the bill of materials.

Item Bill of materials


FLOORLAMP2 is manufactured of the same raw materials as the FLOORLAMP1, but the base
and stem are painted B E F O R E the lamp is assembled. This process is outsourced at supplier
Best painting and the costs are 4,- per lamp, with a minimum charge of 10.00.

Create item FLOORLAMP2, set the R E O R D E R P O I NT to 10 and the M AX I M U M S T O C K to


30. Sales price is 90,-.

Create the bill of materials with a lead time of 1 day.

Make sure the cost price of the item is updated with the cost price of the bill of materials.

Can you explain the cost price of the FLOORLAMP2?

-----------------------------------------------------------------------------------------------------------------------------Now that the bills of material are created, in the next chapters the process will be explained. The
manufacturing process can be stock driven or order driven.

Exact Online Manufacturing 25

4 Stock driven and order driven manufacturing


The following picture shows the overall process of manufacturing.

Exact Online Manufacturing offers production functions for both stock driven as well as order driven
manufacturing.
Stock driven manufacturing
Stock driven manufacturing means that production is done based on stock. The company purchases
materials and produces the end product purely on the basis of the stock levels. In the picture above the
quotation process is skipped and the process starts with the planning process, the creation of a shop order,
in which the quantity is based on the stock level.
Order driven manufacturing
Order driven manufacturing means that the production will not start until an order is received from the
customer. In the picture above the process starts with the quotation process, a quotation is created in
which a price is calculated based on the customers requirements. When the terms are accepted the
quotation results in a sales order. The sales order is the base for the production.
In chapter 5 the process for stock driven manufacturing is described. Next in chapter 6 the process for
order driven manufacturing is described.

Exact Online Manufacturing 26

5 Stock driven manufacturing


With stock driven manufacturing the process is initiated based on the stock level. The customer has no
(direct) influence on what and how much is produced. The process contains the following steps, not all
steps are always taken and also the sequence can differ:

5.1 Bill of materials


The bill of materials contains all the materials and operations necessary to manufacture the finished good.
This is described in chapter 3.3.6.

5.2 Shop order


In a stock driven manufacturing environment shop orders are created based on the stock levels. The
D E M A N D P L A N N I N G can be used to see for which items production is needed and to generate shop

orders. Shop orders can also be created manually.

5.2.1 Demand planning


The D E M A N D P L A N N I N G allows you to plan production based on projected stock. The projected stock is
calculated by the actual stock, demand from customer sales orders and planned production. The projected
stock is compared with the stock information values that you provide on the item card: R E O R D E R P O I N T
and M A X I M U M S T O C K .

Exact Online Manufacturing 27

In the filters section you can select an item group or item or if nothing is selected all items with the
property M A K E enabled are considered. In the stock level field you can filter the demand planning results
based on the current stock levels of different items. Click the D R O P - D O W N AR R O W to narrow the item
results to a stock level that falls within the selected category.

The screens allows you to generate shop orders to bring the projected stock levels up to predefined
required levels. In the O P T I O N S section you can define the behaviour of the S H O P O R D E R creation.

With the P L A N N E D Q U A N T I T Y option you can influence the quantity of the created shop order. If B R I NG
P R O J E C T E D ST O C K U P T O 0 is selected, the resulting new shop order will calculate the planned to a

value that will bring the selected item stock up to 0. If B R I NG P R O J E C T E D S T O C K U P T O M A X I M U M


ST O C K is selected, the resulting new shop order will calculate the planned quantity to a value that will

bring the selected item stock up to the maximum stock value as defined in the item card. This calculation is
achieved by subtracting the items maximum stock value from the current projected stock.
The P L A N N E D D A T E option allows you to specify how the planned date is calculated for the new shop
orders. It SE T T O D A T E O F F I R S T P L A N NE D O U T D AT E is selected, the planned date on the new shop
order will be set to the earliest date that occurs between these two options:
Earliest delivery date of the item
Shop order requirement date
If SE T T O C U R R E N T D A T E is selected the planned date on the new shop order will be set to the current
calendar date.
Select the item(s) for which production is needed and choose the C R E AT E S H O P O R D E R button.

Exact Online Manufacturing 28

5.2.2 Create shop order


A shop order can also be created manually via the SH O P O R D E R button in the M AN U F AC T U R I N G
D A S H B O A R D or via [ M A N U F A C T U R I N G , P L A N NI NG , C R E AT E S H O P O R D E R ] .

In the I T E M field select the item that needs to be manufactured and in the P L A N NE D QU A NT I T Y field
enter the quantity that needs to be manufactured.
When you want to gain insight into the costs and profit per cost unit and cost center, you can link a cost
center and cost unit in the C O ST A N A L Y SI S section.
By default, the current date is displayed in the E NT R Y D A T E the P L A NNE D D A T E field will be calculated
based on the lead time of the bill of materials. With the C A L E ND A R icon the E NT R Y D A T E and P L AN NE D
D A T E can be changed for the shop order.

The R E M A R K S section can be used to enter additional remarks for this specific shop order. The remarks
will be visible on the shop order page.

5.3 Shop floor planning


When the shop order is created, it can be planned. This can be done via [ M AN U F AC T U R I NG , P L A N NI NG ,
SH O P F L O O R P L A N N I N G ] or via the P L A N NI NG link in the R O U T I NG SE C T I O N on the shop order card.

Exact Online Manufacturing 29

You can define start and end dates for each operation and track the progress of the shop orders. The chart
allows you to drill into the details of every shop order; if you see that an order is behind schedule, you can
navigate directly to that shop order to view details on time entry and routings. By hovering your mouse on
the routing lines you can view detailed planning and time entry information, such as the dates it is planned,
the percentage completed and the quantity completed.

5.4 Print shop order


It is possible to print a shop order, to hand over to the warehouse employees that perform the actual
production. This is not mandatory and can be done via the S H O P O R D E R C A R D using the P R I N T button
or via [ M A N U F A C T U R I N G , P L A N N I N G , P R I NT S H O P P AP E R ] .

5.5 Shop order card


The shop order card is not a step in the manufacturing process, but it is generated when the shop order is
created. Most actions performed in the process can be started from the shop order card. The shop order
card can be found in menu [ M A N U F A C T U R I NG , P L A N N I NG , C H ANG E S H O P O R D E R ] . The shop order
card is a central place where you can easily view and access information about the shop order.

Exact Online Manufacturing 30

Status
The S T A T U S SE C T I O N provides you with insight in the current state of the shop order. There are three
status options that are maintained by the system, they include:
O P E N : when a shop order is created, the system automatically sets the status to open. The open
status indicates that no activity has taken place regarding the shop order. This means that no shop
order stock receipts have been issued, no materials have been issued, no purchase orders have
been created for shop order materials and no time entries have been entered for routing lines.
I N P R O C E S S : this status indicates that activity has taken place and work is underway.
Activities that will place a shop order in the I N P R O G R E S S status include:
o

A shop order material is either on order or has been partially issued.

A time entry has been entered and processed.

A shop order stock receipt has been generated.

F I N I S H E D : this status indicates that the planned quantity amount in the shop order has been
accounted for. There are no remaining hours left on the shop order.
In addition to system maintained status options, there are several status options that the user can define,
these include:
I N P L A N N I N G : a user defined state that you can use to indicate a planning status of your assigned
category and definition.
R E L E A SE D : a user defined state that you can use to indicate a release status of your assigned
category and definition.
O N H O L D : this status locks a shop order. When a shop order is on hold, no transactions or changes
are allowed to the shop order.

Exact Online Manufacturing 31

You can also see warning signs in the S T A T U S section.


The top one indicates if the shop order is still on schedule, if the planned date of the shop order can be
achieved.
The second one indicates if the delivery date of the sales order can be achieved.
Quick action
In the Q U I C K A C T I O N section displays icons that are direct links to common manufacturing processes.
When you use one of the quick links from a shop order card to start a certain process, all the relevant shop
order information will be automatically populated in your action.

In the O V E R V I E W section shows a list of linked orders, materials or tasks. Select one to open the section.
The R O U T I N G SE C T I O N provides a graphical display of both scheduled and unscheduled routing lines for
the shop order. On top of the section you see a number displayed as long as the routing lines are not
planned. When the routing lines are planned, you can see the date(s) displayed on top of the section.

You can view detailed planning and time entry information of any line in the chart by hovering your mouse
on the desired line.
The M A T E R I A L S section displays all of the materials that are required for the shop order. When you click
the M A T E R I A L S link the M A I N T E N A N C E : M AT E R I A L S screen opens where you can place additional
materials on the shop order.
The P U R C H A SE SE C T I O N displays purchase orders that are linked to the shop order and their status. Also
purchase orders can be created from here using the AD D link.
The I SS U E S SE C T I O N displays all material issue records and transactions that have been made for the
shop order and materials can be issued using the A D D link.

Exact Online Manufacturing 32

The F I N I S H E D I T E M S section provides you with a real time total of the number of items that are finished,
ready to ship and delivered.
The T I M E section displays all of the time entries that have been made for the shop order. The S H O P
O R D E R : T I M E R E P O R T can be opened from here using the T I M E link and the D A I L Y T I M E E N T R Y
SC R E E N where you can create a new time entry for the shop order using the AD D link.

5.6 Purchase materials


When there is not enough stock of raw materials to manufacture the shop order, a purchase order advice
can be generated via the P U R C H A SE M A T E R I AL S button in the QU I C K AC T I O N section.

When the purchase orders are created, the status of the shop order changes to I N P R O G R E S S . When the
items are received, the status of the materials in the M AT E R I AL S SE C T I O N changes to FI NI S H E D ,
meaning the materials are received.

5.7 Issue materials


When the raw materials are received the shop order can be manufactured. When the materials were
ordered for this shop order they are issued automatically when they are received. When the raw materials
were already on stock (and were not purchased for this shop order) they need to be issued. This creates a
transaction that record the movement of stock of the shop order and will reduce the I N ST O C K balance of
the item. The raw materials can be issued via the I S SU E M AT E R I AL S button on the Q U I C K AC T I O N
section or via the I S S U E S link on the right.
In the shop order card you can select the I S SU E D link, this will display the materials issued and the entry
number of the transaction created. When you select the E N T R Y NO . link you can view the transaction that
is created.
When the goods are issued the following journal entry is created:
Debit
Work in progress
Stock raw materials

Credit

X
X

Exact Online Manufacturing 33

5.8 Time entry


To register the time the employees have spent on a shop order time entries can be entered. This can be
done via the T I M E E N T R Y picture in the quick action section or via the AD D link in the time section on the
shop order card.

Enter the employee, the operation and in the activity column choose setup time or run time. The planned
hours are prefilled and you can enter the actual time.
On the right site of the screen you can choose whether you want to enter the time entries per day of per
employee.

When the time entries are saved, they will get the draft status and can still be edited. When they are
submitted, it indicates they are completed and ready for review and approval.
In the manufacturing settings you can indicate if the time entries need to be approved, if so, the status of
the routing line is only updated after they are approved. Also the transactions are created when the time
entries are approved. When time entries do not need to be approved, the status is updated and
transactions are created when the time entries are submitted.
In the R O U T I N G SE C T I O N of the shop order card you can now not only see the blue planned routing line,
but also a green realized routing line. By hovering your mouse on the green line you can see the finished
status, the percentage, the quantity and the last employee for who time entries have been made.

Also in the T I M E section the performed operations are displayed:

Exact Online Manufacturing 34

The following journal entry is created when a time entry is approved:


Debit
Work in progress

Credit

Labour applied

General burden applied

Machine burden applied

Labour burden applied

The description of the operation used in the time entry is also displayed in the journal entry.

5.9 Purchase subcontracts


When a shop order involves one or more operations that need to be performed by an outsourced supplier,
the goods need to be sent to the supplier. A purchase order is created to give the supplier the order to
perform the tasks. On the purchase order the operation is displayed, this is what the supplier will charge
the company for the task.
The following steps can be performed for the purchase subcontract:
In the shop order card select the P U R C H ASE S U B C O NT R A C T S picture to create the purchase
order.
The purchase order can be printed, which will function as a delivery note and can be sent to the
supplier with the work in progress. This can be done via [ M A NU FAC T U R I NG , R E AL I Z AT I O N ,
P R I N T S U B C O N T R A C T D E L I V E R Y NO T E S ]. No journal entry is created for this.

When the supplier has performed the task the purchase order can be received.
The following journal entry is created when the operation of a subcontract is received:
Debit
Subcontracted costs

Credit

Invoices/goods to be received

and
Work in progress
Subcontracted costs

X
X

Exact Online Manufacturing 35

Also a purchase invoice has to be created. The following journal entry will be created for the purchase
invoice:
Debit
Invoices/goods to be received

VAT to claim

Creditors

Credit

5.10 Finish shop order


When all the items are manufactured the shop order can be finished, using the FI NI SH SH O P O R D E R
picture in the Q U I C K A C T I O N SE C T I O N or via [ M AN U F AC T U R I NG , R E AL I Z A T I O N, FI NI SH SH O P
O R D E R S] .

In the F I N I SH D A T E field the date can be entered on which the items are finished.
The quantity finished items can be entered in the Q U A NT I T Y T O R E C E I V E column and in the
D I SP O SI T I O N column you can indicate what you want to do with the quantity that is received, the options

are:
D E L I V E R : launches the goods delivery screen. This option can only be selected when there is an
open sales order for this item, otherwise a message will appear: Not all selected shop orders to ship
have a related sales order.
ST A G E F O R D E L I V E R Y : updates the R E A D Y T O SH I P quantity on the shop order in the FI NI S H E D
I T E M S tab.

The actual stock is not updated and no journal entry is created.


P U T I N S T O C K : updates your stock and creates a stock transaction.

Exact Online Manufacturing 36


When the item in a shop order is finished, the following journal entry is created:

Debit
Stock finished goods

Credit

Work in progress

It can occur that after finishing the shop order the stock quantity is updated, but no journal
entry is created. This happens because the cost price of the finished item is 0,00. So when the
bill of materials is linked to the item, select the U P D AT E button in the bill of material to make
sure the cost price is filled.

5.11 Complete shop order


A shop can be completed when all tasks are performed on the shop order. This also means the purchase
invoice has to be linked to the shop order, otherwise a message will appear. When the shop order is
completed, the status will change to C O M P L E T E D and no action can be performed anymore.
The following journal entry is created when a shop order is completed:

Debit
Manufacturing variance
Work in progress

Credit

X
X

5.12 Backflush
Backflushing is a manufacturing method through which you can issue materials and generate time entries
automatically when production has been posted against a shop order. Backflushing uses the completed
quantity to automatically calculate quantities that were used and will reduce inventory by that amount.
This is best used in shop order with a short turn around (from raw material to finished product), because
the stock position of the raw material is only up to date when the product is finished. It is also used for bulk
items, such as screws, that are used in large amounts and for which it is not desirable to count them piece
by piece.
The backflush option can be defined in the bill of materials, both for materials and operations. When in a
bill of materials the backflush option is enabled for a raw material, it is not possible to generate a purchase
order for this item from the shop order.

Exact Online Manufacturing 37

Shop order - Demand planning


Once a week purchase agent Thomas Hardy checks the stock to see which items need to be
manufactured.

Check the D E M A N D P L A N N I N G . Set the option P L AN NE D QU A NT I T Y to B R I NG


PROJECTED STOCK UP TO MAXIMUM.

Select item FLOORLAMP1 and click the button C R E AT E S H O P O R D E R .

Check the shop order card that is created.

For how many make items is a shop order created?

-------------------------------------------------------------------------------------------------------------------

What is the planned date? And what triggers this?

------------------------------------------------------------------------------------------------------------------

Enter the assignment number in the description of the shop order.

Check the shop order card. What is the status of the shop order?

-------------------------------------------------------------------------------------------------------------------

Shop order - Demand planning Link Sales Orders

Create a Sales Order for customer Cuppa Coffee for 45 pieces FLOORLAMP1.

Make sure the delivery date of the Sales Order is two weeks from todays date.

Confirm the Sales Order to your customer.

Check the D E M A N D P L A N N I N G and make sure that the option L I NK S AL E S O R D E R S is


enabled and the P L A N N E D D A T E is set to: SE T T O D A T E O F FI R ST P L A N NE D O U T
DATE.

Create the Shop order for FLOORLAMP1.

Enter the assignment number in the description of the shop order.

What is the planned date for the Shop Order that was just created?

-------------------------------------------------------------------------------------------------------------------

Is there a Sales Order linked to the Shop Order?

-------------------------------------------------------------------------------------------------------------------

Shop Floor Planning

Plan both shop orders on the promised date: plan the individual operations one day after
each other. (if there is a weekend in between then exclude Saturday and Sunday in your
planning)

Check the R O U T I N G section in the shop order card for shop order 20000001.

How much production time do you think is available per day?

-------------------------------------------------------------------------------------------------------------------

Exact Online Manufacturing 38

Print Shop paper

Go to the layout maintenance and select SH O P P AP E R . Make sure you choose to create a
N E W L A Y O U T and select the option to ST A R T F R O M A N E X AC T O NL I NE T E M P L AT E .

Click the button U SE T H I S T E M P L AT E at the SH O P O R D E R and save the template for


the shop order.

Go to the menu to print the shop order and select the layout you just linked.

Make sure the option Release shop order(s) is enabled.

Print the shop paper for shop order 20000001.

What is the status of shop order 20000001?

-----------------------------------------------------------------------------------------------------------------------

Issue raw materials

Issue the materials from the shop order card of shop order 20000001.

Check the issues section in the shop order card.

?
?

Which journal entry is created for the issue of the raw materials?
What is the status of the shop order?

------------------------------------------------------------------------------------------------------------------- -----

Enter realized time

Enter the time entries for John Smith for shop order 20000001.

Use the column H O U R S to enter the realized hours.


MELT: setup time 0.08 hours, run time 2.00 hours (select the correct date according to the
planning).
ASSEMBLE: no setup time, run time 3.50 hours (select the correct date according to the
planning)
Submit the time entry.

Approve the time entry.

Check the R O U T I N G section of the shop order card of shop order 20000001.

What do the colors mean?

-------------------------------------------------------------------------------------------------------------------

Are you still on schedule with this shop order?

-------------------------------------------------------------------------------------------------------------------

Which journal entries are created for the time entries? Check the T R AN S AC T I O N S
overview [ M A N U F A C T U R I N G , R E P O R T S, T R A N S AC T I O N S] to see all journal entries
created for a shop order.

Finish the shop order, in the D I SP O SI T I O N column select the option P U T I N ST O C K .

What is the status of the shop order?

-------------------------------------------------------------------------------------------------------------------

Check the item transaction list. Is the stock updated?

Exact Online Manufacturing 39

-------------------------------------------------------------------------------------------------------------------

Which journal entry is created?

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Complete the shop order. What happens?

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Which journal entry is created? Check the overview Transactions [ M AN U F AC T U R I NG ,


R E P O R T S, T R A N S A C T I O N S ] to see all journal entries created for a shop order.

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Shop order - subcontracts


Thomas Hardy also notices that the stock for FLOORLAMP2 needs to be refilled.

Create a shop order for 30 lamps (manually).

Plan the shop order, there should be at least 4 days in between MELT and ASSEMBLE,
because the lead time of the painting is 4 days.

Issue the materials for the shop order. Enter the time entries for the MELT operation, the
time planned is the actual time spent.

Generate the subcontract.

Which item is used in the purchase order?

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Why is there a D E L I V E R Y N O T E button in the purchase order?

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Go to layout maintenance in Manufacturing.

Select the Purchase Order link and click NE W to create a new layout.

Select S T A R T F R O M A N E X A C T O NL I NE T E M P L A T E .

Click the button U SE T H I S T E M P L AT E for the U I T B E ST E E D W E R K P A K B O N .

Save the template.

Now go the purchase order for the subcontracted work and send the delivery note to the
supplier with the layout you just created.

Receive the purchase order back from the supplier.

Check the transactions overview [ M A N U F AC T U R I NG , R E P O R T S , T R A NS AC T I O N S ].

Which entry is created for the receipt of the PAINT operation? (Check the
T R A N S A C T I O N S overview as well as the general ledger Subcontracted costs.)

-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Check the R O U T I N G section on the shop order card. Is the operation on time?

Exact Online Manufacturing 40

-----------------------------------------------------------------------------------------------------------------------------

Enter the time entry for ASSEMBLE, the actual run time was 1,8 hours.

Approve the time entries.

Finish the shop order, put the items in stock.

What do you need to do before you can complete the shop order?

Backflush

Make a copy of FLOORLAMP1 and name it FLOORLAMP1BF. Enable the option B I L L O F


M A T E R I A L S.

In the bill of materials enable the option B AC K FL U SH for all the raw materials and
operations.

Enter a shop order for 20 lamps.

The 20 lamps are manufactured, finish the shop order and in the D I S P O S I T I O N column
select the option P U T I N S T O C K .

Check the transaction list [ P U R C H A SE , I NV E N T O R Y , T R A N SAC T I O N L I S T ] of item


FLOORLAMP1BF, is the stock updated?

-------------------------------------------------------------------------------------------------------------------

Check the transaction list of item BASE, is the stock updated (reduced with 20 bases)?

------------------------------------------------------------------------------------------------------------------

Check the T R A N S A C T I O N overview [ M AN U F AC T U R I NG , R E P O R T S, T R A N S AC T I O N S ] .

Are there also entries created for the performed operations?

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Exact Online Manufacturing 41

6 Order driven manufacturing


Order driven manufacturing means that production will not start until a request is received with the
requirements of the customer. At this point a quotation is sent with the calculated price. When the
customer accepts the terms, the required components are ordered and the production can start. The end
product is custom-made for the customer.
The process can contain the following steps:

6.1 Quotation
The order driven manufacturing process starts with a quotation. In the quotation the raw materials can be
linked and a price can be calculated for the items. The bill of materials does not need to be created first.
A quotation can be entered via [ C R M , Q U O T A T I O N S, C R E A T E ] . The quotation process is described in
the training for Exact Online Wholesale Distribution; with an Exact Online Manufacturing subscription there
are five extra columns in the quotation lines: D E T AI L S , AL E R T S , B O M , R O U T I N G , M A T E R I AL S .

In these columns the materials and operations can be linked manually, so the price of the finished item can
be calculated and quantity discounts or net prices can be defined, which can be offered to the customer.
It is also possible to copy the materials and routing from an existing BOM to an item on a
quotation by clicking in the B O M column. This option makes it easier to create a quotation and
to provide the most accurate price quotation to the customer.

In the quotation line you can enter the requested item, this may have to be created first.
The D O C U M E N T S column displays the quantity of documents that are linked to the quotation. When the
hyperlink is selected the documents can be viewed, this can be for example a detailed description of the
design of the finished item. When a shop order is generated from this quotation, later on in the process,
the documents are also linked to the shop order.
Notes
It is also possible to enter extra notes in the quotation lines: important comments about the item. To be
able to use this, the R E M A R K and C O P Y R E M AR K fields have to be enabled in the item maintenance. This
can be done using the C U S T O M I Z E button in the G E NE R AL tab.

Exact Online Manufacturing 42

In the R E M A R K S field the extra comments about the item can be entered. When the C O P Y R E M AR K S
option is enabled, the text is also copied to the quotation.
In the quotation enable the N O T E S field (via the C U S T O M I Z E button), so the field is displayed in the
quotation lines.

When you select the N O T E S button in the quotation line, a screen with the text appears. When necessary
this can be adjusted.

The text can also be printed on the quotation layout.

Materials
In the M A T E R I A L S column select the link and the QU O T A T I O N : M A T E R I AL S screen appears.

Exact Online Manufacturing 43

In this screen you can select the raw materials needed to manufacture the item.
When an item is selected, the U N I T C O S T is filled and you can enter the QU AN T I T Y R E Q U I R E D . In the
next column you can indicate if the quantity of this item is a fixed quantity for each time this end product is
manufactured (F I X E D ) or if this quantity counts for each piece that is manufactured ( M AT E R I AL S P E R
P I E C E ).

The other options can be used when working with dimensional items. This is beyond the scope of this
training course.
If you want the item to be backflushed, you can enable the B AC K FL U S H option. When all materials are
linked, you can SA V E and C L O SE the screen.
With the button C O P Y F R O M it is also possible to copy the materials from a BOM version of the item or an
item that might be quite similar from a material perspective.
When you add materials to a quotation, the item price is automatically populated in the materials line
item. Clicking the U P D A T E W I T H I T E M S T AN D AR D C O ST button, launches a check against the current
cost price associated to each material item as it is defined in each item's page.
If you manually update the price of an item on the QU O T A T I O N | M A T E R I AL S P AG E and click
the U P D A T E W I T H I T E M S T A N D A R D C O S T button, no change in cost price will be made to
the manually updated line item (s). Manually modified material line items will retain the cost
price you entered regardless of what is specified on the item page.
Routing
In the quotation line in the RO U T I N G column select the link to open the QU O T AT I O N: R O U T I N G screen,
in which the operations can be selected.

Exact Online Manufacturing 44

This screen looks similar to the R O U T I N G SC R E E N of the bill of materials in item maintenance. In the lines
select the operations, enable B A C K F L U S H if needed and on the right site of the screen enter the SE T U P
and R U N T I M E . The A R R O W U P and A R R O W D O W N buttons on the left site of the operations can be
used to rearrange the sequence of the routing steps. When all routing steps are defined S AV E and C L O SE
the screen.
Once again the button C O P Y F R O M allows you to copy routing steps from another items BOM.
Calculate
When both the materials are linked and the routing steps are defined, select the link in the D E T AI L S
column, which will open the Q U O T A T I O N : QU A NT I T I E S screen.

In this screen the price(s) can be determined. First select the C AL C U L A T E P R I C E S button to calculate the
price based on the raw materials and routing steps, this will be displayed in the C AL C U L A T E D P R I C E field:

When this is not done, you will see a warning sign in the AL E R T S column:

Exact Online Manufacturing 45

When the prices are calculated this sign will disappear again.
The calculated price is based on the cost price of the materials, the rates defined in the work centres linked
to the operations and the markup percentages. You can enter both a P U R C H A SE M AR K U P % for the
materials and subcontracts and a L A B O U R M A R K U P % for the operations. Depending on the
C A L C U L A T I O N M E T H O D , which is defined in the manufacturing settings (see 3.2.2), the system will

determine the C A L C U L A T E D P R I C E .
When the option U SE C A L C U L A T E D is enabled the calculated prices is also taken over in the U NI T P R I C E
column. When the column U S E C A L C U L A T E D is disabled, you can manually enter a unit price.
You can also use volume prices, for different quantities. You can add extra lines and change the markup
percentage(s) and the system will calculate the price. The lines with the highest quantity will be displayed
in the quotation screen, but all the lines can be displayed on the quotation layout. When all data is entered
the quotation can be (final) printed and sent to the customer.
When the customer accepts the quotation, the quotations can be processed into a sales order.
COPY BOM TO A QUOTAT ION

Instead of entering all materials and routing manually in the quotation it is also possible to copy the
material and/or routing steps from the BOM directly in the quotation. Especially when a lot of materials
and routing steps are necessary this offers a fast and accurate way of creating the quotation.
This functionality is similar to clicking on the button C O P Y FR O M in the routing or materials screen.
When clicking in the BOM column, the C U ST O M C O P Y | B I L L O F M AT E R I AL S screen is shown.

For the items that needs to be quoted the correct BOM version can be selected and you can indicate if the
routing and/or materials from this BOM version should be included. In the section C O P Y you can indicate if
the routing and material from this BOM should be added to the materials and routing steps that are
already entered in the BOM or if the existing routing steps and material should be replaced.

Exact Online Manufacturing 46

When the button C O P Y is used, then automatically the routing and materials columns in the quotation line
are filled. It is then possible to make adjustments to the material or routing steps.
When all data is entered correctly, the quotation can de final printed.

6.1 Print quotation


When the quotation is entered, it can be sent to the customer. It is also possible to use word merge when
the quotation is printed.

6.2 Process quotation


The quotation can be processed in [ S A L E S, Q U O T AT I O N S, P R O C E S S] . When the AC C E P T button is
selected, you can indicate if you want the system to create a sales order and/or a shop order.

A separate shop order is created for each quotation line in the quotation for which there are materials
and/or a routing linked.

6.3 Update cost price in item


The C O S T P R I C E field in the item maintenance of the end-product has to be filled. When the cost price is
0.00 no entry will be created when the shop order is finished or when the goods are delivered.
When there is already a cost price, but this is not the correct one, the correct value can be entered in the
N E W C O S T P R I C E field. In this case also the ST O C K R E V A L U AT I O N link has to be selected to update

existing transactions and to activate the new cost price.

6.4 Sales order


In the sales order the delivery date and quantity can be adjusted, which will also be updated in the shop
order.

6.5 Shop order


From here on the shop order process is for the greater part the same as for the stock driven manufacturing
process.

Exact Online Manufacturing 47

6.5.1 Purchase materials


With order driven manufacturing the process starts when the customer requests the end-product. This
usually means the raw materials are not on stock, but ordered when the shop order is created. The raw
materials can be purchased via the P U R C H ASE M A T E R I AL S button in the QU I C K AC T I O N S section in the
shop order.

The system will suggest the quantities that are needed to produce this shop order and will not consider
available stock. You can see the available stock in I N ST O C K column and adjust the quantity when there is
already enough stock. Select the C R E A T E P U R C H ASE O R D E R S button to create the purchase order(s).

6.5.2 Issue shop order


When the raw materials of a shop order are already on stock they need to be issued. When the raw
materials are received on a purchase order that was created for this shop order, they are automatically
issued when the receipt is processed. You can see this in the shop order card in the I S S U E D section when
the SH O W A L L link is selected.

The transaction type of these lines is R E Q U I R E M E N T I S SU E .


When the goods are issued the following journal entry is created:

Debit
Work in progress

Credit

Stock raw materials

6.5.3 Shop floor planning, subcontracting, time entry


The shop floor planning, subcontracting and time entry steps are all the same as for the stock driven
process.

Exact Online Manufacturing 48

6.5.4 Finish shop order


When the shop order is finished, you can indicate what you want to do with the finished item(s), in the
D I SP O SI T I O N column: D E L I V E R , S T A G E FO R D E L I V E R Y and P U T I N S T O C K . ( see also chapter 5.10). In

the order driven process where the shop order is created based on a quotation and sales order, it is
advisable to select the D E L I V E R option.

This will launch the goods delivery screen and the sales order can be delivered right away.
A journal entry for the finished item is now created as well as an entry for the goods delivery.
When the item of a shop order is finished, the following journal entry is created:

Debit
Stock finished goods

Credit

Work in progress

For the goods delivery the following journal entry is created:

Debit
Cost of goods sold

Credit

Stock

6.5.5 Complete shop order


When all tasks are performed on the shop order, it can be completed. This will change the status to
C O M P L E T E D and no action can be performed anymore.
The following journal entry is created when a shop order is completed:

Debit
Manufacturing variance
Work in progress

Credit

X
X

Exact Online Manufacturing 49

6.5.6 Issue reversal


Issue reversal can be used to remove materials from a shop order and put them back in inventory. This can
be handy when for example less raw material was needed to manufacture the product.

In the issue reversal menu [ M A N U F A C T U R I NG , R E AL I Z A T I O N, S H O W AL L , I S S U E R E V E R S AL ] you will


find an overview of all the items that are issued per shop order. The raw material that need to be placed
back on stock can be selected and a N E W issue reversal can be done.

In the issue reversal screen in the return column you can indicate the quantity to be returned.
The following transaction will be created for the reversal:
Debit
Stock raw materials

Credit

Work in progress

The report I SS U E R E V E R S A L H I ST O R Y [ M A NU F AC T U R I NG , R E AL I Z A T I O N , SH O W AL L , I S SU E
R E V E R S A L H I S T O R Y ] acts as a report for all issue reversals.

6.5.7 Finish reversal


Finish reversal is helpful when finished items from a shop order have to be returned.

In the finish reversal menu [ M A N U F A C T U R I NG , R E AL I Z AT I O N , S H O W AL L , FI NI S H R E V E R SA L ] you


will find an overview of all the items that are finished per shop order. The finished goods that need to be
taken out of stock can be selected and a N E W finish reversal can be done.

Exact Online Manufacturing 50

In the finish reversal screen in the reversal quantity column you can indicate the quantity to be returned.
The following transaction will be created for the reversal:
Debit
Work in progress

Credit

Stock finished goods

The report F I N I S H R E V E R S A L H I S T O R Y [ M A NU F AC T U R I NG , R E AL I Z AT I O N, SH O W AL L , FI NI S H
R E V E R S A L H I S T O R Y ] acts as a report for all finish reversals.

Quotation
Customer The Museum Cafe calls, they are interested in a custom made table lamp and want
to know what the price is. If they can get a nice price, they will order 50 lamps at once.
The table lamp consists of 1 base, a short stem and 1 special lampshade which is made of a
special lace fabric. The item base already exists in the database, the other items have to be
created.

Create item STEMSHORT, link supplier Dagi Metals B.V. and item group 2. Cost price and
purchase price are 1,-. Enable the option P U R C H A SE .

Create item LAMPSHADESPECIAL, link supplier Fantastic Fabrics and item group 2. Cost
price and purchase price are 5,-. Enable the option P U R C H A SE .

Enter a quotation for The Museum Cafe, via the C R M menu.

In the first line select F2 and new and create item TABLELAMP1. Link item group 1 and VAT
code 01 and enable the option M AK E . Save the item.

In the M A T E R I A L S column, in the quote, add the raw materials. Select the button
U P D A T E W I T H S T A N D A R D C O ST P R I C E and C AL C U L AT E P R I C E S.

In the R O U T I N G column add the operation MELT and ASSEMBLE:


- MELT: setup time 2 minutes, run time 5 minutes.
- ASSEMBLE: run time 5 minutes per item.
Close the R O U T I N G screen and select the link in the D E T A I L S column. Calculate the
prices.

We will quote The Museum Cafe for a quantity of 1, 5 and 50 pieces. Select the D E T AI L S
link. First enter a quantity of 1, set the purchase and labour markup to 30% and calculate
the price. The quantity of 5 will go for a purchase markup of 10% and labour markup of

Exact Online Manufacturing 51

15%. The quoted quantity of 50 will have a purchase markup of 0% and a labour markup of
0%.

?
?

What are the cost prices for the different quantities?

Round off the prices to the nearest whole or half GBP above the calculated price and enter

What are the calculated prices?

it in the unit price field.

Make sure the line with the quantity of 50 is selected.

Close the screen and F I N A L P R I NT the quotation.

Which prices are shown on the quotation?

Sales order and shop order


The customer calls, they agree with the quotation and want to order 50 table lamps.

Accept the quotation for 50 lamps, enable both the option C R E A T E S AL E S O R D E R and
C R E A T E SH O P O R D E R .

In the item maintenance of TABLELAMP1 make sure the cost price has the correct value
(8.60).

Is there a Bill of Materials linked to the item TABLELAMP1?

Plan the shop order [ M A N U F A C T U R I NG , P L A N NI NG , SH O P FL O O R P L A N NI NG ] : plan


the operations one day after each other, starting two days from today.

Materials
Now that the shop order is created, the materials can be ordered.

Purchase the materials for this shop order, [ M AN U FAC T U R I NG , C H A NG E S H O P


O R D E R , P U R C H A SE M A T E R I A L S , C R E A T E P U R C H A SE O R D E R S ] .

Print the purchase orders and receive the materials.


On the shop order card in the I S SU E D section select the S H O W AL L link.

Can you see if the raw materials are issued?

Time entry

Enter the time realized for this shop order for employee John Smith:
MELT: setup 0.08 hours and run time 4.17 hours.
ASSEMBLE: no setup time and run time 4.30 hours.

Approve the time entry [ M A N U F AC T U R I NG , T I M E R E P O R T I NG , AP P R O V E ] .

Which journal entries are created for the time entry?

Exact Online Manufacturing 52

Finish

Finish the shop order, select the option D E L I V E R .

?
?

Which entry is created for finishing the item?


Which entry is created for the delivery of the Sales Order?

Change sales order

Create a copy of the quotation in assignment 13, final print it and accept it (create the
sales order and the shop order for 50 lamps).

Check the shop order card.

What is the P L A N N E D D A T E ?

The sales order has to be delivered in two weeks, adjust the delivery date in the sales
order line.

Check the shop order, what is the P L A NNE D D AT E now?

Issued less than expected

Create a stock count to make sure you have at least 100 BASES, STEMS and LAMPSHADES
on stock.

Create a Shop Order for 10 FLOORLAMP1.

Issue the raw materials.

Enter and approve the time entries for the operations.


During production you discover that you actually need less raw material than expected.
Therefore you would like to adjust the issued amount for the Shop Order.

Go to [ M A N U F A C T U R I N G , R E A L I Z AT I O N , I S SU E R E V E R S AL ]

Select the line for the Base and return 1 BASE then click P R O C E S S .

How many BASES are delivered?

------------------------------------------------------------------------------------------------------------------

Is a financial entry created for the return of the raw material?

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Exact Online Manufacturing 53

7 Overviews
In the Manufacturing subscription there are several overviews you can use to gain insight in the status of
production or insight in the costs or revenue. In this chapter some overviews are described. The reports
can be found in [ M A N U F A C T U R I N G , R E P O R T S, . . ] .

7.1 Manufacturing dashboard


The M A N U F A C T U R I N G D A S H B O A R D provides you with a selection of key components, designed to give
you at-a glance, real time insight into the key processes of manufacturing. You can easily see areas that
require attention and may be behind schedule, as well as areas that are doing well and are ahead of
schedule.

The dashboard components and links give you direct access to shop orders and entry items.
Quick links
The Q U I C K L I N K S section gives you direct access to common manufacturing processes.
Shop capacity
The SH O P C A P A C I T Y charts represent the current capacity of the entire shop grouped by production area.
Capacity is calculated by the shift duration you specify multiplied by a 5 day work week, multiplied by the
number of work centres in the production area. You can hover your mouse over each bar in the graph to
get detailed information. Not planned indicates that routing lines have not been assigned start and end
dates. Clicking on the bar in the graph will launch a detailed capacity chart of the production area, showing
the capacity of each work centre in the production area.

Exact Online Manufacturing 54

Top 10 orders in process


This section displays the top ten sales orders, which are attached to shop orders which have not yet been
shipped entirely and are due in the next six weeks. The progress indicator provides a visual representation
of the progress and current status of the shop order. Links provided in this section allow you direct access
to the sales order, shop order and customer cards.
To Do
The T O D O A N D A L E R T S section provides you with important information about tasks that need to be
completed to keep your manufacturing running smoothly. Handy links take you directly to where you need
to be in the system to complete the task.
Production hours by month
This section displays a chart of the total time reported and approved time entries for the month, giving you
an overview of your production hours.
Value of shop orders for next six weeks by status
This section displays all shop orders with planned dates that occur in the next weeks. The orders are
grouped by status.

7.2 Shop order card


The shop order card [ M A N U F A C T U R I N G , P L A N NI NG , C H A NG E SH O P O R D E R ] contains a lot of
information about the status of the shop order, the materials issued, the time planned and actual time
spent. In the ST A T U S section you can see whether you are on schedule. The shop order card is created
when a shop order is entered or generated. More information about the shop order card can be found in
chapter 5.5.

7.3 Status overview


The ST A T U S O V E R V I E W displays the current status of your shop orders. You can use the filter criteria to
select a range of shop orders. You can use hyperlinks provided in the reports to drill into additional data
specific to the item you select.

7.4 Cost overview


The C O ST O V E R V I E W allows you to review, evaluate and compare the estimated, actual and differences
of manufacturing costs. You can use the filter criteria to select a range of shop orders to display in the cost
overview report. You can use the hyperlinks provided in the report to drill into additional data specific to
the item that you select.

Exact Online Manufacturing 55

In the cost overview columns are displayed with planned amounts and actual amounts. The planned
amounts are based on the quantities and prices from the shop order. The actual amounts are based on the
actual quantities and prices that are really used; for materials the prices from the purchase orders are used
and for time entries the actual time that is entered.

7.5 Production analysis


The P R O D U C T I O N A N A L Y SI S report allows you to view and understand your manufacturing production
progress in real time. You can get insight in the productivity of every work centre in you facility. The report
can be sorted on a variety of values, such as shop order, customer or a time period. You can also view your
production in terms of planned, actual and estimated hours.

7.6 Shop order results


The S H O P O R D E R R E SU L T S report allows you to compare revenue of sales orders and costs of linked
shop orders. This provides insight in how much was ordered and the margin for each shop order, sales
order and item.

7.7 Backflush overview


The B A C K F L U S H overview report allows you to view all of the shop orders and transactions that are a
result of backflushed materials. In addition, you can view backflushed transactions that were partially or
completely reversed. Only shop orders that contain backflush material will be returned in the report.

Exact Online Manufacturing 56

7.1 Transactions
The T R A N S A C T I O N s overview [ M A N U F AC T U R I N G , R E P O R T S , T R A N SAC T I O N S ] shows all financial
transactions created for a shop order where the general ledger Work in progress is involved.

In the E N T R I E S field you can select which type of general ledgers you want to view: the work in progress
ledgers, the offset ledgers or both type of ledgers. Click the E NT R Y N O . links to view details of the journal
entries that are created.

7.2 Project Integration


Since February 2015 project integration is added to Exact Online Manufacturing. The aim of project
integration is to have the ability to create and maintain projects, and to attach quotations, shop orders,
sales orders and invoices to a project. For Manufacturing this means, that by doing this, it is possible to see
the transactions, revenues and profits of all the shop orders linked to a project in one overview.

7.2.1 Create project


A project can be created via [ M A N U F AC T U R I NG / P L A N NI NG / C R E AT E P R O J E C T ] . A C O D E ,
D E SC R I P T I O N and A C T I V E F R O M / A C T I V E T O dates can be entered.

7.2.2 Link shop orders to project


When the project is created it can be linked to quotations, sales orders, invoice and shop orders. For shop
orders this can be done via [ M A N U F A C T U R I NG / P L A N NI NG / C H A NG E SH O P O R D E R ] , open the shop
order and link the project to the P R O J E C T field.

Exact Online Manufacturing 57

When the project is already linked to the quotation, this will be copied to the shop order.

7.2.3 Project card


When multiple shop orders are linked to a project, you can see the transactions and profit and loss for all
these shop orders in one overview. You can do this via [ M A NU F AC T U R I NG / P L A N NI N G / M AI N T A I N
P R O J E C T ] , open the project and select the T R A NS AC T I O N S or P R O FI T & L O S S link.

Exact Online Manufacturing 58

Transactions overview

Check the T R A N S A C T I O N S overview [ M A NU F AC T U R I NG , R E P O R T S,


T R A N S A C T I O N S ] and select the shop order from assignment 5.

What does this overview show?

Cost overview

Check the cost overview [ M A N U F AC T U R I NG , R E P O R T , C O ST O V E R V I E W ] and zoom in


on the shop order. Adjust the columns, so you can see the P L A N NE D : T O T AL C O S T and
A C T U A L : T O T A L C O ST S .

Is there a difference and where does this come from?

Exact Online Manufacturing 59

Part II Manufacturing Advanced

Exact Online Manufacturing 60

8 Introduction Exact Online Manufacturing Advanced


8.1 Exact Online Manufacturing Advanced
In October 2014 Exact Online Manufacturing Advanced became commercially available. The advanced
solution of Exact Online Manufacturing is aimed at small and medium manufacturers requiring more
advanced logistics. The advanced solution meets the demand of a larger need of the manufacturer to get
grip on inventory. This grip on inventory is related to compliance (batch traceability, serialized products),
multiple outlets (for example a factory and a warehouse in different towns), product complexity
(subassemblies), or a combination of these. Companies that use Exact Online Manufacturing Advanced can
be found among machine builders, makers of electronics and electrical instruments and food
manufacturers.
The starting point for Manufacturing Advanced has been to include and support all features of Wholesale
Distribution Advanced. In a nutshell, this includes multiple warehouses, warehouse transfers, item bin
locations, serial- and batch numbers, assembly (kitting) orders, assemble at delivery, cluster picking and
stock aging. Including these wholesale distribution features, makes it easy to upgrade or migrate to
manufacturing.

8.2 Features
In the advanced solution of Exact Online Manufacturing the following (extra) features are included:
Purchase price list
Stock ageing analysis
Cluster picking list
Multiple warehouses
Storage locations
Serial/batch
Assembly order
MRP
Multiple level of BOM
Cost price calculation
The features purchase price list, stock ageing analysis and cluster picking list have already been explained
in the training Exact Online Wholesale Advanced and will there for not be explained in this training
anymore. Although multiple warehouses, serial/batch and assembly order have been explained in Exact
Online Wholesale Advanced, they will also be covered in this training as well, to see how it works in Exact
Online Manufacturing.

Exact Online Manufacturing 61

8.3 Preparation
For the assignments you can continue with the Exact Online environment you created earlier in this
training. When you have already done the Exact Online Manufacturing training a while ago and you do not
have the environment anymore (or you created the environment using an Exact Online Basic subscription),
then you have to create a new environment for the assignments. In order to do this use the link which can
be found in paragraph Error! Reference source not found.. Also do assignment 1 3, so you have the right
master data to use for the assignments in this advanced part.

Exact Online Manufacturing 62

9 Warehouse Management
In order to get grip on the inventory, manufacturers can use multiple warehouses and/or storage locations
to better manage their warehouse(s).

9.1 Multiple warehouses


The multi warehousing functionality covers the need for managing item storage at different physical
locations. A warehouse can be as big as a bulk distribution centre or as small as a service van or a shelf in
the back of a store. Each warehouse can have an individual collection of items and the stock level for that
warehouse can be maintained independently. For example, the vans only have certain items on stock and
when the stock of the vans is below a certain level at the end of the day, they can be restocked from the
main warehouse. A manufacturer can choose to store the raw materials in one warehouse and the finished
goods in another warehouse, from where they can be shipped to the customer.

9.1.1 Setting up warehouses


In Exact Online you can work with multiple warehouses. It will allow you to create multiple warehouses on
different physical addresses and to have minimum-maximum stock levels that can be different per
warehouse. Goods can be transferred between warehouses and purchase, sales and production
transactions will be related to a specific warehouse. You can maintain warehouses in [ M A S T E R D A T A ,
I T E M S , W A R E H O U SE S ] .

By default, one warehouse is already present in the company. The details of this warehouse can be
updated as per your requirements. There is no limit of the number of warehouses that you can create. One
warehouse can be selected as the main warehouse.
Once you have set up the warehouses in your company, you can link items that are stored in that
warehouse. Items can be linked to the warehouse from the warehouse maintenance or the item
maintenance. When a shop order is created for an item, Exact Online will select the main warehouse of this
item by default, this can be changed.

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9.2 Storage locations


Multiple warehouses can be used to manage item storage at different physical locations. Within a
warehouse, you can use storage locations to further divide the warehouse. Storage locations are
containers in the warehouse that hold stock and that are used to optimize stock handling throughout a
warehouse.
By allocating an item to a specific storage location, the handling of incoming goods, stock counting,
producing and picking of goods can be done per location. This makes these processes much easier and less
costly.

9.2.1 Setting up storage locations


In Exact Online you can indicate per warehouse whether you want to use storage locations or not. For
example when you have defined the vans as warehouses, it is not necessary to also divide them up into
storage locations.
When you want to use storage locations in a warehouse, you can enable the option U SE ST O R AG E
L O C A T I O N S in the warehouse.

When the option U SE ST O R A G E L O C A T I O N S is enabled, the warehouse card will have an extra tab
ST O R A G E L O C A T I O N S , from where the storage locations can be created and maintained.

You can also create storage locations via [ M A S T E R D AT A / I T E M S / ST O R A G E L O C AT I O N S ].

When a storage locations is created it is mandatory to link a warehouse and enter a code.
Storage locations should be created and described clearly so that warehouse employees know exactly
where they are. The code can be an actual location; in the code the warehouse, zone, aisle, section, shelf
etc. can be included, for example:

1 02 01 - A
1 Warehouse 1
02 Second aisle in the warehouse
01 Rack 1
A Shelf A (bottom) in rack 1

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When storage locations are set up, you can link a (fixed) storage location to an item. This can be done via
the I T E M tab in the warehouse card or via the S T O C K tab in item card.

It is also possible to link multiple items to a storage location at once via item maintenance. You can select
multiple items and select the link edit: all simultaneously.

Warehouses
The assortment of Unique Lamps is extending, it includes more different types of lamps.
Some lamps, such as chandeliers, are large in size and use quite some space in the
warehouse. In the current warehouse there was not enough space, so Unique Lamps has
rented extra storage space in the building next door. This extra space is mainly used for the
finished lamps that have a large size or raw materials that need special care because they are
fragile.
To have a better overview of the stock in the different buildings, Nick Young wants to work
with multiple warehouses in Exact Online. In the existing warehouse they also want to make
use of different locations, in the extra rented warehouse this is not necessary.

Adjust the warehouse 1 and create warehouse 2:

1 Warehouse 1: this is the main warehouse, address: Mainroad 4, 1234, York,


enable the option U SE ST O R AG E L O C A T I O N S .

2 Warehouse 2: address: Mainroad 5-7, 1234 , York, do not enable the option U SE
ST O R A G E L O C A T I O N S .

Create the warehouse locations in warehouse 1 from the table below. So for example the
code will be: 1-01-01-A

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Link item LAMPSHADE to location 1-01-01-A.

Try to link item LAMPSHADE also to location 1-01-01-B. Is this possible?

Link item BASE to location 1-01-02-A.

Link item STEM to location 1-01-02-B.

Make sure (enter a count) the stock of all these parts is 100 on the locations they are
linked to.

Item LAMPSHADE is also stored in warehouse 2, link the item to warehouse 2 and enter a
count for 50 lampshades in warehouse 2.

Link item FLOORLAMP1 to location 1-03-01-A.

In Exact Online an item can be linked to multiple warehouses. However per warehouse the item
can only be linked to one storage location.

Shop order

Enter a shop order for 10 * FLOORLAMP1.

Which warehouse is used in the shop order? Why?

Check the overview shop orders [ M A NU F AC T U R I NG , P L A N N I NG , C H A NG E SH O P


O R D E R ] . Do not open the shop order and make sure the column ST O R AG E L O C AT I O N is

visible.

Which storage location is used for the shop order?

Issue the raw materials.

?
?

Can you select a warehouse when you issue the materials?


Which warehouse is used for the issued materials? (Check the T R A NS AC T I O N L I S T
overview of one of the raw materials to see the warehouse used).

Finish the shop order.

Which location is used for the FLOORLAMP1? (Check the ST O C K P O SI T I O N S overview).

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Enter another shop order for 5 FLOORLAMP1, use warehouse 2.

Issue the raw materials.

Which warehouse is now used for the issued materials? (Check T R A N SAC T I O N L I S T
overview of one of the raw materials). Is this the main warehouse or the warehouse linked
to the shop order?

In Exact Online when materials are issued, the materials are issued from the warehouse linked
to the shop order, regardless whether there is (enough) stock or in that warehouse.

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10 Serial/Batch
10.1 Introduction
Another way to get grip on inventory is to work with serial/batch numbers. Using serial/batch numbers
makes it easier to track and trace items; with serial/batch numbers you can identify individual products or
a group of products (batches).
In some type of industries legislation or customer demand requires traceability, like in the pharmacy-,
food- and beverages-, automotive- and electronics industries. Seral and batch numbers are very useful
especially for quality tracking purposes. If a complaint is received with regard to the item, the serial or
batch number can be used to identify its origin so that investigative measures can be taken. In case of a
recall, knowing the batch involved makes the difference between recalling the batch and recalling all
products, harming all parties involved in the supply chain of this product.

10.2 Serial or batch item?


An item can either have a serial number or a batch number.
A serial number is unique and it used to identify a single item. Serial items are usually high in value and
have a service warranty. You can for example think about a photo camera that holds a unique number or a
laptop or computer.
A batch number identifies a group of similar items for a particular production run. They are mostly low in
value and are grouped into more than one unit. The batch number is assigned to these items to separate
them from other batches. Batch numbers are used in the food, pharma or chemical industry where
products that are produced in the same batch get the same number. An example of a batch item is paint; it
is important to have all the paint from the same batch, as there can be a slight difference in color.

10.3 Serial/Batch in Exact Online


Serial and batch number functionality in Exact Online facilitates identification of a unique item (serial) or a
group of items (batch registration) for various reasons. Serial items often need to be identified for warranty
reasons or for servicing reasons. Batch registration is required to recognize an expiry date (e.g. in case of
quality issues (e.g. food law requirements).

10.3.1 Activating Serial/Batch


In order to use the functionality of serial/batch in Exact Online, this needs to be activated via the settings:

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Next you can specify per item if it is a serial or a batch item (or none of this).

This will indicate if serial or batch numbers are relevant for the item used in the different transactions. An
item can be a serial or a batch item, it cannot be both.

10.3.2 Working with serial/batch


10.3.2.1 Selecting the serial/batch number
For manufacturing a serial/batch number can be selected when you issue (or reverse) the raw materials for
a shop order (or assembly order, see chapter 11). In the I S S U E screen you can select the link in the SE R I AL
or B A T C H N U M B E R column and assign the serial or batch number(s) you want to use for this shop order.

10.3.2.2 Assigning the serial/batch number


The serial/batch number is assigned when a finished item is received, in case of manufacturing the finished
item is received when the shop order (or assembly order) is finished.
In the F I N I S H S H O P O R D E R screen you can enter the serial or batch number in the SE R I AL or B A T C H
N U M B E R field. In case of a batch number it is also possible to select an existing batch.

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You can also select the L I N K behind the serial or batch number to see the SE R I AL / B AT C H screen.

Here you can enter more information about this serial or batch number, such as a S T A R T D AT E or E ND D A T E . It is also possible to block this serial or batch number, for example in case a quality test needs to be

done.

10.3.3 Reporting
Tracking serial and batch number can be done via the serial and batch overviews. These overviews show
you what has happened to one or more serial and batch numbers from receipt to delivery. The overviews
can be found via I N V E N T O R Y / SE R I A L N U M B E R S/ and I NV E N T O R Y / B A T C H N U M B E R S
The O V E R V I E W report shows a list of all serial or batch numbers, which can be filtered by item,
warehouse or date.

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You can view and edit the serial/batch number here. Via the D E T AI L S link in the T R A NS AC T I O N S column
you can zoom into the T R A N S A C T I O N S overview.

The T R A N S A C T I O N S overview shows all transactions of a serial/batch number. For example when a
serial/batch item is returned from a customer, you can see in which sales order the serial/batch number
was used and also in which shop order it was manufactured. This way the right measurements can be
taken.

Serial/batch
Unique lamps has designed a chandelier.

This chandelier consist of 1 chain, 1 base, 6 arms, 6 lamps and 8 ornaments:


CHAIN

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BASE

ARM

LAMP1

ORNAMENT

When a chandelier is manufactured, first the arms and chain are welded to the base. Next
two ornaments are welded to the base and one ornament is welded to each arm. Finally the
lamps are assembled to the arms. Since welding is a new production operation for Unique
Lamps, Nick Young wants to keep track on the chandeliers, is case of any malfunctioning.
Therefor the chandelier will be a serial item.
The lamps that are used for the chandeliers must all be of the same batch, as there may be
small deviations in color.

Create the production area WELD and link general ledgers 64010, 64020, 64030 and 64040
in the F I N A N C I A L section.

Create the work centre WELD:

Create the operation WELD:

Create items ARM, ORNAMENT and CHAIN, link supplier Dagi Metals B.V. and item group
2. Cost price and purchase price of the ARM is 1.00, of the ORNAMENT and CHAIN
0.50. Enable the options P U R C H A SE and S T O C K . Link both items to warehouse 1, ARM
to location 1-02-01-A, ORNAMENT to location 1-02-01-A and CHAIN to 1-02-01-B.

Create item LAMP1, link supplier Fantastic Fabrics and item group 2. Cost price and
purchase price of the LAMP1 is 1.25, the sales price is 2.00. Enable the options
P U R C H A SE , S T O C K and B A T C H . Link the LAMP1 to warehouse 1 and location 1-01-01-B.

Enter a stock count for these items, make sure for ARM and LAMP1 you have 120 pieces,
for the ORNAMENT 80 pieces and for CHAIN 10 pieces in warehouse 1. For LAMP1 assign
batch numbers 2015GREY01 (60 lamps) and 2015GREY02 (60 lamps), you do not have to
enter an expiry date.

Create item CHANDELIER1, item group 1, sales price is 50,-, link to warehouse 1, location
1-03-01-B, enable the option ST O C K , M A K E and SE R I AL and create the bill of materials:

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One CHANDELIER1 is manufactured consisting of one base, one chain, 8 ornaments, 6 arms
and 6 lamp1s.
First the arms and chains are welded to the base, then the ornaments are welded to the base
and the arms. The time to weld the arms, chain, base and ornaments is 10 minutes per piece
and it has no setup time. After this it takes 4 minutes to assemble the lamps to the arms.

Create the bill of materials for CHANDELIER1, the lead time is 1 day.

What is the calculated cost price of one chandelier?

Make sure you update the cost price with the calculated cost price.

Shop order for serial lamp


Nick Young expects this lamp will sell well after its launched, so he wants to have a few on
stock.

Enter a shop order for 10 CHANDELIER1.

Issue the materials, for LAMP1 use 60 * batch number 2015GREY01.

Finish the shop order, assign serial number: CH201501 --- CH201510.

Create a warehouse transfer to transfer the chandelier from warehouse 1 to warehouse 2.

Sales order
Customer Cuppa Coffee is interested in the new chandelier and they want to buy 2
chandeliers. Customer ABC Hardware Ltd wants to buy 1 chandelier.

Enter a sales order for Cuppa Coffee for 2 chandeliers. Use warehouse 2..
Deliver the sales order and assign serial numbers CH201501 and CH201502..

Enter another sales order for 1 chandelier for ABC Hardware Ltd, deliver the sales order
and assign serial number CH201503.

Tracking & Tracing


Customer ABC Hardware Ltd calls that there is a problem with the chandelier. First Nick
young checks the overview [ I N V E N T O R Y , SE R I AL N U M B E R S, T R A NS AC T I O N S ] to see
which serial number was used for the sales order for ABC Hardware Ltd, this is serial number
CH201503.

Where can Nick see which other serial numbers were manufactured in this shop order?

Write down these serial numbers.

Check the [ I N V E N T O R Y , SE R I A L N U M B E R S , O V E R V I E W ] and add the AV AI L AB L E


column.

Check the D E T A I L S link in the T R AN S AC T I O NS column behind the serial numbers that
were also manufactured in the same shop order and that are not available anymore.

In which sales order for which customer are these serial numbers used?

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11 Assembly orders
11.1 Introduction
Instead of using a shop order to manufacture items that consist of other items, manufacturers can also
make use of assembly orders. Assembly orders allow you to create assembled items and keep them in
stock. Assembled items have a bill of materials which states all the parts that make up the assembled item.

11.1.1 What is an assembly order?


An assembly order is an order to assemble a planned quantity of assembled item. For example a gift box
set, this could be made up of three smaller items: a box, a cover and a frame. Just as you have a sales and
purchase order that affects your stock positions and financial entries, so does an assembly order.

11.1.2 What is the difference between manufacturing and assembly?


Both manufacturing and assembly are referred to as the action of taking components parts and combining
them together to a physical product.
According to answers.com the difference between assembly and manufacturing can be explained as
follows:
The difference relates to the level and type of transaction.
Assembly refers very specifically to the physical integration of component parts. It can be aided by the use
of equipment but can also take place without it. Equipment simply automates or speeds up the rate of
assembly.
Manufacturing can refer to this, but may also include other processes such as transformation through
heating or compressing. These other processes would require specialized equipment and could not be
performed manually.
The same as the difference between making a salad and making a cake; you would assemble a salad but
you would manufacture a cake.

11.2 Assembly in Exact Online


To use the functionality of assembly orders in Exact Online, the following things need to be set up:
Setting the start numbers
General ledger Assembly order difference
User rights
Bill of materials
Layout

Exact Online Manufacturing 74

11.2.1 Setting the starting numbers


In the C O M P A N Y settings in the I N V E N T O R Y tab you can set the starting numbers for your assembly
order number and your assembly number.

There is a difference between the assembly order number and the assembly number. When you create an
assembly order it is given a number, this is the assembly order number. Once the order has been fully or
partially completed it is then added to your stock. The completed order has a separate number, this is het
assembly number.
For example if we create an assembly order for 100 gift boxes but only 50 are completed, those 50
completed items are given an assembly number. It is possible that one assembly order number has
multiple assembly numbers. This is similar to when we create a purchase order, the purchase order is given
a purchase order number. Once we have received the goods we have a receipt number. One purchase
order can have multiple receipts.

11.2.2 General ledger Assembly order difference


In the company settings in the financial tab a general ledger for assembly order differences has to be
linked:

This ledger is used for the assembly result; when there is a price difference between the cost price of an
assembled item and the cost prices of the items that make up that assembled item.

11.2.3 User rights


To be able to perform the functions for assembly you need to have certain rights enabled in the system:

1.

To create assembly orders you need the A SSE M B L Y O R D E R S right.

2.

To finish assembly orders you need the FI N I S H A S SE M B L Y orders right.

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These rights can be found in the I N V E N T O R Y tab of the user rights.

11.2.4 Assembly order layout


In order to print the assembly order, a layout can be created and maintained via C O M P A NY
N A M E / M A S T E R D A T A / L A Y O U T S/ M A I N T E N A NC E .

11.2.5 Bill of materials


A bill of materials allows you to create and maintain an end product made up of many other products.
In Exact Online in the I T E M maintenance in the B I L L O F M A T E R I A L S tab you can create the bill of
material.

In this tab you can create the bill of materials for an assembled item (used in an assembly order) as well as
the bill of material for manufacturing (used in a shop order). The difference is explained in section 11.1.2.
You can create the bill of materials for an assembled item by selecting the A D D NE W button in het
A SSE M B L E D I T E M section.

In the B I L L O F M A T E R I A L S screen you can add the various items that make up the assembled item. In a
bill of material for an assembled item you only add parts, no routing is added. When creating a bill of
material for an assembled item you have the option to select whether an assembled item is assembled at
delivery (in a sales order) by checking the AS SE M B L E A T D E L I V E R Y box. When this field is checked, the
A SSE M B L E field in the sales order is checked by default. This means the item is assembled during delivery

and not pre-assembled.


When all parts are linked to the bill of materials, make sure to use the U P D A T E C O ST P R I C E button to
update the cost price of the assembled item.

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We can produce parts with Exact Online Manufacturing Basic shop orders and with Exact Online
Wholesale Distribution Advanced assembly orders. Exact Online Manufacturing Advanced
contains both shop orders and assembly orders. In Appendix A. you can find an extended
description of the differences between these.

11.2.6 Assembly process

The assembling of components as well as the repacking of goods is a way for wholesale distributors and
manufacturers to create unique products within an assortment and to save purchasing costs.
The process flow above shows the process for assembly orders and repacking (upper flow) and the process
for assembly at delivery (bottom flow). In both cases the process starts with the creation of a bill of
materials. You can use the assembled item for planning of assembly orders.
11.2.6.1 Assembly orders
Assembly orders can be used to replenish assembled or re-packaged items. The assembly process in Exact
Online is simple and basically consists of two steps:
Create the assembly order
(Partially) finish the assembly order
11.2.6.1.1 Create the assembly order
The assembly order can be created from the menu [ I N V E N T O R Y , AS SE M B L Y O R D E R S , C R E A T E ] or
from the stock report [ I N V E N T O R Y , R E P O R T S , ST O C K P O SI T I O N S] :

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In this screen you can select the assembly item and the planned quantity. In the parts section you will
automatically see all the items from the bill of materials from the item maintenance.
After the entry of assembly orders, the required components for the assembly may be picked from the
warehouse or may have to be ordered first (with assistance of the purchase order advice). Once all parts
are moved to the assembly department, the actual assembly can take place.
To give the people in the warehouse the actual assignment for the assembly, you can print an assembly list.
The assembly list will show all parts and quantities and storage location information to facilitate this
process.
11.2.6.1.2 Finish the assembly order (partially)
When the item is assembled, the assembly order can be finished and the assembled item will be moved to
its storage location. You can finish the assembly order in [ I N V E N T O R Y , A S SE M B L Y O R D E R S , C H AN G E
O R F I N I S H ] . When you open the assembly order you can (partially) receive it with the FI NI S H button.

You can fill in the received quantity in the quantity field. You cannot change the quantities of the parts
when you finish an assembly order. It is also not possible to change a part in the assembly order for
another part. For these kind of functionality a shop order can be used.
When you receive it partially and you no longer intend to assemble the remaining quantity, then you can
C O M P L E T E the assembly order.

When an assembly order is finished the stock of the assembled item will go up and the stock for the parts it
is build up off will go down.
The following journal entry is created when an assembly order is finished:
General ledger

Debit

Credit

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Stock Assembly item

Stock Part 1

Stock Part 2

Assembly result

(X)

(X)

When there is a difference between the cost price of the assembled item and the sum of the cost prices of
the parts, there is an assembly result (debit or credit). This amount is entered on the Assembly order
difference ledger, which can be linked in the F I N ANC I AL tab of the company settings.
11.2.6.2 Assembly at delivery
Next to using the assembly orders to increase the stock of as assembled item, it is also possible to
assemble at the latest possible time. Especially when multiple variants of standard sets of components are
possible, keeping them all in stock may be too expensive. It could also be that due to the expiry of
products, the option of picking and combining the components at the latest possible time is a requirement.
Assembly at delivery is also referred to as kitting.
After setting up the bill of materials, you can create a sales order for the assembled item. In the bill of
material of this assembled item the option A S SE M B L Y AT D E L I V E R Y is enabled, see section 5. When
using an assembled item in a sales order you still have the choice in the sales order to take the items from
stock (normal item behavior) or to assemble at delivery. This is all determined by the field A S SE M B L E in
the sales order line. When the A SSE M B L E field is checked, this means the assembled item will be
assembled during delivery.
When the picking list is printed, there is an option to print the assembled item and/or the bill of materials.
Depending on whether the warehouse staff is already aware of what to assemble, you can choose to only
print the assembled item or also include the parts on the layout.
When the goods are delivered, the stock movement is created for the parts of the assembled items and not
for the assembled item itself. The difference between assembled items and items taken from stock is that
the stock levels of the parts will decrease. Also the financial entries are made for the parts and not for the
assembled item and on the sales margin report you will see the costs per parts and not per assembled
item.

Assembly
Customers like to have an assortment of lamps in their living room that are all of the same
style. Unique Lamps offers a BOX that includes 1 floorlamp and 2 tablelamps. This box is sold
a lot, so it is assembled on stock.

Create a layout for the assembly orders. Go to C O M P A NY / M AS T E R


D A T A / M A I N T E N A N C E / L A Y O U T S , select NE W and ST A R T FR O M A N E X A C T O NL I NE
T E M P L A T E . Set the option L A Y O U T T E M P L AT E S FO R to A SSE M B L Y O R D E R S . In the

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lay-out Engels Blauw Assemblageorder select the option U SE T H I S T E M P L AT E . Save


the layout as Assembly order layout Unique Lamps.

In the company settings in the F I N A NC I AL tab link general ledger 72000 to A S SE M B L Y


ORDER DIFFERENCE.

In the company settings in the I N V E NT O R Y tab set the A S SE M B L Y O R D E R N U M B E R to


<current year-01> and leave the A SSE M B L Y NU M B E R at 1.

Create item BOX, link item group 2 and supplier Fantastic Fabrics, the cost price and
purchase price of the box is 0.10. Enable the options P U R C H A SE and ST O C K . Link the
BOX to warehouse 1 and location 1-02-02-B.

Create item LAMPBOX, link item group 1. The sales price is 60,-. Enable the options
ST O C K , S A L E S and M A K E . Link the LAMPBOX to location 1-02-02-A.

Create the assembly BOM for the LAMPBOX, which consist of 1 BOX, 1 * FLOORLAMP1 and
2 * TABLELAMP1. Do not enable the option ASSEMBLY AT DELIVERY. Make sure the cost
price of the LAMPBOX is updated with the calculated cost price.

Assembly order
Since the LAMPBOX is sold a lot, Nick Young wants to make sure there is some stock.

Create an assembly order for the LAMPBOX for 10 boxes.

The assembly is not completely finished, so you only have to finish 6 pieces.

Check the S T O C K P O SI T I O N S overview for the LAMPBOX.

Can you see that the remaining 4 lampboxes that need to be finished?

Finish the remaining quantity.

Check the A S SE M B L Y H I ST O R Y .

How many assemble numbers and assemble orders number are there for this order?

Create a sales order for 1 LAMPBOX for customer IT Subcontracting Services and deliver
the sales order.

Assembly at delivery
For the chandelier it is possible to order a chandelier with 6 extra lamps. This way, when the
lamps need to be replaced, the customer has some extra lamps. The chandelier and 6 lamps
are placed together in a box at delivery.

Make a copy of LAMP1, use code LAMP2, same cost price, disable the option BATCH.

Create this box for the chandelier, item CHANDELIERBOX, link item group. The sales price
is 65.00. Enable the options ST O C K , S AL E S , M A K E , SE R I AL and O R D E R
C O N T R O L L E D . Link the CHANDELIERBOX to location 1-02-02-A.

Create the assembly BOM for the CHANDELIERBOX, which consist of 1 CHANDELIER1, 1
BOX and 6 * LAMP2. Make sure the cost price of the CHANDELIERBOX is updated with the
calculated cost price.

Create a sales order for Senser Ltd for 2 * CHANDELIERBOX.

Check the S T O C K P O SI T I O N S overview?

Exact Online Manufacturing 80

?
?

What is the P L A N N E D I N and P L A NNE D O U T stock for the CHANDELIERBOX?

Deliver the sales order, make sure you can see the SE R I AL NU M B E R column in the

What is the P L A N N E D O U T stock for the CHANDELIER1 in warehouse 1?

delivery screen. Click the 0 link in the order line, enter a serial number for the
CHANDELIERBOX and select the magnifying glass under parts. Select a serial number for
the CHANDELIER and deliver the sales order.

When a bill of materials for an assembly item contains a part that is a serial or batch item, the
finished item has to be a serial or batch item too.

Sales margin report

Check the sales margin overview [ S AL E S , R E P O R T S , S AL E S M AR G I N] .

Select the details link at the sales order for IT Subcontracting Services.

For which item is the sales delivery created?

Now go back to the overview and select the details link at the sales order for Senser Ltd.

For which item(s) is the delivery created?

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12 MRP
For Manufacturers it is important to have good insight in the stock levels. Not only at this moment and per
warehouse or storage location, but the manufacturer also wants to know the stock levels in the future. This
way he can act and take measurements on time.
The MRP detail overview and the MRP overview give insight in the development of the stock levels in time.
This enables the manufacturer to better plan for future inventory needs.

12.1 MRP detail


The MRP detail overview gives insight in the future inventory needs per item. In item maintenance select
the M R P D E T A I L B U T T O N to open the overview.

You can enter filter values to select a warehouse of determine the number of periods you want to see for
this item.
The first column (before the date columns) displays the stock before the first date column.
In the project balance line you can see how the stock level for this item will develop in time and in the lines
above this you can see the reason for a decrease or increase in stock. For example in the picture above you
can see that the projected stock will decrease from 85 to 35 on 26/02/2015 and this is due to an assembly
order in which this item is needed.

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The projected balance line can have different colors, based on the projected stock and reorder point. The
colors mean the following:
Green: indicates that the projected stock quantity is at or above the reorder point.
Yellow: indicates that the projected stock quantity is below the reorder point.
Red: indicates that the projected stock quantity is less than 0.

12.2 The MRP overview


The MRP overview gives insight in the future needs for all items. You can find the overview via
[INVENTORY, REPORTS, MRP OVERVIEW].

In this overview you can quickly see how supply and demand effect your inventory. Based on the criteria
entered in the filters you can see for which item(s) there will be a stock problem. The colors indicate the
stock level on a particular date, an explanation of the colors can be found in section 12.1.
In this overview you can hover over a field to see how the projected stock is composed (sales order,
assembly order or purchase order). You can click on a colored cell to go to the MRP detail overview and see
the MRP details for an individual item.
Only stock items are displayed in the MRP overview.

MRP

Enter a sales order for 100 CHANDELIERBOX for delivery in two weeks from today, do not
deliver it.

Go to item maintenance of item BOX and select the M R P D E T A I L button.

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In the projected balance line do you see the quantity change in time?

Check the MRP overview [ I N V E N T O R Y / R E P O R T S/ M R P O V E R V I E W ] .

Click on the Q U A N T I T Y link in the column within 2 weeks for item BOX.

For which type of transactions is the quantity of 100 needed?

Close this screen and stay on the MRP overview.

Why do you not see any quantities for the CHANDELIERBOX?

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13 Multi-level BOM
13.1 Introduction
Products like machines, electronic devices and many consumer products including food are produced from
semi-finished products or subassemblies. If the (finished) product is an agricultural machine, subassemblies
may be the hydraulic system and the gear box. Even the hydraulic system may itself be composed out of
subassemblies, like a hydraulic pump. In the food industry, we produce tanks full of ketchup as a semifinished product used to produce (cartons with) ketchup bottles.
The above products are constructed from multi-level bills-of-material. On the highest level we have the
finished product with a BOM, but for the hydraulic system we have an underlying BOM.
A multi-level bill of materials shows parent-child relationship and the structure of manufactured items and
their related parts and components.

13.2 Multi-level BOM in Exact Online


In Exact Online the multi-level bill of materials can be created by creating separate bills of materials for the
finished product and the semi-finished products or subassemblies. For example at Unique lamps there is an
item floorlamp that consists of a base, stem and lampshade. The item lampshade is produced from a metal
frame and lace. In Exact Online bills of materials are created for item FLOORLAMP as well as for item
LAMPSHADE.
The bill of materials of the FLOORLAMP contains the following materials:

The LAMPSHADE has the following bill of materials:

13.2.1 Indented bill of materials


Exact Online offers an indented view of bill of materials. The indented bill of materials shows the structure
of a multi-level bill of materials in a tabulated format; a tree structure indenting each subordinate level
from its parent.
13.2.1.1 Item master bill of materials tab
The indented bill of materials is shown on the B I L L O F M A T E R I AL S tab in the item card.

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The indented bill of materials shows you all items used to produce the manufactured item. The quantities
are shown required to produce its immediate parent, and quantities are shown to produce the batch
quantity of the main parent.
13.2.1.2 Indented bill of materials report
Via the R E P O R T link in the screen above, you go to the I ND E NT E D B I L L O F M AT E R I AL S report, which
can also be found via M A N U F A C T U R I N G / R E P O R T S / I N D E NT E D B I L L O F M AT E R I AL S .

This report displays the quantities in stock and allows to enter an order quantity of choice. This way, the
report serves as a manufacturing capability report that gives insight in whether sufficient material is
available (or expected) to produce the required quantity of product. The report can act as a planning tool
to manage your manufacturing production per item. The report can be viewed on screen, printed or
exported to Excel.

13.2.2 Where-used
Instead of having an overview on how a finished item is composed, manufacturers also want to see in
which item a certain part is used. For example when parts become obsolete and need to be replaced in the
bills of materials where they are used. On the item card in the W H E R E - U SE D tab you can find an overview
of this.

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This overview is available for the basic and advanced solution of Exact Online Manufacturing. When the
item is used in a bill of materials, the first five parent items are shown and the properties of the applicable
bill of materials version.
When the SH O W A L L link is selected, you will be navigated to the W H E R E - U SE D report. This can also be
found via M A N U F A C T U R I N G / R E P O R T S / W H E R E - U SE D . This report shows the parent items in which an
item is used, it can be filtered on BOM version date and BOM version status and it can be printed or
exported to excel.

13.3 Working with multi-level bills of materials


13.3.1 Create suborders
When the bills of materials are created for the parent item and subassemblies they can be used in shop
orders. When a shop order is created for the parent item the option C R E AT E S U B O R D E R S can be enabled
to generate the shop order(s) for the subassemblies. It is possible the subassemblies are already
manufactured and there is enough stock, in that case you do not want to enable this option.

When the option C R E A T E S U B O R D E R S is not enabled in the shop order of the parent item, you can also
select the C R E A T E S U B O R D E R S button in the shop order card.
To use the option C R E A T E S U B O R D E R S in the shop order, the property O R D E R C O N T R O L L E D
has to be enabled in the subassembly item.

13.3.2 Shop order structure


On the shop order card in the S H O P O R D E R S T R U C T U R E tab, you can see all related shop orders and
their levels.

The components of the shop order are displayed in a nested list. This enables you to see the main shop
order and any suborders associates with it.

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13.3.3 Issue to parent


Usually the suborder is manufactured before the parent shop order. When the items of the suborder are
manufactured, the components can be used to build the items on the parent shop order. You can finish the
items of the suborder and issue the completed component to the parent shop order in one go using the
I S SU E T O P A R E N T button.

When items are issued to the parent shop order the following journal entry is created:
General ledger

Shop order

Item

Debit

Work in progress

Parent shop order

Subassembly item

Work in progress

Suborder

Subassembly item

Credit

When the quantity of the suborder exceeds the quantity needed in the parent shop order, you can put the
additional items in stock.

13.3.4 Unlink a suborder from a parent shop orders


The parent shop order and suborder are linked. This also means that some fields in the suborder, such as
the P L A N N E D D A T E , cannot be changed, they are linked to the parent shop order.

When your manufacturing needs to change you can unlink a suborder from a parent shop order. You can
do this if, for example, when your customer cancels an order and you no longer need to complete the
parent shop order, but you want to manufacture the items on the suborder for future use.
The suborder can be unlinked from the shop order card using the U NL I NK S U B O R D E R button.

The suborder is unlinked from the parent shop order and is a main shop order now. It is now possible to
adjust fields, such as the P L A N N E D D A T E .

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The suborder cannot be unlinked after items are issued to the parent shop order.

13.4 Circular bill of materials


A circular bill of materials reflects an item that is defined as a component of itself. A circular bill of
materials for item FLOORLAMP appears as: FLOORLAMP -> LAMPSHADE -> LACE -> FLOORLAMP. The item
FLOORLAMP is listed as a component of the bill of materials of the item LACE, which is a component of the
bill of materials of the item FLOORLAMP.
Exact Online is unable to perform cost roll up (see chapter 14) and planning calculations when a circular bill
of materials exist.
When an item is added as a component to a bill of materials, which will cause a circular bill of materials, a
warning appears.

This can be resolved by removing the item from this bill of materials.
To see if circular bills of materials exist in the company, you can perform a consistency check bill of
materials, this can be found via C O M P AN Y N AM E / M AS T E R D AT A / D A T A M A NA G E M E NT /
C O N SI ST E N C Y C H E C K / M A N U F A C T U R I NG T AB . This will check if an item appears as a component of a

bill of materials or as a component of a child bill of materials.

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Multi-level BOM
The chandeliers sell very good, so Unique lamps has designed another one.

This chandeliers consists of 1 chain, 1 base, 6 arms and 6 lamps. The lamps of this chandelier
consist of a lamp and a lampshade.
CHANDELIER2:
CHAIN

BASE

ARM

LAMPB

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LAMPB:
LAMPSHADE

LAMP1

LAMPB consists of 1 LAMP1 and 1 LAMPSHADE. The LAMP1 and LAMPSHADE are assembled,
this takes 2 minute per LAMPB.

Create item LAMPB, link item group 1, enable the options S T O C K , O R D E R C O NT R O L L E D


and M A K E . Link the LAMP1 to warehouse 1 and location 1-01-01-B.

Create the bill of materials of LAMPB, enter the routing and materials as described above.

What is the cost price of the BOM of LAMPB?

Update the cost price with the calculated cost price.

Create item CHANDELIER2, link item group 1, enable the options S AL E S, S T O C K and
M A K E . Link the CHANDELIER2 to warehouse 1 and location 1-03-01-B.

One CHANDELIER2 consists of 1 chain, 1 base, 6 arms and 6 X LAMPB.


When the CHANDELIER2 is manufactured first the arms and chain are welded to the base,
this takes 2 minutes per chandelier. Next the lamps are assembled to the arms, this takes 4
minute per chandelier.

Create the bill of materials of CHANDELIER2 as described above.

What is the calculated cost price of CHANDELIER2?

Check the B I L L O F M A T E R I A L S tab to see the Indented bill of materials.

Do you see multiple levels of the bill of material?

Select the R E P O R T link and in the I N D E N T E D B I L L O F M A T E R I AL S overview enter a


batch quantity of 100 pieces and see if you have enough stock to produce this. (You do not
have to create an actual shop order)

Shop order for multi-level BOM


Nick Young wants to produce a few chandeliers on stock.

Enter a shop order for the CHANDELIER2 for 10 pieces. Enable the option C R E AT E
SU B O R D E R S.

Are the suborders created?

Open the shop order for the CHANDELIER2.

Check out the S H O P O R D E R ST R U C T U R E tab.

What do you see here?

Open the shop order for the LAMPB and edit it.

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Can you adjust the planned date?

Issue the materials for this shop order, assign a batch to item LAMP1.

In the shop order of LAMPB select ISSUE TO PARENT.

Which journal entry is created?

Open the shop order for LAMPB.

Why do you not have the option U NL I NK SU B O R D E R ?

Open the shop order for the CHANDELIER2 and finish it. Put all chandeliers in stock.

Create a warehouse transfer for CHANDELIER2 from WH 1 location 1-03-01-B to WH 2.

Circular BOM

Open item LAMPB and edit the bill of materials. Add item CHANDELIER2 to the bill of
materials.

What message do you get? Why is this?

Do not save the changed bill of materials.

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14 Cost roll up
14.1 Introduction
When a bill of materials is created for a finished good, you can update the cost price of the finished good
with the calculated cost price of the bill of materials. The cost prices of the raw materials may change in
time; the cost price of the finished good is then not up to date anymore. Therefor it is advisable to do a
cost roll up from time to time. Another reason to do this, is to see the effect of upcoming price changes of
the raw materials or the operations (for example labour).
When purchase prices of materials change, or when labour or machine rates get adjusted to new values,
this should become reflected in the cost prices of manufactured products. Currently we will have to
navigate to the BOM materials or BOM routing where those materials or rates are used and save the new
values. This is of course a lot of work and not efficient. When we are working with subassemblies, it is
required to recalculate cost prices of components before we recalculate the cost prices of parts that
require those components. To make the process easier and more efficient, you can use the cost price roll
up functionality in Exact Online Manufacturing Advanced.

14.2 Cost roll up in Exact Online


A cost roll up calculates the standard cost of an item or group of items based on the bill of materials and
routing steps. You can create and run scenarios to see how different prices and other choices affect your
manufacturing costs. You can also update inventory prices to reflect the cost roll up scenario results.
A cost roll up uses all of the materials in your multi-level bill of materials to calculate the most accurate
cost of an item. Exact Online starts at the bottom, or the lowest level, of the bill of materials structure, and
moves up the levels. Each calculated cost level adds to the next, until the top item is reached.
The first step in the cost roll up process is to create a cost roll up scenario. In the scenario, you define how
the cost price will change, you can define a percentage or amount increase for materials and operations.
You can then run the scenario, and apply the cost changes to the item if you are happy with the results.

14.2.1 Roles
In order to create and run a cost roll up scenario, you must have the M A I N T AI N C O ST R O L L U P
SC E N A R I O S role enabled. To update inventory prices, you must also have the M AN AG E I N V E NT O R Y
M E T H O D role enabled.

14.2.2 Create cost roll up scenarios


You can create a scenario to recalculate our product cost prices based on current purchase prices of
materials, a scenario to update cost prices in case our labour rates have changed, or to calculate the cost
price of a single, customized make item that has just been designed. You can also create a scenario based
on the purchase prices of the materials plus 10%, to see what will happen if the purchase prices of the
materials increase.

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A cost roll up scenario can be created in Exact Online via the menu path [ M A NU F AC T U R I N G / C O S T
R O L L U P / C R E A T E ] . Here you can enter the set of rules that will be applied to the cost roll up.

In the scenario you can define to which items to apply the calculation (item, item group, assortments), and
which rules you will apply to calculate the price. You can also choose to limit the roll up to items that are
order controlled. When the option E X P L O D E O R D E R - C O NT R O L L E D I T E M S O N L Y is selected, the cost
roll up scenario ignores items defined as stock controlled. This will benefit assemble-to-order
manufacturers that do want to calculate the cost price of a customized product, but do not want to change
the cost prices of standard subassemblies.
In the L A B O R R A T E O P T I O N S section you can enter an amount or percentage based on which the labor
rate will change. This can be a positive (increase) or negative (decrease) change.
In the M A T E R I A L R A T E O P T I O N S section you can enter a percentage based on which the material rate
will change. This percentage will be applied on the cost specified in the SO U R C E field. In the SO U R C E field
you can select standard, last purchased, shortest lead time, primary supplier or lowest purchase price:

Standard: the items standard cost, the cost price.


Last purchased: purchase price used the last time you purchased the item.
Primary vendor: the purchase price of the main supplier of the item.
Shortest lead time: purchase price from the supplier with the shortest lead time.
Cheapest: the lowest price across the items suppliers.

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In the M A K E / B U Y field you can indicate which cost the scenario has to use if the item is both a make and
purchase item.
Lets have a look at the FLOORLAMP that Unique Lamps manufacturers. This lamps has a multi-level bill of
materials.

There is also labour involved, but for this example only the cost price of the materials will be considered.
When the cost prices of METALFRAME and LACE both increase with 0.10, this will only affect the cost
price of the FLOORLAMP when the cost price of the LAMPSHADEX and the cost price of the FLOORLAMP
are recalculated manually. It is easier and more efficient to create a cost roll up scenario for this.

In this case no amounts or percentages are entered in the L A B O U R R A T E O P T I O N S and M AT E R I AL S


R A T E O P T I O N S sections, because we just want to update the cost price of the FLOORLAMP based on the

cost price of the materials, not with an extra percentage or amount.

14.2.1 Running a scenario


When you run a particular cost roll up scenario, the cost prices of the lowest level assembly will be
calculated first. The process will continue with the next deepest level all the way up to the finished
product. To run a cost roll up scenario go to [ M AN U F AC T U R I N G / C O S T R O L L U P / M AI NT E N ANC E ] ,
open the scenario and select the R U N button.

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When the cost roll up is finished, you can select V I E W R E S U L T to view the results.

The result of the scenario run is presented in an overview where you can view for each item the current
cost price and the new cost price. For make items, this cost price is immediately applied to the calculated
cost price of the (active) BOM version, for buy items the new cost price is presented merely as the basis
where the cost rollup has been based on.
Here you see the result of the increase of the cost prices of the raw materials: the cost price of the
FLOORLAMP will increase with 0.20.

14.2.1 Update inventory prices


In the overview the results of the cost roll up scenario were presented. When you are satisfied with the
results, you can select the items and the U P D A T E I NV E N T O R Y button to update the items with the new
cost price and to update the inventory. This will adjust the cost prices on the item card, both for make and
for buy items, with the new cost price.

Cost roll up
The purchase price of the lampshade and the arm have increased and therefor also the cost prices need to
be adjusted. The purchase price of the LAMPSHADE has increased with 0.40 and costs now 5.40. The
purchase price of the ARM has increased with 0.60 and costs now 6.60. Nick Young wants to know what
the effect is on the cost price of the CHANDELIER2.

Update the purchase price and cost price of the LAMPSHADE to 5.40. Also do the stock
revaluation. (In the G E N E R A L tab of the item, select the S T O C K R E V AL U AT I O N link and
perform the revaluation).

When you go to LAMPB, has the calculated cost price changed?

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?
?

And the cost price of LAMPB?

Update the purchase price and cost price of the ARM to 1.60. Also do the stock

And the calculated cost price of the CHANDELIER2, has this changed?

revaluation. (In the G E N E R A L tab of the item, select the S T O C K R E V AL U AT I O N link and
perform the revaluation)
To update the cost price of the LAMPB and CHANDELIER2 you can manually update the cost price
with the calculated cost price manually, but it is easier and more efficient to use the cost roll up
functionality for this.

Check out the item card of the CHANDELIER2, have the calculated cost price and the cost
price changed?

Create a cost roll up scenario for item group 1. The cost price needs to be adjusted
according to the cost price of the raw materials.

Save the cost roll up scenario and select the R U N button and view the results.

What is the new cost price?

Select the lines for item CHANDELIER2 and LAMPB and U P D AT E I NV E NT O R Y .

?
?

What is now the calculated cost price of the CHANDELIER2? And the cost price?
And what are the calculated cost price and the cost price for LAMPB?

Cost roll up
Nick Young has heard that the purchase prices of the raw materials may increase in a few
months. He wants to know what the effect will be on the FLOORLAMP1.

Create a cost roll up scenario to calculate the effect of an increase of the materials of 10%.

Run the cost roll up.

What will the new cost price of the FLOORLAMP1 be?

Since Nick only wanted to know what the effect will be, you do not have to update the
inventory.

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15 Assignment keys
Assignment 1 Setup database
Item group 3: if general ledger 51006 is not displayed in the screen to select the
stock / cost ledger, then empty the T Y P E field and refresh the screen.

Assignment 2 Production area, work centres and operations

Assignment 3 Item Bill of materials


Question: Materials:

Question: Routing:

Exact Online Manufacturing 98

For melt the defaults can be saved (see picture above), for assemble the run time has to be
set to 3:

Question: What is the C A L C U L A T E D C O ST P R I C E of the FLOORLAMP1?


8.72

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Assignment 4 Item Bill of materials


Materials are the same as for FLOORLAMP1
Routing

Melt and Assemble are the same as for the FLOORLAMP1, PAINT is extra.
Question: Can you explain the cost price of the FLOORLAMP2?

The cost price is calculated based on materials and the operations. Since the
PAINT has a minimum charge of 10.00, the cost price is 8.72 (same as
FLOORLAMP1) plus 10.00 for 1 piece and for 2 pieces. When the quantity is
higher (from 3 pieces on, the costs for PAINT will be 4.00 per unit)

Assignment 5 Shop order Demand planning


Question: For how many make items is a shop order created?
A shop order is created for 60 lamps

Question: What is the planned date? And what triggers this?


The status of the created shop order is O P E N .

Question: Check the shop order card. What is the status of the shop order?

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The planned date is 1 day from now (or more if there is a weekend in between).
This is triggered by the lead time in the BOM.

Assignment 6 Shop order Demand planning link of Sales orders


Question: What is the planned date for the Shop Order that was just created?
The planned date for this shop order is based on the delivery date of the linked
sales order and is two weeks from todays date.
Question: Is there a Sales Order linked to the Shop Order?
The sales order for Cuppa Coffee is automatically linked to this sales order.

Assignment 7 Shop Floor Planning


Question: How much production time do you think is available per day?
There are 8 hours of production time available per day. This comes from the shift
duration in the manufacturing settings.

Assignment 8 Print Shop paper


Question: What is the status of shop order 20000001?
When the option R E L E A SE S H O P O R D E R is enabled the status of the shop order
20000001 will be changed to R E L E A SE D .

Assignment 9 Issue raw materials


Question: Which journal entry is created for the issue of the raw materials?

Debit
15205

Stock raw materials

BASE

19010

Work in progress

BASE

15025

Stock raw materials

STEM

Credit
120

120
60

Exact Online Manufacturing 101

19010

Work in progress

STEM

15025

Stock raw materials

LAMPSHADE

19010

Work in progress

LAMPSHADE

60
300

300

Question: What is the status of the shop order?


The status of the shop order is I N P R O G R E S S .

Assignment 10 Enter realized time

Question: What do the colors mean?


The color green for the operation MELT means that we are running the operation
within the estimated time expected.
The red color for the operation ASSEMBLE means that the job is running slower
than the estimated time expected.

Question: Are you still on schedule with this shop order?


The shop order is no longer running on schedule. The planned hours for this shop
order was 5.08 hours and the current actual hours is 5.58 hours.

Question: Which journal entries are created for the time entries?
The following entries are created for the time entries:

Debit

Credit

19010

Work in progress

MELT

0.42

64010

Labour applied

MELT

0.17

64020

General

burden

MELT

0.12

burden

MELT

0.08

applied
64030

Machine
applied

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64040

Labour

burden

MELT

0.04

applied

19010

Work in progress

MELT

64010

Labour applied

MELT

64020

General

burden

MELT

burden

MELT

applied
64030

Machine
applied

64040

Labour applied

MELT

19010

Work in progress

ASSEMBLE

64010

Labour applied

ASSEMBLE

5.25

64020

General

burden

ASSEMBLE

1.75

burden

ASSEMBLE

0.70

burden

ASSEMBLE

3.50

11.20

applied
64030

Machine
applied

64040

Labour
applied

Question: What is the status of the shop order?


The status of the shop order is FI NI S H E D after you have finished the shop order.

Question: Check the item transaction list. Is the stock updated?


The stock for the FLOORLAMP is 60 according to the transaction list.

Question: Which journal entry is created?


The following journal entry is created for the receipt of the FLOORLAMP1:

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Debit
15210

Stock

finished

FLOORLAMP1

Credit

523.20

goods
19010

Work in progress

FLOORLAMP1

523.20

Question: Complete the shop order. What happens?


When the shop order is completed the status will change to completed. The shop
order cannot be adjusted anymore. There is also a journal entry created to make
sure that the balance on the GL Work in progress is set to 0.

Question: Which journal entry is created?


The following journal entry is created when the shop order is completed:
Debit
65000

Manufacturing

13900009

Credit
23.58

variance
19010

Work in progress

13900009

23.58

Assignment 11 Shop order subcontracts


Question: Which item is used in the purchase order?
After generating a subcontract, the item in the purchase order is the item that was
automatically created when you created the Operation Paint in assignment 2. This
is the item PAINT.
Question: Why is there a D E L I V E R Y NO T E button in the purchase order?
The D E L I V E R Y N O T E button in the Purchase order can be used to send a delivery
note to your supplier that contains information on the shop order, the operation
that needs to be executed and the item that you will send to them. (Keep in
mind this is the make item, and not the individual raw materials.)

Question: Which entry is created for the receipt of the PAINT operation?
The following entry is created when you receive the subcontracted work back
from the supplier:

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Debit
51006

Cost of subcontracting

PAINT

19010

Work in progress

PAINT

Credit
120

120

Question: Check the R O U T I N G section on the shop order card. Is the operation on time?
The operation is O N SC H E D U L E .

Question: What do you need to do before you can complete the shop order?
You should first receive the purchase invoice for the subcontracted work, before
you can complete the shop order.

Assignment 12 Backflush
Question: Check the transaction list [ P U R C H A SE , I N V E NT O R Y , T R A N S AC T I O N L I ST ] of
item FLOORLAMP1BF, is the stock updated?
After finishing the shop order for the FLOORLAMP1BF the transaction list shows a
stock receipt of 20 lamps.

Question: Check the transaction list of item BASE, is the stock updated (reduced with 20
bases)?
After finishing the shop order for the FLOORLAMP1BF the transaction list shows
that the stock of the raw material BASE is reduced with 20 pieces.

Question: Are there also entries created for the performed operations?
The time entries are automatically registered for the operations that are linked to
the BOM. If you do not see any entries in the overview make sure the option
E N T R I E S is set to B O T H in the overview

Assignment 13 Quotation
Question: What are the cost prices for the different quantities?
The cost prices for the different quantities are: (this can be calculated by dividing
the amount in the T O T AL C O ST column by the quantites)

Qty 1: 8.77 ( 8.77/1)

Qty 5: 8.63 ( 43.17/5)

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Qty 50 : 8.60 ( 430.17/50)

Question: What are the calculated prices?


The calculated (sales) prices for the different quantities are:

Qty 1: 11.40

Qty 2: 9.53

Qty 3: 8.60

Question: Which prices are shown on the quotation?


The quotation shows the prices for all three quantities that you have calculated in
the quote. However only for the selected quantity of 50 the total amount is
shown.

Assignment 14 Sales order and shop order


Question: Is there a Bill of Materials linked to the item TABLELAMP1?
There is no Bill of materials linked to the TABLELAMP1. This is because this item is
specifically created for this customer.

Assignment 15 Materials
Question: Can you see if the raw materials are issued?
The raw materials that you have purchased and received from your suppliers
where automatically issued for this shop order and not put on stock.

Assignment 16 Time entry


Question: Which journal entries are created for the time entry?
The following journal entries are created for the time entries
19010

Work in progress

MELT

64010

Labour applied

MELT

4.17

64020

General

MELT

6.25

applied

burden

16.68

Exact Online Manufacturing 106

64030

Machine

burden

MELT

4.17

2.09

applied
64040

Labour applied

MELT

19010

Work in progress

MELT

64010

Labour applied

MELT

0.16

64020

General

burden

MELT

0.12

burden

MELT

0.08

0.04

0.40

applied
64030

Machine
applied

64040

Labour applied

MELT

19010

Work in progress

ASSEMBLE

64010

Labour applied

ASSEMBLE

6.45

64020

General

burden

ASSEMBLE

2.15

burden

ASSEMBLE

0.86

ASSEMBLE

4.30

13.76

applied
64030

Machine
applied

64040

Labour applied

Exact Online Manufacturing 107

Assignment 17 Finish
Question: Which entry is created for finishing the item?
The following entry is created when the shop order is finished:
15210

Finished Goods Stock

TABLELAMP1

19010

Work in progress

TABLELAMP1

430.00
430.00

Question: Which entry is created for the delivery of the Sales Order?
The following entry is created when the sales order fulfilled:
15210

Finished Goods Stock

TABLELAMP1

51000

Product Cost of Sales

TABLELAMP1

430.00
430.00

You can find this journal entry among others via [ S AL E S, G O O D S D E L I V E R I E S , H I ST O R Y ] : select the link
in the E N T R Y N O . column to view the journal entry.

Assignment 18 Change sales order


Question: What is the P L A N N E D D A T E ?
The P L A N N E D D A T E for the shop order is the current date.

Question: Check the shop order, what is the P L A NNE D D AT E now?


The P L A N N E D D A T E of the shop order is adjusted (two weeks from today) when
the delivery date in the sales order was changed.

Assignment 19 Issue less than expected


Question: How many BASES are delivered?
In the I S SU E D section of the shop order you will now see that there was 1 BASE
returned to stock. The quantity issued that is left is 9 pieces.

Question: Is a financial entry created for the return of the raw material?
There is also an entry created for the return to stock:

Exact Online Manufacturing 108

Debit
15205

Stock raw materials

BASE

19010

Work in progress

BASE

Credit

2.00
2.00

Assignment 20 Transactions overview


Question: What does this overview show?
The manufacturing cards show all financial entries for this shop order.

Assignment 21 Cost overview


Question: Is there a difference and where does this come from?
Yes there is a difference between the AC T U AL : T O T AL C O ST and P L A N NE D :
T O T A L C O S T . The P L A N NE D : T O T AL C O S T column is based on the cost price

of the item and the quantities from the shop order (the quantities that are
planned). The A C T U A L : T O T AL C O ST column is based on the actual prices
(from the purchase order) and actual quantities (from the receipt and time
entries) that are used.

Assignment 22 Warehouses
Question:

Try to link item LAMPSHADE also to 1-01-01-B. Is this possible?


You get a message: Data already exists, you can link an item to multiple
warehouses, but within one warehouse you can link an item only to one location.

Assignment 23 Shop order


Question:

Which warehouse is used in the shop order? Why?


Warehouse 1, this is the main warehouse.

Question:

Which storage location is used for the shop order?


Storage location 1-03-01-A. This is the location that is linked to the finished item.

Exact Online Manufacturing 109

Question:

Can you select a warehouse when you issue the materials?


When you issue the materials you cannot select or change the warehouse.

Question:

Which warehouse is used for the issued materials? (Check the inventory list of
one of the items to see the warehouse used.
Warehouse 1

Question:

Which location is used for the FLOORLAMP1? (Check the stock positions
overview)
Location 1-03-01-A, the location of warehouse 1 that is linked to the item.

Question:

Which warehouse is now used for the issued materials? (Check the inventory list
of one of the raw materials. Is this the main warehouse or the warehouse linked
to the shop order?
Warehouse 2 is used when the materials are issued. This is the warehouse linked
to the shop order.

Assignment 24. Serial/batch


Materials

Exact Online Manufacturing 110

Routing

Question:

What is the calculated cost price of one chandelier?


The calculated cost price of one chandelier is 20.54.

Assignment 27. Tracking & Tracing


Question:

Where can Nick see which other serial numbers were manufactured in this shop
order?
In the [ I N V E N T O R Y , SE R I A L N U M B E R S, T R A N SAC T I O N S ] overview when
Nick clicks on the SH O P O R D E R R E C E I P T link he can see the details of the shop
order receipt. When he clicks on the SE R I AL NU M B E R link he can see the serial
numbers from that shop order.

Question:

In which sales order for which customer are these serial numbers used?
The sales order for Cuppa Coffee.

Assignment 28. Assembly


The Bill of Materials for the LAMPBOX:

Exact Online Manufacturing 111

Assignment 29. Assembly order


Question: Can you see that the remaining 4 lampboxes that need to be finished?
Yes, there is a quantity of 4 in the P L A NNE D I N column, this is what still needs to
be assembled.

Question: How many assemble numbers and assemble orders number are there for this
order?
There are 2 assembly numbers and there is 1 assembly order number.

Exact Online Manufacturing 112

Assignemt 30. Assembly at delivery


Question: What is the P L A N N E D I N and P L A NNE D O U T stock for the CHANDELIERBOX?
Both the planned in and planned out quantity of the CHANDELIERBOX are 2.

Question: What is the P L A N N E D O U T stock for the CHANDELIER1 in warehouse 1?


The planned out quantity for the CHANDELIER1 in warehouse 1 is 2.

Question: Sales order delivery


In the sales order you can enter the serial number for the CHANDELIERBOX in the serial number
field and for the CHANDELIER1 via the magnifying glass under parts.

Assignment 31. Sales margin report


Question: For which item is the sales delivery created?
For the LAMPBOX, the finished item.
Question: For which item(s) is the delivery created?

Exact Online Manufacturing 113

For the LAMP, BOX and CHANDELIER1, for the parts of the finished item.

Assignment 32. MRP


Question: In the projected balance line do you see the quantity change in time?
Yes you see the quantity decrease 100 in two weeks.
Question: For which type of transactions is the quantity of 100 needed?
For sales order and assembly order.
Question: Why do you not see any quantities for the CHANDELIERBOX?
There is a sales order, so planned out is 100, but also this quantity is assembled,
so planned in is also 100. The balance of this is 0.

Assignment 33. Multi level BOM


Question: Create the bill of materials of LAMPB, enter the routing and materials as described
above.
The BOM of the LAMPB:
Routing:

Exact Online Manufacturing 114

Materials:

Question: What is the cost price of the BOM of LAMPB?


6.36.
Question: Create the BOM of CHANDELIER2.
The BOM of CHANDELIER2:
Materials:

Exact Online Manufacturing 115

Routing:

Question: What is the calculated cost price of CHANDELIER2?


The calculated cost price is 46.94.
Question: Do you see multiple levels of the bill of material?
Yes, you can see level 1, which are the components of the CHANDELIER2 and level
2 are the components of LAMPB:

Assignment 34. Shop order for multi level BOM


Question: Are the suborders created?
Yes and if they are not created, open the item LAMPB and enable the option
ORDER CONTROLLED and enter the shop order again.
Question: What do you see here?

Exact Online Manufacturing 116

On the shop order card in the shop order structure tab you can see all related
shop orders and their levels.
Question: Can you adjust the planned date?
You cannot adjust the date since the shop order is linked to a parent shop order.
Question: Which journal entry is created?
The following entry is created:
General ledger

Shop order

Item

Debit

19010 Work in progress

Parent shop order

LAMPB

381.40

19010 Work in progress

Suborder

LAMPB

Credit

381.40

Question: Why do you not have the option U NL I NK SU B O R D E R ?


Because the items have already been issued to the parent shop order.

Assignment 35. Circular BOM


Question: What message do you get? Why is this?
You get the following message, because if you link the chandelier2 it will become
a circular bill of materials, which will cause inconsistencies and Exact Online is
unable to perform cost roll up and planning calculations when a circular bill of
materials exist.

Exact Online Manufacturing 117

Assignment 36. Cost price roll up


Question: When you go to LAMPB, has the calculated cost price changed?
Yes, the calculated cost price of LAMPB is now 6.76
Question: And the cost price of LAMPB?
The cost price of LAMPB is still 6.36, you do not have to adjust this!
Question: And the calculated cost price of the CHANDELIER2, has this changed?
No this has not changed.
Question: Check out the item card of the CHANDELIER2, have the calculated cost price and
the cost price changed?
The calculated cost price is changed for the CHANDELIER2, the cost price is not
changed.
Question: Create a cost roll up scenario for the chandelier2. The cost price needs to be
adjusted according to the cost price of the raw materials.
The cost roll up scenario looks like this.

Question: What is the new cost price?


When you view the results of the cost roll up scenario, the new cost price is
52.94.

Exact Online Manufacturing 118

Question: What is now the cost price of the CHANDELIER2?


The calculated cost price and the cost price of the CHANDELIER2 are now 52.94.
Question: And what are the calculated cost price and the cost price for LAMPB?
Both are now 6.76.

Assignment 37
Question: Create a cost roll up scenario to calculate the effect of an increase of the materials
of 10%.
The cost roll up scenario should look like this:

Exact Online Manufacturing 119

Question: What will the new cost price of the FLOORLAMP1 be?
The new cost price will be 9.96

Exact Online Manufacturing 120

Appendix A. Assembly orders and shop orders in Exact Online


We can produce parts with Exact Online Manufacturing Basic shop orders and with Exact Online Wholesale
Distribution Advanced assembly orders. Exact Online Manufacturing Advanced contains both shop orders
and assembly orders. What are the differences?
Exact Online Manufacturing

Exact Online Wholesale Distr.

Exact Online Wholesale Dist.

Shop orders

Assembly orders

Assemble at delivery option

Manufacturing based on a BOM and

Light manufacturing based on a BOM

Kitting based on a BOM.

routing. Record actual issue/receipt

without

and actual hours.

backflushed on receipt of product.

Shop

companies

companies

core

more

distribution as core activity. A non-

distribution as core activity. Instead

possibilities with shop orders than

core activity is light assembly or

of building a part out of components

with assembly orders, but it is also

repacking.

we

There

in

are

setup

for

is

companies with manufacturing as

complex

designed

issue

Assemble at delivery is designed for

activity.

are

The

Assembly orders are designed for

more

orders

routing.

with

wholesale

or

and

only

with

deliver

wholesale

the

set

or

of

components. This process is also

processes.

known as kitting.

To a make item we may assign

We can assign a single assembly (bill

We can assign a single assembly (bill

multiple versions of the bill of

of materials) to a make item.

of materials) to a make item.

The assembly (bill of materials) only

The assembly (bill of materials) only

consists of materials.

consists of materials.

When maintaining the materials in

When maintaining the materials in

When maintaining the materials in

the bill of materials we have to enter

the assembly (bill of materials) we

the assembly (bill of materials) we

the item code and a quantity. We can

have to enter the item code and the

have to enter the item code and the

also create an alternative article

quantity.

quantity.

There are no operations.

There are no operations.

materials. There is a difference


between the actual version, a historic
version and versions under change
management.
The

bill

materials

of

materials

contains

(components)

and/or

operations.

description, a drawing number and a


cost center / cost unit.
When maintaining the operations in
the bill of materials we have to enter
the operation code, a resource
(machine), the duration (setup and
run time) and details about the
attendance and efficiency of the

Exact Online Manufacturing 121


machine. Hourly rates are defined for
the various operations.
We can also assign operations to an

There is no subcontracted work.

There is no subcontracted work.

with

Material usage is always backflushed.

The material usage is reported

operations we can choose to report

That means automatically, based on

automatically during the delivery

actual usage or to backflush (report

the assembly (bill of materials), at the

process.

automatically the usage based on the

moment of the receipt of the

bill of materials).

assembled part.

We can create a shop order manually

We can create an assembly order

There are no assembly orders or shop

based on a pre-defined bill of

manually based on a pre-defined bill

orders.

materials.

of materials.

We may generate shop orders based

We may generate assembly orders

There are no assembly orders or shop

on the stock positions.

based on the stock positions.

orders.

We may generate shop orders from

There

(accepted) quotations. The details of

quotation

the quotation calculated, such as

assemblies on the fly.

outside supplier (subcontractor). For


this purpose, we link a supplier and
define the rate.
Both

with

materials

and

materials and operations, are used in


the creation of the shop order, even
when there is no pre-defined bill of
materials.

is

no

possibility

process

to

in

the

calculate

There

is

quotation

no

possibility

process

assemblies on the fly.

to

in

the

calculate

Exact Online Manufacturing 122

Exact Online Manufacturing

Exact Online Wholesale Distr.

Exact Online Wholesale Dist.

Shop orders

Assembly orders

Assemble at delivery option

The materials in a bill of materials or

There are no dimensional materials.

There are no dimensional materials.

We can print a shop paper for the

We can print an assembly order

For a sales order containing an

shop order.

(paper) for the assembly order

assembly at delivery item we can

quotation

calculation

may

be

dimensional. We could then calculate


based on the required sizes how
many pieces of material (sheet, bar,
coil) we will need.

print a picking list and a delivery


note.
Purchase advice can be generated

No purchase orders can be linked to

To a sales order we can always link

from a shop order. The purchase

assembly orders.

purchase orders, regardless if this

orders will then be linked to the shop

sales order contains assembly at

order and the applied purchase

delivery items.

prices are used in the costing reports.


Each operation in a shop order can

We can assign a single assembly date

be planned to a date using the plan

to an assembly order.

There is only a planned delivery date.

board.
We have the choice to manually

Material

usage

is

automatically

report material usage.

reported at the receipt of the

The delivery of materials is always


reported manually.

assembled part.
At the receipt of the manufactured

The received part is always put in

No

assembled

part

is

actually

part we can choose to deliver (to the

stock.

received or delivered.

The usage of materials and reported

The usage of materials on an

Materials

time on a shop order, but also the

assembly order is financially reported

assemble at delivery are realised

receipt of the manufactured part, is

against the receipt of the assembled

against cost of goods sold.

financially reported on a balance

part. Any difference between the two

sheet account for work in process.

is

customer), stage for delivery or to


put in stock.

immediately

realised

on

the

general ledger account for assembly


orders differences.

fulfilled

using

the

Exact Online Manufacturing 123

During completion of a shop order,

During completion of the assembly

During completion of the sales order

any balance on the work in process

order

are unrealised planned materials and

account linked to that shop order is

materials

transferred to the manufacturing

removed from the planning.

are

unrealised
and

planned

assembled

parts

parts removed from the planning.

variance account. Unrealised planned


materials,

hours

and

parts

are

removed from the planning.


Various reports are available to

There are no reports on calculation

There are no reports on calculation

analyse the differences between

and costing.

and costing.

Exact Online Manufacturing Basic

Assembled parts defined as serial or

During the delivery process we

does not support the use of serial

batch should be assigned a serial or

should link serial and/or batch

numbers and batch numbers.

batch number on receipt. For each

numbers to each component defined

reported serial or batch receipt, serial

as serial or batch.

calculation and costing.

and/or

batch

numbers

of

the

reported materials should be linked.


Exact

Online

Advanced

Manufacturing
supports

Online

Manufacturing

Exact

Online

Advanced

manufacturing of serial and batch

orders.

as

assemble at delivery option. All

parts.

as

serial/batch are reported against

delivered components should be

serial/batch are reported against the

each individual receipt of a serial or

linked to serial and batch numbers

shop order and not against an

batch number.

where applicable.

For assembly orders, suborders are

Suborders are not relevant for the

not supported.

assemble at delivery option.

defined

Materials

defined

supports

Manufacturing

Advanced supports also assembly

Materials

the

Exact

also

the

individual received serial or batch


number.
Exact

online

Manufacturing

Advanced supports the automatic


generation of suborders for multilevel BOMs