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How to buy lumber and use in BOM's

Printed From: Almyta Systems
Category: Almyta Control System (ACS) and ABC Inventory
Forum Name: Inventory Control
Forum Discription: Inventory operations
Printed Date: 08 Aug 2020 at 7:42am
Software Version: Web Wiz Forums 10 -

Topic: How to buy lumber and use in BOM's
Posted By: timjea
Subject: How to buy lumber and use in BOM's
Date Posted: 10 Apr 2012 at 4:46pm
I'm stumped as to how to implement this.  I purchase bulk wood in various sizes shapes, lengths, and then I cut it up and consume it in building finished products.  I'm at a loss as to how to do this in ABC.  I first used the "special" to purchase the wood, but then had no way to specify it and consume it in a BOM.  My next idea was to buy it in units that cost $1 per unit, and then manually figure out how many "units" to add to the BOM.  This is a pretty clumsy solution. One last specification is plywood cost different than pine boards which is different than cypress boards so from an cost perspective it costs more to use cypress than pine so I would ideally want to keep them seperate.

Posted By: Fan77
Date Posted: 11 Apr 2012 at 12:30pm
Each type raw material  must be entered in the Item Master. The UOM should be a smallest consumed unit. For linear materials, use centimeter, inch, foot, yard, etc. For plywood, use square foot, yard, etc.
In the Units per pack set a size of a particular item in UOM. For instance, a 4' x 8' plywood board will be set as Package=Board, UOM = Sq Ft, Units per Pack = 32. The default unit at receiving will be 32, but you c an change it on the receiving screen. 5 boards can be received as 5 rows with 32 units each, or just one row (board) of 160 units.

If you are buying two types of boards, like cypress and pine, make two records in the Item Master, one for pine and anther for cypress. Use Copy Record function at the screen bottom.

If you do that what kind of difficulties are you encountering?

Posted By: timjea
Date Posted: 11 Apr 2012 at 3:52pm
Your answer is similar to what I was thinking, I just had not gotten far enough in the thought process.
I can set up several codes, PLY1/2, PLY3/8, PLY1/4, CYP3/4, and PIN3/4
Lets jsut stick to a single scenario as they will all follow the same solution.
I buy a 1x6x12 Cypress plank for $8.00.  Thats actually in wood lingo a 3/4" thick x 12" wide x 6 foot long.  I can cut it in lots of different sizes, and actually get different yeilds.  there is always some scrap peices that go to the burn barrell.
A specific kit will contain 2 peices 15" long x 3/4 x 3/4", 1 peice 15" x 2" x 3/4", and 2 pieces 22" x 3-1/4" x 3/4".  the saw blade consumes 1/8" on every cut.  Due to the sizes, I think the UOM needs to be sq inch so I don't have to decimals of sq foot.  So this kit would consume 23+30+143 sq inches. I can always add in 10% more for waste.
I just realized I can setup dimensional lumber sizes (PN CYP1X12X6) and have BOM's to convert the big peices of lumber into the sq in partnumber.  That way I can have a factual count of full size peices of lumber, be able to convert it to small peices, and be able to cost off in the BOM.  When I start cutting a full size board, I workorder it into the SQ inch partnumber.
I'm liking this idea alot. I'm not sure I fully grasp the package values to set in the Inventory Master, I'm thinking that in the scenario I just outlined, there is none.  The conversion factor is handled in the BOM.  Example 1 unit CYP1X12X6 = 864 units CYP3/4

Posted By: timjea
Date Posted: 12 Apr 2012 at 7:04pm
Well, its not working like I thought.  I setup a sheet of plywood as PLY3/8-4X8 with sheet cost of $23.00.  I setup a square inch code of PLY3/8.  Since the sheet is 48inch x 96 inch there are 4608 square inches of wood.  So each square inch of wood has a cost of .0052 cents.  I have previously set the system decimal places to 2 so the cost field displays .01. I'm not sure if the FIFO cost holds the cost at 2 decimals, or extends out more decimals and only displays 2.
I set the square inch code PLY3/8 to a MAKE, and attempted component entry of 4608 units of PLY3/8 (Item BOM) and added a component of PLY3/8-4X8 with a qty of 1.  the screen reverted the units of the PLY3/8 back to 1, and then in the Inventory Master screen cost field, it reflects $23.00 - a one to one relationship. I tried in the component screen to set it as 1 unit of PLY3/8 (item BOM) as the parent part and for the component I added PLY3/8-4X8 for 1/4608 = .000217 but the screen converts that to 0.
What I need to do is to consume 1 sheet of PLY3/8-4x8 at $23.00, and create 4608 units of PLY3/8 at a cost of $23.00/4608 = $.0052 
There is an advantage to having both the full sheet partnumber, and the scrap partnumber.  How else might I enter the data to create the abilty to on demand be able to convert the product from one partnumber to another at a set ratio, and have the cost calculate automatically?

Posted By: timjea
Date Posted: 12 Apr 2012 at 7:22pm
Let me back track - the display is misleading, but its working.  For the scenario of PLY3/8 having component of PLY3/8-4x8 with its units of .000217, it does hold that value, it just displays a zero.
I received asheet of plywood at $23.00, then did a work order for the PLY3/8 and filled in a qty of 4608.  It populated the sheet component with a unit qty of 1.  I processed the work order.  I ran a FIFO Inventroy report and I have 4608 units of PLY3/8 with a Unit Book Cost of .01 (wrong) and a  Book Value of $23.50 (close enough I think). So the unit cost displays incorrect on the report, but the extended value is really close.

Posted By: timjea
Date Posted: 12 Apr 2012 at 7:25pm
OK, so I previously purchased and recevied a bunch of the lumber under the "special" part number code, and now I need to back it out, and re-recieve it under the valid partnumbers so my BOM's going forward will cost correctly.  How do I unreceive a "Special" from a PO?

Posted By: rrww
Date Posted: 14 Apr 2012 at 8:54am
timjea: you probably need to use adjustment codes to manually receive and issue inventory. You may have to go back to your original supply orders to get the right quantities. Label the codes so you can track what you did when and why. Maybe something like "Relabeling Lumber" for both the positive and negative codes?

Either that or use negative codes to remove all the incorrect items in stock and create new POs to bring in the new lumber, which might be better at correctly calculating the costs if you have shipping expenses and plan to rely on the additional costs field.

You'll probably also want a negative adjustment code called "scrap," "waste," or similar for the odds and ends that can't be used. I have that for my rope items, which I purchase in lengths. It doesn't help much to have the 4 meters I need in stock for a lead if they are in two separate lengths. ;-) So I also have to negative adjust odds and ends that are left over from a length I've purchased.

I include the amount I need for splicing, etc., similar to your amounts eaten by the saw, in the quantities required for the different items. So it takes me 7.5 meters of rope to make a 7 meter lead with splices at both ends.

Hope that helps some.

Posted By: timjea
Date Posted: 15 Apr 2012 at 9:34am
yes, and I've taken a few steps back to re-process some of the assembly work I've done.  I previously recevied the lumber under the "SPECIAL" part number and never have figured out out to unreceive it, or even do a negative adjustment, but I did do a positive adjustment on the remaining lumber into the new partnumbers.
I still have some things to verify such as work order costing.  I created the WO and ran each of the job estimate reports, and they all are under reporting due to decimal places. I have a theory this is jsut a display issue.  After I issue the amterials and run the reports again, I get different values.  The nit cost field is still wrong but the extended may be ok - I need to manually do the math and see what I get.

Posted By: BillD
Date Posted: 16 Apr 2012 at 4:44pm
If you received a part as a special, it only marked your PO as "received qty>0", but it did not go to the inventory. "Special" is a "one time buy" for the units you do not want to track in your inventory. You do not need to adjust down specials. If you create a record in the Item Master for it, you can simply direct receive units (Inventory/Direct Receive).  For the first row, select Item ID then change reference to your original PO. Also choose PO Receive for the Adj. Code at the screen top.

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