As we strive to develop the web interface by leaps and bounds, we've recently gotten around to one of the more advanced features. None other than the bill of materials (BOM) itself. From now on, you can process the manufacturing process through the web interface as well.

Before we dive into the web interface, we shouldn't overlook the fact that manufacturing can also be processed through the desktop application. However, the web interface is currently just as "smart" as the desktop application when it comes to the bill of materials.

Now let's move on to a concrete example in the web interface. As already mentioned, the bill of materials is certainly an advanced feature from the perspective of ABRA Flexi. This means that the best way to learn how to use the bill of materials and the manufacturing process is with a specific example.

An essential foundation for processing in Flexi is setting up the bill of materials, i.e., the structure of the product. The bill of materials can be set up both for the final product and for the semi-finished product used in manufacturing the final product.

The product, semi-finished product, and end material must all be created as separate items in the price list. We recommend dividing individual items using the inventory type and item group.

With regard to item groups, which are a user-definable code list, the division can be entirely up to you. However, for our example, we'll use a basic division. So let's create the following items in the price list.

As an example, let's choose a bicycle. It will consist of several end materials and two semi-finished products.

Bicycle

Front Wheel

Rear Wheel

Handlebar; Hub; Derailleur; Spokes

All of the above-mentioned items must be created in the price list. Once you've done that, we can move on to setting up the bicycle's bill of materials.

The exact composition of the bicycle will be as follows:

The bill of materials can always be set up in the detail of a price list item. So let's go to the price list itself, where we'll create the final product, i.e., the bicycle.

The bill of materials is not displayed by default in the price list item detail. If the Bill of Materials tab isn't offered in the product detail, simply enable it using form settings.

The bill of materials first needs to be created. You do this using the "Create Bill of Materials" button on the "Bill of Materials" tab in the price list item detail.

Once the bill of materials has been created, we can add (in the right part of the row, when hovering over it with the cursor) individual materials and semi-finished products that make up the bicycle.

However, the front and rear wheel are a semi-finished product for Flexi, meaning another item containing a bill of materials. So we also need to create it in the price list item detail. The bill of materials for both the front and rear wheel will look exactly the same.

Once we have the bills of materials set up this way, we can move on to the next necessary step.

We can manually recalculate the price of a product directly in its bill of materials, both the selling price and the purchase price. The purchase price is always based on the purchase prices of the materials (listed in the price list), and the selling price is calculated in the same way, based on the selling prices of the materials.

You'll find this option under the "More Functions" button in the bill of materials header.

In connection with the bill of materials, Flexi needs to know which warehouse to deduct the material (or semi-finished product) from that's needed for manufacturing the final product (i.e., the material set up in the bill of materials).

The entire procedure is described in a separate guide. Please refer to it directly and follow the recommended advice.

Once we have the warehouse mapping set up, we can move on to the next step.

We now find ourselves in a situation where an order for a bicycle arrives from a customer. So we create a received order with the bicycle and want to notify manufacturing that a new bicycle needs to be produced.

Manufacturing orders are recorded among issued orders. To separate standard issued orders from manufacturing orders, we always recommend creating a separate issued order type.

Once we've created an issued order type, we can create a manufacturing order from the received order. So let's switch back to the received order and create an issued order from it, i.e., a manufacturing order.

We simply accomplish this by selecting the issued order type.

When creating a manufacturing order, two scenarios can occur. Either we have enough material in stock or not enough. If we have enough material, we can create a product receipt to the warehouse directly from the manufacturing order.

However, if we don't have enough material, it needs to be ordered. This is handled by the "Order for Manufacturing" function. It can be generated from the manufacturing order detail.

After confirming the generation of the order, a form will open showing the breakdown of the product into individual materials. If the product contains semi-finished products, they will also be broken down into end materials.

We recommend using a different order type than for the manufacturing order. An order for manufacturing is understood as a standard order to a supplier.

Once we have enough material and semi-finished products in stock, we can move on to the main step. This is, of course, receiving the product and the associated issuance of the consumed material.

A product receipt cannot be created when the material is not in stock. There's no option to generate an issue request here.

However, before we create the product receipt document itself, let's take a look at how to set up warehouse document types so that we can very easily create the above-mentioned stock movements.

Manufacturing always has two sides - receiving the product and issuing the consumed material. We can capture both of these operations using warehouse document types.

So let's create two warehouse document types:

First, let's create the consumed material issue. Here, apart from the accounting setup, the only key setting is "Movement type".

We don't define the warehouse here. Which warehouse the material should be issued from is determined by the previously mentioned warehouse mapping.

Next, we create the product receipt. Here there are more settings, aside from accounting.

Once we've created the warehouse document types, we can return to the actual product receipt.

A product receipt can be created independently, or by realizing a manufacturing order. If you don't need a manufacturing order, simply go to the receipts/issues section and create the product receipt there independently. In our case, however, we'll stick with the example for the final product and create the receipt from the manufacturing order.

Since our product contains semi-finished products, they must be manufactured first. Flexi cannot perform an "intermediate manufacturing" of semi-finished products. It always needs to have in stock exactly the item that's specified in the bill of materials.

So, among the receipts/issues, we create a new receipt with the warehouse document type "MANUFACTURING-RECEIPT" and add the front and rear wheel to it.

Once the receipt is saved, an issue document for the consumed material will be created automatically.

At the same time, the price of the semi-finished products will be calculated from the consumed material. We'll find the price once we switch back to the product receipt.

We now have the semi-finished products in stock, so all that remains is the last key step. You've guessed correctly — it's none other than receiving the final product, in our case the bicycle.

So let's switch back to the manufacturing order among the issued orders, and using the services at the bottom, create a receipt from it.

As the document type, we select product receipt, and as the warehouse, we select the warehouse for products (or wherever you want the bicycle to be received). We then confirm the creation of the receipt with the "Create" button.

We're notified of the creation of both the product receipt and the consumed material issue via a notification in the bottom-left corner.

Again, according to the previously set up warehouse document type, the issue document was created automatically. At the same time, the cost price of the bicycle was automatically calculated from the consumed material.

All that remains is the cherry on top — selling the product we just manufactured. We can switch back to the received order and create an invoice from it, along with the issue document.

In connection with manufacturing, you can have a whole range of individual outputs created, so-called user queries. Are you missing, for example, an overview of unfinished production in Flexi and how much material is missing in stock? Or do you need to specifically analyze the manufacturing costs of individual products? Both of these options, and many more, can be solved with user queries.

Please don't hesitate to contact us if needed.

Technical support: +420 371 124 321, podporaflexi@abra.eu
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