Define a new unit of measure, say “KIT3” for a kit of 3 pcs, with the base UoM as pcs/PCS/EA and conversion factor as 3.
Set the inventory part UoM as the base UoM above
Set the UoM in Supplier for Purchase Part as the defined UoM (KIT3), set the cost for a kit.
Raise the purchase order for 1KIT3
Receive PO, cost per unit will be cost of kit/3
Hope this helps
But that wouldn’t work ?
It is 3 different parts in one box?
Which has 3 different part Numbers.
e.g.
part no 1 is the kit (containing 3 parts)
part no 2 is one of the parts inside part 1
part no 3 is one of the parts inside part 1
part no 4 is one of the parts inside part 1
i am not familiar with your part structure, but it sounds like something detached parts could handle. That said i have not tried it out myself.
just seen that detached parts are “containing” other parts and would look like the obvious use for “kits”
If the supplier would charge extra to separate the parts from their end, sounds like there are significant costs associated in the process, even when it’s done at your end. Possibly, additional resources like tools, in addition to labour? Plus, the cost distribution of separated parts might be different (i.e. may not be of equal value).
So this seems to effectively equate to something that you can use a shop order for. It can ensure that the total cost of separated parts are higher than the original kit item (the difference is the cost absorbed by you for separating them).
You issue the kit part to shop order (i.e. shop order material). Add one operation for the labour/tools. Assign them, report time and receive three different part numbers from the shop order with an appropriate cost distribution and close it off manually.
But that wouldn’t work ?
It is 3 different parts in one box?
Which has 3 different part Numbers.
e.g.
part no 1 is the kit (containing 3 parts)
part no 2 is one of the parts inside part 1
part no 3 is one of the parts inside part 1
part no 4 is one of the parts inside part 1
i am not familiar with your part structure, but it sounds like something detached parts could handle. That said i have not tried it out myself.
just seen that detached parts are “containing” other parts and would look like the obvious use for “kits”
Thanks Julian, I did miss the part about three unique parts.
Hi team,
The same scenario in my case. But my client is in to a logistics and not having a manufacturing module in IFS so shop order solution won’t work. Please give your advice.
Best Regards,
Sank
which version are you running?
Hi Richard,
Thanks for your reply. IFS 10 version.
Best Regards,
Sank
Hi,
This scenario is a general business practice in our industry. Our company is purchasing a complete ETO system (as part number) to be delivered from our sister company (using IFS as well). The part number is an ETO item, which requires detailed engineering initially by our sister company. The sister company then manufactures the system using shop order functionality. Due to size and total weight of the system, a dissassembly is required for road transportation. In order to create valid delivery documentation for cross border delivery, the sister company will pack the dissassembled items and ship them.
When receiving the handling units with the single items, we have the requirement to temporarily handle them in inventory. In a next step, the get loaded on containers and shipped to the end customer, requiring delivery documentation for cross border delivery as well.
As we are in the process of upgrading to IFS 10, we are thinking about using new project deliverables functionality.
That means: Create a purchase order for internal supplier. Internal supplier creates a project deliverable structure with a Top node item of the purchased part and with a structure of “dissassembled” shippable units. From Project deliverables we want to use IFS Shipment functionality and electronic intercompany delivery notes (MHS message for dispatch advice).
Unfortunately we don’t see a solution to receive these handling units and matching them against the purchase order that was created initially.
any ideas, maybe workaround solution to handle this complexity?
Johannes
We purchase a part from an OEM who always supplies 3 different physical items in a box. When the box of 3 physical items arrives, we would like to receive 3 separate part numbers into stock, instead of receiving the “kit” part that we ordered from the OEM into stock. If we try to purchase the 3 individual pieces from the OEM, they charge extra to break out each item into individual pieces. We need to receive each item into stock individually because the pieces are components on different shop orders.
Any Ideas? Thanks in advance!
Hey Jeana, it sounds like what you are effectively doing is kind of the reverse of an IFS package part. I’ve seen this idea floating on the IFS idea walls internally a few times but as yet there’s no standard solution for it. Oddly IFS seem to be aware that their customers sell them, but don’t have the concept that they buy them!
Depending on how much of this you do I think you’d be best to build it as a custom event that either runs through a shop order to keep traceability or creates count in-and-out transactions with the same batch number.
The other option is to do this on the PO line and create the top-level part as a non inventory that is charged, then have the components listed as inventory parts to receive against. Again depending on how often you do this, might be easier with a custom object. Your supplier probably won’t be too keen on that either...
@Jeana Barcelona
Curious whether you ever found a solution to this, but here is how I would go about this.
- Set up a product structure where the kit number purchased is the parent item - so I can see that the parent consists of three child items
- Set the cost of the parent to be the total purchase price, assign the cost of the children as you desire them to be or according to their relative value
- Receive parent part as delivered from supplier into stock under the kitted part number and into a specific location that should only house parent items not broken down - this keeps the AP side of this equation with the supplier all linked together nicely as a single receipt will tie to a single PO line and invoice line from the supplier
- Create a finance project with a Code String of the Raw Material Account and any other required Code Parts
- Process the parent items found in the holding location by using Issue Inventory Part and pre-posting to the finance project
- Use Receive Inventory Part to receive the three child items into their own separate use locations
- Run a report daily or weekly looking for the parent items sitting in the hold location that need broken down
This would keep AP happy.
This would allow MRP to work normally when planning data is assigned to the parent according to demand.
This would allow stocking and issuing the lower level items to separate shop orders on whatever their demand requires.
The finance project should generally balance to zero if everything processed in was processed out, but if it has a value, you know from inventory transaction history what was missed.
We use this exact process to process RMA returns of machines in one configuration that need broken down to lower level parts, restocked or possibly reconfigured to a different arrangement at the point of receipt and delivery on a second order. The only manual step is the Issue and Receive, but it isn’t that cumbersome unless you are doing this hundreds of times per day.
The only drawback is there would never be an ARRIVAL transaction for the three child items, they would show as NREC, but when embedded as part of your process, finance, manufacturing, and procurement can all make sense of what occurred at any stage.
We purchase a part from an OEM who always supplies 3 different physical items in a box. When the box of 3 physical items arrives, we would like to receive 3 separate part numbers into stock, instead of receiving the “kit” part that we ordered from the OEM into stock. If we try to purchase the 3 individual pieces from the OEM, they charge extra to break out each item into individual pieces. We need to receive each item into stock individually because the pieces are components on different shop orders.
Any Ideas? Thanks in advance!
Hey Jeana, it sounds like what you are effectively doing is kind of the reverse of an IFS package part. I’ve seen this idea floating on the IFS idea walls internally a few times but as yet there’s no standard solution for it. Oddly IFS seem to be aware that their customers sell them, but don’t have the concept that they buy them!
Depending on how much of this you do I think you’d be best to build it as a custom event that either runs through a shop order to keep traceability or creates count in-and-out transactions with the same batch number.
The other option is to do this on the PO line and create the top-level part as a non inventory that is charged, then have the components listed as inventory parts to receive against. Again depending on how often you do this, might be easier with a custom object. Your supplier probably won’t be too keen on that either...
Could you please elaborate me more about the point 3 in brief?
