Question

What is the IFS recommended way to handle a disassemble of finished goods

  • 29 June 2020
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What is the IFS recommended way to handle the disassemble of finished goods.  Eg-  We might on occasion take apart finished goods and convert them back into component parts.  Currently, we achieve this by simply count out finished goods and count in components.


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In the standard manufacturing module, I don’t know of a standard disassembly process.  In maintenance and repair, there is the possibility of doing something like this with customer goods, but that isn’t the same as your need.  I would suggest rather than doing counting (which affects counting statistics and other affects), you would create a Finance Project to first issue (using Issue Inventory Part) out the finished assembly to allow capturing the full cost of the item, then receive in the component parts at whatever level you want to restock them (using Receive Inventory Part).  In this way, any cost differences between the finished product (labor) and the component parts only - which you will always have - will be properly captured.  In fact, one could argue that there is additional labor to be accounted for in the disassembly process, but that is a further complication that is best absorbed by overhead expense I think rather than attempting to apply as expended labor.

 

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Thanks, @ShawnBerk for your answer

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