Does creating a new "Customer Orders" entry reduce inventory automatically? Or does a Work Order need to be created in order to reduce inventory? I have an assembly that contains a sub-assembly, and when I enter a new customer order for the assembly, it does not reduce the sub-assembly numbers. I tried the sub-assembly type as CSAS and as ASSY and it didn't affect the numbers in the "Required" column. What is the solution?
Posted on: Apr 25 2021 at 05:43:04 AM
Let's ignore Work Orders and Assemblies for a moment. Let's just look at things you sell to customers.
Entering a customer order does not reduce inventory. Why should it? You might be entering orders that you intend to ship next week.
When you "Ship" the product that reduces the inventory of that product.
Now let's look at Work Orders.
When you create a work order that doesn't reduce your inventory.You might be planning your manufacturing weeks out into the future. You don't want to take things out of your inventory yet.
When you put a work order into the "Issued/WIP" stage that takes all the components out of your inventory.
When you put the work order into the "Finished/Complete" stage that INCREASES the OnHand inventory of the finished assembly.
You then "Ship" the finished assembly to the customer and that takes the assembly out of your inventory.
Basically "ASSY" sub assemblies could be referred to as "Phantom" in that they aren't taken from inventory when the parent is built. The sub assembly is built at the same time. But if the SubAssembly is type "CSAS" (Closed Sub Assembly) then they will be taken from inventory when you build the parent product. But read that page I linked to. It explains it in better detail.
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