Part Setup - Manufacture vs. Purchase

Yahoo Archive
1
Yes: Purchased parts can (and often do) have part-rev records and associated methods for internal production.

As the item is purchased, they are the planner and must request Jobs to be created (manually) when needed.

Don't sweat the LT... It is only used once my MRP and any good planner will shedule a job for the purch part to a good 'real' date.

Since you expect you expect to have a mix of low cost (purch) & higher cost (fab), why not go with averaging costing for this part?

Rob

--- On Fri, 8/15/08, robert.nupp <robert.nupp@...> wrote:
From: robert.nupp <robert.nupp@...>
Subject: [Vantage] Part Setup - Manufacture vs. Purchase
To: vantage@yahoogroups.com
Date: Friday, August 15, 2008, 10:46 AM











We have a group of parts that we use to manufacture for a customer.

It use to be that we HAD to manufacture the part because they wanted

Domestic product. Now the customer will take Foreign product and it

is much cheaper for us to Purchase these parts. We are going to start

to Purchase these items now instead of Manufacture them, but there is

a 90-120 day lead time from when we place the PO until we receive them

so if the customer orders parts we have not yet received we still want

to Manufacture them.



My question is how do we set up this part (Purchase or Manufacture) .

We are on a Standard Costs System so obviously since we would purchase

this item more than manufacture it we would set it up as Purchase.



Based on the way it is currently set up if we purchase the item, at

time of receipt the system will create an ADJ-CST transaction creating

a huge unfavorable Purchase Price Variance. The system adds on the

Labor and Burden costs to get the price back to Standard Costs.



We would like to maintain the BOM and revision(s) for these parts for

when we need to manufacture them. Can you have a Revision and a BOM

for a part that is marked as Purchased? If we keep it as a

Manufactured part and do a cost adjust to zero out the labor and

burden standard costs will the next time we preform a cost rollup will

the system add the labor and burden back to this part? Any help or

ideas on this issue would be greatly appreciated. Thanks



We are on Vantage 8.03.403C Progress.
2
We have a group of parts that we use to manufacture for a customer.
It use to be that we HAD to manufacture the part because they wanted
Domestic product. Now the customer will take Foreign product and it
is much cheaper for us to Purchase these parts. We are going to start
to Purchase these items now instead of Manufacture them, but there is
a 90-120 day lead time from when we place the PO until we receive them
so if the customer orders parts we have not yet received we still want
to Manufacture them.

My question is how do we set up this part (Purchase or Manufacture).
We are on a Standard Costs System so obviously since we would purchase
this item more than manufacture it we would set it up as Purchase.

Based on the way it is currently set up if we purchase the item, at
time of receipt the system will create an ADJ-CST transaction creating
a huge unfavorable Purchase Price Variance. The system adds on the
Labor and Burden costs to get the price back to Standard Costs.

We would like to maintain the BOM and revision(s) for these parts for
when we need to manufacture them. Can you have a Revision and a BOM
for a part that is marked as Purchased? If we keep it as a
Manufactured part and do a cost adjust to zero out the labor and
burden standard costs will the next time we preform a cost rollup will
the system add the labor and burden back to this part? Any help or
ideas on this issue would be greatly appreciated. Thanks

We are on Vantage 8.03.403C Progress.