How to setup outside processing Procure to use in WIP for standard costing

1.Create items:
Finished Item
(N): InventorItems!aster Item
Item Name: "#P$FIN$I%&!
(!) %oo's(op from
#e'ect temp'ate as )Finished *ood+ ('ic, -one
#ave
.ssign this item to !1 organi/ation
(reate one "#P item
Item name: "#P$I%&!
(N): InventorItems!aster Item
(!) %oo's(op from
#e'ect temp'ate as )"utside Processing Item+ c'ic, done
#ave
"#P Item setting:
(%)0!ain: Primar 1nit of !easure 2)H3#+
(%) Purchasing:
(hec, Purchasa4'e: #et this attri4ute to 5es to inc'ude an item on a purchase order 'ine.
(hec, "utside Processing Item: #et this attri4ute to 5es to 'in, an outside processing item with an
outside resource and to inc'ude an item on an outside processing purchase order 'ine.
"utside Processing 1nit %pe #e'ect 3esource (If ou want to re6uisition the usage rate or
amount of the outside resource for each assem4' ou move to an outside operation7 ou shou'd set
the "utside Processing 1nit %pe to 3esource).
If ou want to re6uisition one outside processing item for each assem4' ou ship to a supp'ier7 then
ou shou'd set the "utside Processing 1nit %pe to .ssem4'.
.ssign to !1 organi/ation.
(reate su4assem4' item:
(N): InventorItems!aster Item
(!) %oo's(op from
#e'ect temp'ate as )su4assem4'+
Item name: "#P$#18$I%&! c'ic, done
#ave.
(reate 9 purchased items
Purchased item 1:
Name: "#P$P131
(N): InventorItems!aster Item
(!) %oo's(op from
#e'ect temp'ate as )Purchased Item+

#ave the item and assign the !1 organi/ation
.ssign the cost for this item in !1 organi/ation
(N): Inventorcostitem cost
&nter item and c'ic, find

.fter opened Item costs #ummar (!1) form
Enter Item OSP_PUR1 (PURCHASED ITEM1)
Cost Type -- Pending
Ci!" Open# t$en !i!" Costs
('ic, (osts 4utton
&nter (ost &'ement 00 !ateria'
#u4e'ement 00 !ateria'
.ctivit 00 !ove
8asis 00 Item
R%te or Amo&nt -- 1''
(o to ne)t ine enter Cost Eement -- M%teri% O*er$e%d
Enter s&+eement -- M%t, Hndg
A!ti*ity -- Mo*e
-%sis -- Tot% .%&e
R%te or Amo&nt -- 1'
#ave.
Purchased item ::
Name: "#P$P13: (purchased item:)
(N): InventorItems!aster Item
(!) %oo's(op from
#e'ect temp'ate as )Purchased Item+
.ssign to !1 organi/ation
(N): Inventorcostitem cost
&nter item and c'ic, find
('ic, on cost 4utton.
&nter (ost &'ement 00 !ateria'
#u4e'ement 00 !ateria'
8asis 00 Item
R%te or Amo&nt -- 1''
#ave.
Purchased item 9:
Name: "#P$P139 (purchased item9)
(N): InventorItems!aster Item
(!) %oo's(op from
#e'ect temp'ate as )Purchased Item+
.ssign to !1 organi/ation
(N): Inventorcostitem cost
&nter item and c'ic, find
('ic, on cost 4utton.
&nter (ost &'ement 00 !ateria'
#u4e'ement 00 !ateria'
8asis 00 Item
R%te or Amo&nt -- 1''
#ave.
2: Define outside Resources:
5ou must define outside resources and 'in, them to outside processing items in order to
automatica'' generate purchase re6uisitions for outside processing. When assigning outside
resources to a routing ou a'so specif a usage rate or amount that determines the 6uantit ou are
re6uisitioning and;or charging to wor, in process <o4s or repetitive schedu'es.
(N) "rder !anagement8i''s of materia's3outings3esources
(reate resource named "#P03&# (new)
#e'ect %pe 00 Person
#e'ect 1"! 00 H3
#e'ect (harge %pe 00 P" !ove (tpe P" !ove or P" 3eceipt wi'' perform automatica''
re6uisition. Purchasing charges these resource to <o4s and repetitive schedu'es when ou receive
against purchase order 'ines 'in,ed to the resources.
('ic, &na4'ed for the outside processing item 0 and enter "#P$I%&! ("#P Item name)
#e'ect 8asis 00 Item.
#e'ect .ctivit 00 !ove
('ic, #tandard 3ate (If ou charge at standard7 then Purchasing writes an variance 4etween the
purchase order actua' and the source standard cost to the purchase price variance account of the
resource at purchase order receipt) 5ou can a'so charge at actua' P" 'ine price.

('ic, on rates 4utton
&nter Fro/en (ost tpe and 3esource 1nit (ost of :=.==.
Pending (ost tpe and 3esource 1nit (ost of :=.==.
#ave.
9: Set the department and link to resources

(N) "rder !anagement8i''s of materia's3outings
&nter -epartment 00 "#P0-&P (-epartment name)
&nter -escription
('ass 00 >endor
?ocation 00 #e'ect WI??IN*%"N.

('ic, 3esource 4utton in -epartments form
('ic, in 3esource fie'd under "wned section
#e'ect "#P03&#
(hec, .vai'a4'e :@ Hours
1"! 00 H3
1nits 00 &nter 1=
*roup 00 #e'ect >endor
#ave
('ose the form
('ic, 3ates 4utton in the -epartments form
(ost %pe 00 #e'ect Pending
*o to "verhead 3ates #ection7 "verhead 00 #e'ect Indirect
.ctivit 00 !ove
8asis 00 3esource >a'ue
3ate or .mount 00 .=A
#ave
4: setup the Routing
(N) "rder !anagement8i''s of materia'3outings3outings
In item fie'd enter "#P$FIN$I%&! (Finished *ood)
*o to the "perations section and enter the fo''owing:
Operation.1
#e6 0 1=
-epartment 0 .ssem4'
('ic, on "peration 3esources.

*o to the 3esources section and enter the fo''owing:
#e6 00 1=
3esource 00 ?830.##5
1"! shou'd defau't in with H3
8asis 00 Item
1sage 00 17 ('ose "peration 3esources form and go 4ac, to main 3outing form.

#ave.
:nd "peration
#e6 0 :=
-epartment 00 "#P0-&P (-epartment name)
('ic, on "peration 3esources.
*o to the 3esources section and enter the fo''owing:
#e6 00 1=
3esource 00 "#P03&# (3esources name)
1"! shou'd defau't in with H3
8asis 00 Item
1sage 00 :7 ('ose "peration 3esources form and go 4ac, to main 3outing form.
#ave the 3outing.
-o the same routing process for su4assem4' item with routing name2 )"#P0#180I%&!+
(#u4assem4' Item)
A: Defining Bill Of material
(N) "rder !anagement8i''s of materia'8i''s8i''s
Item 00 &nter "#P$#18$I%&! (#u4assem4' Item)
(omponents 3egion:
First ?ine
Item #e6 00 1=
"peration #e6 00 se'ect 1
(omponent "#P$P13: (Purchase Item:)
Buantit 1
#econd ?ine
Item #e6 00 :=
"peration #e6 00 1
(omponent "#P$P139 (Purchased Item9)
Buantit 00 1
#ave
See!t t$e M%teri% Contro
#e'ect the !ateria' (ontro' %a4
#upp' %pe 00 .ssem4' Pu'' (operation pu'' not avai'a4'e 4ecause we have no routing)
#u4inventor 00 F'oorstoc,
#ave our wor,.
*o to too'sc'ic, on 3o''up costs
&nter cost tpe2 Pending
('ic, o,
*o to view3e6uest find
('ic, on view output 4utton
-o the same process for finished good
Item 00 &nter "#P$FIN$I%&! (Finished Item)
(omponents 3egion:
First ?ine
Item #e6 00 1=
"peration #e6 00 se'ect 1=
(omponent "#P$P131 (Purchase item1)
Buantit 1
#econd ?ine
Item #e6 00 :=
"peration #e6 00 1=
(omponent "#P$#18$I%&! (#u4assem4' item)
Buantit 00 1
#ave
#e'ect the !ateria' (ontro' %a4
For each component se'ect the fo''owing:
#upp' %pe 00 "peration Pu''
#u4inventor 00 F'oorstoc,

#ave our wor,.
.fter successfu'' comp'eted chec, the output for finished good

6: Create miscellaneous receipt for purchased items
N) Inventor%ransactions!isce''aneous %ransaction
In %pe fie'd and !isce''aneous 3eceipt7
c'ic, %ransaction ?ines
&nter 6uantit for 9 purchased items
"#P$P131
"#P$P13:
"#P$P139
#ave the wor,.
>erif that Items eCists in Inventor: (N) Inventor"n0Hand .vai'a4i'it"n0Hand
Buantities 6uer for #u4inventor 2 F'oorstoc,
!: create the "o#s for su#assem#l$ %tem
N) WIP-iscrete-iscrete Do4s
('ic, on new 4utton
&nter Do4 num4er 00 "#P$#18$D"8 (New)
&nter .ssem4' 00 "#P$#18$I%&! (#u4assem4' Item)
('ass 0 -iscrete
#tatus 0 3e'eased
%pe 0 #tandard
#tart Buantit 0 A=
#tart -ate 0 &nter toda+s date.
In %.8 3outing enter the (omp'etion #u4inventor 00 F'oorstoc,
#ave
"rder !anagementWIP!ove %ransactions!ove %ransaction
&nter the Do4 2 )"#P$#18$D"8+
&nter Bt 2 1==
#ave.
(hec, that in #u4inventor F'oorstoc, we have the on hand of 1==
&: setup 'mplo$ee
Purchasing re6uires an emp'oee for a'' re6uisitions;purchase orders to 4e created and approved.
3esponsi4i'it1# H3!# !anager.
(N) Peop'e&nter and !aintain
('ic, on new 4utton
&nter ?ast Name7 *ender
.ction 00 (reate &mp'oment
Person %pe 00 &mp'oee
#ocia' #ecurit Num4er 00 num4er with format: CCC0CC0CCCC
&nter 8irthdate
#ave
('ic, on .ssignment 8utton
"rgani/ation 00 >ision "perations
(8) (orrection
Do400 !*3.A==.!anager
*roup00 Financia'
Position00 !!@==.!ateria' manager (this is a position that wi'' have the approva' authorit for
our purchase order)
(8) 5es to accept the defau't va'ues
.ssign a #upervisor:
(%) #upervisor
Name00 8rown7 !s. (ase
.ssign a -efau't &Cpense .ccount:
(%) Purchase "rder Information
#et of 8oo,s00 >ision "perations
-efau't &Cpense .ccount00 =1011=0EE@=0====0===
#ave the wor,.
?in, the &mp'oee to the user:
3esponsi4i'it #stem .dministrator
(N) #ecurit1ser-efine.
Buer up 1sername
.dd &mp'oee to Person fie'd.
3esponsi4i'it !anufacturing and -istri4ution !anager
(N) Purchasing#etupPersonne'8uers.
.dd &mp'oee to 8uer fie'd
&nter #hip0to org of )!1 #eatt'e+
('ic, on go and c'ic, on .dd 8uer
#ave.
(: Sourcing Rules
5ou can define ru'es for each outside processing item to he'p ou determine from which supp'ier to
source the item.
(reation of the #tandard Buotation:
(N) Purchasing3FB+s and BuotationsBuotations
(hoose Buotation %pe 00 #tandard Buotation %pe
&nter #upp'ier 00 .dvanced Networ,ing -evices
&nter #upp'ier #ite 00 #anta ('ara
&nter #hip0%o as !1 #eatt'e
&nter &ffective -ate 0 %oda+s -ate
&nter &ffective through -ate 0 "ne 5ear from now
(hange #tatus from In0Process to .ctive
(hoose Item 0 )"#P$I%&!+ ("#P Item)
enter a price of :=.==
#ave 0 %a,e note of the Buotation Num4er
(reation of the .pproved #upp'ier ?ist &ntr
(N) Purchasing#upp' 8ase.pproved #upp'ier ?ist
#e'ect !1 organi/ation.
('ic, in the Item Fie'd and choose the Item created from #tep 1 00 )"#P0I%&!+
!ove to the 4ottom section of the form 00 (hoose -irect for the )8usiness+ fie'd.
&nter ).dvanced Networ,ing -evices+ in the #upp'ier fie'd since it was used on the 6uotation.
&nter the #upp'ier #ite )#.N%. (?.3.+ that was used in this test.
(hange the status fie'd from N&W to .PP3">&-.
#witch the ta4 from )F&5 .%%3I81%&#+ to )3&("3- -&%.I?#+
1pdate *'o4a' Fie'd se'ection from No to 5es 0 we are ma,ing this entr *'o4a' for a''
"rgani/ations.
#ave
#e'ect the attri4utes 4utton.
(hoose 3e'ease !ethod Fie'd and enter )3e'ease 1sing .utocreate+
-o not enter an va'ues for the Price 1pdate %o'erance
-o not enter an va'ues for the Purchasing 1"!
(hoose the 4ottom portion of the form 0 in the fie'd %5P& 0 &nter )Buotation+
(hoose the Num4er fie'd 0 Hit the ?ist of >a'ues.
Buotation document disp'aing a4ove ou created
choose the ?ine fie'd and se'ect the num4er 1 for the 'ine.
#ave.
(reation of #ourcing 3u'e:
(N) Purchasing#upp' 8ase#ourcing 3u'es
(hoose #ourcing 3u'e Name fie'd 00 )"#P0.dvanced Networ,ing #ource+
(hoose -escription fie'd and enter 00 )#ourcing 3u'e for Buotation to 3e6 to P"+
#e'ect the ).?? "3*#+ radio 4utton to the right of the a4ove two fie'ds
#e'ect &ffect -ate fie'd 0 enter first portion of the effective date 00 todas date drops
#e'ect 'ower section of screen 0 %pe fie'd 00 (hoose )815 F3"!+
#,ip the "rg Fie'd
!ove to the #upp'ier Fie'd 00 se'ect ).dvanced Networ,ing -evices+
!ove to the #upp'ier #ite fie'd 00 se'ect )#.N%. (?.3. 0 >ision operations+
&nter .''ocation fie'd 00 set this to 1==G
#e'ect the 3an, fie'd 00 insert a va'ue of 1
#ave.
(reation and &Cp'anation of a #ourcing 3u'e .ssignment #et
(N) Purchasing#upp' 8ase.ssign #ourcing 3u'es
&nter the fie'd .ssignment #et 00 enter va'ue )"#P$%&#%+
-escription 00 )(reating .ssignment #et to test funct for "#P+
('ic, underneath the ).ssigned %o+ 4oC 00 (hoose Item
#e'ect fie'd )Item;(ategor+ se'ect the Item )"#P$I%&!+ ("#P I%&!)
(hoose fie'd %5P& 00 se'ect )#ourcing 3u'e+
(hoose fie'd #"13(IN* 31?&;8o- 00 Hit the ?ist of >a'ues and se'ect the sourcing ru'e which
was created a4ove 00 )"#P0.dvanced Networ,ing #ource+
#ave.
#ourcing 3u'e .ssignment Profi'e #etup and ?ogic:
(N) Purchasing Persona' Profi'es
Buer on the profi'e name with: !3P:-efau't #ourcing .ssignment #et
('ic, in the )1ser >a'ue+ section
#e'ect the new' created assignment #et 00 P3$"#P$%&#%
#ave
WIP#etupParameters
#e'ect the "utside Processing ta4
se'ect ).t operation+ for 3e6uisition (reation %ime
this wa7 re6uisitions wi'' 4e automatica'' imported into Purchasing immediate' upon performing
a WIP !ove transaction
#ave.
1): Create "o# for *inished +ood:
(N) WIP-iscrete-iscrete Do4s
('ic, on new 4utton
&nter Do4 num4er 00 "#P$0FIN$D"8 (new)
&nter .ssem4' 00 "#P$FIN$I%&! (Finished *ood)
('ass 00 -iscrete
#tatus 00 3e'eased
%pe 00 #tandard
#tart Buantit 00 1=
#tart -ate 00 &nter toda+s date.
In %.8 3outing enter the (omp'etion #u4inventor #tores
#ave
11: ,erform a -%, mo.e transaction to the Osp %tem
(N) WIP!ove%ransactions!ove %ransactions
#e'ect Do4 "#P$FIN$D"8 (Finished good <o4)
se'ect the first operation 1= from the 'ist of va'ues for HFromI fi'ed and se'ect Bueue for H#tepI
fie'd.
*o to the neCt row 'a4e'ed H%oI se'ect "#P operation :=
*o to the #tep fie'd and se'ect Bueue
*o to the Buantit fie'd in the %ransaction section.
&nter 6uantit 00 1=.
#ave.
(hec, with re6uisition
Note the re6uisition$header$id
For chec, the item we can 6uer with re6uisition$header$id in P"$3&B1I#I%I"N$?IN&#$.??
Here we can see our "#P item detai's.
*o to purchasingre6uisitionsre6uisition summar
('ic, on find 4utton.
(op the purchased order num4er. (hec, whether purchase order is approved or not.
.fter approve (reate a receipt 4ased on the purchased order num4er.
Now comp'ete the <o4 for finished item ("#P$FIN$D"8) from )Bueue+ to )%o move+ as specified in
su4assem4' <o4.
(hec, finished item in on hand 6uantit.
Referred /ink:
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