Value Add fabrication

A Value Add (VA) work order is typically created in Sales Order Entry when a customer orders a custom item that needs to be fabricated. At the time the sales order is entered, the customer can specify the components, instructions for fabricating the item, or any other details. A tie is made between the sales order and the VA work order to ensure the finished item fills the correct sales order.

VA services can include product knowledge and services, packaging, customer-required additions, or additional item refinement or finishing processes. For example, the External (EX) section, or phase, is for an external sub-contractor or vendor. That external sub-contractor may thread, drill, plate, paint, or assemble. Or that vendor may provide any other service that adds value to an item that changes the item to a finished item.

See the online Help for information about sections, stages, and creating VA products.

These VA sections contain information about an individual process or phase of the fabrication:

  • The Internal (IT) section of a VA work order refers to improvements your warehouse makes to an item to add value to the item. Items that are fabricated internally are handled in the same manner as a prebuilt kit in the RF Work Center module.
  • The Inventory (IN) components list the items required to assemble the VA item. Backorders that are created for an Inventory (IN) section update work orders.
  • Use the Inventory in (II) section to receive excess components or materials that were not used in the External (EX) fabrication. The Inventory in (II) section reduces the work-in-process inventory costs on the work order.

A VA work order goes through stages as the order is processed. In addition to the stages, sections within the order have stages of their own. Order stages indicate the overall status of the order. Section stages indicate the status of the item being fabricated. A work order has these stages:

  • Stage 0 - Entered, applicable to quote transactions only
  • Stage 1 - Ordered
  • Stage 3 - Printed
  • Stage 5 - Received
  • Stage 7 - Closed
  • Stage 9 - Canceled

Sections, excluding specifications or instructions, have these stages:

  • Stage 1 - Open. [Entered]
  • Stage 3 - Printed
  • Stage 5 - Shipped
  • Stage 7 - Completed. That is, the order has been processed in VA Shipping Feedback Entry.
  • Stage 8 - Paid. That is, an External Process Only.
  • Stage 9 - Cancelled

A warning is displayed in VA Shipping Feedback Entry and VA Entry Receipt of Inventory if the order belongs to a TWL warehouse. You can process the order if the order is in stage 1.

External processing

When a VA order is printed, the order is downloaded to TWL to start downstream tasks. For an externally fabricated item, your warehouse picks and ships the components to an external service provider, along with specific instructions for completing the fabrication. You can create a tied purchase order to receive the components in the warehouse after the service vendor completes a section.

Backorders

The available quantity of the finished item may be less than the quantity ordered. An additional quantity of the finished item may yet to be fabricated. In this case, the RF operator can initiate the backorder by changing the Qtot field to Yes. The Qtot field is adjacent to the Product field on an Inventory (IN) component line item. To maintain data integrity, the quantity on backorder moves to a new section number, regardless of the status.

You must backorder if these scenarios occur:

  • You can build some, but not all, of the VA item ordered by the customer
  • A nonstock must be ordered, or if you are waiting to receive a component required, to build a finished good

For External (EX) sections, when the final section is performed by an external service vendor, you may initiate a backorder. Initiate this backorder if you can receive a portion of a purchase order. Initiate this backorder if you can complete the remaining portion of the finished goods upon receipt of the backorder.

Value-add purchase orders

The purchase order that is tied to the VA work order contains line items for the services performed by the vendor. The purchase order also contains the finished VA item. The purchase order can be printed from the VA Entry Processing Pick Tickets Report or from VA Shipping Feedback Entry.

When the item is finished by an external service vendor, you can receive the item in TWL using the RF after the PO is printed. The PO is updated to received stage when there are no more active or uncompleted sections. The work order contains a final section in completed stage. The stage of the VA work order advances to Stage 5-Received when the WL Entry Batch Receiving Report is generated and the VA work order is updated. Match the finished item to the purchase order that was created when the components were sent to the vendor.

Excess work-in-process components

After a VA item is fabricated, excess components, or surplus inventory, that were not used to build the VA item can exist. In SA Administrator Options-Logistics-WL Options, the value in the field, WL Inventory-In SA Table Code Value Setup Value for Final External, creates the Inventory in (II) section for receiving the excess components or surplus inventory .

When you receive the finished item from a service vendor, enter the surplus material on the PO that is tied to the VA work order. Adding the surplus material creates a new section on the tied VA work order and reduces the inventory used in the fabrication.

Process the PO in Purchase Entry Receipt of Inventory to finish the Inventory in (II) section and complete the External (EX) workflow.

Serial and lot number processing

You can process items that are controlled by serial and lot numbers for External (EX) sections on a VA work order. For Inventory (IN) sections of a VA work order that are processed in TWL, the WL Entry Batch Shipping Report performs these actions:

  • Unallocates previously assigned serial and lot numbers
  • Allocates serial and lot numbers according to TWL processing
  • Edits correct allocation or shows a message

Running the Purchase Entry Processing Print POs Report prints the associated serial and lot numbers for VA work order External (EX) sections. For Inventory in (II) sections received against a purchase order, the WL Entry Batch Receiving Report processes serial and lots. You can view serial and lot detail for line item and section information from VA Order Inquiry and VA Order Entry. Lot numbers of the parent kit product update the system when KP Work Order Center Entry updates inventory and the General Ledger after the WL Entry Batch Receiving Report is run.

Internal processing

A VA work order with an Internal (IT) section is completed by your warehouse work center employees. Inventory (IN) line items for components follow the same processing route as a prebuilt kit for assembly in a kit build department.

After a VA item is fabricated, excess components, or surplus inventory, that were not used to build the VA item can exist. In SA Administrator Options-Logistics-WL Options, the value in the field, WL Inventory-In SA Table Code Value Setup Value for Final Interna, creates the Inventory in (II) section for receiving the excess components or surplus inventory. The Inventory in (II) section creates inventory records for excess components. Use standard put-away procedures for the returned inventory.

An Inventory in (II) section that contains nonstock inventory is displayed as an error in WL Transaction Inquiry because the cost for the nonstock linis is not tracked by TWL. After you inactivate the error, create a manual VA Entry Receipt of Inventory entry to finish the Inventory in (II) section.