Manufacturing Flow
Complete end-to-end documentation of manufacturing transactions in NetSuite - covering work orders, assembly builds, and outsourced manufacturing.
In This Section
| Page | Description |
|---|---|
| Work Orders | Creating and managing work orders |
| Assembly Build | Completing work orders and building assemblies |
| Outsourced Manufacturing | Vendor-produced assemblies and special orders |
Master Flow Diagram
COMPLETE MANUFACTURING FLOW (ALL PATHS)
─────────────────────────────────────────────────────────────────
┌─────────────────────────────────────────────────────────────────┐
│ IN-HOUSE MANUFACTURING │
├─────────────────────────────────────────────────────────────────┤
│ │
│ ┌─────────────────┐ │
│ │ WORK ORDER │ │
│ │ GL: None │ │
│ │ Inv: Commits │ │
│ └────────┬────────┘ │
│ │ │
│ ┌──────────────────┼──────────────────┐ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌────────────────┐ ┌──────────────┐ ┌──────────────────┐ │
│ │ STANDARD BUILD │ │ PARTIAL BUILD│ │ WIP TRACKING │ │
│ │ (One step) │ │ (Multiple) │ │ (Advanced) │ │
│ └───────┬────────┘ └──────┬───────┘ └────────┬─────────┘ │
│ │ │ │ │
│ ▼ ▼ ▼ │
│ ┌────────────────┐ ┌──────────────┐ ┌──────────────────┐ │
│ │ ASSEMBLY BUILD │ │ MULTIPLE │ │ OPERATION │ │
│ │ GL: Components │ │ BUILDS │ │ COMPLETIONS │ │
│ │ + Assembly │ │ │ │ │ │
│ │ Inv: Transform │ │ │ │ │ │
│ └───────┬────────┘ └──────┬───────┘ └────────┬─────────┘ │
│ │ │ │ │
│ └──────────────────┴───────────────────┘ │
│ │ │
│ ▼ │
│ ┌────────────────┐ │
│ │ WORK ORDER │ │
│ │ CLOSE │ │
│ │ GL: Variances │ │
│ └────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────┘
┌─────────────────────────────────────────────────────────────────┐
│ OUTSOURCED MANUFACTURING │
├─────────────────────────────────────────────────────────────────┤
│ │
│ Sales Order (Special Order Item) │
│ │ │
│ ▼ │
│ ┌────────────────┐ ┌─────────────────┐ │
│ │ PURCHASE ORDER │ ──▶ │ ITEM RECEIPT │ │
│ │ (to Vendor) │ │ (Finished │ │
│ │ │ │ Assembly) │ │
│ └────────────────┘ └────────┬────────┘ │
│ │ │
│ ▼ │
│ ┌────────────────┐ │
│ │ FULFILL TO │ │
│ │ CUSTOMER │ │
│ └────────────────┘ │
│ │
└─────────────────────────────────────────────────────────────────┘
Manufacturing Basics (For Non-Accountants)
The Core Concept
MANUFACTURING = TRANSFORM COMPONENTS INTO ASSEMBLIES
─────────────────────────────────────────────────────────────────
Input:
Component A: 2 units @ $10 = $20
Component B: 1 unit @ $15 = $15
Component C: 3 units @ $5 = $15
──────────────────────────────
Total Component Cost: $50
Output:
Assembly X: 1 unit @ $50 = $50 (cost of components)
+ Labor $20 (if tracked)
+ Overhead $10 (if allocated)
──────────────────
Total Cost: $80
Key Terms
| Term | Meaning |
|---|---|
| BOM (Bill of Materials) | Recipe - lists components needed |
| Work Order | Production order - what to build |
| Assembly Build | Completing production - consuming components |
| Assembly Item | The finished product |
| Component Items | Parts that go into the assembly |
| Routing | Manufacturing steps/operations |
GL Flow
MANUFACTURING GL FLOW
─────────────────────────────────────────────────────────────────
Components consumed:
WIP (or Assembly) $50 Dr ← Building the assembly
Component Inventory $50 Cr ← Parts used
Assembly completed:
Assembly Inventory $50 Dr ← Finished product
WIP (or Component) $50 Cr ← Production complete
Net Result:
Components: ↓ decreased
Assembly: ↑ increased
Total inventory value: Same (transformed, not created)
Quick Reference
GL vs Inventory Summary
| Transaction | GL Posts? | Inventory Impact |
|---|---|---|
| Work Order | No | Commits components |
| Assembly Build | Yes | Components ↓, Assembly ↑ |
| Work Order Issue | Yes | Components ↓, WIP ↑ |
| Work Order Completion | Yes | WIP ↓, Assembly ↑ |
| Work Order Close | Yes* | Variance accounts |
*If variances exist
Manufacturing Types
| Type | BOM Required? | Routing? | Best For |
|---|---|---|---|
| Assembly Item | Yes | Optional | Simple manufacturing |
| Kit/Package | Yes | No | Bundle items |
| Work Order | Yes | Optional | Tracked production |
Next Steps
- Work Orders - Learn work order creation and management
- Assembly Build - Complete work orders and build assemblies
- Outsourced Manufacturing - Vendor-produced assemblies