MYOB Acumatica – Tip of the Week – Doing manufacturing with core inventory functionality

Kitting or light manufacturing – handle both with MYOB Acumatica

The good news is that both options are available with MYOB Acumatica (formerly MYOB Advanced) solution from Leverage Technologies in Sydney, Melbourne and Brisbane. If you have a need for a full end-to-end manufacturing solution then you should take a look at the JAMS Manufacturing solution (Purchased by Acumatica in 2019 and incorporated into MYOB Acumatica in 2020).

However, for many businesses, all that’s needed is a light manufacturing solution that allows you to enter a bill of materials and then process a production order that reduces the component item stock (also called backflushing) and receives in the finished item in one step with the correct costs. This is the process you use when you want to manage the finished inventory items as an item that you keep in stock for sale – also known as “make to stock”.

Other businesses have a process where they assemble the finished product when a customer places the order and potentially wants to add or substitute component items so the finished item never hits the inventory – its sold immediately so it doesn’t need to come into inventory but the component items are reduced when the order is fulfilled or allocated in MYOB Acumatica parlance.

Both of these processes can be managed in MYOB Acumatica by using the Kitting functionality – the difference between the “make to stock” or light manufacturing and the “make to order” is that the primary item is either set up as a stock item for “make to stock” or as a non-stock item for kitting or “make to order”.

Lets take a look at the process via a 2 part video example…

For more information about how this feature works in MYOB Acumatica feel free to leave a question or comment or if you would like to learn more about how MYOB Acumatica (formerly MYOB Advanced) may work in your business, feel free to contact the Leverage team on 1 300 045 046