OSRC Manufacturing Setup

Setup

Navigation: Manufacturing >> Setup >> System Defaults >> WIP

Select Machine Variable Overhead as the Cost Bucket Used for Outsourcing.

Select Rename Selected Cost Bucket as “Outsourcing” (this changes the field label in many windows in Manufacturing to “Outsourcing”, however in some cases the cost bucket is not renamed).

Make sure all Machine Variable OH buckets have an account assigned (Variance, WIP, COGS, and Inventory). Navigation: Inventory >> Cards >> Item >> select an item that has a periodic valuation method >> Accounts. The Item Account Maintenance – Costing window opens behind the Item Account Maintenance window.

Setup Machine Center

Navigation: Manufacturing >> Cards >> Machines

Create an Outsource Machine center, which will be used for all Outsourced steps.

Since we recommend using Variable Overhead as the cost bucket, select “Amount” and enter 1.0000 per hour as the cost. Do not fill in any other costs.

Add a machine applied account (this is not used but is a required field in Dynamics GP). Also add a Variable Overhead account.

Setup Outsourced Workcenter

Navigation: Manufacturing >> Cards >> Work Centers >> Setup

A Workcenter must be created for each Vendor that you will use as an outsource vendor. You will need to set up the site, and if required. Bins for that site. (Site setup will not be covered here).

A convenient naming convention for the Work Center ID is to add “Z” and the Vendor ID (or a portion of the Vendor ID), such as Z-ACET0001. The Work Center ID field is 10-characters long.

There is no need to create a unique service Item as that will be handled by MFG PowerPack’s “OSRC Description Override”. Enter PO Released Offset days if needed.

On the Work Center window, enter an effective date in the past (any past date is fine). This ensures you do not run into effectivity issues with past due orders.

Create an Outsource Routing Sequence

Navigation: Manufacturing >> Cards >> Routings >> Routing Entry

Add a new sequence to an existing Routing, or create a new Routing.

Select an Outsourced Work Center ID. Note that the Outsourced Workcenter in the lookup window has an Asterisk (*) in front of it.

Enter Machine Time. This will be the “cost” of the outsourcing rather than the amount of time to process. For example, if the outsourced processing cost is $59.98, enter that in the Machine Time field. Recall that the Outsourced Machine ID was set up with a cost of $1.00 per hour, so entering 59.98 as the “time” results in a cost of $59.98.

Select the Outsourced Machine ID.

To modify the Item Description that will appear on the PO, go to Additional>>Outsourcing Description.

When a Manufacturing Order is created with an Outsourced Sequence, the Outsourcing section will have blue arrow next to Purchasing (and Shipping). Select the Purchasing Arrow.

Select the expansion button to the right of “Purchasing”. Note the Item Number is SERV + MO number + Routing Sequence Number.

The Description is from the “Outsourcing Description” on the Routing Sequence. At this point the Outsourcing PO requirement can be added to an existing PO (using MFG PowerPack’s OSRC Add To PO), or added to a new PO.

You can also record the shipment of the material issued to the MO by selecting the shipping arrow

Select the Ship from sequence in the first scrolling window and the select the Ship from sequence in the second scrolling window and Record Shipment

The print Icon will create a shipping document

The PO gets received as any normal PO would. The costs flow into the Work in process bucket and the accrued Purchases bucket. It does not flow into the Machine Variable OH Account.

The Standard cost of the item is updated after a cost rollup. Note the cost in bucket Variable OH of $59.98. This calculated from the Routing sequence where the Hours were 59.98 and the rate was $1.00000 an hour.

WilloWare would like to thank Don Kapuscinski of Manufacturing Resource Partners for preparing the OSRC Manufacturing Setup section!