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 Assembly

A group of components or parts which are combined to form a major subdivision of the finished product. An assembly may be a finished good or a component of a higher-level assembly.

 

 Audit Report

A report used to verify the accuracy of information entered. Audit reports are usually required before a file update is permitted.

 

 Backflush

The deduction from inventory of a component used in an assembly by exploding the bill by the production count of assemblies produced. Backflush issues inventory items when completion transactions are updated.

 

 Base Bill

The original configuration to or from which Option bills are added or subtracted. If a bill has no options, it must be, by default, a Base bill.

 

 Batch

A collection of related data items entered at one time. Typically, a register is printed listing all entries of a batch prior to updating the permanent files.

 

 Bill of Materials

A listing of all components (raw materials, parts, intermediate bills, etc.) which make up an item, and any interrelationships between those components. Also referred to as BOM.

 

 Bill Options

The choices or features available for a specific bill. Refer to Option, Option Category, and Option Code.

 

 Blow Through

To explode a bill's phantom assemblies into their components. For more information, see Phantom Bill.

 

 Component (BOM)

Line items in inventory are referred to as components.

 

 Component Item

A specific Inventory Item which is also the component of a bill.

 

 Direct Component

A component appearing on the first level of a bill. A direct component is not subordinate to any other components within a specific bill. A component can be a direct component of its parent bill. That parent, however, can also be a component of a different bill.

 

 Effective Date (ECO)

The date on which a component is to be added or removed from a bill. This date is used to activate Engineering Change Orders.

 

 End Item

Any item subject to a customer order or sales forecast.

 

 Engineering Bill

A hypothetical bill, usually created while a manufactured item is still in the design stage. The components of these bills are not completely defined; therefore, engineering bills are never used to access physical Inventory Items. The bill number of an engineering bill does not have to be an inventory item. Engineering bills cannot be used in Production Entry, Disassembly Entry, or Sales Order Entry to produce or record the sale of finished goods.

 

 Engineering Change Notice

The document issued by an engineering department to advise all concerned parties (purchasing, planning, manufacturing, etc.) that a change has been, or will be, made to an assembly.

 

 Exploded

An item group that comprises a sales kit can be "exploded" or broken down into its individual component items (that is, every individual component is listed separately).

 

 Find Number

The number on an engineering drawing that identifies a component.

 

 Inactive Bill

A bill for an item that is not currently being manufactured. Inactive bills represent assemblies or finished products that have been restricted from the production process. Generally, a bill is classified as inactive when it is in the process of being defined, when it has been replaced by another bill, or when the parent item or finished product it defines is no longer needed. Although restricted from the production process, inactive bills can be fully detailed during the reporting process. Any bill can be classified as an inactive bill.

 

 Indented Bill of Materials (BOM)

A format which lists all component items on a bill, with each level indented from the preceding level. If a component is used in more than one parent within a given bill structure, the component will appear under each bill in which it is used. The indented report format provides a complete view of the bill structure.

 

 Indented Where-Used

A listing of all bills which directly or indirectly require a selected component.

 

 Inventory Account

An asset account for raw materials and finished products that contains the current inventory value on a perpetual basis. It is debited when inventory is increased (produced or received) and credited when inventory is reduced (sold, issued, or disassembled). You can use a single Inventory account for the entire inventory or separate accounts for different product lines.

 

 Inventory Adjustment Account

This account is used to post write-downs or write-ups of inventory when an adjustment is made using either Inventory Management Transaction Entry or Physical Count Entry. This account is credited when a positive adjustment (write-up) is made, and debited when a negative adjustment (write-down) is made. The Inventory Adjustment account should be in the miscellaneous income or miscellaneous expense section of your Chart of Accounts.

 

 Issue

The physical movement of items from warehouse stock into a production or packaging area.

 

 Item Code

The unique identification number assigned to an inventory item.

 

 Kit Bill

A single-level bill used to define a group of items commonly sold as a single unit. Kit bills can contain comment lines, but not Miscellaneous Charges. This is the only bill type that can be used in the Sales Order module. Kit bill numbers must be inventory item codes. Kit bills can either be assembled during the order picking process, or they can be assembled during the manufacturing process. In the later case, Sales Order allows kits to be sold from stock.

 

 Label Form Code

An alphanumeric code identifying a specific format contained in the Forms file for printing labels. Each format on file must be assigned its own label form code.

 

 Labor Cost

The dollar amount allocated for labor performed during the manufacturing process.

 

 Level

A code which indicates a hierarchical step in the bill structure. Each component used in the manufacture of a product is assigned a level code. Normally, end items are assigned level 0, with the assemblies going into it assigned level 1, and so on.

 

 Lot

A quantity of items produced together that share the same raw materials, processes, etc.

 

 Lot Number

A unique identification assigned to a lot. Also referred to as a batch number, run number, or mix number.

 

 Lot Size

The quantity of a particular item ordered from a warehouse or manufacturing plant.

 

 Manual Charges

Charges that can be directly entered in the Item Code field on the Bill of Materials Maintenance, Production Entry, and Disassembly Entry, windows without using a defined miscellaneous charge code. Manual charges are treated in the same manner as the pre-parent miscellaneous charge code. All information, including the description, charge account, unit of measure, and unit cost, must be specified during data entry.

 

 Manufacturing Bill

A bill used in the actual manufacture of an item. Manufacturing bills differ from engineering bills in that the manufacturing bills generally have more levels. See Engineering Bill.

 

 Manufacturing Variance Account

An account used to reconcile the difference between the value assigned to specific inventory items and the actual costs incurred when creating or disassembling those items. It is also used to accommodate any change in the inventory value necessitated by performing cost roll-up. The manufacturing variance account should be in the miscellaneous income or miscellaneous expense section of your chart of accounts.

 

 Miscellaneous Charge Account

General ledger account numbers associated with miscellaneous charge codes used in Production Entry are credited with the cost of the miscellaneous charges. This type of account usually represents applied expenses in the expense section of your chart of accounts. Using an applied expenses account, you can track those miscellaneous expenses that are applied to the manufacturing process.

 

 Nonsetup Charges

Nonsetup charges are miscellaneous charge codes that allow you to define a standard cost amount to be charged for each parent inventory item produced. Production, labor, and other costs can be treated in the same manner as a component.

 

 Option Bill

A bill which defines the components which comprise a specific option for a Base bill.

 

 Option Category

A class or collection of related options. For example, a collection of options can fall under the "Color" Option Category. Within this category, the options white, blue, red, etc. can be found.

 

 Option Code

A code representing a specific option. Option codes are used to define option categories.

 

 Option Interaction

A modification to the structure of a bill which occurs when two or more options are selected in combination.

 

 Parent

A bill, level, or item to which other components are subordinate. This term is used in relation to a specific component.

 

 Phantom Bill

A type of bill used primarily for transient (non-stocked) assemblies. When listing a bill containing components that are phantom bills, it is customary to blow through the phantom bill to show its component items. Phantom bills will be included in the MRP Generation process if the Integrate with Bill of Materials and Include Phantom Bills check boxes are selected in MRP Options.

 

Using phantom bills reduces the number of components that must be specified for a bill while allowing the phantom assembly's components of kit bills or other phantom bills.

 

Because the phantom bill is not stocked in inventory, it is not assigned an inventory item code. Most reports that detail bill components allow the phantom bill itself to be suppressed while its individual components are detailed. This process is referred to as phantom blow-through

 

 Product Structure

The underlying concept which defines the arrangement of the components of an item.

 

 Raw Material

Purchased items or extracted materials which are converted via the manufacturing process into finished products.

 

 Revision Level

The change level of an item. A modification to an item which does not change the form, fit, or function of a product is normally controlled by a revision level.

 

 Routing

A description of the steps involved in the manufacture of an item. It includes the operations to be performed, their sequence, work centers involved, and setup standards. The routing of a product is usually printed on the shop traveler.

 

 Scrap Percent

A percentage in the bill structure used to increase the gross requirements of materials to compensate for anticipated loss during the manufacturing process.

 

 Setup Charges

Setup charges, also known as per-lot charges, allow you to specify a standard cost amount to be charged per production run.

 

 Single-Level Bill

A bill which displays the components that are directly used in the manufacture of an item. If these components are themselves assemblies, that information will not appear on the single-level bill.

 

 Single-Level Where-Used

A bill which lists each parent in which a particular component is used, and in what quantity.

 

 Standard Bill

A bill which lists all components required to produce a single parent item or finished product. Standard bills represent actual finished products or assemblies. The bill number of a standard bill must represent an inventory item number.

 

 Step Number

A number assigned to a work order routing which describes a specific operation in the manufacture of a component or assembly, performed at a specific work center, and taking a predefined amount of time.

 

 Subassembly

An item which consists of at least two components, and which is a component of another assembly. This term represents the actual (physical) stock item, not the computerized record corresponding to that item.

 

 Summarized Bill

A form of multi-level bill which lists all components and their quantities required in a given bill structure.

 

 Unit of Measure (U/M)

The basic quantity that is used for transactions involving an inventory item. Separate units of measure can be assigned to track quantities on hand (standard unit of measure), for quantities purchased (purchase unit of measure) and quantities sold (sales unit of measure).

 

 Where-Used

A listing of every parent item containing a given component and the respective quantity required from a specific bill.

 

 Work In Process

Partially completed inventory in various stages of completion. Any material that has been issued to production, but has not yet been accepted back into stock can be considered Work In Process (WIP).

 

 Work Order

A document or computer program that describes the steps taken to transform raw materials into a finished product. Also known as a shop order, job ticket, or manufacturing order.

 

 Yield Percent

The percentage of usable output compared to the input. If a bill has a 90% yield percentage, you can expect that a production run of 100 items will yield 90 completed assemblies. See Scrap Percent.