Production Highlights in SAP B1


           In the recently released version of SAP Business One, the Production enhancements offer manufacturing clients significant benefits, particularly those in (or working towards) light manufacturing.In this week’s post we have summarised some of the major updates and the benefits they can bring to an organisation’s production capability.Production enhancementsEnsuring you have enough capacity and resources to complete all orders.

  • New Module-Resources linking to Mainstream Production Module
  • The enhancement now enables you to use Manual Method (previously it would only work with back flush method)
  • Bulk updates of BOM
  • Information about resources as well as textual information has been added to the module
  • Items can be based on process flow
  • Stock Transfer Request, Stock Transfer, and Packing List can be done from the production order
  • Upon closing a production order, any difference for non-standard cost parent items posted to the WIP Variance account is posted to the Inventory account of the parent item
  • If a User Defined Field (UDF) with the same name and same type exists in both the Bill of Materials window component table and on the Production Order window table, then on entry of the parent item into a production order, the values of the UDF fields from the Bill of Materials window are copied into the corresponding UDF fields in the Production Order window
  • By setting a UDF field in the Bill of Materials window to hold a link to a file, you cause that link to be copied into the corresponding UDF field in the Production Order window. This feature is important as a means of handling attachments such as manufacturing plans or other documents.

Production Business benefits

  • More efficient planning and monitoring production capacity
  • Easier tracking of costs
  • Improved BOM management
  • By-product components are handled more easily

Resources enhancements

  • New module for planning and managing resource capacity more efficiently
  • Define components for machines, labour or other resources (by group or type)
  • Link info to fixed assets and employee data with the individual Resource Master Data
  • Resource capacity allocation can be done by setting a daily capacity or by manually allocating for specific days
  • New column type at row level for BOM and Production Order

Resources Business benefits

  • Bird’s eye view – visibility of available capacity to avoid bottlenecks and optimise production plan
  • Resource costs are included in the final product cost
  • Resources can now be recorded in the BOM so users can do their capacity planning and achieve more accurate product costing

By-products enhancements

  • Manual issue method for by-products is now enabled in addition to the Back flush issue method
  • By-products are then displayed in receipts from production
  • The ability to receive by-products with the Manual issue method enables you to manage them with the Serial/Batches valuation method
  • Upon receiving a by-product in the receipt from production, you can define its cost in the Unit Price field.

Examples of by-products include in chemical production, food and beverage production and metal plate cutting, where the remaining products are re-used for producing another item(s).By-products Business benefits:

  • Various by-products can be produced within one single production order.
  • The receipt of by-products can be controlled by the user using the Manual Issue Method

Additional quantities enhancementsAdditional Quantity (also known as Setup Quantity) is one or more component of the production process that requires resources either at the beginning or at the end of a production process in order to complete the final item. Additional quantities are not affected by the number of parent items to produce.Examples include, machine startup time (resource) or a lead component used to adjust the machine (item).Additional quantities Business benefitsMachine setup time or lead component consumption can be managed using additional quantities.Bill of Materials (BOM) enhancementsThere is a new functionality in B1 V 9.1 for mass changes to components in bills of material – you can perform mass changes in multiple existing bills of material simultaneously.

  • Add new components to selected bills of material
  • Delete specific components from selected bills of material
  • Change parameters (such as quantity, warehouse, issue method, etc.) for selected bill of material components
  • Replace bill of material components
  • New tab on the item master data for production
  • The Production tab contains all production relevant data
  • Phantom Item and Issue Method fields have been moved from the General Tab
  • New fields for BOM Type, No. of Item Components and No. of Resource

Examples include:

  • The WIP (Work in Process) account can be added on the bill of material and/or production order row level
  • The WIP account on the row level can be used if you want to manually specify a WIP account for specific item or resource component
  • By default this field is empty and the WIP account from the standard G/L account determination rules is used
  • When specific WIP account is entered then it has a higher priority than other G/L Account determination rules
  • Interim WIP Consolidation Account Mapping – This functionality provides mapping for multiple WIP accounts such that upon the closing of a production order, the WIP account postings for sub-assembly components are all zeroed down and transferred to a single sub-assembly interim WIP account.

BOM Business benefits

  • Easy Maintenance – Mass BOM update makes BOM management much easier and more efficient
  • Row shifting allows changing the routing sequence in BOMs and production orders.

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