Advanced Co-Packing Management

Overview

The Advanced Outside Service Management feature allows you to manage the production of finished goods by an outside vendor using your inventory, without needing to use the Work Order process. Instead, the Purchase Order handles raw material consumption and finished goods output, streamlining the process. This feature enables multiple finished goods to be managed on one purchase order, provided there are no formula versions or internal routing steps involved.

Setup for Advanced Outside Service Management

1. Create Finished Goods and Raw Materials:

   • Set up finished goods and raw materials as usual.

   • The Replenishment System for finished goods can be either Work Order or Purchase Order.

2. Set Up Item Formulas:

   • Ensure you have set up item formulas without formula versions.

3. No Need for Service Item or Routing:

   • You do not need to create a service item for the outside service.

   • You do not need to set up routing for the outside service.

Steps for Creating a Purchase Order

1. Create a Purchase Order:

   • Enter a Purchase Order for the vendor producing the finished item(s).

   • Check the Is Outside Service field.

   • If required, enter an Outside Service Warehouse to deduct component inventory from another warehouse.

   • The Warehouse field will define where the finished goods will be added to inventory.

   Note: By default, Is Outside Service and Outside Service Warehouse are not displayed on the Purchase Order page. You can add them to the EditPurchaseOrderGeneralSection fieldset to make them visible.

Enter Purchase Lines:

• Add the finished good item(s) to the Purchase Lines.

• Enter a Unit Cost on the Purchase Line for the cost of the outside service only.

• You can add multiple finished goods to a single Purchase Order.

• GoldFinch will automatically populate the Purchase Line Formulas for each outside service item, which you can edit if necessary.

Add Additional Purchase Lines:

• You are allowed to add additional Purchase Lines for service items if needed.

Creating a Warehouse Receipt

Create a Warehouse Receipt:

• Generate a Warehouse Receipt from the Purchase Order.

• The Purchase Line Formulas will be copied from the Purchase Order to the Warehouse Receipt.

Enter Lot Numbers:

• If the components are lot-tracked, click Enter Consumption Lots to input the lot numbers for the components.

• If the finished goods are lot-tracked, click Enter Receiving Lots to input the lot numbers for the finished goods.

Posting the Warehouse Receipt

Post the Warehouse Receipt:

• When the receipt is posted, GoldFinch will:

  • Deduct raw material inventory from the Receive Bin of the warehouse (or the Outside Service Warehouse defined on the Purchase Order).

  • Add finished goods inventory to the Receive Bin of the warehouse defined on the Purchase Order.

Finished Goods Cost Calculation:

• The cost of the finished goods will be the sum of the component costs and the outside service cost.

• GoldFinch will post GL Entries to credit the Raw Material GL Account and debit the Finished Goods GL Account.

Posting the Purchase Invoice

Post the Purchase Invoice:

• When the Purchase Invoice is posted, GoldFinch will post the actual invoice cost of the outside service to the Finished Goods item.

GoldFinch will update the Last Invoice Cost on the Finished Good Item using both component and service costs.

Cost Adjustments

Daily Cost Adjustments:

• If the component costs are updated, the Daily Adjust Cost routine will automatically update the costs of the finished goods to reflect the updated component costs.

This streamlined Advanced Outside Service Management process enables efficient management of raw materials and finished goods for outside services, reducing complexity and ensuring accurate inventory and financial records in GoldFinch.