Break down product or cut material into additional products from the Cut Material screen. For example, if you have a 24FT length of pipe, but you need 12FT lengths, you can use this screen to cut athe 24 FT length of pipe into two 12FT lengths of pipe to sell to your customers. In addition to adjusting the inventory amounts, the Cut Materials functionality will update the C2 Average and C3 Landed costs for the items.
Before you can cut material, you have to make sure the unit of measure for the product is configured properly.
Tip: You can later view a report of your manufactured items using the Inventory Adjustment Report. Select "Manufactured" as the Transaction Type and enter starting and ending dates to view any cut pipes for that time period. See Inventory Adjustment report
Items that will be cut or broken need to share two units of measure so that the inventory can be factored correctly.
- Lowest Unit of Measure: FT (feet)
- Count in one UOM: LEN (length)
Each product would have FT set as the lowest unit of measure and LEN (length) to indicate how many feet are in one length of this pipe. An example of this setup for a 24ft length of pipe is shown below.
Each pipe or item that you are planning to use in the Cut Materials screen must be set up similarly. Items that will be cut into other items must share two units of measure.
- Go to Inventory > Cut Material.
- Verify that the correct Warehouse is selected.
- Type your system Initials.
- In the Product box, type the or search for the product that you will be cutting or breaking. Inform ERP selects the larger Unit of Measure in the UOM field.
In this example, we will cut a 24' length pipe that we received earlier.
- Type the total quantity of the product that you will be cutting in the Quantity field.
- This quantity should be in the Unit of Measure that you selected in the UOM field.
- Inform factors the lower Unit of Measure into the Balance Left field.
- Inventory for the product will be reduced by the number in the Quantity field when the cut is saved.
The example below shows that we are cutting 3 lengths of 24' pipe, which means we have a balance of 72 feet.
- The Components area enables you to choose which product inventory you are adding to when you cut the selected material. For example, if you cut one 24 FT pipe in three parts, you now have three PIPE8 in inventory. You could also create six 4FT pipes and two 12FT pipes.
- Click Add Component.
- In the Product column, type or select the product whose inventory is increasing.
- In the Component field, enter the first product number whose inventory you will be increasing by cutting the pipe. Each time you enter a product and the quantity that to produce, the Balance Left decreases by that amount. Any amount left in the Balance Left field when you save will be removed from inventory.
- To create the work order to cut the material, click Print.
On the Print Document pop-up that appears, you may choose to Print, View, Send, or Save the document, depending on your needs.
- After the work order has been completed, you can adjust the inventory. Click Save.
- The inventory of the 24' pipe will be reduced and inventory for the smaller pipes will be increased.
The C2 and C3 costs for the smaller pipes will also be adjusted to reflect any cost change to the 24' pipe. You can see these changes in Product Analysis>Transactions for each of the items, or by running an Inventory Adjustment Report and setting the Transaction Type to Manufactured.