Summary
In this module you learned what formulas are and how to use them You also learned about the relationship between a co-product, a by-product, a planning item, and a formula.
- A BOM item is used when an item is assembled from a specific quantity of raw materials with varying production quantities.
- Formulas define the process of what goes into process manufacturing.
- A formula can be associated with one or many different co-products and by-products.
- By-products are non-stocked items that are discarded.
- By-products and co-products can be used together on one formula.
- Cost burden can be manually specified or specified by using total cost allocation.
- Planning items allow a single formula to produce only co-products.
- Planning items are non-stocked items that are only used for planning co-products that are manufactured together.
- The vendor check method is defaulted from the item model group but can be modified on the item. Inquiries about approved vendor can be run from either the item or the vendor. A vendor approval check is completed when you add the item to the purchasing document.