Integral Accounting Enterprise MRP System

The Integral Accounting Enterprise system contains many MRP features, including Work Orders, Bills of Materials, Assembly Instructions, Inventory assemblies.

 These functions were once separate but are now completely integrated into the Integral Accounting Enterprise system and are available through the "MRP" tab from the main menu.

The MRP system is organized in he following manor:

Work Orders

Work orders an "order" from an internal department to build a collection of inventory items using Bills of materials. Works orders list Bills of Materials necessary to fulfill the order.

Bills Of Materials

Bills of Materials contain a list of the Inventory Items that are to be made, with links to the assembly instructions and other information necessary to process the Bill Of Material. 

The bills are then used to create Inventory Assemblies.

Inventory Assemblies

The Integral Accounting Enterprise has a simple system for managing inventory assemblies. Here is how assemblies are handled in the system::

For example, here is a simple assembly:

AssemblyID
ItemID
Number of Items in Assembly
Labor Cost
Warehouse
001
Bear Body
1
$10.00
Default Warehouse
001
Bear Hat
1
$5.00
Default Warehouse
001
Bear Shoes
2
$5.00
Default Warehouse

This Assembly makes Item:

Teddy Bear

So to assemble this item, the system first checks to make sure you have all of the necessary parts in stock, and then take the amount of this item to make, and then debit the assembly items from inventory, so you debit 1 bear body, 1 beat hat, 2 bear shoes, and you credit to inventory 1 teddy bear, all for the warehouse that the items come from. All of the items must be in the same warehouse. If they are not in the same warehouse, use the Warehouse Transfer to get the items together. 

The costing of the items for the assembly is then adjusted. The cost of the item teddy bear is equal to the cost of the items, times the amount of each item used in the assembly, plus the additional labor cost, so the cost for the teddy bear would be:

bear body cost, times bear body parts in assembly (1) , plus the labor cost for the assembly
bear hat cost, times bear hats in assembly (1) , plus the labor cost for the assembly
bear shoes cost, times bear shoes in assembly (2) , plus the labor cost for the assembly

The final cost should then be calculated and put into the proper FIFO, LIFO and Average cost fields if need by. Remember that the cost that gets posted to the GL is the default cost method in the companies table.

The system also contains fields necessary to store the assembly instructions.