Outside Process PO

I'm new to Sage.

In my previous company, we would send out products to be silkscreened. 

Example: Blank Cup (Part A) gets sent out, supplier prints an image on the cup, and sends it back (Part B).

When we generate an Outside Process PO to the supplier, it is for Part B (the printed cup), but the PO would also reduce inventory on Part A.

Later, when the completed parts came in, we would receive the PO. Part B inventory goes up, and the supplier gets paid, as per a normal PO.

In this way, the inventory levels of both parts are accurately adjusted during the process.

Does Sage have functionality like this?

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    You would use Bill of Materials and Work Order.  You would create a purchase order for the outside work and assign it to work order. In work order you would do a production/Transaction entry that would roll up the cost of process, relieve the inventory and produce the item with the combined cost.

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    What @BigLouie said.  Or, If you own the Operations Management Module, you can issue a Work Ticket to "make" the finished item, then do a Step-Cut Purchase order.  It allows you to add the material you are sending to the vendor to that step of the Work Ticket, and a /Misc Item for the Vendor Service; as well as issue the PO, linked to the WT.  On a Step-Cut Purchase Order, the "components" you add to that step to be issued from your inventory will "print" as comments on the Purchase Order.

    Your PO lists the vendor service and the components (comments) you are sending them to do the work.
    Issue the material to that step and it comes out of inventory (into WIP for that WT). 
    When you receive your goods back from the vendor, a PO Receipt of Goods/Invoice; will put the vendor costs on that step of the PO.}
    When you close the Finished Good Inventory into stock total costs are your components and your vendor services.

    Madeline