Dynamics GP Inventory BOM/Assembly Transaction Entry

September 14 2008

For those companies that do light manufacturing or assembly and don’t want or need the complexities inherent with full-blown GP Manufacturing, there is a rather little-known feature that works in conjunction with GP Inventory (currently only available with the Business Ready Licensing Advance Management pricing model) called ‘Inventory Bill of Materials’.  Inventory BOM, along with the Assembly Entry transaction, provides a simple method for converting components into an assembled product.  The Assembly transaction also decrements the components and increments the ‘Finished Good’ and performs the accounting entries, including variances.

The basis for the Assembly Transaction Entry is the Item Bill of Materials (BOM).  The BOM is like a recipe for the product – it specifies what ingredients and how much of each ingredient are necessary to make the product – in this example – a fictitious, lot tracked product called ‘RTU’.   The product could just as well be serial tracked, or have no tracking.

Here’s a picture of the BOM -

Cards>Inventory>Bill of Materials 

Cards>Inventory>Bill of Materials

As you can see, the Bill Number is RTU (considered the ‘Parent’ Item Number) and the Components are:

  1. B5028 with a per unit quantity of 0.0672 Kilo
  2. One Trigger
  3. One FFP-RTU process

The screen above also indicates the Effective Date of the BOM, Standard Cost and other attributes.

This ‘recipe’ is used when we create an Assembly Transaction as can be seen in the next screen -

Transactions>Inventory>Assembly Entry 

Transactions>Inventory>Assembly Entry 

The Assembly Transaction window automatically completes the Document Number (can be overridden) the Doc Date and a Status of ‘New’.  You need to fill in the following -

  1. Site ID - each component or finished item can be assigned to multiple sites, but each must be available in the selected site before you can change the transaction status to Released.
  2. Bill Number - the item to be assembled.
  3. Assemble Quantity - the quantity of items to be assembled.

When you change the Status from ‘New’ to ‘Not Released’, the per unit Quantity from the BOM is multiplied by the Assemble Quantity – the result is the ‘Stock Quantity’.  The Stock Quantity comes from the BOM and represents the ‘standard’ quantity required to build the assembly.  For now, disregard the ‘Assemble Quantity’ field in the scrolling window - it only comes in to play if there is not enough stock of a subassembly to satisfy the requirements of this transaction.

If there is a difference between the Stock Quantity displayed in the scrolling window and the actual quantity required to build the assembly, change the Stock Quantity to the actual quantity.  Changing the Stock Quantity will produce an ‘Assembly Variance’ that is recognized when the transaction is posted.

After you’ve updated the Stock Quantity, if necessary, change the Status to ‘Released’.  When the Status is changed to Released, the ‘Serial/Lot Number’ button at the bottom of the window becomes active if the item is Serial or Lot tracked.   Click the button to open the Serial/Lot Number window - 

Assembly Serial/Lot Entry 

Type the Serial or Lot Number being assigned to this transaction in the ‘Serial Number’ or‘Lot Number’ field.  Then enter the quantity for this Serial/Lot in the ‘Quantity Selected’ field.  Then, click the ‘Insert’ button and ‘OK’ to complete the Serial/Lot Number assignment process.  You’ll be taken back to the Assembly Entry window.

Next, click the ‘Distributions’ button to ensure the account distributions are correct -

Assembly Distribution Entry 

The inventory account is automatically populated based on the account assigned at the Item Card level.  If a default Variance account ahs not been set, select the account you want the assembly variance to post to.

The Component Item Inventory Accounts default from the Component Item Card level.

When you’re happy with the Account distributions, click OK, which takes you back to the Assembly Entry window.

At this point you can either Save the entry to a batch or post it directly.  When the transaction Is posted, the following posting journals are produced -

BOM Posting Journal

The Assembly Posting Journal reflects the quantity and cost of the components consumed to build the assembly and the quantity and cost of the Assembly built.  If there is any variance as a result of either a Quantity (Volume) variance due to manufacturing discrepancies or a Price variance due to a discrepancy between Standard and Actual cost, that variance and the account it is being charged to is reflected on the second line of the assembled item line.

The second posting journal produced is the Assembly Distribution Detail.  This is, in effect, the General Ledger Posting Journal -

Assembly Distribution Journal

Once an Assembly transaction is posted, it cannot be reversed.  It can be modified or deleted prior to being posted if it has been saved.

If you need to reverse the effect of an Assembly transaction, that must be done using the Inventory Adjustment transaction (Transactions>Inventory>Transaction Entry) to update the quantities on hand of the Parent item and component items.

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About Frank Hamelly

Frank Hamelly, Sr. Dynamics Consultant with I.B.I.S., Inc., in Charlotte, NC,  is a business and technology professional with over 25 years experience implementing and supporting various ERP systems and business process re-engineering initiatives across all organizational areas and across various industries, for small, mid-sized, and Fortune 500 companies.  He has held numerous positions in Accounting, Finance, Customer Service and Information Systems.  His application experience includes SAP R/3, Baan, Fourth Shift, Peachtree, MAS 90/200, Quickbooks and Microsoft Dynamics ERP.  His industry experience includes manufacturing, , distribution, telecom, aerospace, life sciences, utilities and media.  Frank studied Business Administration with an Accounting concentration at the University of Pittsburgh.  He is a Microsoft Certified Professional (MCP), Microsoft Certified IT Professional (MCITP), a Microsoft Certified Trainer (MCT), and has been named a Microsoft Most Valuable Professional (MVP) each year since 2008.  He writes articles for Dynamics-related web sites and is a regular speaker at Microsoft Dynamics Convergence, GPUG Summit, MSDynamicsWorld's Decisions Virtual Conference, a trainer and presenter for the Great Plains Users Group (GPUG) and has been a reviewer for various books written by fellow MVPs.  Frank is author of the blog GP2themax with 5,000 visits per month.

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ems2011's picture

Hello: Our company uses BOMs/Assembly Entry for light manufacturing. When an assembly is saved as "released," is that recorded as an Item Transaction (Inventory: Inquiry: Item Transaction) even if the assembly is not posted? What if the status is changed from "released" to "not released" and then deleted? I'm wondering because when I look up individual components in Item Transaction, assemblies are often listed more than once, which I can see because of the way we number the assemblies. I'm also wondering if these duplicate item transactions directly impact the item quantities. If the multiple item transactions aren't caused by the assembly entry process, what else could cause the duplicates? Thank you, EMS

sledg77's picture

EMS, could you send me a screenshot of what you're seeing in the system to fhamelly@intellpartners.com? That will help me visualize the issue you're describing. Thanks, Frank

Joaquin's picture

I do not see how to assign different sites to different components into an assembly. Can i do that in Inventory BOM?

aldntn's picture

I work principally with the BOM/Kit portion of GP. I would like to query the database for where an item is used in BOMs and Kits.

sledg77's picture

Have a look at BM00101 and BM00111 and design your query based on the relevant fields in these two tables. Good luck! Frank E. Hamelly | Dynamics GP MCP, MCITP, MCT, MVP East Coast Dynamics 4819 Emperor Blvd., Suite 400 Durham, NC 27703 United States of America 919.928.4521 (c) fhamelly@eastcoast-dynamics.com

Jeanne's picture

We do light manufacturing and do not have the Manufacturing Module. When I am in the "Bill and Items" lookup window of the assembly window I see that my view is "Active Bills, by Bill number" when I click the arrow I see "Active Bills" as my only option, everything else is grayed out. Is it possible to activate the other options somewhere in the set up? Is there a book that deals in detail with assembling items in Dynamics GP. I know how to do the basics, but am looking for what creative things others have done when they ran up against brick walls.

pqomm's picture

I have to use the assembly window in order to registir some items in inventory module, and I want to use a macro to do this task in an automatic way, the problem is that according with the operation of my company sometimes there is not enough raw materiales quantities in stock to do it, in that case we omit the inventory shortage, but we cannot identify when the window with the alert about the message of shortage will be open or not. There is any way to program this event and the way the macro should process this event to continue charging the information?

wigma's picture

i need information with GP Version 10. Product assigned in sales transaction. thanks.

jon Ball's picture

I use GP as per above and i am having a problem finding information
We set up 2 stage assembly's for multiple locations in GP in advance and have them set as "not released", then a month or so later when ever we need to begin processing it we use that original document number and set for "released" to process and push as per normal.
More often than not we have to use a new document number due to partial batches, which leaves the old document number open.
I need to find a way to smart list search for " NOT RELEASED STATUS w/ document numbers" so i can find them and close them out.