Creating Vendor Records for Service Processes

When creating work orders, the system requires a vendor to complete the order. All vendors are valid, however, if you process any work order steps in-house, a vendor must be created for your company's service process. For example, you may send out products that need to be painted, but you assemble or cut products at your warehouse. Use a current vendor to enter the painting step on a work order, but create an internal vendor for the assembly step. Use Vendor Work Order Processing Maintenance to assign default values for the vendor's setup and process costs per process.

To create a vendor record for a service process:

  1. From the Maintenance menu, select Vendor to display the Vendor Maintenance window.

  2. Create a vendor record. If this is an internal vendor, in the Name field, enter a vendor that describes the internal process to perform, for example, Assembly Vendor - In House.

  3. From the Orders menu, select Work Order Processing Maintenance to display the Vendor Work Order Processing Maintenance.

  4. From the Process list, select the type of process the vendor performs. The Process list is populated from the Valid Vendor Work Order Processing Codes Control Maintenance Record.

  5. Complete the following fields for the vendor process:

Note: Leave any field blank that has a value that changes depending on the type of material modified.

Field

Description

Days

Enter the number of days required to complete the step. When you complete this field, the system adjusts the completion date for this process and the start date for the next process.

Setup Cost

Enter the dollar amount of the preparation costs for processing the step.

Process Cost

Enter the dollar amount for the labor or other costs associated with processing a single unit of measure. Refer to UM field. The system uses the Process Cost and UM in the total cost calculation.

UM

Select the unit of measure (UM) for the quantity of items to process in the step. The system also uses the UM when calculating the total cost of processing the step's quantity.

  • Lot - Costs the order for entire quantity as a whole. This is the default.

  • ea - Multiplies the cost by the value entered in the Process Qty field.

  • C - Cost per 100. Adds the cost in 100 value intervals.

  • M - Cost per 1000. Adds the cost at 1000 value intervals.

  • Wt - Cost based on weight. Adds cost based on the weight of the finished product.

 

  1. Repeat steps 4 and 5 for each type of process for the vendor.

  2. Save the information and return to the Vendor Maintenance window.

  3. From the Additional menu, select Additional Vendor Information to display the Additional Vendor Information window.

  4. If you created an internal vendor, do the following:

  5. In the Override G/L Account Number field, enter the override account number.

  6. In the right-hand pane, select No Order Entry to make sure that other orders are not created with this vendor.

Note: Never assign an override G/L account number to an external vendor, as a payable is involved.

  1. Save your changes and exit the dialog box.

  2. If prompted that no active branches or territories are assigned, select Yes to display the Accessible Branches window and assign branches and territories to the vendor.

  3. Save your changes and exit the window.

 

 

See Also:

Setup Requirements for Work Order Management

Entering Work Orders

Reporting on Work Order Templates

Calculating the Cost Of a Work Order Step