Using BOM and Assembly to Convert Items in Sage Accpac aka 300 ERP

The other day we were discussing Sage 300 for a prospect in Fabric industry and came across a requirement where they needed to convert a roll of fabric into multiple pieces. The simple solution provided was to have more than 1 UOM (Units of Measure) defined for the same item and then based on the conversion unit transact the item in both the units Roll and Pieces. However, they insisted on maintaining the item separately for Roll and Pieces. Now this situation can be handled using the BOM and Assembly functions of Accpac aka Sage 300.

Listing down the steps on how to define BOM (Bill of Material) and then assemble an item (Raw Material) to form finished good.

Go to Inventory Control Module and select Bills of Material under I/C Items and Price Lists. Select the Master Item as the item to be prepared as the finished good, which in this case will be Fabric Pieces. Assign a BOM number, Fixed and Variable costs that can incur in the conversion of roll into pieces. Fill in the build quantity as the no. of pieces that can be made using 1 unit quantity of roll (e.g. 10 pieces of 1 meter each if the roll is of 10 meters.). Select the Component item as Roll, enter the Unit Quantity (e.g. 10 Meter) and then save this BOM.

Now whenever a conversion is to be done, go to I/C Transactions> Assemblies and select the Master Item number, Location and Build Quantity and then run the assembly. This will convert 1 roll of fabric (say 10 meters) into 10 Pieces of fabric (say 1 meter each).

The benefit of using this process is that you can program the system to take care of the costing of cut-pieces based on the cost occurred in procuring the role.

On top of this, you can also record the loss of fabric due to the cutting process involved by entering the actual quantity in build quantity. (e.g. 1 roll converts into 9.7 pieces – provided you have allow fractional quantities checkbox on) and also if there are any fixed or variable costs involved in the process, they are taken care of.

This process will help you keep a more detailed track of stock that you own in different UOM and also automate to add the conversion costs and wastages to finished goods.

Hope this helps. Keep visiting for more.

Manufacturing made easy with Autosimply.

One of the major area where every manufacturing concern focus is on production optimization because almost 70 to 80% of cost in COGS is incurred during production. Industry is working on this subject since few decades, as a result we could see many theories and principles being evolved and practiced. But still there is a something missing, every time you achieve a targeted perfection we can gage a small percentage of error. Reason for such error may be external or internal factors, some are within our control and some are beyond our control.

Now let’s think of something which is within our control, internal operation. Planning, scheduling, executing and reviewing internal operation is very much necessary to narrow down the variances between standards and actual. Advance planning is the general trend in manufacturing. But today, manufacturers prefer demand based manufacturing to reduce business risk.

“Demand driven approach to production gives 92% perfect order against 81% of those who do not” - AMR Research

Demand based manufacturing is a complex process because while planning in such scenarios
management has to consider many factors other than Man, Material and Money. Such complexity can be handled by using a comprehensive solution like Sage Auto-Simply, which is
exclusively developed with an objective to handle complex calculations and probabilities while forecasting and planning. Greytrix, in its implementation practices had always leveraged the
power of simplicity in Auto Simply and over a period of time this had delivered tremendous result to their clients.

We could see that most of them had:
• Reduced their inventory by 15%.
• Improved their POP (Perfect Order Performance) by 17%.
• Reduced CtC (Cash to Cash) cycle by 35%.

This had helped them to reduce working capital, increase capital utilization, inventory
optimization and mainly maintained a flexibility to change over between SKUs as per trend. Auto-simply modules like Production Planning & Manufacturing Order can help you to get summarized Availability Report, Order Projection Report, Production Schedules, ability to check on implication of changing scenarios on profitability, CoP (Cost of Production) & COGS (Cost Of Goods Sold).

In long run a manufacturer can expect business benefits like, Increased Customer
Service with on time delivery, optimal Capacity Utilization, Reduced Wastage,
Reduced Transportation & Warehousing Cost if opts for automation of the end to end production process.

Inventory Optimization with Sage Accpac ERP.

Inventory contributes to be your biggest cost center and revenue centre, your business wouldn’t work without the right kind of Inventory be it Raw Material, Finished goods or WIP. Today efficient Supply Chain management contributes to a lot of cost saving and reducing the inventory cost of a company. The complexities in terms of SCM have increased considerably, the reasons of the increase in this complexity is the wide spread nature of business, the increase in competition which has lead to the import and export of raw material from various countries, lead time associated with this trade, the quality and the diminishing margin are some other reasons. The buyer today is informed and for companies to strive in this competitive market it is very essential for them to have the inventory maintained to the most optimal level. The companies today want to maintain Just In Time (JIT ) inventory so that they avoid the risks associated with stocking inventory. But sometimes some wrong calculations or oversight of information or missing information can cause the JIT to fail completely and thus result in the loss of a customer and thus valuable business.

It is very necessary for business owners to have the exact idea of their Inventory Pipeline and utilize this information to the best to achieve Inventory Optimization. This optimization will only be achieved if the Business owners have a 360 degree view of their business , they ought to know the current orders , the order pipeline, the lead time to delivery , the expected delays, the priorities of orders , sales vs purchases , and more vital information like this. This can only be achieved if the business owners are well informed and have the correct information , they are supplied with the right information on a daily basis.

How do you achieve this??

It is often said that most of the decisions in a business go wrong not because of a bad judgement but due to the information supplied to pass that judgement . Business owners with their level of experience do not take the wrong decisions, the decisions are wrong because the information which is supplied to them is sometimes wrong or not as per standards. In today’s competitive environment where the margins are diminishing and the costs are going up it has become all the more crucial to manage the business with an eagle’s eye.
Your business can be efficiently managed with a Business solution that will support and take care of all the activities carried out in your business. You need a solution that will give you the right information at the right time. Sage ACCAPC ERP coupled with BI Alchemex is the right solution for your business. The combo offers you a complete 360degree view of your business and helps you plan your inventory better.


The benefits are as below:
• History of Sales Orders-Customer wise / Item wise
• Purchase Analysis
• Sales Analysis
• Item Analysis
• Reports on Fast Moving Items, High Revenue items etc
• Location wise inventory reporting
• Purchase orders based on Purchase Requisitions/ Sales Orders / Reorder Level
• Setting up reorder level
• Set up Multiple Price lists (Customer wise/ Item wise)
• Reports as you desire.


Let us help you choose the right solution contact us at sales@greytrix.com or call us at 022-67687847.

Discrete Manufacturing Lost Money Test Part 2: Solution

SOLVE YOUR PROBLEMS and CURTAIL YOUR COSTS BY MORE THAN 25% WITH AN EASY TO USE, AUTOMATED AND INTEGRATED GLOBAL ERP, MRP and CRM system:

More than 50,000 customers use the system worldwide. WHY? Here is a just a few reasons: 1. Streamline and get control of your inventory with better raw material forecasting, snapshot of your inventory position resulting higher turnover of Inventory 2. Complete Production Planning for your manufacturing activities with inbuilt MRP and MRP level II reports for purchases 3. Strong Finance modules integrated with Inventory, Production and Sales modules to give you profitability status of your activities 4. Powerful Supply Chain to reduce your costs of inventory, purchase and carrying costs 5. Powerful analysis tools to give you accurate information on production processes with estimated dates of delivery to your customers 6. Integrate with CRM to take control of your front office activity and marketing activity 7. Drill Down and use powerful business intelligence tools for your financial planning 8. Multiple Legal Entities with support for all Indian taxes and statutory compliances PRICING: Sage and Greytrix brings you world renowned ERP and manufacturing system which is specifically targeted to Discrete manufacturing SMB industry and making it within reach without sacrificing on any aspect of “functionality” in comparison with any large ERP systems. The prices for the integrated suite starts from just 5 Lakhs. Contact us for a demo based exclusively with your own data and processes.