Sales Orders - How to Manage Configured SO Lines

Overview

To satisfy Engineering to Order (ETO) requirements, Configured Sales Order Lines provide the flexibility of re-engineering every order with custom configurations. This is especially powerful if combined with the Product Configurator functionality that Rootstock offers, where the user can make component selections based on sets of options that are previously pre-defined and then export these to Sales Orders.

In Rootstock, the Inventory Demand generated from a configured Sales Order Line is satisfied by creating a shop-floor order that satisfies its requirements and which will manage the inventory readiness for Sales Order Fulfillment.

Application

Configured Sales Order Lines are automatically linked to shop-floor Work or Labor Orders when the user firms the given Sales Order Line. This provides a 1-to-1 relationship between Sales and Shop Floor Work Orders and visibility for users when they access these records.

The type of Order created depends on the Item Type (Direct Material or Labor) specified on the Engineering Item Master that is related to the Item Master, specified on the Product Master > Inventory Tab.
 

• If Item Type = Direct Material then, upon firming the Sales Order Line, generates a Work Order. The Work Order Types (Standard, Rework, or Refurb) can be selected by default with Work Order Type field on the Product > Inventory tab.

• If Item Type = Labor Only, then, upon firming the Sales Order Line, generates a Labor Only Work Orders.

Key setup options specific to Configured Sales Order Lines (CSO) and Configured Labor Sales Order Lines (CLSO)

SO Control > Order Processing Tab
 

Create WO Picklist Detail for CSO Lines:  When checked, while firming a Sales Order Line & the Product is Configured or Stock using ‘Configure this time’ when the Work Order is auto-created, picklist records will be generated for the Work Order created. Note that this doesn't apply if Inventory Allocation is active.

Bind CSO Work Order Receipt and SO Issue:  When checked, this indicates that SO Issue and CSO Work Order Receipt are bound together, meaning that the WO Receipt will automatically trigger the SO Issue transaction. Also, it prevents Sales Order Fulfillment of CSO Line for higher quantities than what has been completed on Work Order Receipt. When unchecked, the SO Issue must be performed manually and can be done even if the Work Order has not been completed.

Project Budget Details from CSO Line:  When checked, when a Sales Order Line is added for a Configured Product, Material, Labor, and ODC Budget Details are automatically created for the Project specified on the Sales Order Line. 

Work Order Numbering Method:  This value defines the Numbering method when Work Orders are auto-generated when firming a Sales Order Line for a Configured Product or for a Stock Product where 'Configure This Time' is being performed.

Work Order Number Prefix:  This is an optional prefix for auto-generated Work Orders for Configured Products or for Stock Products where 'Configure This Time' is used. This prefix is only used when the 'Work Order Numbering Method' is set to 'Use Next Auto-Assigned Number with Prefix'.

Product Master > Inventory Tab
 

Use Product Components vs Eng BOM:  When checked, Product Components, instead of the effective BOM, are extracted to the Sales Order Line as Configured Sales Order Material for Configured Products.

Extract Standard Routing:  When checked, effective Routing is extracted, and operations are added to the Sales Order Line as Configured Sales Order Labor.

CSO Alternate Routing Code: It is also possible to define whether Alternate Routing Operations should be extracted by specifying a value that matches the Routing Operation's Alternate Code.

Alternate Routings Exclude Standard Ops (Division Master > Shop Floor Control Tab):  When checked, only Alternate Operations are to be extracted.

Setup Options (Optional)

SO Control > Miscellaneous Tab
 

Fulfillment for Config Labor WO Complete:  This picklist field indicates the amount of Sales Order Fulfillment that is to occur on the completion of a Labor Only Work Order originating from a Configured Labor Sales Order Line. The options are:

• Pick

• Pick & Pack

• Pick, Pack & Ship

  NOTE  If the 'Fulfillment for Config Labor WO Complete' field value is blank, by default, the system will consider the value as 'Pick, Pack & Ship'.

Key Pricing Settings for CSO and CLSO Lines

Sales Order Line Components Pricing:

• Define SO Control > Price Tab default Price Method and Price calculation values for Material and Labor components to be used on CSO/CLSO Lines.

• If no Price Method is defined, Material Components will be priced from Component Price Maintenance, and Labor components will have a zero price.

• Costing and Pricing values can be updated before the Sales Order Line is Firmed.

Rootstock Product Master
 

• Product Master > Inventory Tab 

  • Price From Components (Kit and Config):  When checked, the Price is rolled-up from the Sales Order Line Components (Material, Labor & Non-Inventory), as to calculate Sales Order Line's Unit Price. Checking this setting will also disable user-edits of the field Unit Price on Sales Order Lines, ignore the Sales Order Price Discount Logic - Overview, and set the Price Source as Components Roll-Up (ROL). 

  NOTE  Product option Price From Components (Kit and Config) can be overridden on Sales Order Lines by checking the box Ignore Rollup Pricing field on Sales Order Line > Configured Order Pricing Tab. This will enable the Unit Price field for user edits.
 

• Product Master > Order Processing Tab

  • Create Price Details for Labor and/or Create Price Details for Material:  For Labor Orders, the creation of Price Details for Labor and/or Material Components upon Labor Order completion can be selected by default with these settings. It would be used when the Labor and Material Components are not directly maintained in the Sales Order but need to be accounted for in the Labor Order once it is completed. These Price Details would be added to the Sales Order Line Components as Non-Inventory Components after the Complete button is clicked on the Labor Work Order, as below:

    • Each Labor Order Operation (managed directly from the labor order) and Component (which can be added by accessing the related Work Order to the Labor Order, using the Slide Menu, or are exploded from Product's Product Components when the option Use Product Components vs Eng BOM  is active) that were required for the completion of the Labor Order would generate a Non-Inventory Component (NIC) with no cost, and price value calculated as per SO Control > Price Tab, or if overridden, by the value on Sales Order Line > Configured Order Pricing Tab. For example, if the Labor Price method is Cost Plus Markup, then the operation's Price would equal to the cost incurred on the Labor booking of this entity times the markup. In the case of Components, the markup would be applied to the WO Issue cost.

    • Also, when the Labor is Completed, the total cost of the Labor Work Order is transferred to the Sales Order Line by generating a Non-Inventory Component with no price value and a Cost equal to the Labor Order's total incurred cost. This record is flagged as WIP to COGS Transaction.

  • Update CLSO Price with Actuals:  When checked, once the Labor Order is marked as completed, it updates the Sales Order Line unit price with rolled-up price from Non-Inventory Components (these are generated when using Create Price Details). When unchecked, the Sales Order Line and Shipper will be created for the Price the Sales Order Line had before the Sales Order Labor was completed. It cannot be unchecked once the Labor Order has been created (Sales Order Line has been firmed).

  NOTE  Option Update CLSO Price with Actuals is meant to be used together with Create Price Details for Labor and/or Materials. If not using any of both Create Price Details operations but using this Update CLSO price with Actuals setting, the Unit Price and Shipper price will be set to zero.

If there is a Price Calculation Discount value on Customer Master > Sales Order Defaults tab, this will be applied to calculate the Unit Price, as with other types of Sales Order Lines, which are then extended using the Sales Order Line Qty. Ordered and Discount Percentage values.

Processing
 

1. Refer to below for the addition of Sales Order Header and Lines:

   • Sales Order Header Creation and Management

• Sales Order Line Creation and Management

  • Ensure that the Product added to the Line has a Configured Product type or,

  • If adding a Stock Product Type that needs to be ETO, update the value for Configured This Time field on Sales Order Line > Additional > Inventory Settings Tab, either while adding the Sales Order Line or after it has been initially saved.

The addition of the Sales Order Line for Configured or Configured-This-Time Products will also trigger below:

• Addition of effective Routing Operations to the Sales Order Line Components, which are added as Configured Sales Order Labor records. The Routing Operations are extracted using one of the below logic:

  • If the Inventory Item associated with the Sales Order Line Product has value for the 'Item for Routing Extract' field, then the Routing Operations are extracted from the alternate item defined on 'Item for Routing Extract'.

  • If there is a Routing Master for the Inventory Item associated with the Sales Order Line Product, it will be used.

  • If no Routing Master exists for the Inventory Item, then the Routing Operations are extracted from the Inventory Item's Commodity Code.

 IMPORTANT  This will only occur when the option Extract Standard Routing is checked on Product Master > Inventory Tab.
 

• Addition of effective BOM components to the Sales Order Line Components (Or the addition of Inventory-Product Components if using Use Product Components vs Eng BOM), which are added as Configured Sales Order Material records.

  • This includes effective BOM Overrides and Operation Number assignment to Configured Sales Order Material, which is processed by looking into extracted Configured Sales Order Labor records and their Operation Number and assigning this operation number to Configured Sales Order Material records based on matching Work Center and Process Number values.

• Addition of non-inventory (Service and Miscellaneous) Product Master > Product Components Tab to the Sales Order Line Components, which are added as Non-Inventory Components (NIC) records.

If using product configurator export for creating Sales Order Lines, refer to Configuration Session Export: SO Line Component Output by Configuration Component Type. Note that the above reference regarding fields Extract Standard Routing, Alternate Routings Exclude Standard Ops, and Use Product Components vs Eng BOM will also apply when exporting from a Configuration Session, in addition to those Components that are exported from the session itself.
 

2. (Optional) Go to Sales Order Line Components and review the fetched records. Add/Edit/Remove as desired. This can only be completed before the Sales Order Line is set to Firmed status.

  NOTE  Configured Sales Order Lines will always create the Sales Order Inventory Demand record with the Sales Order Line specific Project Master, regardless of whether the Item is flagged as Home Project. This means the resulting Work/Labor Order will also be for the Sales Order Line-specific project. As opposed to Stock lines, where if the Item is a Home Project, then the demand would be created for the Home Project instead of the Sales Order Line specific Project.
 

3. (Optional) Make updates specific to Item Type, on Sales Order Line > Additional Section/Button. Default values are fetched from Product Master and SO Control records.

   • Direct Material

     • Update Work Order Type: Sales Order Line > Inventory Settings Tab

     • Update Material/Labor Price Methods: Sales Order Line > Configured Order Pricing Tab

   • Labor (Sales Order Line > Configured Order Pricing Tab)

     • Update whether Update Price with Actuals, this option can only be changed before Sales Order Line is firmed

     • Update Create Price Details for Material/Labor options.

     • Update Material/Labor Price Methods

   • Both 

     • (Informative) Check Commission ATP, for inventory levels, existing demands, and available to promise.

     • Update Markup Percentages, which will effectively update the Material/Labor pricing.
        

4. (Optional) When a Sales Order Line is created with a Configured Product, the system will create the SO Line Configured Product records.  Until the Sales Order Line is Firmed, the user can edit the associated SO Line Configured Product record to define how (from Phantom or Inventory Item) the Work Order Components need to be derived.   

• To derive the Work Order Components from a Phantom Engineering Item, set the 'Use Phantom vs. Inventory Item' to 'True' and update the 'Phantom Item' with the Engineering Item Master of 'Eng Type' as 'Phantom'.

  NOTE  A Work Order Component will be created for each BOM component linked to the Phantom Engineering Item.
 

5. (Optional) Creating Sub-Assembly Work Orders for the Sales Order Line Components

• Import SO Line Configured Product (SOCONFIG)

• Import Sales Order Labor Operation (SORTOPER)

  IMPORTANT  The sub-assembly Work Orders will not affect the SO Fulfillment process.

6. Firm Sales Order Line  (and Save). Which will automatically:

• Generate the Labor/Work Order, as per the Item Type specified previously, visible under Sales Order Line > Additional > Inventory Settings Tab.

• Based on existing Sales Order Line Component records when the Sales Order Line is firmed:

  • Add Work Order Component, for each Configured Sales Order Material record linked to the Sales Order Line.

    • If the Configured Sales Order Material record has a Phantom Engineering Item, a Work Order Component will be added for each BOM Component linked to the Phantom Engineering Item.

  • Add Work Order Operation, for each Configured Sales Order Labor records linked to the Sales Order Line.

  • Add Work Order Non-Inventory Components for each Non-Inventory Component record linked to the Sales Order Line. Note that these are just used as a reference on the Work Order.

Shop-Floor Order Processing

Common processing guidelines for both Work and Labor orders:

• If the shop order is at a status other than 2-Firmed, the Sales Order Line cannot be unfirmed. The user must bring Shop Floor Work Order status back to 2-Firmed.

• If the shop order is at status 2-Firmed, but Labor booking has already taken place (even if reversed afterward), the Sales Order Line cannot be unfirmed. The user would need to break the link between the Sales Order Line and the Work Order, by going to Sales Order Line > Additional > Inventory Settings Tab and clicking the Decouple Work Order button.

• Once a Configured Sales Order Line is firmed, if the Quantity on the line is updated and changes saved, related Work/Labor Orders will have their Qty. Required updated accordingly. The same is not true for updating shop-floor orders. They will not have any impact on Sales Order's Qty ordered.

Work Order

The steps to process the work order linked to a Sales Order Line are the same as with normal Work Orders:

• Standard Work Orders

• Refurbish Work Orders

• Rework Work Orders

• Work Order Receipt

If Bind CSO Work Order Receipt and SO Issue  (SO Control > Order Processing tab) setting is checked, this indicates that SO Issue and CSO Work Order Receipt are bound together, meaning that the WO Receipt will automatically trigger the SO Issue transaction.

Labor Work Order

The steps to process the Labor Order linked to a Sales Order Line are the same as those with Labor Only Work Orders.

Once all the tasks are completed, and the labor order is marked as Complete (by pressing the Complete button), Non-Inventory Components (NIC) will be added to the Sales Order Line as below:

• Labor Order Total Charges: This is the total cost incurred for the Labor Order, added as a NIC, for Order Qty., and prorated unit cost from the labor order total cost

If Create Price Details for Materials (Components) and/or Labor (Operations) is checked:

• Labor Order Operations: Each operation that had labor booking is added as a NIC, for Qty. Required equivalent to the Hours booked for the operation, Qty per equivalent to Actual ((Run+Setup Hours) / Qty Required) on Labor Order, and price following the SO Line Price Method.

• Labor Order Components: Each issued component is added as a NIC, for Qty. Required equivalent to the Qty issued for the component, Qty per equivalent to (Qty. Issued / Qty. Required) on Labor Order, and price following the SO Line Price Method.

As part of the Labor Order completion, the Sales Order Line will be automatically fulfilled based on the 'Fulfillment for Config Labor WO Complete' field value on SO Control > Miscellaneous Tab. Each Non-Inventory Component will generate a NIC Issue transaction for its cost.

When reversing the completed Labor Order, the Sales Order fulfillment will also be automatically reversed for the Sales Order Line based on the field 'Fulfillment for Config Labor WO Complete' field value on SO Control > Miscellaneous Tab.

SEE ALSO
 

Sales Orders Entry - Overview
Sales Order Header Creation and Management
Sales Order Edit Page
Sales Order Line Creation and Management
Sales Order Line Components
Work Orders
Labor Only Work Orders