Below is a work flow diagram of the various functions available in All Orders. It shows how the different arms of your business (sales, purchasing, warehousing, production) interact, and how the entire system interacts with QuickBooks.
All Order supports many different work flows, and usually simultaneously. Your own business may be engaged in many different activities, in which case you would use multiple work flows.
A for-stock manufacturer typically manufacturers a line of product for stock and thereafter sells their product to a wholesaler or end user. The distinction is made that production of the product occurs before a customer order. Estimating quantity to produce is critical in order to minimize back orders as well as reduce component and raw material inventory.
Suggested Work Flow:
You can schedule production by creating one or more Work Orders. Work orders can be created to reflect an entire month’s production and can be split as production is completed. Hint: Previous work orders can be duplicated. A work order will generate demand for components. Use the Reorder Analysis tool to create purchase orders to Vendors based on reorder point / reorder amount.
Use Sales Order for customer orders.
Use the Batch Shipping to auto-fill multiple sales orders. Use the resulting Ship Doc picking list template to pull stock. The Ship Doc is linked to UPS World Ship software. Once the tracking # is generated, it is automatically recorded on the Ship Doc. Use the Ship Doc’s packing list template to include the list with your shipment.
A JIT (just-in-time) manufacturer assembles or manufactures its product line very close to its scheduled delivery date. It typically keeps sufficient components (which could also have been assembled or manufactured) to enable it to assemble the finished product quickly. Orders may have multiple (scheduled) delivery dates.
Suggested Work Flow:
Use Sales Order for customer orders. Each line item can have multiple shipping dates. Create Work Orders using Reorder Analysis and use the ‘Required’ amount as the order quantity. This will tie the sales order to the work order. One work order will be made per line item and ship date.
Use the Reorder Analysis to create purchase orders or work orders for components based on reorder point, maximum inventory level and reorder amount.
Finishing a work order will automatically generate the Ship Doc. The Ship Doc will be on the Shipping list. The Ship Doc is linked to UPS World Ship software. Once the tracking # is generated it is automatically recorded on the Ship Doc. Use the Ship Doc’s packing list template to include the list with the shipment.
A custom manufacturer creates product with variations and options. For example, a computer manufacturer may sell a computer with 40 or 80 Gig hard drive. Components may be kept in stock or purchased on an order-by-order basis.
Suggested Work Flow:
In addition to having a Bill of Materials, items with variations will also have a Configuration that lists variation Items as well as optional Items.
Use the Sales Order and configuration tool for customer orders. Create the Work Order (s) directly from the sales order so that variations will be considered. Create Purchase Orders for components directly from the work order, which will reserve quantity for the work order. When the purchased orders are received, the quantity will automatically be allocated to the originating work order. You can use one purchase order for multiple work orders.
Finishing a work order will automatically generate the Ship Doc. The Ship Doc will be on the Shipping list.
There is a difference between an item that is manufactured and an item that is kitted. A manufactured item is converted, in one way or another, during the manufacturing or assembly process. In other words, by combining the components together, you create a new item. By contrast, a kit is a group of items that are sold together without conversion.
Suggested Work Flow:
You can create Kit items which can have fixed, variable or optional components.
Use the Sales Order and configuration tool for customer orders. Use the picking list template from the sales order to pick the items and create the ship doc on an order by order basis, or use Batch Shipping to auto-fill multiple sales order as the same time.
Use the Reorder Analysis to create purchase orders for components based on reorder point or the required amount.
If a kit is pre-assembled, then you should create the item as an assembly, and you will use the Work Order for picking instead of the sales order. Refer to "Custom Manufacturer" above.
A job shop performs one or more specific functions in a manufacturing process on a contract basis. For example, a manufacturer may outsource machining to a job shop. A job shop commonly receives components from the manufacturer and may apply its own components as well.
Suggested Work Flow:
Create items of type Job or Assembly having a Bill of Materials and Configuration that lists items that have variation as well as optional items.
Optionally, you can use a customer return (receiving inventory from the customer) for use on the Job.
Use the Sales Order and configuration tool for customer orders. Create the Work Order (s) directly from the sales order so that variations will be considered. Create Purchase Orders for components directly from the work order, which will thereby reserve quantity for the work order. When the purchased orders are received, the quantity will automatically be allocated to the originating work order. You can use one purchase order for multiple work orders.
Finishing a work order will automatically generate a Ship Doc. The Ship Doc will be on the Shipping list.
A processor takes one item and breaks it down into component items. It may sell these items or use them in production.
Suggested Work Flow
Create items of type Assembly using a Bill of Materials, in which case the item that you purchase is the Assembly and the resulting products are the components. Create and finish a Disassembly to break down the item.
Suggested work flow:
This is any business that supplies parts and labor to its customers. If you want all the parts and labor to be rolled up into one item on the invoice, you should use ‘Job’ items and follow a work flow similar to the Job Shop above. Otherwise, simply create a Sales Order and list the parts and service items. Use the Fill button to generate a Ship Doc so that the items can be invoiced in QuickBooks.
Suggested work flow:
Create a drop ship Purchase Order directly from the underlying Sales Order. When the purchase order is received (even though it never is physically received), a Ship Doc will be created automatically so that it can be invoiced in QuickBooks.
Suggested work flow:
Retailers with a cash and carry business do not need sales orders. Rather, they can go directly to a Ship Doc. Optionally, you can create one customer that will be used for all retail business. Set its Term type as ‘Cash’. This will require that a payment will be made at the point of sale. A sales receipt will be recorded in QuickBooks.
Suggested work flow:
Retailers who take custom orders will use the Sales Order to record the order. If desired, you can create just one customer that will be used for all retail business. Set its Term type as ‘Partial Cash’ or ‘Partial AR’ if a deposit is taken on order and balance paid on shipment. Create a Work Order or Purchase Order directly from the sales order to tie the documents together.