This use case is intended to facilitate the management in Holded of the purchase, inventory, and manufacturing of products purchased in volume, weight or length magnitudes different from those of their sale.
Some examples according to magnitude could be:
Volume: you buy 20 liter drums and sell 1 liter bottles.
Weight: you buy 1 kilo (1,000 g) bags and sell 20 gram packages.
Length: you buy 5-meter planks and sell 50-centimeter tables.
For the explanation, an example on the magnitude "volume" will be used.
💎 You will need to have the Inventory and Manufacture gems activated to apply this type of solution.
I buy 500 ml bottles of essential oil and sell 15 ml bottles of lavender oil. How do I manage this in Holded?
To optimally manage the example case you will need to consider:
A "raw material" product: 1 ml of essential oil.
A product pack supplied by our supplier: 1 bottle of 500 ml of essential oil.
An additional product or service for each extra "material" of the manufactured product: 1 bottle + 1 cap + 1 labor.
One product manufactured: 1 bottle of 15 ml of lavender oil.
In addition, for such management, two different scenarios must be distinguished:
Option 1: materials without lots or serial numbers.
Option 2: materials with lots or serial numbers.
Option 1: Materials without lots or serial numbers (SN)
In the event that the materials that make up the manufactured product do not include lots or serial numbers, follow these steps:
Create product: essential oil (1 ml)
Create the product (simple or with variants) that will be the "raw material". That is, the "essential oil".
Consider that 1 unit of essential oil will be equal to 1 ml of product.
Create product pack: oil bottle (500 ml)
Create the product pack that your supplier will supply you with. Since you receive 500 ml bottles, you will create a product pack consisting of 500 units of the previously created product, "essential oil".
☝🏼 A pack of products is used because what you will issue to your supplier will be purchase orders for 1 bottle of 500 ml, not 500 units of 1 ml oil. The pack will only be used in purchases, not in the manufactured product.
Create products and services: cap (1 unit), container (1 unit) and labor
Now create new products (simple or with variants) or services for each of the other materials that, together with the essential oil, will be part of the manufactured product.
That is, create the "cap" product, the "package" product, and the "labor" service, with their respective purchase prices.
Create manufactured product: Lavender oil bottle (15 ml)
Next, you create a manufactured product, adding the materials and labor created earlier. Remember to specify in the bill of materials that the materials requirement is "15 units of essential oil"; that is, 15 ml.
Create purchase order: 1 bottle of essential oil (500 ml)
Your supplier expects to receive a purchase order requesting a certain number of units of their bottles; so now create a purchase order that includes the "oil bottle (500ml)" product pack created previously.
If in "Quantity" you have indicated 1 unit, once you confirm that you have received the units, (in this case, a bottle), 500 units will be added to the "essential oil" product in your system.
Manufacture (adjust stock): Lavender oil bottle (15 ml)
Finally, apply the Manufacture function to add the stock of the manufactured products, subtracting, at the same time, the stock of the materials that make it up.
You can do this in two different ways:
Manufacture by fast manufacturing.
In this case, 1 unit would be added to our stock. of "bottle of lavender oil (15 ml)", deducting, in turn, 15 pcs. of "essential oil", 1 pc. of "plug" and 1 pc. of "packaging".
Manufacture using a manufacturing order.
Create a production order for the product "Lavender oil bottle 15ml" (learn how to do it here).
Now go to Orders > Production Orders and click on the newly created order. In the right section click on "Manufacture".
This will add 1 pc of "lavender oil bottle (15 ml)" to our stock, deducting, in turn, 15 pcs of "essential oil", 1 pc of "cap" and 1 pc of "container".
Option 2: Materials with lots or serial numbers (SN)
In the event that the materials that make up the manufactured product include lots or serial numbers, it is not possible to use the "product pack" option, due to the restriction of not being able to register new lots or serial numbers for the included products. in the pack when you receive the stock through purchase orders.
Instead, proceed directly with the product "essential oil lots (1 ml)" when placing purchase orders.
Follow these steps to manage it:
Create product: essential oil lots (1 ml)
Create the product (with lots or serial numbers) that will be the "raw material". That is, the "essential oil."Consider that 1 unit of essential oil will be equal to 1 ml of product.
Create products and services: cap (1 unit), container (1 unit) and labor
Now create new products (simple or with variants) or services for each of the other materials that, together with the essential oil, will be part of the manufactured product.
That is, create the "cap" product, the "package" product, and the "labor" service, with their respective purchase prices..
Create manufactured product: Lavender oil bottle (15 ml)
Next, you create a manufactured product, adding the materials and labor created earlier. Remember to specify in the list of materials that the materials requirement is "15 units of essential oil"; that is, 15 ml.
☝🏼 Although you will have to select a specific batch to be consumed (from the material with batches), you will be able to modify it in each production order you place.
Create purchase order: 1 bottle of essential oil (500 ml)
Your supplier expects to receive a purchase order requesting a certain number of units of their bottles. You will have to create a purchase order that includes the product with lots "essential oil lots (1 ml)", created previously, with these premises:
In the "Options" section, top right,
Uncheck the "Select Lot/SN" box. This will select a generic lot for the order (you actually don't know which lot you will receive).
In "design template", go to three-dot button > Edit > Advanced options > Table, and uncheck the "Units" and "Price" boxes.
In the "Quantity" field of the order, indicate 500 units (500 ml), which is the quantity of product you will receive.
In the "Description" field, write "1 bottle", since your supplier is what will actually supply you.
Once your order has been saved, check in "PDF view", at the bottom left, that, under the "Concept" column, "Essential oil lots / 1 bottle" appears.
When you indicate to the system that you have received the units, (in this case, a bottle), select the specific lot of "essential oil lots (1 ml)" that you have received. This will add 500 units to your stock of said lot of product.
Create a production order, select the product and the lots to be consumed.
Create a production order for the product "bottle of lavender oil (15 ml)", and select the lots and units of material to be used in the production of the product. Learn how to do this here.
☝🏼 If you do not check the "Select lot/ns of product to be manufactured" option, the product will be selected with generic lots and not a specific lot (after all, you may not know the lots to be consumed).
Manufacture and create or select the lots to be supplied
Once the production order has been created, click on "Manufacture" from the order tab and create the new lot to be supplied (or select them if you have already created them). Learn how to do this here.
☝🏼 Please note that the number you entered in the "Quantity" field when creating the order must match the total number of units in the "Manufacture" column when adding the lots.