Setting the Use Component Yield Preference

The Use Component Yield preference lets you automatically calculate quantity allowances for expected raw material loss during processing. You no longer need to manually adjust raw material purchase quantities to account for issues. For example, quality of material/defects or machine processing/scrap.

Accounting for material variances lets you adjust your planned usable quantity by ordering more units than the target build quantity. Work orders can reflect item order quantities based on accurate expected component yield assumptions, not the quantities listed on the bill of materials.

For example, you sell a coffee cup assembly that is made up of 3 components: 1 cup, 1 lid and 1 sleeve. Every 100 assemblies produces 5 defective cups. Therefore, when ordering the cup assembly you must order 105 units to produce 100 cups.

To set the Use Component Yield preference:

1. Create a new BOM record.

   For more information, see Creating a New BOM Record.

2. To enable NetSuite to calculate the necessary quantity to build or order based on component yield settings, in the Bill of Materials page, check the Use Component Yield box.

   You can find the Use Component Yield in the Bill of Material form. To learn more, see

   Creating a New BOM Record.

   NetSuite applies this option to the assembly and any sub-assembly components required for the top level assembly. For more information, see Example Three: Sub-assemblies and Component Yield.

   Important:

   Review your customization scripts prior to checking this box.

   To prevent NetSuite from calculating the necessary quantity to build/order, clear the Use Component Yield box.

3. If you check the Use Component Yield box, you can set the following on the item record:

   • The Quantity field on the Components subtab is disabled because this quantity is calculated by NetSuite.

     This field displays the amount required for the assembly when one unit of the assembly is being built. This value is automatically calculated from the entries in the Component Yield and BOM Quantity fields.

   • The BOM Quantity column displays the quantity of the component used to build an item assuming no loss.

   • The Component Yield column displays the anticipated yield due to loss during the manufacturing process.

   For example, a Sleeve is a component of the Coffee Cup assembly. Each Coffee Cup assembly requires a sleeve. The sleeve has an anticipated loss amount of 50%. Enter the following on the Coffee Cup assembly item record:

   • Check the Use Component Yield box

   • Sleeve Component Yield is 50%

   • Widget 1 BOM Quantity is 1

   When a work order is created for the Coffee Cup item, NetSuite calculates a requirement of 2 sleeves. NetSuite displays 2 in the Quantity field on the Components subtab.

Related Topics

Setting the Round Up Quantity as Component Preference

Component Yield Examples

Component Yield Preferences

General Notices