Manufacturing Preferences

To set manufacturing preferences, use the following procedure.

To set manufacturing preferences:

Go to Setup > Manufacturing > Manufacturing Preferences.
Complete the Manufacturing Accounts section:
1. Select a Default Unbuild Variance Account to post variance amounts that result from unbuilding an assembly item. The selected account is displayed by default in the Unbuild Variance Account field on item records.
  
  If the item record Unbuild Variance Account field is empty, item variance amounts are posted to the Cost of Goods Sold (COGS) account.
2. Select a Default WIP Cost Variance Account to display by default in the WIP Cost Variance Account field on item records.
  
  The WIP Cost Variance Account is an expense account for actual cost or average cost assemblies. This account is used when the reconciliation amount cannot be returned to the asset account because the amount has been shipped. This account is required if WIP is checked for any location.
3. Select a Default Scrap Account to display by default in the Scrap Account field on item records.
  
  Scrap Account is an expense account that is used during the work order completion. This account is required if WIP is checked for any location.
4. Select a Default WIP Account to display by default in the item record WIP Account field.
  
  The WIP Account is an asset account used when a work order component issue is entered. This account is required if WIP is checked for any location.
Select an Average Cost Completion Unit Cost option:
- Average Cost – to display deviations between the actual cost of component consumption and the average cost of assemblies. If these variances are valid, they are incorporated into the assembly cost using the Inventory Adjustment Worksheet.
- Open WIP Amount – to calculate the completion cost based on the open WIP amount.
To add assembly items to purchase orders, vendor bills, checks, credit card transactions, and vendor credits, check the Allow Purchase of Assembly Items box.
To enable advanced BOM users to edit legacy BOMs (rather than copy Legacy BOMs), check the Allow Editing of Legacy BOMs box.
Complete the Production Planning, Scheduling and Allocation section:
1. To display a scheduling method on work orders, select a Default Scheduling Method:
  
  To learn more, see Production Scheduling Methods Overview.
2. Select a Manufacturing Issue Based on Commitment option:
  - Limit to Committed – to restrict the build to a quantity not greater than the quantity committed on the work order.
  - Allow Uncommitted – enables you to build a quantity greater than the quantity committed on the work order.
    
    When the build is saved, the items on the work order are still uncommitted.
  - Ignore Commitment – places no restrictions on the build that are based on commitment.
3. To define the default status of new work orders generated by a planning engine run, select a Create Work Orders in Supply Planning option.
4. To set an allocation strategy for the default selection on new work orders, select a Default Allocation Strategy on Work Order.
  
  For more information, see Creating Allocation Strategies.
Complete the Production Execution section:
1. To enter a quantity larger than the quantity remaining for an item on a work order, check the Allow Overage on Work Order Transactions box.
  
  Clear this box to restrict the amount to a maximum of the amount on the work order.
2. Select a Default Work Order Status option:
  - Firm Planned - Firm orders cannot be rescheduled.
  - Open Planned - Open orders can be rescheduled.
  - Released - Any work order in a Firm Planned state must be set to Released state to commit items to it.
3. Select a Check Completed Quantity in Prior Operations During Operation Completion option:
  - No Verification - Do not receive verification warnings.
  - Require Confirmation before Saving - Receive verification warnings. The completed quantity can be greater than the previous completed quantity after the warning is acknowledged.
  - Do Not Allow Saving - The completed quantity cannot be greater than the previous completed quantity.
4. To display the Planned Time subtab on work orders and automatically create planned time entries, check the Show Planned Capacity on Work Orders box.
5. To have actual production start and end dates fill in automatically, check the Automatically Fill Actual Production Start and End Dates box.
  
  If you prefer to control actual production dates manually, and do not want NetSuite to calculate production dates, clear this box to disable this feature. However, you will then need to enter actual production dates manually on each work order.
  
  To learn more, see Production Start and End Dates.
Click Save.

To set manufacturing preferences:

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