Manufacture/Formula Item Component Setup Checklist

How to setup the components on manufacture/formula items so they work relieve stock correctly.

Check Stocking Unit of Measure on item. This is the UOM that manufacturing will use

Add components that use the same common UOM as the stocking as a BASE (type 2) component.
So the components will add up to the stocking UOM.

Add components that use another common UOM as a UNIT (type 1) component.

The sum total of the components should equal a single unit of the stocking UOM.

Test the manufacturing logic by going running a manufacturing and displaying components.
Does the item manufactured equal your normal costing and are the components adding up to the total manufactured.
If formula item, test by doing a delivery ticket or invoice (that can be reversed) and running an activity report to verify component cost/qty usage.

Details of setting up Components

View the inventory pricing screen to determine STOCKING UOM.
the components you add need to add up to a single unit of the default stocking UOM.
Add components so they add up to one unit of stocking unit of measure
if a component can come back to the same common UOM as the manufactured/formula item, it is a BASE base (type 2)

if a component uses some other common UOM or is so small (ounces) that is does not increase the gallons/lbs., it is a UNIT components (type1)

The highlighted items all add up to a single stocking UOM.
TYPE 2 (BASE) components will display as a double asterisk ** in the stage column.
TYPE 1 (UNIT) components will display as a single asterisk * in the stage column.
this is the goal of the setup. In this example, all these items that have a common UOM are in LBS which will make a 50 Pound Bag.
Note: Service items are programmed to NOT add to overall quantity by the fact that they are service.
Test
INV > Inventory > stock Manufacturing
You can only make the product in the UOM that it is store in.
Take note of the Stocking Units. This is the UOM that controls the QTY.
Make 1 unit of this.
click OK
Display Component Usage and see if the quantities and cost per unit make sense.
Usually, the manager has a good idea of the cost of their product.
Does this single quantity match the cost that everyone thinks this should be?