Material Monitoring of Work Orders

Material Monitoring of Work Orders

Work orders are a special form of material movements, as they usually involve the creation of a new product from component parts.

It is essential to remember that this is a two-part process. In the first part, we are relieving the warehouses of the components of a given product, and in the second part, we are burdening the finished goods warehouse with finished goods.

Material business events that relieve or burden warehouses are configured in a similar way to other material movements.

Example of a material monitoring of work orders flowchart:

Explanation of the flowchart:

• There are two types of material document types that burden or relieve warehouses:
  • those that relieve warehouses (6200 – Relieve inventory for goods, 6300 – Issuance for packaging, 6400 – Relieve inventory for material, 6500 – Relieve inventory for products, 6600 - Relieve inventory for service); and
  • document type 6100 – Receiving of finished product to warehouse, which burdens the warehouse with finished goods.
• In addition to the material document types, there is also the work order document type 6000 – manufacturing, which, on the basis of the finished product's BOM, "builds" the product from the components received.
• It is therefore best to imagine the work orders document type as a black box, where the raw materials or components come from the top and the finished products come from the bottom.
• Because we need to link both the top and bottom sides to the warehouses and do correct material and accounting postings, we use the top side for issuing and the bottom side for receiving, as defined in the material document types.