Once stock and non-stock items have been allocated to a shop order, a pull ticket is produced to identify the items that should be moved into work in process. Any nonstock item included on the shop order will be printed out on the pull tickets for the shop order (until the complete quantity of the nonstock item has been pulled).
As the pull ticket is processed, the system updates the reserved, total reserved and allocated quantities of the non-stock items being processed and it updates the pulled quantity in each shop order line. Inventory Activity records are also created to document the movement of the items. Once the items from the shop order lines have been moved into work in process, they are converted (built) into the top level item specified in the shop order. Once all required components have been pulled and assembled, the shop order can be completed. As each shop order is completed, the component parts are removed from WIP and the top level item is returned to inventory and allocated to any waiting sales orders. Activity records are written to record the transaction.
Notes:
• Since non-stock items are not included in inventory but can be included as components in the items being built in the shop order system, an adjustment is automatically made by the accounting system to recognize the value of the non-stock items which are converted into inventory due to shop order processing. This topic is discussed in more detail in the documentation for the Shop Floor System.
• Shop Order Stocking Components are ordered using the warehouse replenishment method (i.e. demand for components is based only on the inventory item quantities and the reorder information entered into the system for the item). You may not flag a shop order line as a special order or a vendor shipment. These replenishment or fulfillment methods apply to sales orders only.
• The system will never suggest that you order a nonstock item (this includes a non-stock shop order component). If you need to purchase a nonstock component, you must enter a purchase order for it manually or you must purchase it off the system (i.e. obtain it, expense it through accounts payable).