Mascidon, LLC


SAP Business  One Add-on Products



Remanufacturing

The remanufacturing module is intended for companies that repair or recondition products. An example would be companies that rebuild pump 'cores'.  But really any company that takes in customer products for repair and needs to track repair costs through production orders can use this product.  It fits those companies that buy used 'cores' and rebuild them for stock.


That is a short explanation about this module.  Why is an add-on needed?  The main reason is that SAP Business One does not allow production orders to have the item being 'produced' to also be one of the 'components' of the production order.  Your customer sends you a 'core' to be rebuilt.  You are going to send them a rebuilt core - the same item as you received from them.  And you want to track the costs of the repair in a production order. 


The remanufacturing module asks users to create a single 'CORE' item.  It has a special flag to indicate that this is a 'core' item.  All cores received as purchases or units to be repaired have an item number defined by your company within the SAP Business One item master.  These items also have a special flag to indicate that they are to be 'Reworked' or 'Repaired'.  The 'Core' item and the rework items can be batch or serial controlled.  The only limitation is that if you create a production order for a reworked item that is batch controlled,  then the Core item that is the item to be produced is also a batch controlled item.  This implies that if you process repair items that are batch controlled, serial controlled and neither of these, then at a minimum you need 3 'Core' items.


To process a rework or repair order, create the production order as a 'Special' type.  The item to be produced is the 'Core' item.  The warehouse for the finished item is a 'Rework' warehouse - the default warehouse for the 'Core' items.  For components in the production order, the reworked core item received from the customer (or purchased) is one of the line items.  In general, the production order would start off with just the reworked core item as the component.  As the user starts pulling apart the core, they will determine which additional components are needed as replacement parts.  This could be one or two items or a hundred component items. The person working on the production order adds these to the production order as necessary.


As the user performs the repair they also track labor required for the repair.  As the production order nears completion, it would include as components a list of all the sub-components of the core that were replaced - and the costs associated with these items.  It would also have the total labor required.  When complete, the user would use the 'issues to production' transaction to post the actual labor.  The other components can simply be back flushed (unless they are serial or batch controlled).  All the steps discussed to this point could be done without an add-on module.


The user then 'reports completion'.  When the 'add' button on the 'Report Completion' screen is clicked,  the system does the following:

  • Creates an inventory receipt for the 'Core' item in the Rework warehouse
  • Back flushes all of the components flagged as back flush
  • Creates an inventory issue for the 'Core' item - driving its on hand back to zero
  • Creates an inventory goods receipts transaction for the 'Reworked' item thereby placing it into inventory
    • The reworked item cost  is based on the cost of the special production order 


At this point the Reworked item has stock on hand and a normal delivery order can be used to ship return it to the customer.

In summary,  here is how to process a repair / rework item:

  • Enter a goods receipt for the item to be reworked
    • If purchasing cores to be rebuilt and stocked then you should have a PO for the vendor and then do a PO goods receipt
  • Create a sales order for the item to be reworked - using the 'Rework' warehouse
    • If charging a fee to provide an estimate, create an 'Item' that is the service fee and include it as a sales order line item
  • Create a 'Special' production item for the 'Core', with the main component being the item to be reworked or repaired
  • Process the production order as you would any SAP production order, including the labor
  • When the production order is closed, the 'Reworked'  item is now in stock
  • Convert the sales order to a delivery order or invoice 


The value of this add-on is that eliminates extra steps and convoluted processes to get around the SAP restriction that the production order item cannot have itself as a component!

This is a stand alone SAP Business One add-on module.  It may need to be updated periodically as you transition between SAP versions.