ERPAG 5.1

Merge same WO in Manufacturing Project

manufacturing project
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1. Introduction

In companies that use multilevel BOM, in the manufacturing project, the data is usually displayed in relation aka 'tree view'. In practice, it happens that the identical work orders show up, because their position in multilevel BOM is different. Depending on the production process, sometimes it's more optimal to merge the identical work orders. We are leaving summarizing, or merging, to be the operator's choice because the mutual relations can be really complicated. In this short instruction, we will work with an example above.
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2. Detection of the identical work orders

ERPAG detects the same work orders in the projects by itself. If it's possible to merge the work orders, on the right side of the output items we will have a "call to action button" with a sum symbol (Greek letter Sigma).

merging work orders

In our example from the picture, the following work orders are identical:
WO-000003 = WO-000007
WO-000001 = WO-000005
WO-000002 = WO-000006

This mark/button won't show up on the first identical work order, but on the second, third one etc. (this is because of the performances of the system).
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3. Merging the work orders

By activating the call to action button we have a choice whether we will add the activated work order to the identical one, or vice versa - load the identical work order in the activated one.

loading-merging work orders

If we have three or more identical work orders, the question will always be regarding the first generated work order.
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4. The result of merging

Since the data is mutually connected, when the work orders are merged, the relations are transferred as well. The work order that is added or loaded will permanently be deleted from the database. Only the work orders with the status-planned, entered or approved are possible to merge.

merging work orders

In our example, we merged WO-000003 and WO-000007. Work order WO-000003 is deleted and his relations are transferred to WO-000004. If we want to merge the child work orders as well, it's necessary to use the merging option on them as well.

The result of our example:

same work orders merged

5. Conclusion

This is an advanced option, it takes a bit more attention and devotion from the operator's side, if he is sure he wants to merge the same work orders. Later it will be a bit difficult to follow up with the mutual relations, because they are not the same as they were in the original BOM.
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2019. ERPAG Inc.
ERPAG 5.1

Tier pricing


tiered pricing

What is tiered pricing in ERP software? How can I set up the volume discount per quantity? How to set up discounted prices for my customer groups?


Setting prices is a process with the ultimate goal of defining the strategy that will enable you to maximize your profit!

The downside is that defining a pricing strategy takes time – it’s not only about knowing the cost of your items, knowing their value and knowing your competition. You have to get to know your customers, their needs and their situation, because they will ultimately be the one deciding whether your pricing is fair, and if they decide it’s not - they won’t be buying.

So, to effectively price your product or service and increase sales, you should look towards the people who are going to make the purchase depending on that price – you should base your price on your customers.

Every customer is different and deserves a different approach, so companies must adjust their basic prices to account for that difference.

Let’s be clear, the price difference is not a new phenomenon. We encounter it on a regular bases and often profit from it: as frequent customers, we often get discounts as an award for our loyalty. And when we do, we surely don’t object to this kind of price difference.

In Erpag, to manage that, you have price tiers - the option that will enable you to set different prices for different customers, whether the reason is to reward their loyalty or it’s because they belong to different customer groups (such as distributors, retailers etc.).

While the price tiers will enable you to have a customer-based pricing and maintain your customers loyal, building long-lasting business relationships, there is one more pricing strategy that will motivate your customers to purchase more items at a time: volume discount! With this option, you can define different price ranges and set up different price per item for each one of those ranges.

setup tier pricing

volume discount

In many cases, this type of dynamic pricing is the key to a company’s success, it’s what will enable you to not only give your costumers what they want, but you’ll also be able to attract and retain the customers better. All while making a profit!

The price differentiation will decrease the gap between you and the customers and it will make them feel special – it’s not only the discount that counts, but the personalized approach and in extension, a personalized buying experience. 

And to create that special feeling and cultivate that special bond between your brand and the consumers, all you need to do is to sit comfortably and follow instructions from our tutorial:


This option will enable you to welcome your customers, acknowledge their different needs, choose who will benefit from the discounts and offer them special prices! 

Now, honestly - doesn’t that make you feel special?

Regards,
ERPAG Inc.

ERPAG 5.1

Repair shop software (Service Project)

service and repair project

How to generate a repair shop invoice in software? How to track serial numbers of spare parts in the repair shop? How to time track repairing in a service project?

By servicing we usually consider performing a routine maintenance or repair work on a vehicle, or machine.

There is a high number of service companies – for computers, washing machines, drying machines, cars, dishwashers, stoves etc.

I know that the service workmen usually give ‘I charge for my work, not for my knowledge.’ as an answer to ‘So, what was the problem?’, because as the old saying goes: the craft is stolen, not learned. But does not mean they don’t have to track their components, parts, raw materials, their labor (working hours on site) etc.

ERPAG, as an ERP and MRP software, also supports service projects from which you can directly invoice the customer for the service (repairment) or service and a replaced spare part that left your stock as well.

Let’s say you are maintaining and servicing the dishwasher machines that your clients buy from you. Each product in your repair shop can be tracked by a serial number, so you can easily look it up in the software to whom did you sell it, and from who did you get it.
You need to have opened services in the list of products and services. The list is conjoined, it consists of all the services, products, spare parts.

service

service

Opened services must be linked to corresponding work operations which will be with invoice details (since you will be issuing your repair shop invoice for your services).

work operation

Our first case scenario will be Karen. A soccer mom of two. Too busy with visiting hair salons and talking to managers. Doesn’t have the time for the dishes so the dishwasher is essential in her household. She needs a dishwasher part to be replaced. 

First thing first, you need to create a service project, enter all product information and damage description. 

Then create a standard work order.

repair shop work order

Enter the work operation and input item(s). The work operation can be assigned to an employee. The replaced part will be invoiced as well, along with the service.

repair shop work order

The entered service project will be planned. From here you can immediately generate a sales order, but if you think that replacing the part will take more than an hour, I’d advise you to generate a sales order only after the work operation (replacing the part) is done.

Launch the work order. Start the stopwatch on your ERPAG app (https://learn.erpag.com/project/6.1-mobile-app/6.1.1-general/6.1.2-how-to-install), when you get to the job site. Pause it when you take a small break and drink up that store-bought orange juice. Resume the work operation on your mobile phone when you are ready. Load the replaced part in the work order so it’s deducted from your stock. Complete the time track of the work operation and it will automatically be input in the ‘Realized’ time in the work order. Complete the work order in order to issue the sales order.

repair shop time track

Generate the sales order from the service project in order to invoice it, so you can charge your customer for your hard work, and pat yourself on your shoulder for doing a great job, because surely your boss won’t. 

repair shop invoice

Our second scenario is Ellen. A mother, a housewife, CEO and founder of a small business company for recycling and waste reducing. In her more than a busy life, she always finds the time to call Bill for her dishwasher maintenance every six months. 

Bill checks all the parts and cleans them from scale and detergent residue. It doesn’t take him more than 75 minutes to take out, clean and put back every important part and screw of the dishwasher.

This time the work order in the service project contains just the work operation.

repair shop service project

After completing all the maintenance work, generate the sales order from the service project. Charge Ellen for your dirty hands and hope it will wash off.

repair shop invoice

In conclusion, as you can see from both case scenarios, whether you are just servicing and charging for your hard labor, or you are replacing parts and invoicing them as well – ERPAG covers your business flow with the ability to generate sales order before or after you complete the work order, and track your installed parts.

2019. ERPAG Inc.

ERPAG 5.1

Foreign currency




How to sell in different currency in ERP? How to set up the exchange list? How to record payments in foreign currency?



foreign currency list


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1. Introduction

In international trade, it is increasingly common practice to open a bank account according to customer's currencies. In our case, we will take a Canadian company that provides services both to domestic clients and clients from the USA and the EU. We will make examples of payments by various currencies, transfers between accounts, as well as the effects on exchange differences.

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2. Exchange lists

The first thing that needs to be set up is "exchange list". When you create a database, your domestic currency is already automatically populated based on the selected country.



exchange rate

When entering a new currency you need to enter the ISO code of currency (https://en.wikipedia.org/wiki/ISO_4217) as well as the current rate. The rate is always from the domestic currency to the foreign, ie. in our case for how much USD Dollars, we will get for 1 Canadian Dollar.


As with taxes, the exchange rate list is momentary and up-to-date (it does not have historical data). So when a change in rate occurs, simply change it.


Note that in each document (which is linked to the exchange rate list) there is a rate which was applied in the processing.
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3. Customer / Supplier

You can apply the foreign currency to each customer (or supplier).



adding fx currency to customer / supplier

For example, USA Customers are working in USD, and expect their bills to be issued in their currency, and when they pay they pay in USD, they probably do not care about the amount of their bill in CAD and relation of CAD / USA currencies.

If we have a practice to issue a bill in our currency to foreign customers (and they are paying in our currency) then we designate our domestic currency for these customers. Example: We are a USA company and we issue the bill in dollars to a company from Mexico, the customer pays directly to our dollar account. Then we will not enter the MXN (Mexican peso) into our exchange rate list and assign the currency to the customer.
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4. Creating a Sales Order


When creating a Sales order for a customer that has a currency assigned, the corresponding additional fields will show up.



sales order in foreign currency

The value of the 'exchange rate' is recommended from the exchange rate list, and if the privileges allow, you can alter it. The possibility of changing the exchange rate is included because our exchange rate can differ from the rate of our customer/supplier.


printing invoice in fx currency

When we want to print (or invoice, or download in PDF) the document, the options will show up for the customers' currency as well.
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5. Registering a payment from a foreign customer to our domestic bank account

In our example, the amount of the invoice is 74.76, and our customer is paying in two equal payments (USD 37.38), to our CAD bank account. In practice, the customer can pay online via his credit card and the credit card processor will automatically transfer the paid amount in our domestic currency (CAD), so we don't have a need for a separate bank account that will be in USD.



registering payment in fx currency

After the first payment, the exchange rate of USD to CAD has been changed (the exchange rate is now 0.7500), the change can be entered in our exchange list as well.


changing the exchange rate

Now when we record the second payment (since our customer is paying us in his currency - USD), the amount in our domestic currency (CAD) will be different.


recording payment in fx currency

This difference is called 'Foreign exchange gain or loss'. ERPAG, as an intelligent system, calculates the differences between the exchange rates automatically.

The result (if it's positive, in our advantage) will be put on the 'Foreign exchange gains' account in the accounting module. If it's negative (on our burden), it will be put on the 'Exchange difference losses' account.

The result is the best presented on the Journal voucher:


foreign exchange journal voucher
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6. Foreign bank account

Marking a bank account as foreign is quite easy. Just select the foreign currency from the drop-down list.



foreign bank account

When we record a payment, just select the proper bank account.



recording a payment of fx bank account
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7. Transfer between two bank accounts

When we need to transfer the money from domestic account to foreign bank account, we activate the bank account from which we are transferring the money and the option 'New Transaction' / 'Transfer'.


transfer between two bank accounts

We are selecting the wanted bank account, exchange rate (if it differs from the current one), and amount for transfer.


bank transfer in fx currency

Note that eventual commission fees for conversion you have to enter with the option 'New Transaction' / 'Bank fees'.
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8. Bank account - Foreign exchange gain or loss

When the exchange rate changes, the foreign exchange differences appear like they do in the sales orders and invoices.

In our example, the payments and transfers are done with the exchange rate of 0.7500, while the exchange rate now is 0.7000 (CAD/USD). The current balance in CAD does not correspond to the new exchange rate.

USD 112.50 / 0.7000 = 160.71 CAD while the balance on our bank account is 150.00 CAD.

The harmonization is done with the option 'Foreign exchange gain/loss'.


foreign exchange gain or loss

And a corresponding journal voucher


foreign exchange journal voucher

The harmonization should be done when needed, every company has its own policy by which she does the harmonization between the exchange rates. If fluctuations in exchange rates are not big, it can be done at the end of the business year.
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9. Customer portal

In the customer portal, all the prices and amounts will be displayed in the currency assigned to the customer.


customer portal foreign currency
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2019. ERPAG Inc.
ERPAG 5.1

Quoting software for manufacturing

quoting software for manufacturing

The importance of Quoting in Manufacturing! Five most important things for Quoting in Manufacturing!

If there is one sensitive process in manufacturing that need to be handled with special care- it is Quoting. It should be a dream job - a new customer, new challenges, new opportunity - but usually it converts to a nightmare.
Sometimes one, only one miss-calculated Quote can destroy months of hard work and downgrade the company's reputation.

Just think of it. How many different inputs you need to take in a count :

Available inventory
Lead time for missing inventory items
Machine availability
Workforce

And these are just basic inputs. Add to it Multilevel bill of materials and Contracting involved business and you get the clue why this process is so fragile.
But, if you watch it from the Small and mid-sized business perspective, things are a little bit different.

A vast number of startup or growing companies need to solve just one scope of numbered issues-inventory. They can manage machines and people but they struggle with inventory management.

In this approach we can simplify quote generation  to ask just inventory oriented questions:

What do I need to manufacture?
When I need to manufacture?
What are the missing components?
Where to buy them?
And most important: What is the cost of a planned project/product?


What is the cost of my manufactured product?

In order to answer this question, we have designed a simple ERP and MRP software
that tries to automate this process as much as possible.

To achieve that, we have designed a couple of algorithmic processors that each take care of a specific job.

Multi-supplier order management:
  • Enables you to track prices from multiple suppliers for one SKU
  • Landed cost tracking
Fulfillment automation
  • Compares available inventory against accepted orders and populates fulfillment list in order to enable the procurement manager to automate the ordering process 
UOM conversion
  • Converts UOM from one to another to enable straight forward purchasing
Work order/project automation
  • Automatically generates work orders for complex products. Arranges them in projects and synchronizes with the mobile app. That enables the shop floor to track down WO execution and bring live data to Projects manager desk
All these 4 engines are combined in Multi-Level BOM management so you can easily design new project/product and get the estimated cost of the product - so you can complete your Quote.


product based on bill of materials

Then you can send a Quote to your Customer using email integration. Also, you can attach all necessary technical or description documents in order to provide full terms and conditions.

Our quoting engine is connected with the Sales module, so you can then track conversion, launch Work Orders and execute manufacturing.