The refurbish activity is used when you have an item in inventory that you want to repair and sell again. The refurbish activity allows you to keep track of the parts, labor, and overhead involved in the refurbishment. The refurbishment activity decrements the material used during the refurbishment from your inventory and transfers the associated costs to the inventory item being refurbished.
The refurbishment activity also transfers the technician’s burden rate times the number of hours to the item being refurbished, as well as any overhead associated with the refurbishment. The inventory item receiving the increased cost holds the inventory value until you sell the item and then posts to cost of goods sold.
While you can use the refurbishment activity for updating and for older equipment, you can also use this activity to add supplies to new machines.
Getting to the Transaction
1. From the Inventory menu, select Production > refurbish Inventory to open the refurbish Inventory window.
1. Complete the following fields as appropriate.
Item: Item to refurbish.
Description: Description of the refurbish activity.
Quantity: Number of the items to refurbish.
Serial number: Serial number of the item being refurbished, if any.
Number: Automatically assigns the next available number.
Date: Date the refurbishment is performed.
Job: Job associated with the refurbishment, if any.
Overhead: Amount of overhead to be charged for each item refurbished, if any.
1. Record the materials to be used for this refurbishment by doing ONE of the following:
· To automatically assemble the items for this refurbishment, click [Auto Assemble]. The list of items from the bill of materials list is generated.
Note: If you use the auto assemble function, you can add items and remove items as necessary.
Note: To see the bill of materials for this refurbishment, go to Inventory/Items, double-click the item, and click the Manufacturing tab.
· To manually assemble the items for this refurbishment, do the following:
a. In the Item field, use the Lookup icon to select the item needed for the refurbishment.
b. In the Quantity field, enter the quantity of this item needed to refurbish the equipment.
c. Click [QuickAdd] to add the item to the materials list.
d. Repeat steps a through c for each item to be added to the materials list.
1. Click the Labor tab to bring it forward.
2. In the Employee field, use the Lookup icon to select the employee who worked on the refurbishment.
3. In the Hours field, enter the number of hours this employee spent on the refurbishment.
4. Click [QuickAdd] to add the labor information about this employee to the list.
Note: The employee burden rate is multiplied by the number of hours spent on the refurbishment and adds the total to the cost of the item.
5. Repeat steps 2 through 4 for each employee who worked on the refurbishment.
1. Click the Sub-assemblies tab to bring it forward.
Note: A sub-assembly is an assembly contained within a refurbishment.
2. Click [New] to open the New Sub-assembly window.
3. Record the appropriate information for the sub-assembly using the instructions in the STEPS topic, Performing the Assembly Activity.
4. Click [OK] to save the sub-assembly information and return to the refurbish Inventory window.
Bin Distribution Tab
The Bin Distribution tab is displayed so you can determine with which warehouse you want the refurbishment cost associated. When refurbishing serialized items, e-automate knows the cost warehouse. With non-serialized items, e-automate expects you to identify the warehouse to which the cost should be associated.
1. Click the Bin Distribution tab to bring it forward.
Note: The Bin Distribution tab specifies with which warehouse and bin e-automate will associate the cost of the non-serialized refurbishment.
2. Verify the bin distributions are correct.
Completing the Transaction
1. Click [OK] to save the refurbishment information.