Production Line Process for Bumper/Splitter Combi

This guide outlines the process for managing bumpers removed from stock vehicles, painted, and combined with a splitter (stocked part) before being held in inventory for sale. Since bumpers are not originally stock parts in the system, a structured method is required to track their costs, movements, and sales effectively.

The Issue

? Bumpers are taken from stock vehicles and are not system-tracked parts initially.
? They are sent to the paint shop for colour coding and splitter installation.
? Paint shop holds completed bumpers in stock on behalf of the business.

Solution & Step-by-Step Process

1. System Setup

✔ Create a Parts Franchise

• A new franchise has already been created: "Production Line"

✔ Create a Purchase Ledger Account

• Account Name: "Production Line" (or another suitable name)

✔ Set Up Bumper Part Numbers

• Create part numbers for bumpers
• The description should specify the bumper includes the splitter
• The retail price should cover bumper + splitter + paint cost
• Cost price = Zero, since bumpers are sourced from vehicles, not purchased

✔ Assign the Bumper to the Franchise

• Add bumpers to the "Production Line" franchise
• Set bin location to “PAINTSHOP”

2. Processing Bumpers Through the Production Line

Goods-In Process (Bumper Entry into Stock)

1. Goods-receipt the bumper into stock

   • Use the "Production Line" purchase ledger account

2. Send Bumper to the Paint Shop

Subcontract Cost Management

3. When subcontract invoice arrives, post it to "Subcontract Cost of Sale"

   • This records the external painting and prep costs appropriately

4. Regularly Clear the Purchase Ledger Account

   • Transfer values from "Production Line" purchase ledger account to "Parts Cost of Sale"
   • This ensures accurate cost allocation

3. Nominal Code Allocation

• 1.10.30.10.1.4.0.0.0 is the nominal code used to:
  ✅ Clear GANI (Goods Awaiting Invoice) for bumpers goods-out
  ✅ Allocate subcontract costs

This method ensures:
✔ Accurate cost tracking for bumpers being processed
✔ Correctly recorded subcontractor expenses
✔ Sales and costs fluctuate correctly each month depending on actual sales