Sourcing Components for Assembly Items

NetSuite's Manufacturing feature allows users to determine how Assembly Item components are sourced, with options to select from stock, Purchase Orders, Work Orders or Phantom Items.

NetSuite's Manufacturing feature allow users to determine how Assembly Item components are sourced. Note that for this option, Work Orders and Assembly Items must be turned on under Setup > Company > Enable Features

There are four options:

1. Stock: This option tells NetSuite to pull this component from inventory when building the Assembly. This will cause a decrease in that component's quantity by the amount required for the Assembly Build.
2. Purchase Order: If an Assembly component is a marked as a Special Order item, then a Work Order created for this Assembly Item will generate a Purchase Order to procure the item. This Purchase Order must be received before the build can proceed.
3. Work Order: This option is only available for components which are also Assembly Items. (Ie. this component itself will require some manufacturing). When this option is selected, NetSuite will automatically create another child Work Order to build this component, and this Work Order must be completed before the parent Work Order can be built.
4. Phantom: This option is also only available for sub-assembly components. A Phantom Item itself is not stocked as a real item and does not appear individually in your inventory. However, a Phantom Item's components are stocked as inventory items.

For example, I am building a custom PC, and require many components such as the CPU, RAM, Graphics card, and the PC Case which holds the computer's components. The PC Case itself requires 3 components to build: The main chasis/frame, a fiber glass cover for the side, and 3 screws to hold the cover in place.

If I don't need to have another Work Order created to build the case, and I am not tracking the completed PC Case as an item - only its components (chasis/frame, fiber glass cover and the 3 screws) as individual items in my inventory, the PC Case will be set up as a Phantom Item.

With the case set up as a Phantom Item,a Work Order for a new custom PC will require the following components:

• CPU
• RAM
• Graphics Card
• Case Chasis/Frame
• Case Fiber Glass Cover
• Case 3x Screws

Inventory Impact of Building an Assembly via a Work Order:

Stock: Decrease in inventory of the stock component by the quantity required to build the Assembly

Purchase Order: When the item is received, the inventory is increased in the quantity on the Work Order, which flows through to the Purchase Order. When the Assembly is built, the quantity is again decreased by the same quantity.

Work Order: Similar to stock, except that this item's quantity will decrease by the amount required for the parent Work Order, while it's component will decrease by the quantity required to build the child sub-assembly.

Phantom: As the Phantom itself is not stocked, no impact there. However, its components will be decreased by the quantity required by the Phantom item.

Screenshot of the Component's sublist of an Assembly item:
(Click for larger image)

If you have any questions or comments, please contact us.