Selecting the multilevel manufacturing option enables using already manufactured stock (multilevel only) as a further ingredient in the manufacturing process, ie. use a finished product as a component to manufacture a further product, and so on, to produce the finished product.
Example: multilevel manufactured stock is made up of Stock A + Stock B = Stock C at a fixed cost, then Stock C + Stock D = Stock E.
This is possible because the cost of manufactured stock is fixed and set on the Manufacturing job. It is not updated when finishing purchase or expense orders of stock used in the manufacturing process, as compared to single level manufacturing.
▪When selecting multilevel (fixed), set the default manufacturing cost in the Details tab on the Stock screen.
▪Jim2 uses a fixed cost offset account in the general ledger to account for the difference in cost between the actual costs and the set fixed cost. When completing a manufacturing job by moving to Finish status and selecting the Manufacture icon on the ribbon, the fixed cost offset account will show the difference between the fixed cost set on the job and the actual cost of the stock codes used.
For example, if all stock codes used in manufacturing are from purchase orders on Received, the full cost will be offset. When purchase orders are set to Finish, Jim2 will reduce the offset account by the cost of the stock.
▪Labour can be included as a cost of manufacture.
▪Unlimited levels of multilevel manufactured stock can be manufactured.
▪The cost of multilevel manufactured stock does not fluctuate with changes in material and labour costs.
The final level of manufactured stock can be either multilevel or single level manufacturing.
Multilevel manufacturing costs will not be affected by expense orders, enabling the stock codes to be used as parts in another manufacturing job.
▪Multilevel manufacturing involves any product that will be manufactured and used in the bill of materials (BOM) of another manufactured product.
▪Fixed cost manufacture is how Jim2 manages the costing process. This means that each multilevel manufactured product will require a nominated fixed cost, approximating its asset value as a finished product.
The variance (of real cost to fixed cost of manufacture) is then held in an offset account. The offset account needs to be nominated in Tools > Options > Accounts > Linked Accounts. The offset account must already exist in the general ledger.
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