AutoSimply Process Flow

Legend System Process Manual Process System Document Manual Document Flow Connector to another slide Terminator Predefined Process Decision

Manufacturing w/o Allocation Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents MO Entry Material Issuance MO Receipt MO Closeout MO Returns Returns? Complete? STARTEND PlannerWarehouse Cost Acct N N Y Y Material Issuance Report Material Returns Report Material Receipts Report MO Variance Report Production/ Cost Acct Cost Acct Dr WIP Cr Invty Dr Invty Cr WIP Dr FG Invty Cr WIP Cr Labor Cr Overhead Cr Subcontract Dr FG Invty Cr WIP Cr Labor Cr Overhead Cr Subcontract Materials are issued at actual costs. Materials are returned at actual costs. Product cost is initially received at standard costs. Product cost is adjusted to actual. MO Form Production/ Warehouse/ Cost Acct

Material Scrap Report Manufacturing w/ Allocation Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents MO Entry Material Issuance MO Receipt MO Closeout MO Returns Returns? Complete? START END PlannerWarehouseProductionCost Acct N N Y Y MO Form Material Issuance Report Material Returns Report Material Receipts Report MO Variance Report Production/ Cost Acct Cost Acct Dr WIP Cr Invty Dr Invty Cr WIP Dr FG Invty Cr WIP Cr Labor Cr Overhead Cr Subcontract Dr FG Invty Cr WIP Cr Labor Cr Overhead Cr Subcontract Materials are issued at actual costs. Materials are returned at actual costs. Product cost is initially received at standard costs. Product cost is adjusted to actual. Allocation/ Scrap Warehouse Cost Acct Production/ Warehouse/ Cost Acct Material Allocation Report Material allocation and scrapping is optional. This function is mainly used to monitor WIP balances in the production floor.

Manufacturing Order Entry Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents Subcontract? START END ProductionPlanner N Y Production planning considers demand versus stock and decides what to produce. Internal MO makes use of company production capacity to generate output. Only released MO’s are considered active. Transactions can only be posted against released MO’s. Release Mfg Order Planner Subcontract Orders makes use of third party production capacity to produce output. Production Planning Production/ Vendor Internal MO Form Subcontract MO Form Production Plan Report Generate Internal MO Generate Subcontract MO Approve Mfg Order Production Manager Released MO Form Production Manager Planner Recording of MO approval is optional.

Material Issuance Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents Shortage? START END ProductionWarehouse N Y Material Requirement Form Material Shortage Report Material Issuance Report WarehousePurchasing/ Planner Cost Acct Dr WIP Cr Inventory Inventory balance data are based on Accpac I/C locations. Possible item substitutes can be maintained in the Substitute Item table. Components are issued from I/C locations to the production floor. Materials are issued at actual costs. Print Material Requisition Check Stock Availability Substitute Item Issue Materials to Production Receive Materials Production Material requirements are based on MO Material details. Production receives and checks issued materials.

Material Return Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents Good? START END ProductionQualityProduction N Y Material Returns Report QCProduction/ Warehouse Warehouse Dr Inventory Cr WIP Items to be returned must first undergo QC to check against damages. Recording of Material Scrap is optional. Scrap costs are recorded against the respective MO’s. Materials are returned to I/C locations from the production floor. Materials are returned based on actual costs. Return Excess Material Forward Material to Warehouse Warehouse Only undamaged items should be returned to I/C location. Production forwards items marked as “QC Pass” to Warehouse Control. Forward Material to QC Inspect Material Quality Material Return Slip QC Results Form Material Scrap Material Scrap Report Request for QC Form Cost Acct

MO Receipt Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents Good? START END ProductionQualityProduction N Y Material Receipt Report QCProduction/ Warehouse Warehouse Dr Inventory Cr WIP Cr Labor Cr Overhead Cr Subcontract Production Output must first undergo QC to check against quality issues. Rework may involve consumption of more raw materials, labor, etc. Production output is received into I/C location. Output is initially costed using item standard costs. Post MO Product Receipt Forward Product to Warehouse Warehouse Only conforming product output should be forwarded to I/C location. Production forwards output marked as “QC Pass” to Warehouse Control. Forward Product to QC Inspect Product Quality Production Output Form QC Results Form Request for QC Form Cost Acct Production Rework

MO Closeout Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents Reconciled? START END ProductionCost AcctProduction N Y MO Variance Report Dr Inventory Cr WIP Cr Labor Cr Overhead Cr Subcontract Production must check materials allocated to the MO. Production must check if MO output is correct. MO Costs are adjusted to reflect actual production costs based on MO variances. Closed MO’s cannot be reopened. Closeout Mfg Order Validate Output Receipt Cost Acct Cost allocations include labor, overhead, subcontract costs. Validate Material Issuances Cost Acct MO Detail Report Input MO cost allocations

Material Allocation & Scrap Procedure Accounting Entries Responsibility Remarks Documents Receiver of Documents Reconciled? START END Production N Y Material Allocation Report Cost Acct Production/ Cost Acct Shop Floor Log records the actual operation details of a MO. Detail includes material, machine, labor usage. Allocation records the actual consumption of raw materials in the production floor. Allocation does not generate any G/L entries. Post MO Material Allocation The WIP Report shows the balances of raw materials issued to the production floor. Record MO Usage of Material Daily Shop Floor Log Work In Progress (WIP) Report Reconcile Shop Floor Balances Scrapped? Post MO Material Scrap N Y Material Scrap Report Production Material Scrap records the actual quantity of materials lost due to production inefficiency. Scrapping does not generate any G/L entries.