Disassembly Orders

Overview

The Disassemble When Received feature allows you to automatically convert a purchased item into multiple inventory items as soon as it is received.

This functionality is ideal when you purchase a product from a vendor and immediately break it down into multiple sellable items. Instead of performing separate receiving and production processes, GoldFinch automates both steps.

When a warehouse receipt is posted:

1. The purchased item is received into inventory.
2. A Production Item Journal is automatically created to disassemble the parent item into its component items.
3. The purchase cost is automatically allocated to each component based on predefined cost allocation percentages.

This streamlines receiving, reduces manual data entry, and ensures inventory quantities and costs are recorded accurately.

Setup

Configure the Parent Item

On the purchased (parent) item, enable the Disassemble When Received checkbox.

When this option is enabled, GoldFinch automatically creates a Production Item Journal whenever the item is received through a Warehouse Receipt.

Configure the Item Formula

Open the Item Formula for the parent item and define the component items that should be created during the disassembly process.

For each component item:

• Enter the output quantity.
• Enter the Cost Allocation %.

The Cost Allocation % determines how the purchase cost of the parent item is distributed among the component items.

Note: The total Cost Allocation % for all component items must equal 100%.

Warehouse Receipt

When a Warehouse Receipt is posted for an item marked Disassemble When Receive:

• The purchased parent item is received into inventory.
• GoldFinch automatically creates a Production Item Journal linked to the Warehouse Receipt.
• The journal is pre-populated with the parent item and all component items defined in the Item Formula.

At this point, the parent item temporarily exists in inventory until the Production Item Journal is posted.

Production Item Journal

The automatically created Production Item Journal contains:

• A reference to the originating Warehouse Receipt
• The related Warehouse Receipt Lines
• The parent item as a Consumption line
• The component items as Output lines
• A Disassembly Order indicator

Before posting the journal, verify that the Total Cost Allocation % equals 100%.

Post the Production Item Journal

When the Production Item Journal is posted:

• The parent item's inventory quantity is consumed.
• Inventory is increased for each component item.
• The purchase cost of the parent item is allocated to the components according to the configured Cost Allocation %.

The end result is that the purchased item no longer exists in inventory, and the newly created component items carry the appropriate inventory quantities and costs.

Unposting a Warehouse Receipt

If you need to unpost a Warehouse Receipt that has already generated a Production Item Journal:

1. Unpost the Production Item Journal.
2. Delete the Production Item Journal.
3. Unpost the Warehouse Receipt.

Important: The Warehouse Receipt cannot be unposted while the associated Production Item Journal still exists.