Manufacturing activity is one of the most important activities affecting the economies of countries due to its significant role in attracting more foreign currencies as a result of export operations, it also has a key role in meeting the requirements of the domestic market of manufactured products, and manufacturing activities are diverse and numerous, there is no field free of manufacturing activity, as there are (food industries- heavy industry- automotive industry- ships- heavy equipment- home appliances), this activity is characterized by highly competitive, many manufacturing companies are operating in the market, to achieve success in the manufacturing activity, profits from the gap between the selling price and the cost price must be achieved, to achieve this, the product cost must be calculated as accurately as possible to set the appropriate price, which achieves the maximum profit possible while maintaining the highest percentage of sales of the product to ensure the competitiveness of the product and acquisition it of a large market share, perhaps relying on traditional paper-based methods did not achieve for these companies their objectives, because these traditional systems are too slow and inaccurate to calculate costs due to their relying on traditional cost accounting, in addition to not keeping up with the world's recent technology revolution that has developed manufacturing systems, therefore, manufacturing companies must use one of the accounting software that achieves their objectives by calculating the product cost as accurately as possible, to make the appropriate pricing of the product that achieves the maximum of sales and then the maximum profit possible, and we will cover the cycle of one of the best manufacturing software in Egypt and the Arab world, which is AccFlex Production Planning Software.
AccFlex Production Planning Software Cycle
AccFlex Production Planning Software cycle is based on objective and simple, as the software provides a typical cycle that can be applied to any manufacturing company, which gives the software more flexibility in its design, according to the nature of the business of each company, the software contains three main menus: the Settings Menu- Production Menu- Reports Menu, but before presenting these menus, we need to know how to create and code raw materials and finished products of the software and we will cover one of the most important productive activities which are the electrical appliances manufacturing activity (television factory).
First, Item Coding
The item coding phase is one of the most important phases of the software, as the user must define the software with the items of the raw material of the television production process, through the inventory management software, then the raw material items are created such as (tin- plastic- glass- electrical circuits- cardboard carton packaging- etc.) and that by entering all the item card data of (Item Name- Item Code- Unit of Measure- Item Price- Warehouse- .....) and determine whether the item has alternative items or not, as well as creating the finished product such as (42 Inch TV- 32 Inch TV-….) and selecting the components of each finished product of raw material, and the software provides you this feature through the "BOM" button, by selecting the finished product and add the materials involved in its manufacture.
Second, Production Menu
It is the menu through which the production process is managed and the Production menu is characterized by reliability and ease as it is through which designing and implementing production processes and costs are added to the finished product and it contains a set of screens
1- Sub-production Process screen
The finished product is often produced at more than one stage (a sub-production process) and assembled to produce the finished product (television), through the Sub-production Process screen, more than one sub-production process is produced for the finished product and determining the costs of each sub-production process whether of (raw materials- direct costs- indirect costs- working hours ...) as well as determining the spoilage ratio of finished products to obtain the most accurate cost possible.
2- Production Process screen
Through the Production Process screen, the production stages of the finished product (television) can be designed with the same design in the factories, which provides a realistic model for the production processes inside the factories, the sub-production stages are linked to each other by drawing a diagram of production processes (by adding more than one sub-production stages) and determining the ratio of each one of the sub-production stages in the production of the finished product (television).
3- Work Order screen
Through the Work Order screen, the quantities of the finished product (television) required to be produced for a specific customer are entered, the software calculates the quantities of raw materials needed to implement the work order when implementing a work order let say producing 150 devices (television) the quantity of the finished product produced is determined, and once click the button "Calculate Raw Material" the quantities of raw materials to be available for the implementation of the work order are shown and the software provides you to check availability of raw material quantities in the warehouse before implementation by clicking the button "Check the Semi-finished Products Quantities in the Warehouse".
4- Production Order screen
The Production Order screen is the most important in the production planning software, as it enables production to be completed by selecting the finished product you want to produce and quantity, In addition to it can change the standard cost of producing the finished product according to the actual cost, the actual number of hours of production and actual costs are determined, whether from raw materials issues for finished product production (television) or direct or indirect costs, and the Production Order screen is easy and simple as it allows you issue raw materials from the raw material warehouse, once you click the button "Raw Material Withdrawal" as well as the production process is completed once by clicking "Adding Finished Product Quantities" button the finished product (televisions) is added to the finished product warehouse at once, in addition to the ability to availability of raw material in the raw material warehouse, and the Production Order screen is characterized by through it a sub-production process can be completed, so one of the stages of the sub-production process can be implemented by determining the percentage of completion achieved by the sub-production stage of the finished product.
5- Creating Journal Entries automatically
AccFlex Production Planning Software is characterized by once the production order is created, it converts all transactions that have been made to accounting journal entries that affect the chart of accounts, so it affects the inventory account, accounts receivable, accounts payable, etc., and it affects the inventory items balance by increasing the finished product inventory items balance (televisions) as well as by decreasing the raw materials inventory items balance, which helps the company determine the best price for the product that achieves the highest profit at the lowest possible cost.