The Importance of Keeping PO’s and MO’s Current in MISys Manufacturing Software

Purchase Orders:

Keeping Purchase Orders current in MISys, that is – entered, received in a timely manner and invoiced timely adds a number domino affect advantages to the entire inventory management and replenishment process. 

When PO’s are entered and received in a timely manner – it ensures that material is available to be used by production. If further ensures that purchasing is advised of accurate inventory levels, thereby not over ordering product. 

When PO’s are received in a timely manner, and period ends are completed – the outstanding liability and inventory value is represented on the financials – the liability shown will likely better provide A/P and Management of upcoming potential cash flow requirements. Keeping those invoices current further updates the liability value.

Manufacturing Orders:

Like purchase orders, keeping manufacturing orders current in MISys also has its advantages. Ensuring to “Start” a manufacturing order will affectively move the required materials from “stock” to “WIP” status. This provides purchasing an indication that inventory is being used and may trigger a replenishment purchase. It also correctly advises MRP that inventory is being used. 

Completing manufacturing orders in a timely manner will replenish sub-assembly or finished goods inventory and help ensure further production can continue or update the sales team with accurate information on what can be sold. If these transactions are done when they occur, the relative overheads and labor attached to those productions will be accurately expensed in the correct period. These figures will be represented on the financials when period ends are completed, which allow management to better analyze the amount of labor being paid vs being accrued in production during a biweekly or monthly period. 

Keeping purchase orders and manufacturing orders current is a mutually beneficial relationship. Keeping these functions current will positively impact the overall reporting, cash flow, inventory accuracy and inventory replenishment habits of the organization.

Hope that helps, call us for more information.

Dean.