If you run a make to order production environment, you will be creating a works order (WO) directly from the sales order. In this case the WO demand will be matched to the Sales order requirements. You can also run stock works orders at the same time, see the section below.
If you run a batch production system or want to create stock works orders alongside make to order WOs, this feature allows any BOM to be used to create a WO.
Once you have created a WO, you can use the planning tool to assign each operation to the production plan. Each operation must be assigned a workcenter and can simultaneously be assigned to an operator if needed. Once assigned, this creates production demand which can be managed through production capacity management tools.
When a WO is created, the parts listed on the BOM for the order are multiplied by the demand to create “active parts”, these are all the parts, including sub level BOM’s that are manufactured and purchased items. This demand is therefore required by production and each line in the active parts will need to be satisfied either from new purchase orders or allocating current stock. When a Works order has been completed, all of the corresponding active parts will be removed from this page and stock transactions created to allocate all stock, irrespective of the current status.
This short video will show you how to assign parts from stock and to raise a PO for the line item demand.