- December 13, 2011
- Posted by: Mary Brettmann
- Categories: Mary How Do I?, MISys, MISys Accounting
This post consists of real questions I have been asked by clients, and/or attendees of my presentations.
Cleaning up Mistakes in MISys SBM
I’m implementing MISys SBM and I’m getting ready to train my staff on how to use the software when I came up with a question. How do I clean up mistakes? All the videos and training will show me how to do things the right way, but how to I fix a mistake?
That is a great question! Oftentimes we only look at the best scenarios when we are planning to implement a new system! In general, to fix any mistake, simply reverse the previous action with a negative action. For example, if you were suppose to receive 100 items and you received 1000 items, simply add another receipt of -900 items. PLEASE NOTE this only works with OPEN transactions. Once you close the Purchase Order or the Manufacturing Order, then it is impossible to fix a mistake. Please implement an error checking process to make sure that your transactions are correct before closing them!
Preparing to Go Live with MISys
We are checking the cost of each BOMs on QB. And we are going to enter them in is MISYS to reflect the same cost in both systems, and we really believe that this is the only thing that we have to do, other then that I think we are ready to go live on MISYS, don’t you think?
If your BOM costs make sense, and your BOM builds product in a reasonable time, and your MRP forecasts make sense, and all of your inventory is added to MISys (INCLUDING inventory that is currently in WIP), and you have added your open transactions (POs, work orders and MOs), and there’s a link to your accounting system . . .
Then it is time to turn MISys on! Understand that the first few days will be a bit shaky, but it will get better and better each day that you use the software.
Quick Tip for Navigating Around the Period-end Entry
Troubleshooting MISys accounting issues in QuickBooks or Peachtree is never fun. I wanted to share an excel trick that will help you navigate through all the entries in a detailed period-end. The first step is to export the detailed period-end to an excel worksheet.
Then the best thing to do is use the “Find ALL” function to find the account number that you want to review. Use the “find all” button to search for your account number and excel will take you directly to the account entries that you need to review.
Getting Started with MISys Manufacturing Data Migration
MISys Manufacturing requires a lot more setup most customers are used to. It requires the documentation of every part of the production process and the transfer of knowledge into the MISys master control files. Most beginners think that all they need to do is to import their items from the accounting file. That is only the beginning. There is a whole other setup process that must be completed before we get to the fun stuff (like master production schedules or material resource planning). There are some built in tools that will help you organize the data migration. Pick one and follow it to the end. That will ensure that you enter all the data need by the system.
- MIITEM excel worksheet is the most direct way to migrate data.
- The excel worksheet can be intimidating. You can use the wizard (File, import data, wizard)
- You can also use the new “Getting Started” step by step guide. It is located under help, getting started.
How to Marry MISys Labor Resource Liability Against Payroll Expense
Can you tell us how to manage the payroll expense versus the MISys labor resource? We pay people for their time and then we account for their time by using a MISys resource item during assembly of finished goods. If I dispense labor to do something (as a liability) and then pay them on the income statement, how do I marry the two charges?
The answer lies in the account setup. The labor resource must be separated and directed to a cost of goods sold account. Then direct labor payroll expense must also be setup as a cost of goods sold account. Then the natural activity of the accounts will negate each other Then the accounts negate each other. The resource liability will flow from MISys as a negative COGS. The payroll expense is a positive COGS. Please note that the resource liability is expensed when the item is assembled. That may distort your WIP is you have a long production cycle.
P.S. If you have a Long Production Cycle, please contact Mary directly. There are some workarounds to help.
Supplier Returns in MISys
I see that I can process an RMA as a supplier transfer. Can it also be done in the purchasing module? Also is it possible to receive items without a PO in the purchasing module?
Supplier Transfers are specifically there to allow you to Receive Items into Stock outside of purchase orders. So if it needs to be done outside of a PO that’s the vehicle you’d use. As far as the RMA is concerned while we don’t have an official RMA function/report, here are the best way to handle Returns. If the PO Detail in question is still Open, you can go to that PO and click the Receive button. Then select the PO Detail you need to Return and enter a negative quantity. Receive Checked.
If you need to Return quantities of the Item from MISys back to the Supplier and the PO Detail happens to be Closed, you’ll need to do a Supplier Transfer (through Stock Control | Stock Transfer | Supplier Transfers | Receive/Return to Supplier) and then enter the Item, Location, Supplier, and quantity to Return and perhaps enter a Comment to specify why this is happening and perhaps the PO Number it pertains to (so it gets recorded to the History).
If you also need to reverse out some Invoicing that was previously done on the PO, (regardless of the PO Status) you can do this by going to the PO in question and click Invoice, just as if you were going to process an Invoice normally. Then enter a negative quantity for the Invoice Quantity and “whatever amount you need to back out. That will generate the Credit and update the MISys PO, effectively backing out the Invoice.
Purchase Orders in MISys or QuickBoooks?
Can you give us some direction as how to handle this situation? I know we talked the other day about items we purchase as small tools – some are consumables thru production and some are for research and development, engineering, (building prototypes, etc). We are trying to work out the smoothest way to handle purchases of this sort.
Most companies struggle with what to do about MISys vs. QB purchase orders. You can put everything through as a MISys PO, you just have to create a process for QB clean up on the back-end(if a bunch of mixed items go through the misc item function, then someone has to carve out where things went). It is possible to create accounting sets to place everything into the right QB line item (although I’ve seen account sets really mess things up if they are not watched). This is why I usually like to keep things that are not MISys owned(production-related), as QB POs. If the PO is partially MISys owned (resource that is used in production and R&D), then it must be received in MISys (and probably “scrapped” and moved to R&D in Quickbooks).
Separate Supplier and Item Number in MISys
It is tempting to use the supplier (or manufacturer’s) part number as your MISys item number. After all it is more than likely the number that you use internally. Since supplier numbers can change, a best practice would be to use a separate item number. If you use a separate item number, you will control the number (and you can ensure that it WILL NOT change on you).
Forecasting with MISys MRP Tools
Do you know if a forecast can be plugged into the MRP module of MISys? I know it looks into QuickBooks for orders to create the Master Production Schedule, but can it look at a forecast to help create it? We want to give our suppliers a forecast that they are responsible for having the inventory on hand to fulfill it.
Yes, you would use a scheduling batch, and you can use actual sales for the products if you want to. You specify the time frame you want to use, Then you can assign an increase or decrease as a percentage, you can offset the time frame of the actual usage, (so you are using sales, and you might want to back up the requirement by 45 days, or 3 months on items you are bringing in from overseas to more adequately prepare raw materials requirement) and then you can pull it through to its own MRP.