Administration/025 Adminstration FOs Not for Units.pdf
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Index: Administration
Subject: (25) Factory Orders for items other than units
Date: October 12, 2016
From time to time, Sales creates factory orders for items other than units. Examples include heat reclaim coils, curbs, controls, components for field upgrades, and engineering services such as seismic calculations. In some cases, we will have a factory order for the unit(s) for a project, and a different factory order for a component that will be installed in the unit, such as a heat reclaim coil. This occurs when the coil (or curb, etc.) is billed to a different customer than the unit, and must be handled separately. Where the part(s) are to be used in a unit that is on a different factory order, the details of the parts that are on the separate factory order need to be provided in the Production Package and noted on the Special Engineering for the unit.
When this separate factory order is created, all components associated with this order should be added to a unique bill of material and work order. This allows accounting to accurately close out and bill these orders. In the case of engineering services such as seismic calculations, Engineering will forward the quotation and information to Purchasing so they can issue a purchase order and we can capture the costs of these services. These services will not be captured as a bill of material/work order item since we not ordering a physical part.
