If you're putting together final products from raw materials, you're likely aware of the hurdles involved: materials can get lost during production, expenses can become unclear, and inventory counts often don't align with reality. For manufacturers and distributors utilizing NetSuite for Manufacturers, assembly items create a seamless link between raw material costs and finished products - automatically.
Key Insights
Assembly item records automatically update both finished products and component inventory during builds.
Companies see fewer stockouts of essential components with assembly tracking.
Organizations achieve enhanced product costing accuracy compared to manual tracking methods.
Assembly build transactions significantly decrease inventory reconciliation mistakes.
Proper setup leads to measurable savings by minimizing material waste.
What Are Assembly Items in NetSuite and Their Importance for Raw Material Tracking
In NetSuite, assembly item records signify finished goods made up of various raw material components. Unlike standard inventory items, which track a single SKU, assembly items highlight the connection between your finished product and every raw material it requires.
Here’s why assembly items are vital for manufacturers:
Integrity of Inventory Throughout Production: When you create assemblies, NetSuite automatically boosts finished goods inventory while reducing raw material amounts as specified in your Bill of Materials. This dual-tracking method helps avoid situations where materials go missing without clear assignment to finished goods.
Improved Cost Precision: Assembly items compile component costs into finished products at the transaction level, removing the manual costing errors that can skew gross margin evaluations.
Visibility into Material Usage: Instead of speculating on the whereabouts of raw materials, you receive transaction-level records that detail exactly which components were used in which assembly builds. Manufacturers implementing assembly tracking report increased visibility into material usage habits.
How Assembly Records Enhance Inventory Precision
Small to medium manufacturers that adopt assembly tracking see reduced stockouts of important components. The reason behind this is that NetSuite's assembly structure mandates accurate component tracking during each build, removing the guesswork and manual entries that can create discrepancies.
When a manufacturer executes an assembly build transaction, the system confirms that there is sufficient component inventory before allowing the build to proceed. This avoids the frequent issue where your ERP indicates available raw materials while your production line remains idle, waiting for necessary components.
Requirements: NetSuite Features and Permissions Needed to Create Assembly Items
Before you create your initial assembly item, make sure your NetSuite instance has the appropriate features enabled and that your user role possesses the necessary permissions.
Activating Assembly Features in NetSuite
You will need to check if the options to enable features at Setup > Company > Enable Features are selected:
Items & Inventory tab:
Inventory
Multiple Inventory Locations (if managing more than one warehouse)
Lot Numbered Inventory (if tracking lot numbers on components)
Serial Numbered Inventory (if tracking serial numbers)
Items & Inventory tab > Assembly/Bill of Materials:
Assembly/Bill of Materials (core requirement)
Work Orders (if using work order builds versus simple assembly builds)
Advanced Bill of Materials (for revision control and change orders)
Without enabling these features, you won't see the Assembly/Bill of Materials item type when creating new items. If you’re uncertain about feature activation in your instance, consult our guide on enabling features.
Permissions Required for User Roles
Your user role must have specific permissions to create and oversee assembly items:
Crucial Permissions:
Lists > Items: Create, Edit, View
Transactions > Build/Assembly: Create, Edit, View
Transactions > Work Order: Create, Edit, View (if utilizing work orders)
Reports > Transaction Detail: View (for verifying assembly builds)
Standard manufacturing roles typically encompass these permissions, but custom roles require careful configuration. Manufacturing leaders have indicated that assembly tracking is vital for accurate financial reporting, which makes getting permissions right essential from the beginning.
Step-by-Step: Crafting Your First Assembly Item Record in NetSuite
Let's walk through the process of creating an assembly item using a practical example: a finished table constructed from raw material components (wood planks, screws, and finish).
Finding the Path to Create a New Assembly Item
From the NetSuite home screen, go to create a new item (usually under Lists).
In the TYPE dropdown, choose Assembly/Bill of Materials.
Continue to the assembly item creation form.
You'll encounter several tabs with various configuration options.
Completing Core Item Fields
Fill in these fields during the item configuration:
Item Name/Number: Assign a clear identifier.
Example: “TABLE-DINING-001”
Adhere to a consistent naming scheme across all items.
Display Name: The name seen by customers.
Example: “4-Person Dining Table - Oak”.
Description: Internal notes regarding the assembly.
Example: “Constructed from oak planks, stainless steel hardware, polyurethane finish”.
Costing Method: Choose from:
Average: The system computes average costs based on all component purchases.
Standard: You input a fixed cost manually.
FIFO: First-in-first-out costing aligns with component cost layers.
Monitoring Raw Material Inventory Using Assembly Item Saved Searches and Reports
Assembly items yield valuable data about component usage. NetSuite’s reporting features allow you to monitor material consumption, identify shortages, and plan your procurement effectively.
Creating a Saved Search for Assembly Component Usage
A well-structured saved search illustrates which assemblies utilize specific components, essential for planning your procurement.
Example: “Where Used” search for component OAK-PLANK-48:
Initiate a new saved search for transactions.
Criteria:
Type = Assembly Build
Component Item = OAK-PLANK-48
Date Range = Last 90 days
Results columns:
Date
Transaction Number
Assembly Item
Quantity Built
Component Quantity Consumed
Location
Summary (optional):
Group by Assembly Item
Sum Component Quantity
This search provides a complete view of oak plank consumption by assembly, aiding in forecasting raw material requirements.
For a thorough guide on saved search creation, explore NetSuite Saved Searches.
Standard Reports for Raw Material Monitoring
NetSuite includes built-in reports for analyzing assembly and component usage:
Inventory Detail Report:
Navigate to inventory reporting options.
Filter by item type = Assembly/BOM.
Displays all assembly build transactions along with component usage.
Helpful for confirming that builds utilized the correct component quantities.
Assembly Component Where Used:
Usually found under the Manufacturing reports.
Input a component item (e.g., OAK-PLANK-48).
View all assemblies that use this component and their quantities.
This information is critical when discontinuing a component or locating alternatives.
Inventory Availability by Component:
Standard report for inventory availability.
Filter to display components only.
View on-hand versus committed quantities.
Identify components at risk of stockout.
BOM Inquiry:
Manufacturing or BOM-specific reporting.
Dive into the assembly structure with all component layers.
Displays phantom assemblies and sub-components.
Useful for complex multi-level BOMs.
Companies effectively manage cost allocation by utilizing both these standard reports and tailored custom saved searches that fit their operations.
Linking Assembly Items with E-Commerce and Order Fulfillment
Today's manufacturers often sell directly through e-commerce platforms. Assembly items must connect with your online store for precise inventory visibility and streamlined fulfillment.
Showing Assembly Availability on Your Web Store
When selling assemblies online, customers are presented with available-to-promise (ATP) quantities - finished assemblies ready for immediate shipment. NetSuite calculates ATP based on:
Current on-hand assembly inventory.
Subtracting committed quantities (due to open sales orders).
Adding planned assembly builds (if utilizing supply planning).
SuiteCommerce integration:
Assembly items sync to your SuiteCommerce storefront automatically.
Customers are shown real-time availability.
ATP updates dynamically as assemblies are built or sold.
Item information, such as images, descriptions, and pricing, flows from assembly item records.
BigCommerce integration:
Use the NetSuite Connector for BigCommerce to sync assembly inventory.
Establish inventory sync schedules (hourly or in real-time).
Align assembly items with BigCommerce products.
Manage backorders as component inventory runs low.
Our team has successfully integrated assembly availability into numerous BigCommerce and SuiteCommerce sites, creating smooth customer experiences where accurate inventory fosters trust.
Automating Assembly Builds from Sales Orders
Forward-thinking manufacturers streamline assembly builds based on sales order demands:
Build-to-order workflow:
A customer places an order on the web store for 5 tables.
A sales order is automatically generated in NetSuite.
The workflow checks assembly inventory: only 2 tables are available.
The system initiates an assembly build transaction for 3 additional tables.
Components are allocated and utilized.
Finished assemblies meet the sales order, which then ships completely.
Setting up Automated Builds:
Implement NetSuite workflows to trigger assembly builds when sales orders are placed.
Set minimum inventory levels that initiate automatic builds.
Configure email alerts to notify production staff when builds are generated.
Integrate with production scheduling tools for complex manufacturing processes.
For further details on workflow automation, refer to How to Create Workflows.
Assembly Lead Times and Customer Expectations
E-commerce shoppers anticipate precise shipping dates. Assembly lead times are key to fulfilling these date promises:
Configuring assembly lead times:
Set the “Lead Time” field on assembly item records.
Example: 3 days to assemble tables after components arrive.
NetSuite incorporates lead time into order promise dates.
Showcasing lead times on web stores:
Indicate “Ships in 3-5 business days” for made-to-order assemblies.
Display “In Stock - Ships Today” for assemblies with available inventory.
Utilize custom fields to convey assembly status.
Manufacturing companies are increasingly leveraging cloud ERP features like assembly tracking, with customer-focused e-commerce integration propelling adoption.
Utilizing CSV Imports and SuiteScript for Bulk Loading or Updating Assembly Item Records
When establishing numerous assembly items, manual entry becomes cumbersome. CSV imports and SuiteScript automation can expedite this process.
Preparing Your CSV for Importing Assembly Items and BOM
NetSuite allows CSV imports for assembly items, with the process varying based on whether Advanced Bill of Materials is activated:
Without Advanced BOM:
Import assembly items with Type = Assembly/Bill of Materials.
Add component connections via the member items list on the assembly record.
With Advanced BOM:
Import assembly item headers.
Import BOM and BOM Revision records separately.
Connect BOM revisions to assembly items and specific locations.
Sample import columns (assembly item header):
Item Name/Number
Type (Assembly/Bill of Materials)
Costing Method
Description
Display Name
For comprehensive CSV import guidance, consult NetSuite CSV Import.
Enhancing Assembly Item Configuration for Growth and Compliance
As your business expands, effective governance of assembly item setups helps prevent disarray from an influx of poorly documented SKUs.
Establishing Standards for Naming Assembly Items
Consistent naming conventions eliminate confusion and facilitate scalability:
Recommended naming format:
Category-Type-Variant-Version
Example: FURN-TABLE-DINING-OAK-001
FURN = Furniture category
TABLE = Type
DINING = Variant
OAK = Material
001 = Version number
Advantages of standardized naming:
Simplified searching and filtering
Clear identification on reports
Supports automation and integration
Reduces the chances of duplicate item creation
Document Your Standards:
Formulate a written policy for item naming.
Educate all users who create items.
Implement custom validation scripts to enforce naming protocols.
Review periodically to ensure compliance.
Ensuring Lot Traceability for Regulated Industries
Manufacturers in food & beverage, pharmaceuticals, and medical devices face strict traceability mandates. Assembly item configuration must provide complete supply chain visibility:
Setting up Lot Traceability:
Activate lot tracking for all regulated component items.
Set up expiration dates and rules for lots.
Implement lot selection during assembly builds to document which lots were used.
Generate lot-based reports illustrating the composition of finished assemblies.
Features for Regulatory Compliance:
Lot recall reporting: Identify all assemblies containing a specific component lot.
Forward traceability: Monitor where assemblies with specific lot numbers have been sold.
Audit trails: Maintain a complete transaction history for regulatory assessments.
Document retention: Keep build records in line with regulatory timelines.
Many manufacturers commence assembly tracking early in their ERP journey - often driven by compliance necessities.
Data Governance for Evolving Businesses
Change Control Procedures:
Require approval before changing active assembly BOMs.
Document reasons for component modifications.
Maintain effective dating for BOM revisions.
Test alterations in a sandbox environment before live updates.
Regular Accuracy Audits:
Conduct quarterly physical counts of assembly inventory.
Compare actual versus system component usage.
Investigate variances exceeding 5%.
Adjust BOMs based on findings.
Training and Documentation:
Create written protocols for assembly item creation.
Develop video tutorials for common assembly build situations.
Provide regular training for production and inventory personnel.
Conduct quarterly reviews of assembly item accuracy.
Efficient assembly configuration considerably shortens financial closing times and boosts cost precision.
Why Versich Excels in Assembly Tracking for Midwestern Manufacturers
Properly setting up assembly items from the start prevents years of inventory issues. However, navigating feature activation, BOM configurations, workflow automation, and e-commerce integration can become complex.
At Versich, we’ve assisted numerous manufacturers and distributors in implementing assembly tracking that actually functions on the production floor - not just in theory. We are Wisconsin-based NetSuite experts who grasp the intricacies of manufacturing, as many of our clients engage in production operations similar to yours.
How we enhance assembly tracking:
BOM configuration that aligns with reality: We partner with your production team to confirm component quantities, units, and structure before go-live. No guesswork, no unforeseen surprises.
Work order and routing setup: Need to track Work in Progress (WIP), labor costs, or multi-step manufacturing? We tailor work orders and assemblies to your shop floor processes.
Custom workflow automation: Automatically trigger assembly builds from sales orders, send notifications when component inventory is low, and enforce approval mechanisms for BOM changes using NetSuite workflows.
E-commerce integration: We link assembly availability to your SuiteCommerce or BigCommerce storefront, ensuring customers can see accurate inventory and lead times.
Saved searches and reporting: Beyond standard reports, we develop custom saved searches that detail material utilization, cost variances, and production metrics that your team needs.
Bulk import and SuiteScript automation: Setting up hundreds of assemblies? We manage CSV imports and write tailored SuiteScript to automate BOM creation from your engineering systems.
We’ve witnessed manufacturers significantly decrease monthly reconciliation time, lower component stockouts, and enhance costing accuracy - all by ensuring assembly items are configured accurately from day one.
With us, working together feels like asking a neighbor for assistance. No jargon-driven consulting. No lengthy billing for time spent on "discovery." Just straightforward NetSuite expertise from people who truly understand manufacturing and distribution.
Revision records, linking them to the assembly items. During the import wizard, match your CSV columns to NetSuite fields, and verify the BOM structure for several assemblies after the import concludes. For detailed instructions, explore our guide on NetSuite CSV imports.
