How to Enable Core Manufacturing Features in NetSuite for Assembly and Inventory Management

Whether you're managing assembly builds, tracking work-in-process, or struggling with bill of materials accuracy, the path to manufacturing excellence starts with understanding which NetSuite manufacturing features to enable—and more importantly, how to configure them without over-engineering your system.

Key Takeaways

• Manufacturers report improved inventory accuracy within six months of implementing proper assembly management features
• Small-to-midsize manufacturers see significant reduction in production scheduling errors with basic work order systems
• Businesses with properly configured assembly tracking close month-end faster for manufacturing operations
• Manufacturing specialists recommend starting with basic assembly features before implementing advanced routing
• Companies achieve operational readiness within weeks when following best practices
• Manufacturers using automated backflushing spend less time on inventory reconciliation activities

What Are NetSuite's Core Manufacturing Features and Why They Matter for Modern Manufacturers

NetSuite's manufacturing capabilities aren't one-size-fits-all—they exist on a spectrum of complexity designed to match your operational reality. At the foundation sit assembly builds and bill of materials (BOM) management, which handle straightforward production scenarios where components come together to create finished goods. Move up the complexity ladder and you'll find work orders with routing capabilities, work-in-process (WIP) tracking, labor costing, and production scheduling—features that many smaller manufacturers don’t need but are important to configure when they do.

The distinction matters because the wrong feature set creates problems rather than solving them. Assembly builds work for discrete manufacturers who produce items in defined quantities with predictable component consumption. Work orders add layers of complexity appropriate for job shops tracking multi-step production processes, labor hours against specific operations, and production capacity planning.

Assembly Builds vs. Work Orders: Understanding the Difference

Assembly builds represent the lightweight approach to manufacturing in NetSuite:

• Single transaction consumes components and creates finished goods
• Automatic backflushing deducts inventory when assemblies complete
• Simplified costing tracks material costs without labor allocation
• Minimal shop floor tracking focuses on completion rather than process stages
• Best for: Repetitive assembly operations, kit building, light manufacturing

Work orders introduce production management capabilities:

• Multi-step routing defines operation sequences and dependencies
• Labor tracking captures time against specific manufacturing operations
• Machine center allocation manages equipment capacity and scheduling
• WIP accounting tracks value at each production stage
• Best for: Job shops, custom manufacturing, multi-stage production processes

Manufacturing specialists recommend starting with basic assembly features before implementing advanced routing capabilities. This staged approach builds data integrity and user competence before adding complexity.

When to Use Advanced Manufacturing Features (WIP, Routing, Scheduling)

Advanced manufacturing features solve specific operational challenges that basic assembly builds cannot address. Consider implementing work orders with routing when your operation requires:

Detailed labor tracking: You need to capture how many hours each worker spends on specific production operations to calculate true product costs and identify bottlenecks.

Multi-stage production processes: Your manufacturing involves distinct operations that must occur in sequence, with different personnel, equipment, or locations handling each stage.

Capacity planning: Production scheduling requires understanding machine availability, operator capacity, and operation duration to commit delivery dates accurately.

Engineering-to-order manufacturing: Each job involves unique specifications requiring custom routings, specialized labor allocation, and detailed production documentation.

The appropriate configuration level depends on business size, production complexity, and operational maturity, with many manufacturers starting with basic features before implementing advanced capabilities.

Preparing Your NetSuite Account: Prerequisites for Enabling Manufacturing Features

Before you enable a single manufacturing feature, your NetSuite environment needs foundational configuration to support production operations. Skip these prerequisites and you'll spend months troubleshooting data inconsistencies—many manufacturing implementations experience data problems due to improper BOM configuration, with duplicate component entries being the most frequent issue.

Required NetSuite Roles and Permissions for Manufacturing Setup

Manufacturing feature enablement requires administrator-level access to your NetSuite account. Standard user roles lack permissions to modify company-wide features that affect transaction processing, inventory management, and financial reporting.

Verify these permissions before beginning configuration:

• Setup > Company > Enable Features access (Administrator role required)
• Customization > Lists, Records, & Fields permissions to create custom item fields
• Setup > Accounting > Accounting Preferences access for costing method selection
• Lists > Accounting > Items permissions to create assembly and inventory items
• Transactions > Manufacturing rights to create work orders and assembly builds

For organizations using NetSuite OneWorld, subsidiary-specific manufacturing features require additional configuration. Each subsidiary may maintain separate item catalogs, BOMs, and manufacturing preferences based on regional operations.

Which NetSuite Edition Supports Manufacturing Features

NetSuite's manufacturing capabilities vary significantly across pricing tiers. The basic NetSuite account includes assembly build functionality as part of the core inventory management module—no additional licensing required. This covers single-level BOMs, basic assembly transactions, and component backflushing.

Work order functionality with basic production tracking is available through the Work Orders & Assemblies feature. For full routing, WIP tracking, and labor costing, you'll need the WIP & Routings module. The Advanced Manufacturing module provides additional MES capabilities, finite scheduling, and shop floor control features.

These modules are sold as add-ons to the base NetSuite subscription. Contact Oracle or your NetSuite implementation partner for specific pricing information.

Step-by-Step: How to Enable Assembly and Work Order Features in NetSuite

Enabling manufacturing features follows a specific sequence in NetSuite's administration interface. The system enforces dependencies between features, automatically activating prerequisite functionality when you enable advanced capabilities. Understanding this hierarchy prevents configuration conflicts and ensures proper feature activation.

Navigating to the Features Menu in NetSuite

NetSuite centralizes all feature enablement in a single administrative interface. After logging into NetSuite with administrator credentials:

1. Navigate to Setup > Company > Enable Features
2. Look for the Transactions tab
3. Locate the manufacturing features section
4. Review feature descriptions and dependencies before making changes

The Transactions tab contains multiple feature toggles grouped by functionality. Manufacturing features appear under the "Manufacturing" subsection.

Understanding Feature Dependencies and What Gets Enabled Automatically

NetSuite's feature dependency system automatically enables prerequisite functionality when you activate advanced manufacturing capabilities. This prevents configuration errors but can surprise administrators who don't expect additional features to appear.

When you enable Work Orders and Assemblies:

• Assembly/Bill of Materials activates automatically (prerequisite)
• Assembly item type appears in item creation menus
• BOM management interfaces appear on assembly item records
• Work order transaction types appear throughout the system

The WIP & Routings module adds:

• Manufacturing routing configuration for operation sequences
• Work-in-process accounts for financial configuration
• Labor resource and machine center setup
• Operation-level cost tracking and WIP accounting

Advanced Manufacturing provides additional capabilities:

• Finite capacity scheduling for production planning
• Manufacturing execution system (MES) features
• Shop floor control and mobile applications
• Advanced scheduling tools for resource management

The system displays a confirmation dialog listing all features that will activate before you save changes. Review this list carefully—some features affect user interface elements, transaction processing, and reporting across the entire NetSuite account.

After enabling features, allow 2-5 minutes for changes to propagate through the system. Log out and back in if enabled features don't appear within five minutes.

Setting Up Bill of Materials (BOMs) for Assembly and Inventory Management

Bill of materials configuration represents the foundation of manufacturing accuracy in NetSuite. Every work order, assembly build, and component consumption calculation depends on BOM accuracy. Companies with properly configured multi-level BOMs experience fewer production delays, yet many manufacturing businesses struggle with accurately costing assembled products due to improper feature configuration.

Creating Your First Assembly Item with Component BOMs

Assembly items in NetSuite combine inventory items into finished goods through defined component relationships. Unlike standard inventory items that track individual stock units, assembly items maintain two distinct inventory positions: component inventory consumed during production and finished goods inventory created by assembly builds.

To create your first assembly item in NetSuite:

1. Navigate to Lists > Accounting > Items > New
2. Select Assembly/Bill of Materials from the item type dropdown
3. Complete basic item information (name, description, item number)
4. Look for the Bill of Materials subtab
5. Add component items with required quantities per assembly unit
6. Specify units of measure if components use different units than the assembly
7. Configure costing method for the assembly item
8. Set preferred stock location for both components and finished assemblies

The critical fields that impact manufacturing operations include:

Component Quantity: Defines how many units of each component item are consumed to produce one unit of the assembly. NetSuite supports decimal quantities for partial component consumption (e.g., 0.5 meters of wire per assembly).

Component Yield: Accounts for expected waste or loss during production. A 95% yield means NetSuite expects 5% scrap, automatically adjusting component consumption calculations to ensure adequate material availability.

Quantity on Hand vs. Quantity Available: NetSuite distinguishes between physical inventory (on hand) and inventory available for production (considering outstanding work orders and assembly builds). BOMs reference "available" quantities for production feasibility checks.

Costing Method: Determines how NetSuite calculates assembly item costs. Available methods include Standard, Average, FIFO, and LIFO (US only), depending on your account's accounting preferences. Standard costing uses predefined cost values regardless of actual component costs. Average costing calculates assembly cost based on actual component costs at the time of assembly, providing more accurate but more variable product costs.

Multi-Level BOMs: When and How to Use Nested Assemblies

Multi-level BOMs allow component items to themselves be assemblies, creating hierarchical product structures that mirror complex manufacturing operations. A finished product might contain subassemblies, which contain their own subassemblies, creating three, four, or even five levels of BOM hierarchy.

NetSuite supports unlimited BOM levels, but practical considerations typically limit structures to three or four levels maximum. Deeper hierarchies create complexity in inventory management, production planning, and cost rollup calculations.

Multi-level BOM scenarios include:

Modular manufacturing: Electronics manufacturers produce circuit board subassemblies separately, then combine multiple boards into finished products. Each subassembly maintains its own BOM.

Configurable products: Industrial equipment manufacturers build standard base units then configure custom features by adding various subassembly options during final assembly.

Phantom assemblies: Some subassemblies exist in BOMs for planning purposes but never physically stock as inventory. NetSuite's phantom assembly feature consumes components of the subassembly directly when building the parent assembly, skipping the intermediate assembly build transaction.

Creating multi-level BOMs requires component assemblies to exist before parent assemblies can reference them. Build your BOM structure from the bottom up, creating lowest-level assemblies first, then progressively building higher-level assemblies that reference them.

Cost rollup calculations become more complex with multi-level BOMs. NetSuite recalculates assembly costs when component costs change, but the timing depends on whether you use standard or average costing. With average costing, assembly costs update automatically as component costs fluctuate. Standard costing requires manual cost updates when you want to reflect component cost changes in assembly valuations.

Configuring Assembly Builds for Simple Manufacturing Operations

Assembly builds represent NetSuite's streamlined approach to manufacturing—a single transaction that consumes components and creates finished goods without the overhead of work order management. Manufacturers using automated backflushing through assembly builds spend significantly less time on inventory reconciliation activities, making this the preferred method for repetitive production operations with predictable component consumption.

Creating an Assembly Build Transaction from Start to Finish

Assembly build transactions follow a straightforward process that mirrors physical production activities. The transaction simultaneously reduces component inventory and increases finished goods inventory, maintaining accounting accuracy while minimizing data entry.

To create an assembly build in NetSuite:

1. Look for Transactions > Manufacturing in the navigation menu
2. Select the option for Build/Assembly
3. Select the assembly item you want to build
4. Enter the quantity of assemblies to produce
5. Verify the build location (where finished goods will be received)
6. Review the component list and quantities (auto-populated from BOM)
7. Adjust component quantities if actual consumption differs from standard BOM
8. Select the inventory status for finished goods (if using inventory status features)
9. Save the assembly build to complete the transaction

NetSuite performs several validation checks before allowing assembly build completion:

Component availability: The system verifies sufficient component inventory exists at the build location to support the requested assembly quantity. If components are insufficient, NetSuite displays an error identifying which items are short.

BOM accuracy: Assembly builds require active BOMs on the assembly item record. Missing or inactive BOMs prevent build creation, forcing users to configure proper component relationships before production.

Location consistency: All component consumption and finished goods receiving must occur within a single inventory location. Cross-location assembly builds require transfer orders to move components before building.

The assembly build transaction creates multiple inventory effect records simultaneously:

• Component inventory decreases at the build location for all BOM items
• Finished goods inventory increases at the build location for the assembly item
• Inventory valuation adjusts based on component costs and assembly costing method
• Inventory accounts update to reflect the manufacturing activity (no COGS is recognized until items are sold)

Handling Component Shortages and Partial Builds

Real-world manufacturing rarely matches perfect BOM assumptions. Component shortages, quality issues, and yield variations create scenarios where actual assembly builds differ from BOM standards. NetSuite provides flexibility to handle these situations without breaking inventory accounting.

Partial builds occur when you have insufficient components to build the full planned quantity. Instead of preventing production entirely, NetSuite allows building whatever quantity component availability supports:

1. Enter your desired build quantity (e.g., 100 assemblies)
2. NetSuite displays available quantity based on component availability (e.g., 73 assemblies)
3. Choose whether to build the partial quantity or wait for additional components
4. Complete the build for the available quantity

Component substitutions handle situations where BOM components are temporarily unavailable but suitable substitutes exist. NetSuite doesn't automatically substitute components during assembly builds—you must manually adjust the component list on the build transaction.

Yield adjustments account for component waste or scrap during production. If your BOM assumes 95% yield but actual production experiences 90% yield, increase component quantities on the assembly build to reflect actual consumption and enter notes explaining the variance for production management review.

Organizations serious about production accuracy should implement systematic variance tracking through NetSuite saved searches that identify assembly builds with modified component quantities, enabling continuous BOM improvement based on actual production data.

Implementing Work Orders with Routing and WIP for Advanced Manufacturing

Work orders transform NetSuite from an inventory assembly system into a production management platform. While assembly builds work for straightforward component-to-finished-goods scenarios, work orders add the operational visibility required for job shops, custom manufacturers, and operations with multi-step production processes requiring labor tracking and capacity planning.

Defining Manufacturing Routings and Operation Steps

Manufacturing routings define the sequence of operations required to transform components into finished goods. Each operation represents a distinct production step, potentially occurring at different work centers, performed by different labor resources, with specific time requirements and dependencies.

Note: Routing functionality requires the WIP & Routings module.

To create a manufacturing routing in NetSuite, look for Lists > Manufacturing > Routings > New and configure:

• Operation name and sequence number for each step
• Work center where the operation occurs
• Run time per unit (how long each unit takes to process)
• Setup time (one-time preparation before the operation begins)
• Labor resource or machine required
• Predecessor operations that must complete before this step

Routing configuration directly impacts production scheduling and cost calculation. NetSuite uses operation run times to estimate work order completion dates and calculate labor costs when workers clock time against specific operations.

Once created, routings attach to assembly items through a Routing field on the assembly item record. A single assembly item uses one routing, but you can maintain multiple routing versions for different production scenarios.

Tracking Labor and Machine Time Against Work Orders

Labor tracking converts work orders from planning documents into cost accounting tools. When employees record time against work order operations, NetSuite captures actual labor costs, calculates production variances, and provides visibility into where production time is actually spent versus planned estimates.

Note: Manufacturing Time recording and WIP labor capitalization requires the WIP & Routings or Advanced Manufacturing module. Without these, you can track time via standard Time Tracking, but it will not post to WIP automatically.

NetSuite offers manual time entry where workers or supervisors create time records identifying the work order, operation, employee, and hours worked. For automated tracking, Advanced Manufacturing's mobile/MES capabilities or third-party manufacturing execution systems can capture labor time automatically, reducing manual data entry while improving accuracy.

Labor costs flow into work-in-process (WIP) accounts as time records post, building the total manufacturing cost of the work order. When the work order completes and finished goods are received, NetSuite transfers accumulated WIP costs (materials plus labor) to finished goods inventory valuation.

Integrating Inventory Management with Manufacturing: Tracking Components and Finished Goods

Manufacturing operations create unique inventory management challenges that basic distribution or retail inventory systems can't address. Components must be available when production needs them, work-in-process inventory requires separate tracking from finished goods, and lot or serial number control often extends from raw materials through finished products.

Setting Up Inventory Locations for Raw Materials and Finished Goods

Manufacturing inventory typically segregates into distinct physical locations corresponding to production stages. NetSuite's multiple location inventory feature allows precise tracking of where components, work-in-process, and finished goods physically exist within your facility.

Common manufacturing location structures include:

Raw materials warehouse: Components arrive from vendors and await production demand. High-turnover components may be stock in bulk, while specialized parts maintain minimal safety stock.

Production floor locations: Work-in-process inventory and components currently allocated to active work orders. Some manufacturers create separate locations for each production line or work center.

Finished goods warehouse: Completed assemblies await shipment to customers. May include separate locations for quality hold, packaging staging, or ship-ready inventory.

Inspection/quality hold: Items pending quality verification before being released to production or shipping. Critical for manufacturers with strict quality requirements.

To configure inventory locations, navigate to Setup > Company > Locations > New and create locations matching your physical inventory segregation. On assembly and component item records, specify preferred stock locations for finished goods and raw materials.

Assembly build and work order transactions respect location assignments. When building assemblies, NetSuite defaults to consuming components from their preferred stock locations and receiving finished goods to the assembly item's preferred location.

Automating Reorder Points for Manufacturing Components

Component stockouts create production delays that plague manufacturers with inadequate inventory management. NetSuite's reorder point system automates component replenishment by triggering purchase requisitions or orders when inventory falls below defined thresholds.

Setting effective reorder points requires understanding consumption patterns and lead times:

Reorder point \= (Average daily usage × Lead time in days) + Safety stock

Configure reorder points on component item records in the Purchasing/Inventory section. Specify the reorder point quantity, preferred vendor, and reorder quantity (how many units to order when reorder point is reached).

NetSuite evaluates inventory positions through Demand Planning and Supply Planning processes. These can be scheduled to run periodically and generate purchase orders or requisitions based on reorder points and lead times. The evaluation cadence depends on your configured processes and schedules.

For manufacturers needing sophisticated planning, NetSuite's Material Requirements Planning (MRP) can calculate time-phased component requirements based on planned work orders and assembly builds. MRP functionality is available through Demand Planning/Supply Planning features and provides demand-based replenishment beyond simple reorder points.

Best Practices for Costing and Financial Tracking in NetSuite Manufacturing

Manufacturing transforms raw material costs into finished goods value through production processes that consume labor, overhead, and components. Accurate cost tracking determines product profitability, inventory valuations, and strategic pricing decisions. Yet many manufacturing businesses struggle with accurately costing assembled products due to improper feature configuration—a problem that undermines financial reporting and erodes margins.

Choosing Between Standard and Average Costing for Manufacturing

NetSuite supports multiple costing methodologies for manufactured items, each with distinct advantages and implementation considerations. Available methods include Standard, Average, FIFO, and LIFO (US only), with selection depending on your account's accounting preferences. Your choice affects inventory valuations, variance reporting, and the complexity of ongoing cost maintenance.

Standard costing establishes predetermined costs for assemblies based on expected component costs, labor rates, and overhead allocation. These standard costs remain fixed until manually updated, creating cost stability but potentially diverging from actual production costs over time.

Standard costing advantages:

• Simplified variance analysis: Actual costs compare directly to standards, isolating production inefficiencies
• Consistent product margins: Standard costs prevent component price fluctuations from distorting product profitability analysis
• Planning stability: Forecasting and budgeting use known costs rather than variable actuals

Standard costing challenges:

• Requires periodic cost reviews: Standards must be updated when component costs, labor rates, or overhead structures change significantly
• Variance tracking overhead: Meaningful variance analysis requires systematic review of production variances
• Initial setup complexity: Establishing accurate initial standards demands detailed analysis

Average costing calculates assembly costs dynamically based on actual component costs at the time of production. Each assembly build uses current average costs of consumed components, creating self-adjusting valuations that track actual cost fluctuations.

Average costing advantages:

• Automatic cost accuracy: Inventory valuations reflect actual component costs without manual maintenance
• No variance accounting: Actual costs become standard costs, eliminating purchase price variance tracking
• Minimal setup requirements: No need to establish and maintain standard cost tables

Average costing challenges:

• Product margin volatility: Component cost fluctuations directly impact product margins, complicating pricing decisions
• Complex multi-level BOM calculations: Average costs of parent assemblies depend on average costs of subassemblies

Most discrete manufacturers start with average costing for simplicity, transitioning to standard costing as operations mature and margin analysis becomes more sophisticated. The transition requires establishing standard costs for all assembly items before changing the costing method—a process often managed during NetSuite implementation planning.

Common Pitfalls When Enabling NetSuite Manufacturing Features and How to Avoid Them

Many manufacturing ERP implementations fail to deliver expected ROI due to improper configuration. While NetSuite provides powerful manufacturing capabilities, implementation mistakes create months of cleanup work, frustrated users, and inaccurate inventory data. Understanding common pitfalls helps manufacturers avoid expensive rework and achieve operational readiness faster.

Why Clean Item Data Is Critical Before Enabling Manufacturing Features

Manufacturing features expose and amplify existing item master data problems. That duplicate component item created months ago? It now appears on BOMs, creating incorrect inventory consumption. The missing unit of measure? It prevents assembly build transactions from completing.

Before enabling manufacturing features, systematically audit:

Item naming conventions: Establish consistent item naming standards that make components easily identifiable.

Duplicate item identification: Search for items with similar names, descriptions, or part numbers that might represent the same physical component. Consolidate duplicates before creating BOMs.

Unit of measure consistency: Verify all components use appropriate units (each, box, pound, meter) and that unit conversions are properly configured.

Costing method alignment: Confirm all inventory items use compatible costing methods based on your accounting preferences.

Item status verification: Deactivate obsolete items before they appear on new BOMs.

Data cleanup prevents the inventory discrepancies that plague many manufacturing implementations and consume countless hours of reconciliation time.

Automating Manufacturing Workflows with NetSuite Tools

Manufacturing automation transforms manual, error-prone processes into systematic workflows that run with minimal intervention. Beyond enabling basic assembly and work order features, manufacturers achieve maximum efficiency by automating repetitive tasks and connecting production systems to sales, purchasing, and inventory planning.

Creating Workflows to Auto-Generate Work Orders from Sales Orders

Demand-driven manufacturing creates work orders automatically when customer orders arrive, eliminating manual production planning for make-to-order operations. NetSuite workflows connect sales order transactions to work order creation.

A basic auto-generated work order workflow follows this pattern:

1. Trigger: Sales order saved with manufactured items
2. Condition: Item type equals "Assembly/Bill of Materials"
3. Action: Create work order for the assembly item
4. Quantity: Match sales order line quantity
5. Due date: Calculate backward from sales order ship date using production lead time

To implement this workflow, navigate to Customization > Workflow > Workflows > New, select Sales Order as the record type, and configure conditions and actions to create work orders with mapped fields from the sales order.

More sophisticated workflows add inventory checks, capacity validation, priority assignment based on customer rules, and notification routing to production managers.

Using Saved Searches to Monitor Production Bottlenecks

Production bottlenecks hide in transaction data, visible only through systematic analysis of work order status, component availability, and capacity utilization. NetSuite saved searches to surface these issues proactively.

Work orders behind schedule saved search:

• Criteria: Work Order Status \= "In Process" AND Expected Completion Date \< Today
• Results: Work Order Number, Assembly Item, Days Overdue
• Email alert: Daily summary to production manager

Component shortages blocking production saved search:

• Criteria: Work Order Status \= "Released" AND Component Availability \< Required Quantity
• Results: Work Order Number, Short Component Item, Shortage Quantity
• Use case: Purchasing team prioritizes expediting

Schedule saved searches to run automatically and email results to responsible team members, enabling proactive management without manual queries.

Why Anchor Group Makes NetSuite Manufacturing Implementation Actually Work

Most NetSuite partners can check the boxes—enable features, create BOMs, configure work orders—but implementation success requires understanding how manufacturers actually operate. At Anchor Group, we've configured manufacturing features across discrete manufacturers, job shops, and assembly operations.

Here's what working with Midwestern-born consultants who understand manufacturing actually means:

We start with your shop floor, not NetSuite's feature list. Before touching system configuration, we spend time watching how production actually works—where components live, how work travelers move, what information shop floor teams actually need. Then we configure only the NetSuite features that support those real workflows.

We know most manufacturers don't need Advanced Manufacturing on day one. Manufacturing specialists recommend starting with basic assembly builds. We'll configure work orders with routing when your operations actually require multi-step tracking.

We've solved your BOM problems before. Multi-level assemblies with phantom subassemblies? Component substitution workflows? Yield variance tracking? Our team has implemented these scenarios across manufacturers producing everything from industrial equipment to consumer goods.

We build automation that actually gets used. Workflows that auto-generate work orders from sales orders. Saved searches that alert purchasing when component shortages will delay production. Custom scripts that handle the unique scenarios your business requires.

Our manufacturing clients see results in weeks, not months. With proper preparation and focused implementation, manufacturers achieve operational readiness quickly. That's because we're not selling you unnecessary complexity. We're delivering working systems that match how you manufacture.

Whether you're implementing NetSuite manufacturing features for the first time or fixing a previous implementation that never quite worked right, our NetSuite services provide the manufacturing expertise that makes the difference between checking boxes and achieving the inventory accuracy, production visibility, and cost control that manufacturers actually need.

Frequently Asked Questions

What is the difference between assembly builds and work orders in NetSuite?

Assembly builds represent single-transaction manufacturing where components immediately convert to finished goods without intermediate production tracking. You select an assembly item, specify quantity, and NetSuite consumes components while receiving finished goods—ideal for repetitive assembly operations with predictable component consumption. Work orders add production management layers including multi-step routing, labor tracking against specific operations, WIP accounting, and capacity planning. Work orders suit job shops tracking custom production processes, manufacturers needing detailed labor costs, or operations requiring production stage visibility. Manufacturing specialists recommend starting with assembly builds before implementing work order complexity, allowing manufacturers to establish BOM accuracy and basic production processes before adding advanced features.

Do I need Advanced Manufacturing enabled to use work orders and routing?

Basic work order functionality is available with the standard Work Orders & Assemblies feature. However, full routing with operation sequences, WIP tracking, and labor costing requires the WIP & Routings module—a separately licensed add-on. Advanced Manufacturing provides additional capabilities including finite capacity scheduling, manufacturing execution system (MES) features, and shop floor control. Most small-to-midsize manufacturers start with basic assembly builds, implement standard work orders as operations mature, then add WIP & Routings or Advanced Manufacturing only when production complexity justifies the investment. This staged approach aligns with best practices. Contact Oracle or your implementation partner for specific module pricing and availability.

How do I set up a multi-level bill of materials for complex assemblies?

Multi-level BOMs require building component assemblies before parent assemblies reference them—a bottom-up construction approach. Start by creating lowest-level subassemblies with their component BOMs, then build progressively higher-level assemblies that reference the subassemblies as components. For example: Create "Circuit Board Assembly" with its electronic components, then create "Control Panel Assembly" using the circuit board as a component, finally create "Finished Equipment" using the control panel as a component. Each level maintains its own BOM, costing method, and inventory tracking. NetSuite supports unlimited BOM levels, though practical considerations typically limit structures to 3-4 levels maximum to avoid complexity in inventory management and cost rollup calculations. Companies with proper multi-level BOM configuration experience fewer production delays due to missing components.

What costing method should I use for manufacturing in NetSuite?

Most discrete manufacturers start with average costing for simplicity—assembly costs calculated automatically based on actual component costs at production time without requiring manual cost maintenance. This self-adjusting approach eliminates variance accounting and reflects actual component cost fluctuations in finished goods valuations. However, average costing creates product margin volatility as component prices fluctuate. Standard costing establishes predetermined assembly costs based on expected component costs, labor rates, and overhead allocation, providing consistent margins and enabling variance analysis to identify production inefficiencies. Standard costing requires periodic cost reviews but delivers superior management reporting. Other options include FIFO and LIFO (US only) depending on your accounting preferences. Start with average costing if you're new to manufacturing in NetSuite, transition to standard costing as operations mature and sophisticated cost analysis becomes valuable.

How do I automate work order creation from sales orders in NetSuite?

NetSuite workflows connect sales orders to work order creation through triggered automation that eliminates manual production planning. Configure a workflow on the Sales Order record type that evaluates when manufactured items (assembly type) appear on order lines, then automatically creates corresponding work orders with quantities, due dates, and priority derived from customer requirements. Navigate to Customization > Workflow > Workflows > New, select Sales Order record type, create a state for work order generation with condition "Item Type \= Assembly/Bill of Materials," configure a Create Record action for Work Order, and map sales order fields to work order fields including quantity, item, and calculated due date based on production lead time. More sophisticated workflows add inventory availability checks, capacity validation, customer-specific priority rules, and notification routing to production managers.