How to Prepare Your NetSuite Account for Manufacturing Module Activation

Key Takeaways

• NetSuite Manufacturing offers three tiers: Work Orders & Assemblies (included), WIP & Routings (module fee), and Advanced Manufacturing (contact NetSuite for pricing)
• Setup time varies depending on module complexity and data readiness
• Manufacturers achieve 42% reduction in defect rates with quality management features properly configured
• Clean master data is the single most critical success factor—most failures trace back to poor BOM and routing data quality
• Feature enablement sequence matters: Assembly Items must be enabled before Advanced BOM, which must precede Manufacturing Routing

Understanding the NetSuite Manufacturing Module's Core Capabilities

NetSuite Manufacturing transforms disconnected production processes into a unified operation. The system provides real-time visibility into inventory, production scheduling, work orders, bill of materials, and financial management—all within a single integrated platform.

The module handles the full spectrum of manufacturing complexity:

• Work orders and assembly builds for tracking production from raw materials to finished goods
• Bill of Materials (BOMs) with multi-level support and revision control
• WIP (Work In Process) tracking for accurate cost accounting throughout production
• Routing operations that define manufacturing steps, work centers, and labor requirements
• Labor costing tied directly to production operations
• Production scheduling with both infinite and finite capacity options

Why does this matter for your preparation? The manufacturing module touches nearly every other NetSuite function—inventory, purchasing, financials, and order management. Without proper account preparation, you'll encounter cascading errors that are far more expensive to fix post-activation than to prevent upfront.

Initial NetSuite Account Assessment for Manufacturing Readiness

Before enabling any manufacturing features, you need a clear picture of your current NetSuite configuration. This assessment prevents the common mistake of activating features that conflict with existing workflows.

Critical Areas to Audit

Existing Data Structures

Review your current item records, vendor data, and location setup. Manufacturing modules require specific field configurations that may conflict with your current data architecture. Pay special attention to:

• Item types currently in use (inventory items, non-inventory items, service items)
• Location hierarchy and how inventory is tracked
• Vendor records and their associated purchase pricing
• Customer pricing structures that will apply to manufactured goods

Current Workflows

Document any existing SuiteScript customizations or saved searches that touch transaction types you'll use for manufacturing. Work orders, assembly builds, and item receipts may trigger unexpected behavior if custom scripts aren't updated.

Permission Levels

Your NetSuite roles and permissions structure needs evaluation before manufacturing activation. Key permissions to verify include:

• Company setup permissions for feature enablement
• Manufacturing transaction permissions (work orders, assembly builds)
• Work center and routing record access
• BOM creation and modification rights

Feature Dependencies

Certain features must be enabled in sequence. Assembly Items is a prerequisite for Advanced Bill of Materials. Advanced BOM must be enabled before Manufacturing Routing and Work Center. Getting this sequence wrong can lock you out of critical functionality.

Configuring Essential Master Data for Manufacturing

Master data configuration is where most manufacturing implementations succeed or fail. Clean BOM data before migration is the most important factor in successful activations.

Item Records

Your item records need specific configurations for manufacturing:

• Assembly Items: Create these for any product you'll manufacture. These serve as the "parent" item that BOMs attach to.
• Component Items: Ensure all raw materials and sub-components exist as inventory items with accurate unit of measure settings.
• Preferred Vendors: Link components to vendors with accurate purchase pricing for cost roll-up calculations.

Bill of Materials Setup

BOMs define what components combine to create your finished goods. Configuration requirements include:

• Single-level vs. Multi-level: Determine your BOM structure based on production complexity
• Phantom Assemblies: For sub-assemblies that aren't stocked but pass through work orders
• Component Yield: Configure yield percentages for components with expected waste
• Revision Control: Enable if you need to track BOM changes over time

Routing Definition

Routings define how products are manufactured:

• Work Centers: Physical locations or equipment where operations occur
• Operations: Individual manufacturing steps with setup time and run rates
• Operation Sequences: Order in which operations must be performed (use increments like 10, 20, 30 for flexibility)
• Resource Assignments: Which equipment or labor performs each operation

Common Master Data Pitfalls

When setting up master data, manufacturers frequently encounter these issues:

• Unable to save BOM: This typically occurs when the assembly item doesn't exist yet. Always create assembly items before attempting to create BOMs.
• Incorrect work order dates: Production calendars not configured properly lead to scheduling errors. Set up calendars for each work center before creating work orders.
• Components won't backflush: confirm the work order is configured to backflush components and that completions are being recorded in the correct flow; component yield is for planning expected material loss, not for enabling backflush
• Operations appearing out of sequence: Using consecutive numbering (1, 2, 3) instead of incremental numbering (10, 20, 30) leaves no room for inserting operations later. Always use incremental sequence numbers.

Setting Up Inventory Management for Production Efficiency

Manufacturing success depends on accurate inventory visibility. NetSuite's inventory automation capabilities shine when properly configured, with manufacturers able to free significant working capital from reduced excess inventory.

Bin Management Configuration

If your production uses multiple storage locations within facilities:

• Enable Multi-Location Inventory if not already active
• Configure bin types (picking, receiving, WIP staging)
• Set up default bins for component items
• Define bin restrictions for quality holds

Lot and Serial Number Tracking

For traceability requirements (FDA, ISO, customer mandates):

• Enable lot or serial tracking at the item level
• Configure auto-generation rules for lot numbers
• Set expiration tracking for time-sensitive materials
• Define inspection requirements for incoming lots

Replenishment Strategies

Proper replenishment prevents production delays:

• Reorder Points: Set based on lead time and demand variability
• Safety Stock: Configure buffer quantities for critical components
• Demand-Based Replenishment: Enable for items tied to production forecasts

WMS Integration Considerations

If you're using or planning to implement NetSuite WMS:

• Map manufacturing locations to WMS zones
• Configure pick strategies for work order component pulls
• Set up putaway rules for finished goods
• Define mobile workflows for shop floor transactions

Streamlining Workflows and Advanced Modules for Manufacturing Operations

Once master data is solid, workflow configuration determines how smoothly production runs day-to-day.

Manufacturing Preferences Configuration

Navigate to your manufacturing preferences settings and configure these critical options:

• Default Scheduling Method: Choose Finite capacity unless you have unlimited production resources
• Show Planned Capacity on Work Orders: Enable for visibility into scheduling constraints
• Automatically Fill Actual Production Dates: Enable to reduce manual data entry
• Backflush Settings: Configure based on your shop floor reporting practices

Integrating Advanced Manufacturing Features

For organizations requiring Advanced Manufacturing capabilities:

• Manufacturing Execution System (MES): Mobile data collection on the shop floor
• Finite Capacity Scheduling: Realistic scheduling based on actual resource availability
• Batch Management: Recipe-based production for process manufacturing
• Quality Management: Inspection plans and quality control checkpoints

Automating Production Processes with Custom Workflows

NetSuite workflows can automate repetitive manufacturing tasks:

• Auto-release work orders when sales orders are approved
• Trigger quality inspections at specific operation completions
• Send alerts when WIP inventory exceeds thresholds
• Automatically close work orders when production completes

The WIP and Routings module provides the foundation for these automations, enabling sophisticated production tracking without custom development.

Financial Considerations and Costing Methods for Manufacturing

Manufacturing costs flow directly to your financial statements. Configuration errors here create audit issues and inaccurate product profitability.

Costing Method Selection

NetSuite supports multiple costing methods for manufactured items:

• Standard Costing: Predetermined costs with variance tracking (recommended for most manufacturers)
• Average Costing: Running average based on purchase and production costs
• FIFO/LIFO: Layer-based costing for specific industries

Labor Costing Configuration

For operations requiring labor tracking:

• Define labor codes for different worker types
• Set standard labor rates by work center
• Configure overhead absorption methods
• Enable labor time entry on work order completions

Landed Cost Implementation

If you import materials, landed cost configuration affects manufactured item costs:

• Enable Landed Cost feature
• Define cost categories (freight, duty, insurance)
• Configure allocation methods
• Set up vendor bills for landed cost capture

WIP Valuation

Work In Process represents inventory value during production:

• Configure WIP accounts in your chart of accounts
• Set up WIP variance accounts for standard cost environments
• Define cost element tracking (material, labor, overhead)
• Enable real-time WIP visibility on work orders

Training and User Adoption for Your Manufacturing Team

Technical accuracy means nothing if production users can't effectively use the system. Inadequate training is a leading cause of manufacturing module failures.

Role-Based Training Approach

Different users need different knowledge levels:

Production Planners

• Work order creation and scheduling
• Capacity planning views
• Material requirement reports
• Exception management

Shop Floor Supervisors

• Work order status updates
• Component issue and completion
• Labor time entry
• Quality checkpoint recording

Production Workers

• Mobile transaction entry (if using MES)
• Barcode scanning procedures
• Basic work order lookups
• Time reporting

Training Timeline

Plan training activities around your activation schedule:

• 4 weeks before go-live: Key user training on full functionality
• 2 weeks before go-live: End user training on daily tasks
• 1 week before go-live: Hands-on practice in sandbox environment
• Go-live week: Support floor presence during first transactions

Change Management Essentials

• Communicate the "why" behind the new system
• Identify shop floor champions who can assist peers
• Create quick reference guides for common transactions
• Establish clear escalation paths for questions

Testing and Go-Live: Ensuring a Smooth Manufacturing Module Rollout

Comprehensive testing in a sandbox environment is non-negotiable. Testing in production with real manufacturing data leads to costly shop floor errors.

Testing Phases

Unit Testing (Week 1-2)

• Verify individual transactions work correctly
• Test BOM explosions and cost roll-ups
• Confirm routing operation sequences
• Validate inventory movements

Integration Testing (Week 2-3)

• Sales order to work order flow
• Purchase order to item receipt to production
• Work order completion to inventory update
• Financial posting verification

User Acceptance Testing (Week 3-4)

• End users execute real scenarios
• Document any gaps or issues
• Validate reporting accuracy
• Confirm mobile functionality (if applicable)

Go-Live Planning

For a successful NetSuite implementation, plan your cutover carefully:

• Data Freeze: Stop legacy system updates 48 hours before migration
• Final Data Load: Import open work orders and WIP inventory
• Parallel Run: Consider running both systems for 2-4 weeks
• Cutover Weekend: Plan activation during low-production period

Post Go-Live Support

The first two weeks after activation require extra attention:

• Dedicated support resources on the production floor
• Daily check-ins with key users
• Rapid response process for blocking issues
• Performance monitoring for system speed

Partnering with Anchor Group for Your Manufacturing Module Activation

Preparing your NetSuite account for manufacturing activation involves dozens of interconnected decisions. Getting even a few wrong can cascade into significant production disruptions. That's where working with experienced NetSuite implementation partners makes the difference between a smooth activation and a painful recovery.

Why Anchor Group for Manufacturing

Anchor Group brings deep expertise specifically in NetSuite for manufacturers. The team has configured everything from basic work orders and assemblies to complex WIP tracking and routing operations. As Oracle NetSuite Alliance Partners, they understand the nuances that trip up manufacturers during activation.

What sets Anchor Group apart:

• Manufacturing-Specific Experience: Work orders, assembly builds, BOMs, WIP and routing, labor costing, and scheduling are their wheelhouse
• Practical Approach: They recognize that most companies don't need the highest-complexity manufacturing features—but they're ready when you do
• Midwestern Reliability: Working with Anchor Group feels like calling up a neighbor for a hand—familiar, reliable, and no fuss

Client Tripp Perkins noted that Mitch from Anchor Group "was super helpful in getting us back on track with NetSuite customizations/implementation of WIP/Routings. He is super knowledgeable, and it didn't take long to pick up on our processes and understand our manufacturing processes."

If you're preparing for manufacturing module activation and want expert guidance, contact Anchor Group to discuss your specific production requirements.

Frequently Asked Questions

What is the first step to prepare my NetSuite account for the Manufacturing Module?

Start with a comprehensive audit of your current NetSuite configuration. Review existing item records, verify that prerequisite features (like Assembly Items) are enabled, and document any custom workflows that touch transaction types you'll use for manufacturing. This assessment prevents conflicts between new manufacturing functionality and your existing setup.

Do I need to clean up my existing data before activating the Manufacturing Module?

Yes—clean master data is the most critical success factor. Focus particularly on item records (ensuring proper item types and units of measure), vendor pricing accuracy, and location hierarchy. BOM data quality directly determines whether your work orders calculate costs correctly and consume components as expected.

How does the NetSuite Manufacturing Module handle Bill of Materials (BOMs) and Routings?

NetSuite supports multi-level BOMs with revision control, allowing you to define component relationships, quantities, and yield percentages. Routings attach to BOMs and define manufacturing steps through operations assigned to work centers. Each operation includes setup time, run rates, and resource requirements. The system automatically calculates standard costs based on BOM components and routing labor.

What are common challenges when implementing the NetSuite Manufacturing Module?

The most frequent challenges include enabling features out of sequence (which can prevent certain functionality from working), inadequate production calendar configuration (causing incorrect scheduling), and insufficient user training for shop floor staff. Organizations also struggle when they over-configure features they don't actually need, creating unnecessary complexity.

How does the Manufacturing Module integrate with other NetSuite features like inventory and financials?

Manufacturing integrates natively with NetSuite's core functions. Work order completions automatically update inventory quantities and create GL postings. Component consumption reduces on-hand inventory in real-time. Standard costing tracks variances between expected and actual costs, flowing directly to financial reports. Sales orders can automatically generate work orders, and purchase orders can be created from material requirements.