On-Hand supply method for Work Order sub-assemblies

When a component on your Work Order BOM has its own Bill of Materials, Luminous lets you choose how to source it. Setting the line's Supply Method to On Hand tells Luminous to consume that component directly from existing stock when production is reported — rather than launching a build order to manufacture it from raw materials.

How it works at production reporting

When you click Report Production on a work order step:

  1. Luminous checks each BOM line's Supply Method as configured on the Bill of Materials tab of the work order.
  2. For any sub-assembly line set to On Hand:
  • If free stock (on-hand quantity minus committed quantity) is ≥ the required quantity, the system skips creating a build order. The parent step's Assembly Order includes a consuming line for that component, so stock is decremented correctly from inventory.
  • If free stock is insufficient, Luminous falls back to creating a Draft Assembly Order as a shortage signal — exactly as it would for a line without the On-Hand setting — so you can see what's short.
  1. Sub-assembly lines on any other supply method (Assemble, Work Order, etc.) are unaffected and follow their own paths.

What free stock means

Free stock = qty on hand − qty committed. Committed quantity is the aggregate reservation across all work orders. The system gates the skip on free stock (not aggregate on-hand) so consuming the component cannot drive on-hand negative or raid another order's reservation.

Setting the supply method

  1. Open the work order and click Edit (top right).
  2. Scroll to the Bill of Materials section.
  3. On the sub-assembly component's row, set Supply Method to On Hand. To change every line at once, use Set all to:.
  4. Click Save.

The Bill of Materials tab on the work order page shows each line's supply method, but you can't edit it there. Use Edit.

To pre-fill new work orders, set Default Supply Method on the component SKU: Inventory → SKUs → open the SKU → Units and handling → Default Supply Method.

Troubleshooting

SymptomLikely causeAction
Sub-assembly is still being built even with stock on handThe work order's BOM line isn't set to On Hand. The SKU default only applies to new work ordersOpen the work order → Edit → Bill of Materials → set Supply Method to On Hand → Save
Draft AO created for an On-Hand componentFree stock (on-hand − committed) is below the required quantityCheck stock levels; receive or transfer additional stock, or complete any open reservations
Raw material stock is unexpectedly low after productionPreviously, On-Hand lines were built regardless of supply method; this is resolved going forwardReview recent production history for the affected raw materials

Note: The On-Hand skip behavior is enabled per account. Contact your Luminous account team if you expect this to apply but are not yet seeing it.