How can I use an alternate item on a shop order?
The best way is to have the approved alternate item appear on the Bill of Material just after the standard item with a zero required quantity. Now the alternate item will appear on the Shop Order. So, if the standard item is not available, the alternate item can be issued to the shop order.
When the shop order is closed out, one item will have an unfavorable variance while the other shows a favorable variance. This is an easy way to provide alternate items provided engineering approves and they are part of the Bill of Material.