Production

What it is for

Production is for companies that manufacture their own goods. It lets you describe the recipe (bill of materials) for each product, launch production runs, issue raw materials automatically and calculate the real unit cost — accounting for both material value and labour.

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Main scenarios

Scenario 1: describe what a product is made of (Bill of materials)

1. Go to Production → Bills of materials → Add bill of materials.
2. Name it, choose the Finished product (what comes out) and set the Output quantity — how many units come out of one batch.
3. In the Components (formula) section click "Add component": pick the material, unit and quantity per unit of output. Add as many lines as you need. Optionally set "Scrap %" — the system will account for non-productive losses.
4. Save. The bill of materials is ready — you can now launch runs against it.

Tip: click "Requirements calculator" inside the bill of materials and enter the quantity you need — the system immediately shows how much of each material that takes.

Scenario 2: launch a production run

1. Production → Production runs → New run.
2. Choose a Production order (or create one via Production → Production orders → Add order — that is where you set the bill of materials, planned quantity and date).
3. Enter the actual Output quantity and Date. Materials are pulled from the bill of materials automatically — adjust the quantities if actual consumption differed from plan.
4. Click "Post": raw materials are issued from stock, finished goods are received into stock, and a journal entry appears.

Scenario 3: review batch costing (the "Costing" tab)

Go to Production → Costing. The table shows, per batch:

• Materials — the actual value of raw materials issued into the batch.
• Labour — payroll costs tied to the batch.
• Total and Per unit — full cost and cost per unit of finished product.

Click a batch row to open the breakdown: which materials went in and in what quantity, which employees did the work, at what rate and under which pay type.

Scenario 4: understand why the cost changed (the "Trend" tab)

Go to Production → Trend. Pick a product and click "Apply". The system charts unit cost across all batches in the selected date range and shows:

• The "Cost / Materials / Labour" trend for every batch.
• Breakdown of the latest change — a component table showing exactly which material went up in price, by how much, and what that did to the unit cost.

This section is available only to users with permission to view financial data.

Scenario 5: piece-rate pay through the daily log

1. First set up Piece rates in the corresponding section of the module: the product, the rate per unit, the currency and the date the rate takes effect.
2. Enter output daily in Production → Daily output log → New log. In the log lines specify the employee, the product, the quantity and hours (if hourly pay is also tracked).
3. Click "Post" — the system calculates the payout and folds it into the batch cost.

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Tips

Always create the bill of materials first, the order second. Without one you will have to enter materials into the production run by hand.

Actual material consumption can be adjusted right in the production run form before posting — just change the quantity on the material line.

The "Trend" tab is a pricing instrument. When cost goes up, you see immediately which component caused it and by how much. That is what lets you revise selling prices in time instead of discovering the squeeze at the end of the quarter.

The daily output log replaces the separate Excel sheets normally used to compute piece-rate wages — everything is recorded in one place and feeds straight into batch cost.