Production Order - refers to an order issued by a company to produce a specific quantity of a product at a specific time frame.
You can access production orders by going to the Manufacturing tab > Production Orders. On this page, you can create new production orders or view existing ones.
Production Orders can have the following statuses based on the current production stage:
- Draft
- Finalized
- In Production
- Completed
Creating Production Order
There are two ways you can create a Production Order:
1) From the Production Order index page, click on 'New Production Order'. From the drop-down, select the finished variant.
OR
2) From the Bill of Materials page, click on 'Create Production Order'.
After this, QuickBooks Commerce will load the previously created Bill of Materials for the variant.
Add the quantity you want to produce and set the due date on your Production Order. The quantity of the components will be calculated depending on the number of units you wish to produce. Set the location, assignee and add a reference number to your Production Order under the Default Order Information.
If you have other costs such as Labor Costs, you can add it to the 'Other Costs' section. If all information has been added click 'Save' to create the Production Order in Draft status. You can make changes to the Production Order for as long as it is in Draft status.
Do note that costs will not be automatically calculated based on the Quantity to Produce. You will need to manually update this for every production order.
For instance, if a group of assembly workers commits 3 days (8 working hours daily) to complete production of one rollerblade, then input the total man-hours incurred in the QTY box. i.e. (8 × 3 = 24).
Check all the information on your Production Order, and if all the details have been added, click on 'Finalize Order'. Finalizing your Production Order will commit the component stock for production.
Canceling or Stopping a Production Order
Cancel a Production Order
A Production Order can be canceled if it is in Draft or Finalized status. This simply means that you will not go through with the production. Once the Production Order is canceled, you will no longer be able to revert it. If you wish to reactivate a canceled Production Order, you will have to clone it. All committed stock on a canceled Production Order will be returned to your inventory as Available stock.
Stop a Production Order
If you have already started production and wish to discontinue, you may click on 'Stop Production'. When stopping a Production Order, you will have the option of putting the committed component stock to either 'Wastage' or 'Unconsumed'. Put the component quantity to 'Unconsumed' if you wish to return it to your inventory as Available stock. The Production Order will be marked as Completed once you have stopped a Production Order.
You have successfully created your Production Order! For more Manufacturing related articles, click here.