Skip this if: You do not manufacture goods for sale. Go to Part 5 - Stock Control.
Read this first:
- Creating a Bill of Materials for a Manufactured Variant and accounting for Labor and Wastage
- The Lifecycle of a Production Order (Article under construction)
- Accounting for Manufacturing
Here we’ll cover:
- Creating a Production Order
- Scenario 1: Assembling a simple manufactured variant
- Starting the assembly of a Production Order
- Completing a Production Order and accounting for wastage
- Scenario 2: Assembling a batch tracked manufactured variant
Creating a Production Order
To create a Production Order, go to the Manufacturing section and click the Production Orders tab.
Click the “New Production Order” button located at the top right-hand side of the screen.
Within the Production Order page, select the variant that you’d like to produce from the dropdown menu.
The corresponding Bill of Materials will be linked to the Production Order, loading a list of the components required to manufacture the variant.
Indicate the quantity of variants that you would like to produce and set the due date for the Production Order.
In the columns located at the right-hand side of your screen:
- Select the location where the assembly will take place and the completed variants will initially reside. Once the Production Order is marked “Completed,” the stock levels of the manufactured variant will update at that location.
NoteThe location selected must also house the total stock of components required to complete each Production Order.
- Select the assignee to whom you’re assigning the Production Order
- (optional) Enter a reference number for the Production Order
If you have other costs that you would like to associate with this Production Order - like shipping fees or labor - you can add these now within the “Other Costs” fields.
At this time you can also add Notes to the Production Order for the assembly staff to follow.
Review your Production Order and click the “Create” button located at the bottom right-hand side of your screen.
The status of the component variants required to complete the Production Order will change from “Available” to “Committed” and will no longer be available for sale or use.
Scenario 1: Assembling a Simple Manufactured Variant
Starting the Assembly of a Production Order
After your Production Order has been created, its state will change to “Finalized.”
The status of the component variants required to complete the Production Order will have changed from “available” to “committed” and will no longer be available for sale or use.
To begin production, click the “Start Production” button.
Set the start time and date, then click “Start Production.”
At this point, the status of the Production Order will be changed to “In Production” and assembly can begin.
Completing a Production Order
Once all of the manufactured variants have been assembled, you can complete the Production Order.
Select the Production Order you’d like to complete from the Production Orders tab located within the Manufacturing section.
Once loaded, click “Complete Production.”
Enter the quantity of variants that has been produced, the “finished date” and the “finished time.”
If there was any wastage in your assembly process, you can indicate this now.
Within the components section of the Production Order, you can indicate whether a component variant should be marked as “wastage” if it was damaged or of poor quality or mark it as “unconsumed.”
Click the “Save” button.
Costs associated with wastage will be synced with your accounting platform.
If you have unconsumed component variants, you’ll be able to place them back into your stock pool, changing their status from “committed” to “available.”
Your manufactured variant will now increase in stock and the quantity of consumed component stock will be deducted from your inventory.
Congratulations - you have completed your Production Order!
Scenario 2: Assembling a Batch Tracked Manufactured Variant
Starting the Assembly of a Production Order with Batch Tracked Components
Batch tracked components can be used in your Production Orders and are selected when you change your Production Order’s status from “Draft” to “Finalized.”
Click the “Finalize Order” button.
Select the batch ID(s) and quantity of variants that you’ll be using to assemble the manufactured variants.
Click the “Finalize” button.
Completing a Batch Tracked Production Order
Once all of the manufactured variants have been assembled, you can complete the Production Order.
Select the Production Order you’d like to complete from the Production Orders tab located within the Manufacturing section.
Once loaded, click “Complete Production.”
For batch tracked Manufactured Variants, you will notice that the Production Order will have a “Batch ID” and “Expiration Date” field. This will allow you to immediately assign a batch and set an expiration date to the finished variants upon completion of the Production Order.
Enter the quantity of variants that has been produced, the “finished date” and the “finished time.”
If there was any wastage in your assembly process, you can indicate this now.
Within the components section of the Production Order, you can indicate whether a component variant should be marked as “wastage” if it was damaged or of poor quality or mark it as “unconsumed.”
Click the “Save” button.
If there is an unused quantity of batch tracked Components, you will be asked if you want to return the unconsumed units back to your inventory. You will also have the option of selecting which Batch ID these unconsumed units will be assigned to.
Costs associated with wastage will be synced with your accounting platform.
Your manufactured variant will now increase in stock and the quantity of consumed component stock will be deducted from your inventory.
Congratulations - you have completed your Production Order!
Now let’s walk you through Part 5 - Stock Control: Stocktakes, stock adjustments, bin locations and barcodes.