Production orders
needs the Accounting plan
(Accounting plan):
- Production → Recipes (BOM) → «New recipe»: pick the item you make, how much one batch gives (e.g. 20 pieces), the materials one batch takes and their quantities (grams for a material kept in kg is fine), and labour and running costs per batch if any. A half-made item (with its own recipe) can be a material.
- Production orders → «New production order»: the item, quantity and needed-by date; before saving you see the materials needed, what is in stock, what is short and the planned cost.
- «Start (issue materials)»: the materials leave stock into Work in progress (1145). If something is short you can tick «allow starting with materials short».
- «Finish into stock»: enter the really used quantities if different and the quantity made (the shortfall shows as waste), batch no. and expiry; the product enters stock at its real cost (materials + labour + running costs). A missing half-made part gets its own sub-order automatically, and cancelling returns the materials.
- Material needs (MRP): every planned order opened down to the raw materials against stock and open purchase orders, then «Make purchase orders» (one per supplier). «Make for sales orders» creates production orders for what the sales orders still need.
- Production cost: recipe cost against real cost, variance and waste per order and per item.
- Work centers and stages: under «Work centers» define machines and lines (hours a day, worker rate and cost per hour); in the recipe add stages (mix, bake, pack…) with center and hours, an alternate material when the main one runs out, by-products (e.g. crumbs) with their value, and QC checks. Every edit saves a new recipe version.
- Inside an order: «Partial receipt» (quantity, rejected, rework, QC result, inspector, batch), «Extra issue / return materials», «Log hours» per worker and stage, and «Subcontract» (supplier and fee go into the cost).
- Schedule and capacity: load of each center per day and % busy. Sales forecast: how much to make for the next 30 days from sales, sales orders and safety stock. On the item set lead time and safety stock so material needs know when to order.
- Quality and labour hours reports, and batch trace: enter a batch no. to see its order, materials, supplier batches and which customers and invoices it went to (for a recall).
If you get stuck on any step, ask the smart assistant inside the program.
Applies to these systems
Related lessons