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The production module records production runs: it consumes raw materials from inventory, adds the finished product and calculates its actual unit cost.

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New production

The screen has the form on the left, in four numbered blocks, and a fixed production summary on the right with the costs and the button to register.
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Go to Production → New Production

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1 · Production order

  • Product source: Existing product (already in the catalog) or New product (created during production).
  • Work order (optional): no order, link an existing one or create an internal order.
  • Finished product and quantity to produce.
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2 · Bill of materials (BOM)

Add raw material: product and quantity used. Each row shows the available stock, the cost and whether it is enough (OK or Insufficient).
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3 · Conversion costs

Add cost: labor, transport, overhead or special, with quantity, unit and unit cost. Below, you can assign to this production actual expenses already registered in purchases; if you leave the assignment empty, the full expense amount is applied.
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4 · Batch and traceability

If perishable: batch number and expiration date. Production notes.
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Register production

From the side summary. The button is enabled when the form is valid and there is enough raw material.
The summary shows the product, the quantity, raw material availability and the cost breakdown (raw material, conversion and associated expenses), with the total cost and the unit cost. The run’s unit cost is the sum of raw materials, conversion costs and assigned actual costs, divided by the quantity produced.

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Phases and statuses

A production moves through four phases, with no going back: Order → Processing → Verification → Completed.

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Finished product cost

When the production is completed, the finished product’s cost is recalculated with a weighted average: (previous stock × current cost + quantity produced × run’s unit cost) ÷ total stock. If there was no stock, the cost becomes the run’s cost. That cost is the one later used in the cost of sales.
You cannot produce a product configured with a recipe: its sales deduct the components directly, so producing it would duplicate inventory consumption. Use a simple product as the finished product.

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Yield and shrinkage

When moving to Completed, you are asked for the actual quantity obtained. If it is lower than planned, the difference is recorded as shrinkage and the total cost is spread over what was actually obtained, so the unit cost goes up. Raw materials are valued at their current cost at completion, not at the time the order was created.

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Raw material batches

On completion, consumption is deducted from each raw material’s batches: first the one that expires soonest and then the oldest. Whatever is not recorded in batches only affects stock. When a completed production is voided, the batches are restored and the finished product’s average cost is reversed.

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Accounting

Each completed production generates its journal entry from Accounting → Process documents → Completed productions: Configure the accounts and the entry type in Accounting → Settings → Inventory → Production. If you don’t define a finished product account, the inventory account is used. The entry’s status (draft or processed) is the one set for Inventory.
A production with an accounting entry cannot be voided until that entry is deleted or reversed.

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History

Production lists the runs with date, finished product, quantity, total cost, unit cost, phase and status (In progress, Completed or Voided). The detail shows the consumption of each raw material, each assigned cost and the phase history.