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Using production orders to manufacture inventory items |
  
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Using production orders to manufacture inventory items |
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Production orders are used to record manufacture of finished goods using existing inventory and other resources.
For example, manufacturing bottled fruit juices requires fruits, bottles, and lids purchased from suppliers as inventory items. These inventory items can be converted into the finished products sold to customers.
NOTE: Finished goods must be created as inventory items7 before they can be entered on production orders.
Basic production order with inventory items
To record a production order, go to the Production Orders tab and click New Production Order:
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Complete the entry screen:
| • | Date will be autofilled with today's date. |
| • | Priority is optional, and can be used as a literal priority or may be used to serialize production orders. |
| • | Description can be any text useful for describing the production order. |
| • | Enter Quantity and Inventory item to be produced. |
| • | Enter Quantity and Inventory item for the first raw material to be used for production. If more than one inventory item is used, click the Add line button to add more line items. |
Click 
to save the production order.
Adding non-inventory costs
If non-inventory costs, such as wages, consumables, or overhead allocations are required to produce the finished inventory item(s), check the box to add non-inventory cost. Enter accounts to which the costs will be posted and the amounts. Add lines if necessary:
MYBOS will add the non-inventory costs to the current average cost of inventory item(s) consumed by the production order to calculate the cost of the produced inventory item(s).
In the Inventory Items tab, the quantity of the manufactured inventory item will increase while the quantities of input inventory items will decrease by the quantities included in the production order.