The Manufacturing module helps organizations:
Plan production based on demand
Manage raw material consumption
Track production operations
Monitor work-in-progress (WIP)
Calculate actual production cost
Manage subcontracted processes
This module is fully integrated with:
Sales (for demand planning)
Inventory (for stock movement)
Purchase (for material procurement)
Accounting (for cost posting)
Quality (for inspection control)
Production Plan
→ Work Order
→ Material Issue
→ Job Card (Operations)
→ Production Entry
→ Finished Goods
For subcontracting:
Purchase Order (Subcontract)
→ Material Transfer to Supplier
→ Receipt of Finished Goods
→ Invoice Posting
Before starting production, proper master configuration is critical.
Navigate to:
Inventory → Item → New
For Raw Materials:
Mark as Stock Item
Define Default Warehouse
Define Valuation Method
For Finished Goods:
Mark as Stock Item
Link Default BOM
Define Inspection Required (if applicable)
For Sub-Assemblies:
Create as separate stock item
Create separate BOM
Navigate to:
Manufacturing → BOM → New
Define:
Finished Good Item
Quantity to Produce
Raw Materials and quantities
Scrap items (if any)
Operations (if routing used)
Submit BOM.
Important:
Always validate BOM quantities
Maintain version control
Avoid editing submitted BOM without amendment
Workstations represent physical or logical production centers.
Examples:
Cutting Machine
Assembly Line
Packing Area
Testing Unit
Define:
Hourly operating cost
Available working hours
Purpose:
Used for cost calculation and capacity planning.
Routing defines:
Sequence of operations
Workstation allocation
Standard operation time
This enables:
Job Card creation
Capacity planning
Operation-level cost calculation
Production Planning ensures:
Demand fulfillment
No material shortages
Avoidance of overproduction
Efficient scheduling
Navigate to:
Manufacturing → Production Plan → New
Steps:
Select “Get Sales Orders”
System pulls open orders
Select items for production
Click “Get Materials”
Review required raw materials
Generate Work Orders
Submit.
The ERP system checks:
Available stock
Required quantity
Shortages
If shortage exists:
Generate Material Request for Purchase
This integrates Manufacturing with Purchase.
Plan weekly or monthly
Review open sales orders before planning
Monitor raw material shortages
Avoid creating duplicate work orders
A Work Order is an authorization to produce a specific quantity of an item.
It defines:
Production quantity
BOM reference
Planned dates
Required materials
Navigate to:
Manufacturing → Work Order → New
Enter:
Production Item
BOM
Quantity
Planned Start Date
Planned End Date
Submit.
After submission:
System displays:
Required raw materials
Available quantity
Shortage quantity
You cannot proceed without sufficient stock (unless allowed).
From Work Order → Create → Material Issue
This creates a Stock Entry.
Submit to:
Reduce raw material stock
Move material to WIP
After production:
Work Order → Create → Manufacture
Submit to:
Increase finished goods stock
Reduce WIP
Post accounting impact
Draft
Submitted
In Process
Completed
Cancelled
Always complete work orders to avoid WIP accumulation.
Job Cards are used for operation-level tracking.
They help:
Monitor operator performance
Track machine utilization
Capture actual operation time
Calculate labor cost
From Work Order → Create Job Cards
System creates one job card per operation.
Open Job Card → Start Job
Enter:
Start Time
End Time
Completed Quantity
Submit.
After all operations are completed:
Work Order status moves to “Completed”
Production entry can be finalized
Operation-wise Production
Operator Performance
Machine Utilization
Production Efficiency
Subcontracting is used when part of the manufacturing process is outsourced.
Example:
Send raw material to vendor
Vendor performs processing
Receive processed goods
Navigate to:
Purchase → Purchase Order → New
Select:
Supplier (Subcontractor)
Finished Item
Mark as Subcontract
System calculates required raw materials.
Submit.
Create Stock Entry:
Material Transfer to Supplier
Submit to:
Reduce internal stock
Record material at supplier location
Create Purchase Receipt against subcontract PO.
Submit to:
Increase finished goods stock
Adjust raw material balance
Create Purchase Invoice for:
Service charges
Processing cost
Submit to update accounting.
Track material sent to supplier
Track material balance at supplier
Monitor wastage
Validate service charges
Production cost includes:
Raw material cost
Operation cost
Subcontract cost
Scrap adjustment
The ERP system calculates cost automatically during production entry.
Production Plan Summary
Work Order Summary
Job Card Summary
BOM Cost Report
Production Cost Variance
WIP Report
Raw Material Consumption
Stock Ledger
Production Managers should monitor:
On-time completion
Production variance
Rejection rate
WIP aging
Capacity utilization
Maintain accurate BOM data
Regularly review standard operation times
Close completed work orders
Perform monthly production variance analysis
Conduct regular stock reconciliation
Producing without sufficient raw materials
Skipping material issue step
Not completing job cards
Ignoring WIP balance
Using outdated BOM