Production Order Items

Good Day,

I am new to Manager and is testing it.
The Production Order is confusing me. I have created one but it does not reflect all the items although purchased as stock.
I refer to the zero items

It also does not expense it under the correct sales and cost of sales accounts.
It should have shown under the: -
sales - 1kg DCP Recharge
cost of sales - 1kg DCP Recharge

Any help


The production order will not be accounted for until it is completed.

As there are insufficient quantities in stock it will not be costed until you purchase the missing quantities.

Read the guides again

I have purchased quantities the test for the last 2 as well and I did a Goods Received as well, but it only did what is on the image. I will test it again.

Read the three Inventory guides as well if you are using the Goods Received and Delivery Notes tabs

Thank You. I will do so now.

Please do not make us guess. What items are not reflected? Do you mean the two items with insufficient quantity? They are reflected. They are just not costed. See Understand insufficient quantity on a production order | Manager.

According to your description, you have not sold anything. Therefore, you have no sales income. Likewise, since nothing has been sold, you have no cost of goods sold. So you would not expect a balance in either the income or expense account you mention. Because of your insufficient quantities, the value of the partially completed production order is found in the Production in progress account. When the production order is completed by purchase of the additional input items, it will be transferred to Inventory on hand until sold.

I will test again

Remember I am not LIVE. I am still testing.
All transactions are just fictional.

  1. I deposited R10,000 Via the RECEIVE in the bank
  2. I made a Purchase Invoice for the stock required and paid for the stock via the Payments
    method
  3. I made a Goods Receive for the stock
  4. I checked everything. The stock balanced.
  5. I made a Production Order and sold the item.

At first I did not put in a quantity in the Item I sold, because I noticed it deducts it from the stock if I sell it.

I saw it was incorrect, Edited the item to have a quantity and this as the results




The stock should have been 1 less than purchased, Looking at quantity owned, I see a major problem.

If one looks at the ASSETS, INCOME and EQUITY the values are completely incorrect.

I have read all the guides, but I am probably still doing something wrong.

With INCOME only 1 Item was physically sold, but it shows more maybe 2.
I think the problem lies between the Sales Invoice, the Receipt and the Production Order.

It is not possible to understand very much from what you have shown and written. First, you need to show the Edit screens for:

  • The production order you say you created
  • The sales invoice you mentioned by which you sold whatever you sold

On top of that I can offer the following observations:

  1. Everything you are actually selling (or positioning yourself to sell) looks like a recharging service. For services, you should not be using inventory at all. These services can be set up as non-inventory items for convenience, with a different non-inventory item for each type of extinguisher.
  2. Because you are not selling finished inventory items, you should not be using production orders to produce them. Production orders are for the manufacture of finished items to be held in inventory and sold.
  3. Your sales invoices should include what you actually sell. In this case, that probably means a group of replacement parts that are inventory items. These could be listed individually or combined in inventory kits. You could have a different kit for each type of extinguisher. Then, you could add the appropriate non-inventory item for the recharging fee. This would remove the replacement parts you have purchased from your inventory, transferring their sales price to appropriate income accounts and their costs to appropriate cost of goods sold accounts. And the recharging service fee would also be added to an appropriate income account.
  4. Even if you were selling inventory items, you have somehow managed to duplicate all your cost of goods accounts.
  5. You have one or more transaction(s) in Suspense. Everything in Suspense is a mistake awaiting your correction.
  6. You have an extraordinary number of “provision for…” liability accounts. I don’t know your situation, but it seems doubtful these are all actually liabilities of the business. More likely, a provision account is an asset, because it represents money you are setting aside for a future expenditure, not money you currently owe to anyone. And many of the accounts you show are probably not the sort to make provision for in the first place.
  7. You have also duplicated your Inventory sales account
  8. You have three profit accounts. Profit is not normally represented in an income account, but is the difference between income and expenses. If, for example, you are going to recognize income from sale of condemned material, the appropriate income account would be something like Sales of condemned material. The entire amount received from sale of the material should be posted there. If there are costs of obtaining the condemned material, they should be posted to a suitable expense account. And, if you ever dispose of fixed or intangible assets, the gain/loss on the sale will be posted automatically to Fixed assets - loss on disposal or Intangible assets - loss on disposal. (But maybe you have renamed those accounts. It is impossible to tell.)

Ok I have done these transactions step-by-step. It appears I must not make a payment as well as Goods Received. If I both Transactions it reflects the Inventory On Hand Double.

That is incorrect. If you enter a purchase invoice, you must eventually enter a payment, or your supplier will never show as having been paid. The purchase invoice records the purchase, the goods receipt records physical arrival of the goods. The payment records movement of money.

It is clear you need to spend some time reading the Guides. You are doing many things incorrectly.

I am saying again I am testing and is not live yet. All Transactions is fictional.

I have done these transactions step-by-step not to cloud anything.

I received R 10,000 in the bank account.

I created the following Inventory Items: -

Dry Chemical Powder which is not for sale but to use in other items created by Production Orders

Nitrogen Gas which is not for sale but to use in other items created by Production Orders

Petrol for cleaning which is not for sale but to use in other items created by Production Orders

Pull Seals for cleaning which is not for sale but to use in other items created by Production Orders

Service Labels which is not for sale but to use in other items created by Production Orders

Fire Extinguisher Recharge which is the item to be manufactured with the above items.

I ordered the above stock from the supplier and entered a SUPPLIER INVOICE

I made a PAYMENT for the SUPPLIER INVOICE

The correct Inventory showed ON HAND

I have not made a GOODS RECEIVED yet, because if I do this the Inventory will show double.

After I made a GOODS RECEIVED the Inventory shows double.

I created a PRODUCTION ORDER, because the Inventory Items need to be used to manufacture a Final Product.

The PRODUCTION ORDER decreased the Inventory as expected
On the question of The Production Order. The explanation is as follow: -
a Fire Extinguisher is an empty shell. It needs powder, gas a seal and a service label to be complete.
The complete unit are sold, but I have to order the Powder, seals, Service labels and gas as inventory first.
I have done the whole exercise step-by-step with only the minimum values.

The powder, nitrogen gas, petrol, seals, and labels are all legitimate inventory items. They are purchased for (a) sale or (b) consumption during the process of making a sale. You do not need a customer to come in and buy petrol from you to make it an inventory item. You consume petrol when you recharge a customer’s fire extinguisher. Therefore, you have indirectly sold some petrol to the customer.

As I said before, your recharge service is not an inventory item. You are not manufacturing a fire extinguisher or anything else. You are providing the service of recharging one. (At least, you have not mentioned manufacturing extinguishers.) So the recharged extinguisher is not a legitimate inventory item. You do not own it. And you cannot sell it back to the customer who does. You can only charge the customer for the service you provided and the inventory items you used to provide that service. If you sold the business tomorrow, the new owner would not own the extinguisher. But they would own all the powder, nitrogen, petrol, seals, and labels you have left in stock. Therefore, you should not be using production orders to produce finished items called “recharge” (in any size).

You need to explain this further. Shows double where? If you do not have the Goods Receipts tab enabled, your purchase invoice immediately adds the total value of the invoice to Accounts payable and the purchased quantities to inventory. A properly entered payment, posted to Accounts payable will settle your obligation to the supplier.

If you enable the Goods Receipts tab, the adjustment of inventory quantities is delayed until you enter the goods receipt. But the financial aspect of the transaction still shows up immediately in Accounts payable.

The only way to double the inventory quantity in the workflow you described is by posting the payment to the inventory items themselves instead of Accounts payable. That is the financial and quantity equivalent of buying the items all over again in a cash purchase. If you record the purchase with a purchase invoice, the payment has nothing to do with inventory items. It only settles your payable liability from the purchase invoice.




It reflects double on the Inventory although I have only purchased half of which is reflected on the Inventory.

If I make a payment to the supplier it shows the Inventory as owned by me and if I make a Goods Received it shows the stock again.

I do understand that the Recharge is not a stock item per say. I will do the exercise again and do it as a non-stock item, but I will have to use the inventory to do the Bill Of Materials.
to make up this thing.

I do understand tis statement fully. Just keep in mind that the inventory is used with the recharge and I will not have any stock remaining after the Recharged has been Invoiced.
It is similar to the Handbag example in the guides I think.

I think some more information on your actual workshop processes would help you receive accurate advice.

So are you saying you buy fire retardant? Is this bought in bulk or supplied for each extinguisher size and type?
Is there other items used up during the recharge? I assume labour is also used.

Or do you run and exchange service? The customer brings in their out of date or used extinguisher, you exchange it with a refurbished unit then later refurbish it and add it to your stock?

According to our legislation a customer’s Fire Extinguishers must be serviced annually.
This Servicing involves using certain stock Items like petrol, seal and label. This is not sold as stock items, but sold as part of the service.

secondly sometimes there is Fire Extinguishers where the retardant must be discarded and destroyed. This we call a recharge.
The Fire Extinguisher is taken to your workshop and emptied completely.
It gets filled with new powder. Purchased in bulk 25kg but one only use the amount of powder the size of the Fire Extinguisher. (1kg Fire Extinguisher gets 1kg Powder) the remaining 24kg should remain in stock.

It works the same with the seals. One could purchase 1000 as stock, use 1 for the above Fire Extinguisher. the rest remain as stock.
the same with the labels, Nitrogen Gas and petrol.

It is not an exchange service. The Fire Extinguishers of the customer gets “refurbished” with this annual service in order for him to be legally compliant.

The stock does not get sold as stock Items. It are being used with these services and should be costed and charged as such. (Service or recharge)

You have shown everything but the payment you keep mentioning, which is where I said your problem with doubled inventory almost certainly comes from. Post a screen shot of the Edit screen for that payment.

No, it is not. In the handbag example, an inventory item is produced — the finished handbag. Based on your description, you are not producing a recharge; you are performing a recharge. Thus, you are delivering a service (and consuming some materials in the process). Think of this as using the service materials the customer is buying from you.

I can only explain this so many times. Enter one line item on a sales invoice (or receipt if a cash sale) for the recharge service. This can be made easier by defining a range of non-inventory items for the recharge service on various types/sizes of extinguishers. Add another line item for each inventory item consumed during the recharge. This can be made easier by defining inventory kits containing all the raw materials necessary for a recharge. (There might be more than one inventory kit with different quantities tailored to recharge of various types/sizes of extinguishers, too.) So each sales invoice could have two lines. All raw materials would be subtracted from inventory by the sales invoices, not production orders. There are Guides about non-inventory items and inventory kits that explain in detail how to use them.

That is the point I made in a previous post. You are providing the service of refurbishing extinguishers, not producing extinguishers. I’ve understood your business model from your first post because I’ve bought exactly that annual service many, many times.

Yes, it does get sold as stock items and will be priced as such in an income account and costed as such in a cost of goods expense account. The difference will be our profit on materials, which will be added to your profit on the service.

Your situation is exactly the same as when someone takes their car to a mechanic for an oil change. The car owner says to the mechanic, “Please change the oil on my car. I know nothing about cars, but the owner’s manual says it is time for an oil change.” The mechanic sells the car owner an oil filter, 5 liters of oil, a drain plug gasket, plus the oil change service. He tells the owner, “I changed the oil on your car.” Everyone is happy. (He does not tell the owner he produced or manufactured an oil change.)

Your customer effectively says to you, “Please do whatever is necessary to keep my fire extinguisher in compliance with the law. I know nothing about fire extinguishers or what is required to maintain them, but the tag attached tells me it is time for annual service.” You sell the customer an inventory kit with a name like recharge materials and a non-inventory item with a name like recharge service. You tell your customer, “Your fire extinguisher is now in compliance with the law.” Everyone is happy.

Interesting to know Is the customer left without a fire extinguisher while it is being refurbished?

No he is not. These are large warehouses. There might be 100 Fire extinguishers, Fire Hoses inside. These are installed in sets. 1 x Hose Reel with 2 Fire Extinguishers normally. If you take one there is still another + a Hose Reel. According to our legislation I am allowed to remove 50% of the Fire Extinguishers.