Dear team
In the production order, I can add an unlimited number of Bill of materials, but can I produce more than one Finished item in the same production order? For example, we work in a sanitary ware company and we carry out a large production process that produces more than one final product at a time. We put the raw materials and the final product is a 110 mm pipe + a 75 mm pipe + a 60 mm pipe. How do I do this in the manager, while the final product is only one item?
@taha1
I think this would not be appropriate, because when you put the raw material into the machine, it produced three items, A, B, C. but these three finished goods would not have been produced from the same raw material quantity. They would all have different quantities of raw material. Therefore, it is better to break down the three separately so that the finished goods figures can be noted properly.
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If you search the forum, you will find many discussions on this topic
Here’s how I do it with one of my client:
- Create a work in process inventory account.
- Use inventory write-off module to choose the materials to be placed in process and charge it to the WIP inventory account.
- Get to total cost of the WIP from #2 and in the journal entries, credit the WIP account and debit all the items that were produced.
The tricky part is how to allocate the WIP to various finished goods inventory account.
I hope it helps.
Seems this is in Idea to be implemented:
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