I would like to use this software for manufacturing business which usually produce flour from wheat. Now my question is, in bill of materials I can use different types of inventory but for in finished item only one item come out. But my production line need more finished item. For example if I use 100kg of wheat, it produce 65kg self rising flour, 5kg plain flour, 2 kg Semolina and 30 kg of cattle food known as bhushi. I am really confused how to do it in production order.
I would be grateful if you could help me out.
Thank you
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You have pointed out a very real shortcoming of the software. I believe this should be fixed. Meanwhile, I think the only workaround for you is to create multiple production orders. If you process 100kg of wheat, create 4 production orders totaling 100kg of input wheat and producing the 65, 5, 2, and 30 kgs of finished goods. The exact proportions of input and output goods will not matter as long as the total withdrawn from inventory and reintroduced to inventory are correct.
I will invite @lubos to join this topic.
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Thank you for your quick response and help. I would love to hear from lobos about it
Actually the proportions will matter because input item (wheat) will have certain value in inventory and you need to get proportions right in order to end up with correct value on hand for output items.
For example, if you enter production order which takes in 1kg of wheat and produces 65kg of self-rising flour, the value on hand of 65kg of self-rising flour will equal to value of 1kg of wheat which won’t be its true cost.
Anyway, the issue of being able to produce multiple items has been raised a few times before. If Manager would allow to produce multiple items from single production order, it would need to ask in which proportion to allocate value to these output items.
For example, if 100kg of wheat has cost of $100 and it produces 3 different items, you would need to enter something like 60% of the cost to be allocated to output item #1, 25% to be allocated to output item #2, and the remainder to be allocated to output item #3.
The question is, would businesses know how to proportionate the cost? And once they know, they might as well enter 3 separate production orders for each output item, right?
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I see the problem with valuation of the output inventory item. But is the problem made any easier by having multiple production orders? The user would still have to decide somewhat arbitrarily what the value of the individual output items are. From the standpoint of workflow, it seems better to me to at least encompass the entire problem within one production order. That way, the full value of input inventory can be assigned, even if the assignments are not perfect.
How might other accounting applications approach this problem? Can we always know the exact cost of produced goods? One of the challenges of managing a manufacturing operation is to decide how much effort should go into exactly determining the cost of goods, considering purchased inputs, labor, overhead, and so on. My concern is that as things now stand, there is no option but separate production orders, which don’t solve any of the problems except the inability to add output line items to the form.
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The basic (or default) solution for Manager would be to add up all the input material costs and then proportion that total based on the output quantities. So if the inputs total cost was 100.00 and the output quantities equalled 50 units then each output unit would be valued at 2.00 regardless of product produced.
Then as an enhancement, allow the user to override the default proportioning by having a two stage Production Order which would only occur when more then one output item was listed. Stage one as per currently but on clicking “create” the screen would re-display the Production Order but with (1) completed but updateable proportion fields and (2) a relative unit value next to each of the output items. The screen could contain a 100% checksum display, a la the Journal balancing control.
As the user amends the proportion, the relative unit value would also be adjusted. So using the example above, if you were producing a premium product and a by-product which sold for 1.50, but the initial production cost was being shown as 2.00, then one could shift the proportions to suit (or sell the by-product at a theoretical loss). Completion of stage two.
A more sophisticated approach would be to have the proportions and unit values displayed during the Production Order creation automatically once a 2nd output item was listed. But lets crawl before we run.
At this stage, to have at least the default solution would be better then not having any capability at all.
should we request manager to add the multiple production order?
The Manager Developers are aware of needing to provide for multiple outputs and also of this discussion - suggestions. But where it fits into the improvements schedule, really depends upon their priorities.
hope they would do it soon. I really want to use this software rather then using pen and paper.
If I go for cloud option or server option do manager customise any special need. For example do manager going to add multipole production order? I really want to use manager for my business but can not do it for multiple production order
All options use the same version and there is “no” user customising service
Is there any other way I can do multiple production order on manager
You can set up standard sized Production Orders and then clone them as required.
e.g. you may set up Production Orders for 100, 50, 10, 5 & 1. So if you need to do 66 then you would simply clone the 50, 10, 5 & 1 Production Orders rather then attempt to create a new Production Order each time.