Making goods: the journey from a recipe to finished stock on the shelf. It runs through Inventory and Production, and reaches into Purchase for the components.
What you will learn
- The path from a bill of materials to sellable finished goods
- How a manufacture order plans and a batch order executes
- Where production draws on Inventory and Purchase
The journey, step by step
1
Define the recipe Inventory
The bill of materials lists what one unit of output is built from: components, sub-assemblies and quantities.
2
Plan the build Production
A manufacture order takes the finished product and its bill, explodes it through every level, and works out the components needed.
3
Source the shortfalls Production · Purchase
Where you are short of components, raise purchase requisitions straight from the planner.
4
Build it Production · Inventory
A batch order consumes the components and produces the finished goods, both through the stock ledger, moving through its work stations.
5
Finished goods to stock Inventory
The output is now countable, sellable stock, ready to feed an order-to-cash journey.
Where it crosses modules
- Production to Inventory – the batch draws components down and produces finished goods, all as signed stock-ledger movements.
- Production to Purchase – component shortfalls become purchase requisitions.
Common variations
- Make to order – a manufacture order can be driven by a customer's sales order.
- Disassembly – a batch can also break a product back into its components.
- Multi-level builds – sub-assemblies explode down to raw components, or are treated as built items.
Related
- Modules: Production, Inventory
- Feeds: Order to Cash
Want to do it, not just understand it? Each step links to its reference page; for click-by-click steps, follow the How To guides.