Manufacturing

Describe what goes into each product with a bill of materials (BOM). Then create a work order to make it: materials are issued from stock, labour and overheads are added, and the finished goods go back into inventory at their full cost.

1. Create a BOM listing the components and quantities for one unit.
2. Create a work order for the quantity you're making.
3. Issue the materials with material issue notes.
4. Complete the work order. Finished goods enter stock and the costs post to the ledger.

Work in progress — including work you've sent to subcontractors — is checked against the work-in-progress accounts in your ledger.