Module 16 · Specialist · 9 min read

Recording a production run

You will be able to: Post a Production Entry correctly; Calculate component quantities when the run is not a whole batch; Review what was posted.

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Production Entry is where a BOM becomes real stock movement. There is no draft: Produce posts at once. Check the quantity and warehouse before you press it.

The steps

  1. Open Inventory ▸ Production Entry. Pick the Finished Item (BOM): only items with an active BOM are offered.
  2. Type Qty to Produce. The Components to Consume grid previews how much of each component the run will use.
  3. Pick the Warehouse. Components come out of it and finished goods go into it. Check the Date, which must fall in an open fiscal year.
  4. Press Produce. The status changes to Posted and a note shows the entry number.
The Production Entry form with the finished item, the quantity to produce, the warehouse and the preview of the components that will be consumed.

Choose the finished item and the quantity, and the components to consume are listed.

Choose the finished item and the quantity, and the components to consume are listed.

Zeyto scales the recipe: each component is its BOM quantity × Qty to Produce ÷ the BOM's Qty per Batch, rounded to four decimals. The grid is a preview; Zeyto recalculates when you press Produce.

Thirty cakesBOM: 10 cakes need 2 kg flour, 1 kg sugar and 20 eggs. Qty to Produce 30 gives flour 2 × 30 ÷ 10 = 6 kg, sugar 3 kg, eggs 60. At flour 3.50, sugar 4.00 and eggs 0.80, the components cost 21.00 + 12.00 + 48.00 = AED 81.00. The 30 cakes come in at AED 81.00 in total, AED 2.70 each.
A part batchQty to Produce 25 uses flour 2 × 25 ÷ 10 = 5 kg, sugar 2.5 kg, eggs 50. The run need not be a whole number of batches.

What is posted

  • Stock: each component out of the warehouse, the finished item in.
  • Ledger: Inventory is credited for the components and debited for the finished goods through WIP Clearing (1160), which nets to zero.
  • No expense, no VAT, no profit or loss.
The Production Entries register showing a submitted production run.

The submitted run in the register.

The submitted run in the register.

The Production Entries register lists runs newest first (default This month). View opens a read-only side panel with the components used and the finished item. The Total column adds the components and the finished goods, so it reads about twice the batch cost: in the cake example 81.00 + 81.00 = 162.00. For the real cost use the Stock Ledger / Movement report.

When a run is refused

  • The Date is in a closed fiscal year.
  • A component would go below zero while Settings ▸ Costing blocks negative stock.
  • The item has no active BOM.

A refused run may leave a Draft row in the register. It changes no stock, and View is all you can do with it.

Watch outA posted production entry cannot be amended or cancelled from the screen. If you recorded the wrong quantity, correct the stock with a Stock Adjustment.
TipPress Postings after producing to open the Posting Trail for the entry: the stock movements and the ledger entries it made. Producing needs the permission inventory.submit.

Try it in the demo

  1. Open Inventory ▸ Production Entry in the demo and pick an item with a BOM; read the Components to Consume preview (do not press Produce on shared demo data).
  2. Calculate by hand the components for a quantity that is not a whole batch.
  3. Open the Production Entries list and compare the Total column with the real batch cost.
Open the live demo

Public demo company, sign in as admin / demoAdmin123. Data refreshes nightly.

Key takeaways
  • Produce posts at once: components out, finished goods in at their total cost.
  • Component qty = BOM qty × Qty to Produce ÷ Qty per Batch, to four decimals.
  • The Total column reads about twice the cost.
  • Correct mistakes with a Stock Adjustment.

Check yourself

5 questions on this lesson. Not timed, not the exam, and you can try again. Score 60% or more, and read the lesson, to complete it.

1. BOM: 10 cakes need 2 kg flour. Qty to Produce is 30. How much flour does the run use?

2. Qty to Produce is 25 on a 10-cake BOM with 20 eggs per batch. How many eggs?

3. Components for 30 cakes cost AED 81.00 in total. What is the unit cost of the finished item?

4. Why does the Total column of a production entry read about twice the batch cost?

5. Produce saves a draft that you must submit later.

Previous: Bills of MaterialsNext: Costing and stock rules that affect production

Practice questions for this module · Printable study sheet