Module 16 · Specialist · 7 min read

What manufacturing covers in Zeyto

You will be able to: Explain what Zeyto's recipe-based manufacturing does and does not do; Find the two manufacturing screens; Trace the effect of a production run at a high level.

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Zeyto's manufacturing is recipe-based. You write down once how a finished item is made (a Bill of Materials, or BOM), and each time you make it you record a Production Entry. Zeyto takes the components out of stock and brings the finished goods in. It suits bakeries, workshops, kit assembly and any business that turns stock items into other stock items.

Where it lives

ScreenPathJob
Bill of MaterialsInventory ▸ Bill of MaterialsThe recipe: which components, how much, per batch. Moves no stock
Production EntryInventory ▸ Production EntryRecords a run. Posts at once: components out, finished goods in
The Bill of Materials register with tiles for BOMs, active and inactive and a list of finished items with their unit, quantity per batch and components.

Inventory, BOM: each finished item and what goes into it.

Inventory, BOM: each finished item and what goes into it.

Both sit in the Manufacturing section of the Inventory menu, and need the Inventory module of your licence.

What a run does

  1. The components leave the warehouse at their current cost.
  2. The finished item comes in to the same warehouse, valued at the total cost of those components.
  3. The accounts move Inventory for the components and the finished goods through a holding account, WIP Clearing (1160 in the standard chart), which nets to zero. No expense and no VAT is posted.
The Production Entries register listing the production runs with document number, date and status.

Inventory, Production: the runs you have recorded.

Inventory, Production: the runs you have recorded.

What it does not do

  • It adds no labour or overhead cost. The finished goods are valued at exactly what the components cost, so a run produces no profit or loss.
  • A BOM is one level deep. If a component is itself made from a BOM, make that component first with its own Production Entry.
  • There is no draft, Amend or Cancel for a production entry. You check the quantity and press Produce.
Cake batchTen cakes need 2 kg flour at AED 3.50 per kg, 1 kg sugar at AED 4.00 per kg and 20 eggs at AED 0.80 each. One batch costs 7.00 + 4.00 + 16.00 = AED 27.00, so each cake costs AED 2.70. No labour is added; if the baker's wages matter, they are outside this cost.
Watch outBecause labour and overhead are not added, finished-goods cost can understate the true cost of making the item. Do not price a product from the stock cost alone if labour is a big part of it.
TipProduction entries are numbered MFG-00001 and so on; the prefix is in Settings ▸ Numbering. They are stock and ledger documents, so they respect fiscal years: the date must fall in an open fiscal year.

Try it in the demo

  1. Open Inventory in the demo and find the Manufacturing section with Bill of Materials and Production Entry.
  2. Open the Production Entries list and press View on one row to read its component and output lines.
  3. Open Reports ▸ Accounting ▸ Posting Trail and type that entry's number to see the stock and ledger rows.
Open the live demo

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

Key takeaways
  • Manufacturing is recipe based: BOM, then Production Entry.
  • A run moves stock and the ledger through WIP Clearing and nets to zero.
  • No labour or overhead cost is added.
  • One level deep; no draft, amend or cancel.

Check yourself

4 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. Which two screens make up Zeyto's recipe-based manufacturing?

2. A cake batch costs flour 7.00, sugar 4.00 and eggs 16.00 (AED) for 10 cakes. What does Zeyto value each finished cake at?

3. Which account does a production run post through to net out Inventory movements?

4. Can a BOM contain a component that is itself made from another BOM and be produced in one entry?

Previous: WPS and payroll reportsNext: Bills of Materials

Practice questions for this module · Printable study sheet