Manufacturing's Impact on Inventory
When the user enters a Manufacture Order (MO) and specifies the products and materials used, our software will automatically record its inventory impact on the raw materials and finished products across the "WORK IN PROGRESS" and "WAREHOUSE A" accounts.
For example, the following MO takes materials from WAREHOUSE A for manufacturing the product "Choco Cake" (the green row). When the entire MO finishes, 8 Chocolate Cakes will be produced by consuming 4 different types of raw materials. At the moment, the production has only finished 50% (4 cakes). If you print an inventory report at this moment, half of the raw materials are put in the WORK IN PROGRESS (WIP) account while the other half is written off (for conversion into the final product). 4 additional Cakes (finished products) will appear in the WAREHOUSE A account.
As the product progreses, the user will update the ConfirmedQuantities of this MO and the inventory level (quantities and net values) will automatically be updated to the product and raw materials in the WIP and WAREHOUSE A accounts.