BOM & production

Production that costs itself

Define what goes into a product, release a production order, complete it batch by batch, and the cost of what you made lands in stock with the variance explained.

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What you get

Bills of materials

Components with planned waste, plus labour and overhead lines, and a standard cost if you keep one.

Production orders

Planned, released, in progress, completed: instant for simple builds, through work in process for longer runs.

Batch completion

Finish an order in batches; each one moves materials out and finished goods in.

Standard and actual cost

See where actual cost left the standard: materials, labour or overhead.

Disassembly

Take a finished item apart into its components, at cost.

Questions

Which reports are there?

Manufacturing variance, the production register, cost of goods manufactured and material consumption.

Can I build from several warehouses?

Each order draws from one warehouse and puts the finished goods into one.

Is it a fit for a large plant?

It fits small and medium workshops. A plant that schedules machines by the hour needs a planning tool beside it.

Who uses this

In United Arab Emirates

Components bought abroad are costed with their freight and customs duty spread over them as landed cost, but not with the 5% import VAT: a fully taxable registered importer declares that VAT in Box 6 and recovers it in Box 10, so it does not become part of product cost. The gap between standard and actual cost, by materials, labour or overhead, flows into the period's profit, which is where the corporate tax estimate starts. Production orders come with the Growth and Premium plans.

Read next for United Arab Emirates

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