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 Saudi Arabia

For a workshop that exports, VAT matters at both ends of production. Finished goods sent outside the GCC are generally zero-rated: 0% on the invoice, with the evidence of export kept. Because zero-rating is not exemption, the VAT paid on components and other costs behind those goods can still be recovered. Freight and customs on imported materials can be spread over them as landed cost before a production order consumes them, so the weighted average cost of what you made includes them. Production is on Growth and Premium.

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