{"id":150575,"date":"2026-10-04T09:07:15","date_gmt":"2026-10-04T09:07:15","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d8%af%d9%88%d8%b1%d8%a9-%d8%a7%d9%84%d8%aa%d8%b5%d9%86%d9%8a%d8%b9-%d9%82%d8%a7%d8%a6%d9%85%d8%a9-%d8%a7%d9%84%d9%85%d9%88%d8%a7%d8%af%d8%8c-%d8%a3%d9%85%d8%b1-%d8%a7%d9%84%d8%aa%d8%b5%d9%86%d9%8a\/"},"modified":"2026-10-14T08:53:55","modified_gmt":"2026-10-14T08:53:55","slug":"the-complete-manufacturing-cycle","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/the-complete-manufacturing-cycle\/","title":{"rendered":"The Complete Manufacturing Cycle: Workstations, Bills of Materials, Manufacturing Orders, and Cost Calculation"},"content":{"rendered":"
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This guide explains the manufacturing cycle<\/strong> in the system from start to finish: workstations, bills of materials, manufacturing orders, issuing and returning raw materials, scrap materials, direct and indirect costs, how the product’s cost is calculated, all the accounting entries<\/strong> and stock movements, and production plans from sales orders.<\/p>\n

Brief Workflow<\/h2>\n
1.<\/strong> Enabling and Settings<\/span>\u2192<\/span>2.<\/strong> Workstations<\/span>\u2192<\/span>3.<\/strong> Bill of Materials<\/span>\u2192<\/span>4.<\/strong> Manufacturing Order<\/span>\u2192<\/span>5.<\/strong> Receiving Raw Materials<\/span>\u2192<\/span>6.<\/strong> Indirect Costs<\/span>\u2192<\/span>7.<\/strong> Completing the Manufacturing Order<\/span>\u2192<\/span>8.<\/strong> Closing and Viewing Reports<\/span><\/div>\n

First: Enabling and Settings<\/h2>\n
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  1. From the Apps Manager<\/strong><\/a> enable Manufacturing<\/strong> (it also requires enabling inventory, sales, and general accounting).<\/li>\n
  2. From Manufacturing Settings<\/strong><\/a> open Manufacturing Configuration<\/strong><\/a>:<\/li>\n<\/ol>\n\n\n\n\n\n\n
    Setting<\/th>\nOptions (Default)<\/th>\nWhat It Does<\/th>\n<\/tr>\n
    Exceeding the Order Quantities in the Manufacturing Order<\/strong><\/td>\nAllowed \/ Not allowed (Not allowed)<\/td>\nWhen allowed, quantities larger than the manufacturing order or materials that aren’t in it can be issued.<\/td>\n<\/tr>\n
    Adding Extra Items in Production Plans<\/strong><\/td>\nAllowed \/ Not allowed<\/td>\nAdding products to the production plan that aren’t in the sales order or the invoice.<\/td>\n<\/tr>\n
    Scheduling Larger Quantities in Production Plans<\/strong><\/td>\nAllowed \/ Not allowed<\/td>\nQuantities in the production plan larger than the sales order or the invoice.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    And from the same page: set the production routes<\/strong> (the production stages), the custom order statuses<\/strong> (for follow-up only), and the custom fields.<\/p>\n

    Second: Workstations<\/h2>\n

    From Workstations<\/strong><\/a> add the stations (a machine, a production line, a department) and their operating cost for each time unit:<\/p>\n\n\n\n\n\n\n
    Field<\/th>\nExplanation<\/th>\n<\/tr>\n
    Wages Cost<\/strong> and Wages Account<\/strong><\/td>\nThe labor wage for each time unit and the account it is charged to.<\/td>\n<\/tr>\n
    Asset<\/strong> and Asset Cost<\/strong><\/td>\nThe asset used (it must be in service) and its cost for each time unit. When depreciation is enabled, depreciation is recorded for the asset when the order is completed.<\/td>\n<\/tr>\n
    Other Expenses<\/strong><\/td>\nOther operating expenses (electricity…) with an account and an amount.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The station’s total cost = wages + assets + other expenses for each time unit.<\/p>\n<\/div>\n

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    Third: The Bill of Materials (BOM)<\/h2>\n

    From Bills of Materials<\/strong><\/a> create a list for each final product:<\/p>\n\n\n\n\n\n\n\n\n
    Section<\/th>\nContent<\/th>\n<\/tr>\n
    Basic data<\/td>\nThe product, the quantity the list produces, the Account<\/strong> (mandatory \u2014 a work-in-progress account for the orders), active, default, the production route.<\/td>\n<\/tr>\n
    Raw Materials<\/strong><\/td>\nThe material, the quantity, the price, the production stage.<\/td>\n<\/tr>\n
    Expenses<\/strong><\/td>\nThe account, the cost type<\/strong> (fixed value \/ based on quantity \/ formula), the amount.<\/td>\n<\/tr>\n
    Manufacturing Operations<\/strong><\/td>\nThe workstation, the run time<\/strong>, the cost type.<\/td>\n<\/tr>\n
    Scrap Materials<\/strong><\/td>\nThe expected scrap product, the quantity, the price (its value is deducted from the cost).<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    The list total = materials + expenses + manufacturing operations \u2212 scrap materials. The Update Prices<\/strong> button updates the materials’ prices.<\/p>\n

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    \ud83d\udec8<\/span><\/p>\n

    Note:<\/strong> In the Account<\/strong>, choose an intermediary account such as “Work in Progress”; everything issued for the order is charged to it and released from it when the final product is received.<\/p>\n<\/div>\n

    Fourth: The Manufacturing Order<\/h2>\n

    Create it from Manufacturing Orders<\/strong><\/a> or from the Create Manufacturing Order<\/strong> button in the list. When the list is chosen, its materials, expenses, operations, and scrap are copied, multiplied by the required quantity. Save with Save as Draft<\/strong> or Save<\/strong> directly.<\/p>\n\n\n\n\n\n\n\n
    Status<\/th>\nMeaning<\/th>\nAvailable Actions<\/th>\n<\/tr>\n
    Draft<\/strong><\/td>\nNot started<\/td>\nEdit, Issue<\/strong><\/td>\n<\/tr>\n
    In Progress<\/strong><\/td>\nManufacturing is underway<\/td>\nReceive Raw Materials<\/strong>, Create Raw Materials Request<\/strong>, Return Materials<\/strong>, Complete Manufacturing Order<\/strong><\/td>\n<\/tr>\n
    Completed<\/strong><\/td>\nThe final product was received<\/td>\nUndo Completion<\/strong>, Close<\/strong><\/td>\n<\/tr>\n
    Closed<\/strong><\/td>\nPermanently closed<\/td>\nReopen<\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    Receiving the Raw Materials (Issuing Materials)<\/h3>\n

    The Receive Raw Materials<\/strong> button opens an issue requisition Manufacturing Order \u2013 Issue Materials<\/strong> with the remaining quantities, at the average cost price. Issuing can be done in installments. Or request them first with Create Raw Materials Request<\/strong> (requires enabling stock requests).<\/p>\n