{"id":28413,"date":"2025-02-16T09:05:42","date_gmt":"2025-02-16T09:05:42","guid":{"rendered":"https:\/\/docs.daftra.com\/?post_type=user_manual&#038;p=28413"},"modified":"2025-12-25T10:31:08","modified_gmt":"2025-12-25T10:31:08","slug":"finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries","status":"publish","type":"user_manual","link":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/","title":{"rendered":"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries"},"content":{"rendered":"<section class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1737975869292{margin-left: 200px !important;}&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"ea5b0cec-6a57-434b-9623-d595bc91b196\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>Although the Bill of Materials (BOM) serves as the basis for the information and costs on which a manufacturing order is built, the BOM is just a reference list and does not directly generate stock transactions or journal entries. Instead, stock transactions and journal entries are generated through manufacturing orders.<\/p>\n<p>&nbsp;<\/p>\n<\/div>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"b4bcd8ae-f1d8-4e45-b993-5d36f9a7d7a8\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p><strong>These transactions and entries are divided into:<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<ul>\n<li><strong>Raw material entries:<\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">These are recorded when <strong>&#8220;receiving materials&#8221;<\/strong> for the manufacturing order.<\/p>\n<ul>\n<li><strong>Finishing the Manufacturing Order:<\/strong><\/li>\n<\/ul>\n<p style=\"padding-left: 40px;\">The broader and more significant transactions and entries are only generated after <strong>&#8220;Finishing the Manufacturing Order.&#8221;<\/strong><\/p>\n<hr \/>\n<p>In this guide, we will explore how to finish a manufacturing order, its impact on your inventory of raw materials and scrap items, as well as the journal entries generated upon finishing the manufacturing order.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/vc_column_text][vc_custom_heading text=&#8221;Finishing the manufacturing order and adding the resulting products to warehouses&#8221; font_container=&#8221;tag:h2|font_size:23|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1737976097982{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1766658403206{margin-left: 200px !important;}&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"d0cbfc43-95be-4187-b39e-208d74b48e16\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>Click on <strong>&#8220;Manufacturing Orders&#8221;<\/strong> under the <strong>&#8220;Manufacturing&#8221;<\/strong> dropdown in the main menu, then select the manufacturing order you want to finish and click on the <strong>&#8220;Finish Manufacturing Order&#8221;<\/strong> button.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31893 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png\" alt=\"\" width=\"1536\" height=\"724\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png 1536w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3-300x141.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3-1024x483.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3-768x362.png 768w\" sizes=\"auto, (max-width: 1536px) 100vw, 1536px\" \/><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"0b2b6abe-ed3a-400c-97c6-09b7937e24c8\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>Finishing a manufacturing order generates two inbound stock requisitions:<\/p>\n<ul>\n<li><strong>Adding the main product:<\/strong> The specified quantity in the manufacturing order is added to the warehouse you select.<\/li>\n<li><strong>Adding scrap items:<\/strong> The scrap items resulting from the manufacturing order are added to the designated warehouse (this can be the same warehouse as the final product or a different one).<\/li>\n<\/ul>\n<p>After selecting the warehouses and setting the date, click on the <strong>&#8220;Confirm&#8221;<\/strong> button.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31896 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/r4r.png\" alt=\"\" width=\"1918\" height=\"915\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/r4r.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/r4r-300x143.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/r4r-1024x489.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/r4r-768x366.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/r4r-1536x733.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"3a67d2a6-c4f6-4d7e-8798-804ac5c80ae6\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>After finishing the manufacturing order, a stock requisition is automatically created for adding the specified quantity of the final product from the manufacturing order to the warehouse you selected during the finishing process.<\/p>\n<p>To view the details of the stock requisition, which reflects adding the final product to your warehouses Click on <strong>&#8220;Manage requisitions&#8221;<\/strong> under the <strong>&#8220;Inventory&#8221;<\/strong> dropdown in the main menu, then select the stock requisition related to adding the final product to the warehouse.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43052 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Requisition-.png\" alt=\"\" width=\"1918\" height=\"861\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Requisition-.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Requisition--300x135.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Requisition--1024x460.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Requisition--768x345.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Requisition--1536x690.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"887c6be9-1aaa-4815-8980-2b0a33c21906\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>By clicking on <strong>&#8220;Products &amp; Services&#8221;<\/strong> under the <strong>&#8220;Inventory&#8221;<\/strong> dropdown in the main menu and then selecting the final product you have manufactured, you can view the quantity of the final product added to inventory. You can also see the quantity of the product in each of your warehouses, along with other product details.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p style=\"text-align: right;\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31903 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/4rrf.png\" alt=\"\" width=\"1918\" height=\"911\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/4rrf.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/4rrf-300x142.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/4rrf-1024x486.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/4rrf-768x365.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/4rrf-1536x730.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"4653ded9-8826-4b46-a5be-f25405dea473\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>After finishing the manufacturing order, a stock requisition is automatically created for adding the specified quantity of scrap items from the manufacturing order to the warehouse you selected.<\/p>\n<p>To view the details of the stock requisition for adding the waste materials to your warehouse Click on <strong>&#8220;Manage requisitions&#8221;<\/strong> under the <strong>&#8220;Inventory&#8221;<\/strong> dropdown in the main menu. Then select the stock requisition related to adding the scrap item to the warehouse.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31905 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5r4tf3r.png\" alt=\"\" width=\"1918\" height=\"911\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5r4tf3r.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5r4tf3r-300x142.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5r4tf3r-1024x486.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5r4tf3r-768x365.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5r4tf3r-1536x730.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/><\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"46079198-c2c8-4580-9793-62c7debf628c\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>By clicking on <strong>&#8220;Products and Services&#8221;<\/strong> under the <strong>&#8220;Inventory&#8221;<\/strong> dropdown in the main menu and selecting the scrap item resulting from the manufacturing process, you can view the quantity of the scrap item added to inventory. You can also see the quantity of the scrap item in each of your warehouses, along with other product details.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-43054 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Scrap-Items-.png\" alt=\"\" width=\"1918\" height=\"820\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Scrap-Items-.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Scrap-Items--300x128.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Scrap-Items--1024x438.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Scrap-Items--768x328.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/Scrap-Items--1536x657.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Manufacturing Entries&#8221; font_container=&#8221;tag:h2|font_size:28|text_align:center|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221; css=&#8221;.vc_custom_1737980034975{margin-left: 200px !important;background-color: #f6f9fc !important;border-radius: 4px !important;}&#8221;][vc_column_text css=&#8221;.vc_custom_1738565520982{margin-left: 200px !important;}&#8221;]Finishing the manufacturing order is the primary action that generates most of the journal entries related to the manufacturing order, except for those entries related to raw materials, as these are recorded during materials receiving, as <strong>&#8220;receiving materials&#8221;<\/strong> is considered a <strong>&#8220;stock requisition&#8221;<\/strong> that results in actual stock transactions and journal entries.[\/vc_column_text][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-warning&#8221;]After undoing the manufacturing order completion, the journal entries generated by finishing the manufacturing order are automatically deleted. However, you cannot delete any of these automated entries manually while maintaining the manufacturing order status as <strong>&#8220;Finished.&#8221;<\/strong>.[\/vc_message][vc_message message_box_style=&#8221;3d&#8221; message_box_color=&#8221;alert-info&#8221; icon_fontawesome=&#8221;fas fa-book&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"d74bf2fa-cca1-48a0-96f6-f034e678d96b\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>For more information about receiving raw materials for a manufacturing order and the journal entries resulting from them, refer to this guide.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/vc_message][vc_column_text css=&#8221;.vc_custom_1741850430680{margin-left: 200px !important;}&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"cc81d92d-9215-432b-abf7-8fc0e02f942c\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>After finishing a manufacturing order, navigate to <strong>&#8220;Journal Entries&#8221;<\/strong> under the <strong>&#8220;Accounting&#8221;<\/strong> dropdown in the main menu. There, you will find the journal entries automatically generated as a result of finishing the manufacturing order.<\/p>\n<p>We will go over each journal entry made after finishing the manufacturing order in the following section.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31917 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6554445.png\" alt=\"\" width=\"1918\" height=\"862\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6554445.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6554445-300x135.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6554445-1024x460.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6554445-768x345.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6554445-1536x690.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Manufacturing Order Main Product Inbound Requisition Entry&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1741852946491{margin-left: 200px !important;}&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"9772d3b1-eba4-4b8f-a65b-46db8d1d5f52\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>You will find the journal entry for adding the Main Product to the specified warehouse has been automatically created with the same date as finishing the manufacturing order. Its description is <strong>&#8220;Manufacturing Order Main Product Inbound Requisition&#8221;<\/strong>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<ul>\n<li>The inventory account will be the same as the warehouse account that we specified for the main product upon finishing the manufacturing order. In the following example, it appears as<strong> &#8220;Primary Warehouse.&#8221;.<\/strong><\/li>\n<li>The main product account will be the same as the account selected when adding the manufacturing order. In the following example, it appears as <strong>&#8220;Final Product Expenses,&#8221;<\/strong> which is an account we created in the chart of accounts and selected in the manufacturing order to be the account for this product.\n<ul>\n<li>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"6099df17-ba01-4d68-8b3c-556c068291a5\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>You can create any account that suits your accounting setup and structure, then select it when creating the manufacturing order, or choose one of the default accounts in the chart of accounts. The selected account will then appear in the entry instead of the <strong>&#8220;Final Product Expenses.&#8221;<\/strong>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31944 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/okmllk.png\" alt=\"\" width=\"1641\" height=\"807\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/okmllk.png 1641w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/okmllk-300x148.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/okmllk-1024x504.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/okmllk-768x378.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/okmllk-1536x755.png 1536w\" sizes=\"auto, (max-width: 1641px) 100vw, 1641px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Manufacturing Scrap Item Product Inbound Requisition Entry&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][vc_column_text css=&#8221;.vc_custom_1741853171832{margin-left: 200px !important;}&#8221;]You will find the journal entry for adding the scrapped items to the specified warehouse has been automatically created with the same date as finishing the manufacturing order. Its description is <strong>&#8220;Inbound Requisition\u2014Manufacturing Order Scrap Items Inbound.&#8221;<\/strong>.<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"abcf67fe-e2a5-41ac-b573-7053a5a7e492\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<ul>\n<li>The entry for adding scrapped materials includes the accounting transactions for all scrapped materials generated from this manufacturing order.<\/li>\n<li>The inventory account (debit) will be the same as the warehouse account that we specified for the scrapped materials upon finishing the manufacturing order. In the following example, it appears as <strong>&#8220;1.&#8221;<\/strong>.<\/li>\n<li>The scrapped items account will be the same as the account selected when adding the manufacturing order. In the following example, it appears as <strong>&#8220;Final Product Expenses,&#8221;<\/strong> which is an account we created in the chart of accounts and selected in the manufacturing order to be the account for both the main product and the scrapped items related to this manufacturing order.\n<ul>\n<li>You can create any account that suits your accounting setup and structure, then select it when creating the manufacturing order, or choose one of the default accounts in the chart of accounts. The selected account will then appear in the entry instead of the <strong>&#8220;Final Product Expenses.&#8221;<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31946 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/56t7yui.png\" alt=\"\" width=\"1917\" height=\"787\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/56t7yui.png 1917w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/56t7yui-300x123.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/56t7yui-1024x420.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/56t7yui-768x315.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/56t7yui-1536x631.png 1536w\" sizes=\"auto, (max-width: 1917px) 100vw, 1917px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Expenses Entry&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][vc_column_text css=&#8221;.vc_custom_1741853385446{margin-left: 200px !important;}&#8221;]You will find the journal entry for the total expenses of the manufacturing order\u2014excluding raw material costs\u2014automatically created with the same date as finishing the manufacturing order. Its description will be <strong>&#8220;Manufacturing Order Finished + Manufacturing Order Number.&#8221;<\/strong>.<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"d2c4136f-56b6-44a4-a048-cf12f26f2e34\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p>This expense entry includes expenses that have been added as direct or indirect costs, as well as all operating costs such as salaries, assets used in manufacturing, and the expenses of the operation process itself.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<ul>\n<li>The expense account will be the same account that you specified for this expense when adding it in the manufacturing order, bill of materials, or workstation.<\/li>\n<li>The final product account will be the same account that we selected when adding the manufacturing order information. In the following example, it appears as the <strong>&#8220;Final Product Expenses,&#8221;<\/strong> which is an account we created in the chart of accounts and selected in the manufacturing order to be the account for this product.\n<ul>\n<li>You can create any account that suits your accounting setup and structure, then select it when creating the manufacturing order, or choose one of the default accounts in the chart of accounts. The selected account will then appear in the entry instead of the <strong>&#8220;Final Product Expenses.&#8221;<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31948 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5676899io.png\" alt=\"\" width=\"1918\" height=\"869\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5676899io.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5676899io-300x136.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5676899io-1024x464.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5676899io-768x348.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/5676899io-1536x696.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/>[\/vc_column_text][vc_custom_heading text=&#8221;Depreciation Entry&#8221; font_container=&#8221;tag:h3|font_size:22|text_align:left|color:%2304306b|line_height:2&#8243; use_theme_fonts=&#8221;yes&#8221;][vc_column_text css=&#8221;.vc_custom_1741853556250{margin-left: 200px !important;}&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"e2138e10-5808-4114-b5f2-a72116b1a4b8\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p data-start=\"26\" data-end=\"237\">The depreciation entry generated from the manufacturing order is automatically created with the same date as the manufacturing order finishing date. Its description is set as <strong>&#8220;Depreciation Expense.&#8221;<\/strong><\/p>\n<p data-start=\"239\" data-end=\"448\">The depreciation entry includes the depreciation expense resulting from the assets added to the workstations within the manufacturing order. The depreciation amount increases as the operating time increases.<\/p>\n<p data-start=\"450\" data-end=\"542\" data-is-last-node=\"\">The entry is as follows:<\/p>\n<p data-start=\"183\" data-end=\"248\"><strong data-start=\"183\" data-end=\"211\">Dr. Depreciation Expense<\/strong><br data-start=\"211\" data-end=\"214\" \/><strong data-start=\"214\" data-end=\"246\">Cr. Accumulated Depreciation<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31950 size-full\" src=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6778u.png\" alt=\"\" width=\"1918\" height=\"840\" srcset=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6778u.png 1918w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6778u-300x131.png 300w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6778u-1024x448.png 1024w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6778u-768x336.png 768w, https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/6778u-1536x673.png 1536w\" sizes=\"auto, (max-width: 1918px) 100vw, 1918px\" \/>[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_message message_box_style=&#8221;3d&#8221; icon_fontawesome=&#8221;fas fa-book&#8221;]<\/p>\n<div class=\"flex max-w-full flex-col flex-grow\">\n<div class=\"min-h-8 text-message flex w-full flex-col items-end gap-2 whitespace-normal break-words text-start [.text-message+&amp;]:mt-5\" dir=\"auto\" data-message-author-role=\"assistant\" data-message-id=\"fefca412-867b-4373-8aa4-4b3a41f1aa54\" data-message-model-slug=\"gpt-4o\">\n<div class=\"flex w-full flex-col gap-1 empty:hidden first:pt-[3px]\">\n<div class=\"markdown prose w-full break-words dark:prose-invert light\">\n<p data-start=\"0\" data-end=\"182\" data-is-last-node=\"\">For more details on depreciation expenses resulting from using workstation machines linked to the manufacturing order, refer to this section in the <a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/workstation-guide\/\"><strong data-start=\"159\" data-end=\"181\">Workstations Guide<\/strong><\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>[\/vc_message][\/vc_column][\/vc_row][vc_row][vc_column][\/vc_column][\/vc_row]<\/p>\n<\/section>","protected":false},"author":13,"template":"","categories":[2177,7328,7262],"tags":[8089,8088,7991,7992,7993,7995,7996,7997,7998,7999],"class_list":{"0":"post-28413","1":"user_manual","2":"type-user_manual","3":"status-publish","4":"hentry","5":"category-inventory","6":"category-manufacturing-orders","7":"category-manufacturing","8":"tag-manufacturing-order-journal-entries","9":"tag-manufacturing-order-stock-transactions","10":"tag--------e","11":"tag-------en","13":"tag-----en","14":"tag------en","15":"tag----en"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries - Daftra Knowledge Base<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries - Daftra Knowledge Base\" \/>\n<meta property=\"og:description\" content=\"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1737975869292{margin-left: 200px !important;}&#8221;] Although the Bill of Materials (BOM) serves as the basis for the information and costs on which a manufacturing order is built, the BOM is just a reference list and does not directly generate stock transactions or journal entries. Instead, stock transactions and journal entries are generated through manufacturing orders. &nbsp; [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/\" \/>\n<meta property=\"og:site_name\" content=\"Daftra Knowledge Base\" \/>\n<meta property=\"article:modified_time\" content=\"2025-12-25T10:31:08+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebSite\",\"@id\":\"https:\/\/docs.daftra.com\/#website\",\"url\":\"https:\/\/docs.daftra.com\/\",\"name\":\"Daftra Knowledge Base\",\"description\":\"Daftra\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/docs.daftra.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#primaryimage\",\"inLanguage\":\"en-US\",\"url\":\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png\",\"contentUrl\":\"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png\",\"width\":1536,\"height\":724},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#webpage\",\"url\":\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/\",\"name\":\"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries - Daftra Knowledge Base\",\"isPartOf\":{\"@id\":\"https:\/\/docs.daftra.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#primaryimage\"},\"datePublished\":\"2025-02-16T09:05:42+00:00\",\"dateModified\":\"2025-12-25T10:31:08+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/docs.daftra.com\/en\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries\"}]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries - Daftra Knowledge Base","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/","og_locale":"en_US","og_type":"article","og_title":"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries - Daftra Knowledge Base","og_description":"[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1737975869292{margin-left: 200px !important;}&#8221;] Although the Bill of Materials (BOM) serves as the basis for the information and costs on which a manufacturing order is built, the BOM is just a reference list and does not directly generate stock transactions or journal entries. Instead, stock transactions and journal entries are generated through manufacturing orders. &nbsp; [&hellip;]","og_url":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/","og_site_name":"Daftra Knowledge Base","article_modified_time":"2025-12-25T10:31:08+00:00","og_image":[{"url":"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebSite","@id":"https:\/\/docs.daftra.com\/#website","url":"https:\/\/docs.daftra.com\/","name":"Daftra Knowledge Base","description":"Daftra","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/docs.daftra.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"ImageObject","@id":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#primaryimage","inLanguage":"en-US","url":"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png","contentUrl":"https:\/\/docs.daftra.com\/wp-content\/uploads\/2025\/02\/455r3.png","width":1536,"height":724},{"@type":"WebPage","@id":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#webpage","url":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/","name":"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries - Daftra Knowledge Base","isPartOf":{"@id":"https:\/\/docs.daftra.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#primaryimage"},"datePublished":"2025-02-16T09:05:42+00:00","dateModified":"2025-12-25T10:31:08+00:00","breadcrumb":{"@id":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/docs.daftra.com\/en\/user_manual\/finishing-the-manufacturing-order-and-its-resulting-stock-transactions-and-journal-entries\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/docs.daftra.com\/en\/"},{"@type":"ListItem","position":2,"name":"Finishing the Manufacturing Order and Its Resulting Stock Transactions and Journal Entries"}]}]}},"_links":{"self":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual\/28413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual"}],"about":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/types\/user_manual"}],"author":[{"embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/users\/13"}],"version-history":[{"count":54,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual\/28413\/revisions"}],"predecessor-version":[{"id":43056,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/user_manual\/28413\/revisions\/43056"}],"wp:attachment":[{"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/media?parent=28413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/categories?post=28413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/docs.daftra.com\/en\/wp-json\/wp\/v2\/tags?post=28413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}