Production - Page 1

To correctly establish materials inventory available for the next production order, the Production module allocates materials to released production order. These material allocations reduce the available quantities of the materials involved. However, if the released production order is cancelled by the user, the system automatically adds back the allocated quantities to available quantities of the materials involved.

To correctly establish the cost of production of manufactured products, the Production module charges the following production costs to each production order:

- Direct materials - the cost of raw and packaging materials .

- Direct labor - the cost of labor based on actual labor hours used to complete the production order multiplied by the existing labor rates.

- Factory overhead - the cost of factory overhead based on actual labor hours (or actual machine hours) multiplied by the overhead rates.

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CONSTRUCTION          

 
MANUFACTURING      

 
TRADING          

 
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