Manufacturing

Manufacturing Entry / Production Entry

A record of converting raw materials into finished goods

Definition

A manufacturing entry, also known as a production entry, is a transaction that records the conversion of raw materials into finished goods. When you create a manufacturing entry, the system automatically reduces the stock of raw materials consumed (as defined in the Bill of Materials) and increases the stock of the finished product produced. This entry captures key details such as the production date, finished product name, quantity produced, raw materials consumed with their quantities, any additional manufacturing expenses (like labour or power costs), and the total production cost. For Indian small manufacturers and processors, manufacturing entries are vital for tracking actual production output, calculating the true cost of goods manufactured, managing raw material inventory in real time, and maintaining accurate stock records. They also help identify production wastage by comparing actual material usage against the standard BOM quantities.

How It Works

  1. 1You select the finished product to manufacture and enter the quantity to produce — the system pulls the BOM (recipe) to determine raw material requirements.
  2. 2The system lists all raw materials needed with their quantities and current stock availability, alerting you if any material is insufficient.
  3. 3You can add additional manufacturing costs like labour charges, power, and packaging that are not part of the BOM but contribute to the total production cost.
  4. 4On saving the entry, raw materials are automatically deducted from inventory and the finished product is added to stock at the calculated cost per unit.

Example

You run a spice grinding unit in Kerala. To produce 100 kg of garam masala, your BOM requires: 30 kg coriander seeds (Rs. 150/kg = Rs. 4,500), 20 kg cumin (Rs. 300/kg = Rs. 6,000), 15 kg black pepper (Rs. 500/kg = Rs. 7,500), 10 kg cardamom (Rs. 2,000/kg = Rs. 20,000), and other spices worth Rs. 5,000. You create a manufacturing entry for 100 kg garam masala at a total material cost of Rs. 43,000 plus labour Rs. 2,000. The system deducts all raw materials and adds 100 kg finished product at Rs. 450/kg.

How Stock Register Handles This

  • Create manufacturing entries with one-click BOM selection that auto-fills all raw material quantities and costs
  • Auto-deduct raw materials and add finished goods to inventory in a single transaction — no manual stock adjustments needed
  • Add labour, power, and overhead costs to the manufacturing entry for accurate per-unit cost calculation
  • View manufacturing history reports showing production dates, quantities, material consumption, and cost per batch

Related Terms

Bill of Materials (BOM) / RecipeRaw MaterialFinished Goods

Related Guides

Manufacturing Entry Guide

Frequently Asked Questions

Can I produce more or less than the standard BOM quantity?

Yes, you can enter any production quantity. The system scales the raw material requirements proportionally based on the BOM. For example, if your BOM is for 10 units and you produce 25 units, raw material quantities are multiplied by 2.5 automatically.

What if I used more raw material than the BOM specifies?

You can edit the actual raw material quantities consumed in the manufacturing entry to reflect real usage. Comparing actual usage with the BOM standard helps you identify wastage, spoilage, or inefficiencies in your production process.

How does the manufacturing entry affect my stock reports?

After a manufacturing entry, your raw material stock decreases and finished goods stock increases. Both changes are reflected immediately in your stock reports, giving you real-time visibility of what is available for further production or sale.

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