Components out, finished goods in
Short answer
A production order consumes components according to a recipe and produces finished goods. The cost of the output is the cost of the inputs plus what you add, so a manufactured product carries a real cost rather than a guess.
muhasebe.cirometre.com/production
Stock312 tracked products · 3 warehouses · stock value $486,200
ExportTransfer + Stock movement
Tracked products312 64 with variants · 86 variants
Stock value$486,200.00 at cost · 3 warehouses
Below minimum9 products reorder now
Out of stock4 products 1 negative
Movements this month128 128 in · 46 out
AllBelow minimumOut of stockNegative
Warehouse: all
1–11 / 11 Product Default On hand Minimum Status
Crew Neck T-ShirtTX-1042 · Apparel · 2 variants
Hooded SweatshirtTX-1108 · Apparel · 3 variants
Duvet Cover SetHM-2031 · Home textile · 4 variants
Shampoo 400 mlBT-3015 · Beauty · 6 variants
A made product still has a cost
If the finished good is entered at a price somebody estimated, every margin that uses it is an estimate too.
Taking the cost from the components that were actually consumed makes it a measurement. Waste is recorded against the order, so the gap between the recipe and reality is visible.
Frequently asked questions
Does production calculate the finished product’s cost?
Yes, from the components consumed plus any added cost on the order.
Can I record waste?
Yes. Waste is recorded against the production order and shows as a difference from the recipe.