Raw Materials and Finished Goods, One Inventory
A factory holds two kinds of stock and most systems only really understand one. Here both live in the same inventory, and production is what moves value from one to the other.
How it works
How material becomes product
Items marked as raw material
The item master carries a raw-material flag, so what feeds production and what is sold are distinguishable without keeping two catalogues.
Consumed by the plan
A production plan lists its materials with their quantities and their live stock, and running it takes them out of inventory.
Finished goods in as sellable stock
Completing a run creates finished goods valued at what the plan cost, and they are stock like anything else from that moment.
Waste written off against the run
Rejects are recorded as waste goods rather than quietly netted off, so yield is a number you can look at.
Reorder points on materials
Each item carries a low-stock point and appears on the low-stock report, so a material running out is visible before a run stops.
Questions
Frequently Asked Questions
Do raw materials and finished goods share one item list?
Yes, one item master, with a raw-material flag on the items that are inputs. That is what lets a production plan draw from the same stock the rest of the business uses.
What values the finished goods?
The per-production cost from the plan, worked out from its bill of materials and the other costs on it.
Can I hold materials in a separate warehouse?
Yes. Stock is held per warehouse with bin locations inside each, and transfers between them have their own document trail.
How is scrap handled?
As waste goods against the production run, kept separate from the finished quantity so both are on the record.