Manufacturing Module

The manufacturing module in Lead Accounting Plus helps you to keep track of the production expenses and savings while producing a certain product and enables you to create a bill of materials required for producing a certain product. The bill of materials that you create for each product which is to be produced will automatically update the prices of the materials in the bill as you purchase those materials and the last purchase cost will be the cost of the materials in the bill if you set it that way. Also the bill of materials is created just to calculate the accurate rate and materials needed to produce 1 piece of the product. So even if you select 100 pieces of the product and provide the materials needed to produce 100 pieces of that product along with their costs it is fine as it is just to calculate the materials and cost for producing just 1 piece of the product. So after you save the bill of materials of a product, when you create a production order of that product you can give the required quantity of products to be produced even if that’s not the quantity given in the bill of materials. The production order will then automatically calculate the required amount of materials and cost for producing the required quantity of the product based on the previous calculations made in the bill of materials. Once you make a production order, there will be a blue button on the window for production orders called Planning. In the planning window you can see the number of materials required to produce the quantity of the products required which you specified in the production order quantity as well the costs of the materials based on the last purchase price of those materials. After checking the Planning for the production order, if you are satisfied with the details and costs of the production order you can then approve the planning which will make it an approved production order.

Below are the steps to use manufacturing module:

1. Make a machine in Miscellaneous> Production> Machine>New> Give the name of the Machine>The currently used location will automatically be selected for the new machine being created>Provide the time the machine will start and stop working each day>Provide the MHR which is the machine hour rate or the cost of using the machine for an hour>Then provide the quantity of items the machine will produce each hour in the respective fields>Save. Note that the machine once created cannot be deleted later.

1. Foremen: You can create a foreman whom you can link to the production orders if you need to know who is in charge of the production orders. Miscellaneous>Production>Foremen>New>Type the name and select the location>Save. Just like machines, foremen too once created cannot be deleted later.

2. Bill of materials: This is where you can create the bill of materials to ascertain the cost and materials needed to produce a product. Here you can create a bill of materials for producing a large quantity of the product as it will be easier to type the materials needed for a larger quantity than a few. Because it’s easier to calculate the materials needed for 100 products than accurately calculating the materials needed for just one.

Miscellaneous>Production>Bill of Materials> New>Type the Name of the Production order ( You can provide the name of the item being produced + Order)>Select the item being produced>Select a new batch if the product is batch specific>And specify the quantity of the product for which the bill of materials will be made>Click Save.

Once that’s done click the ITEMS button in the bottom part of the window and select the raw

materials that would be consumed while producing the product and specify the quantity of the raw material which would be consumed for producing the specified quantity of the product for which the bill of materials is being made. Here the cost and amount will be automatically calculated based on the last purchase price of the raw material or you can specify it there yourself. Even after adding the raw materials and saving the bill of materials the price of the raw materials will be automatically updated based on the last purchase price when the same bill of materials is selected for a future production order. As mentioned earlier the bill of materials is just to calculate the raw materials and cost for producing just one quantity of the product and the software will automatically calculate the materials needed and cost of new production orders based on the rate calculated using the bill of materials.

Also in the bill of materials you can link the machine being used for producing the product of the bill of materials which was created previously or you can create a new machine as well by clicking on the machines button.

1. Production Order: This is where the actual production order for the products can be made. The quantity you type for the production orders don't need to be the same as the bill of materials. The software will automatically calculate the rate and materials needed for the quantity said in the production order based on the bill of materials previously made.

Here if you click the planning button you can view the accurate details on the raw materials needed and the cost of producing the quantity prescribed based on the bill of materials made for the product. Check if the prices of the raw materials are valid after clicking the planning button, if not either change the COST(SP) of the raw materials in the item master or if you need to purchase the raw materials provide the correct rate and that rate will automatically come as the cost of the raw materials in the production planning window. Also the machine linked to the bill of materials will also come automatically to the production order.

Once the details are checked and ascertained as correct you can click the approve production order button. Note that once you click approve production order you cannot change the rates or items again, so only click it if the order has been finalised. Then click the save planning button.

Now the set up for the production order has been done. Now all you have to do is create an inventory outward document for the raw materials being used for the production order and then link the inventory outward document to the specific product order. To do this click the General tab while creating the inventory outward document and click production order and then choose the correct production order. Then save the inventory outward document.

After that you can make an inventory inwards document to account for all the items produced from the production order either all together or in parts. It is fine to do it in parts as long as you don’t mark the production order as completed. You have to link the production order in the inventory outward document as well for it to be updated to the production order report.

Then when the production order is completed mark it as completed by editing the production order and giving the date of completion. Then click save.

Finally you can view a detailed report on the production order by going to Reports>Production>Production Orders.

Here you can view the quantity ordered and the actual quantity produced. And the expected usage of raw materials and the actual usage of the raw materials as well their expected and actual costs if somehow after approving the production order you purchased the raw materials for a cheaper or more expensive rate than in the production planning. You can see that in the top right side of the production order report. You can also see the Start Date, Expected Date of Completion and Actual Date of Completion of the production order here in the production order as well. In the Bottom left corner of the report you can see the transaction button and if you click it, you can view all the transactions like the inventory inward and inventory outward which you previously linked to the

production order.