Production Orders

Use different methods to issue different kinds of production orders.

You have defined the parent and child items in the Item Master Data window.
You have defined the Bill of Materials for the parent and child items in the Bill of Materials window.
If you are working with perpetual inventory, you have determined the Work in Progress (WIP) Material Account and the WIP Variance Account in the G/L Account Determination: Inventory Tab.

The following example shows the production of one pair of in-line skates.

This graphic is explained in the accompanying text.

Production Order Process

Issue a production order.
By default the order opens with Planned status.
Create production orders either automatically from MRP Recommendations, make-to-order using the Procurement Confirmation Wizard, or manually according to sales orders.
For more information, see Creating Production Orders Directly from Sales Orders and Consolidating Multiple Sales Orders for Production.
An authorized staff member changes the status of the production order to Release.
Once released, the production order is available to shop floor staff.
Release the child items (with a manual issue method) from inventory using the Issue for Production method.
Child items with a backflush issue method are issued automatically for the production order.
Report the completion of the parent item in the Receipt from Production Window.
Change the production order status to Closed.
You can do this at any time after the production order is set to Release, even if the planned quantity of the parent item has not been produced.

The finished product (parent item) is created. The inventory is updated for the finished product and for the child items.

The Production Order details are summarized in the Production Order Window: Summary Tab.