Build with a manufacturing order

A manufacturing order (MO) is an order to build a product from its recipe: it consumes components from one warehouse and receives the finished goods into another, rolling the component cost up into the finished item. An MO runs a lifecycle — Draft → Confirmed → In Progress → Completed — so you can plan it, check materials, then record what actually happened.

Before you begin

• The finished product needs an Active BOM — only products with one appear in the order's product picker.
• The components need stock in the source warehouse you'll consume from.

Create the order

1. Go to Manufacturing → Manufacturing Orders and click New Manufacturing Order.
2. Search for and pick the Product. Its default BOM / Recipe fills in automatically.
3. Set the Planned Quantity and the Production Method — In-House (your team builds it) or Outsourced (a contractor does, backed by a purchase order).
4. Set the Source Warehouse (where components are consumed — pick the one that holds their stock) and the Destination Warehouse (where finished goods land).
5. Click Create Draft. The order opens as MO-000001 in Draft.

Confirm and start

• Confirm explodes the recipe into the order — snapshotting the component lines (quantity × planned, plus scrap) and reserving inventory against the source warehouse. Planned quantity locks after this.
• Start Production moves it to In Progress. Starting is gated on having enough allocated components; a shortage warns you before you force-start.

Record production

Click Record Production and enter the Completed Quantity and Production Date. The dialog splits into:

• Outputs — the actual quantity produced, with Batch # and Expiry for lot-tracked goods.
• Component Consumption — the actual quantity consumed and any Scrap (with a reason).

Recording draws the components from stock in FIFO order, rolls their cost into a new finished-goods layer at the destination warehouse (labor and overhead capitalized on top), and posts a WIP production journal. When the produced quantity reaches the plan, the order flips to Completed; record again to top up a partial run.

Close MO then freezes the cost breakdown and accounting, making the order read-only. Cancel (with a reason) stops an order that isn't finished yet.

Next steps

• Manufacturing order status reference — every status and what each action does to inventory.
• Create a recipe — the BOM an order builds from.
• FIFO layers and COGS — how the rolled-up cost flows.

Video transcript

A manufacturing order turns a recipe into finished stock. Pick the product — its recipe fills in — set the quantity, and choose the warehouses. Confirm reserves the components against your warehouse, then start production. Record what you made. The components are consumed in cost order, the finished goods are costed into stock, and the order completes.