In this course, you will learn all the steps to issue a Production order with a Bill of Materials or product recipe. The Bill of Materials is the entry point of the order and has the information of the cost and the number of hours to finish the order.

Design a Bill of Materials (product recipe) with items, machines, and human resources with unitary and hourly costs. Issue a Production Order with the cost calculated from the Bill of Materials and generate the Inventory accounting journals. The sale of the produced item calculates the gross revenue with the sales price and the cost of production.

The machine and human resources definition include the number of hours and resources available for each production order or single run. SAP Business One Production module keeps track of the consumed and the reserved hours to avoid the overlapping use of human resources and machines.

The accounting journals keep track of the standard cost of production of every item included in the Bill of Materials and the hourly rate of the human and machine resources. These journals give the unitary cost of production of the item. The accounting journal registers the entry of the item on the inventory warehouse. During the sale process, SAP Business One calculates the gross revenue of the product with information on the cost of production and the sales price.