Record a production order

Before you start

• The finished product must be a composite item. Only composite items appear in the product list.

Steps

1. Click Inventory in the left menu, then Production Orders.
2. Click New Production Order. MAJA shows the next order number.
3. Check the Date.
4. Choose the Finished Product (Output).
5. Choose the Bill of Materials. If the product has only one, MAJA selects it and fills the materials for you.
6. Enter the Quantity to Produce. The materials scale to the quantity.
7. Check each line under Materials Consumed — the Required Qty, Unit Cost and Stock Available. Use Add Component for anything extra.
8. To add labour or overhead, click Add Labour / Overhead and fill Description, Type, Amount (AED), Account and Settlement: - Allocated (internal) moves a cost you already recorded (wages, rent, utilities) out of its expense account and into stock. Choose that expense account. - Payable to vendor needs a Vendor. - Paid to vendor needs a Vendor and the Paid From account.
9. Check the totals: Total Material Cost, Total Labour & Overhead, Total Production Cost and Cost per Unit of Output.
10. Click Complete & Post to Inventory, or Save Draft to finish later.

What MAJA does for you

• Takes the materials out of stock at their FIFO cost and puts the finished product into stock at the total cost per unit.
• Posts the journal for the run in the same step.

Good to know

• MAJA refuses a save with no finished product, a quantity of zero, or no material line.
• An internal allocation must name the expense it comes from. If you absorb more than that account holds, MAJA warns you that this raises profit for a cost nobody incurred, and asks before it continues.
• A production order dated in a closed period is refused: Production order blocked: ….
• Reports → Production has the Production Register, Material Consumption and BOM Cost Analysis.