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Set up production

Before the first production you need approval switched on for the bill of material and the production order, numbering series for the three documents, a cost centre, machines and fixed-cost titles, and the products set up as raw materials and finished goods.

  • Accounting Production
  • 4 min read
  • Updated October 20, 2026

For Administrator Production staff Owner or manager

The checklist

  1. Approval for the bill of material and the production order
    Who
    Administrator
    Where
    Company setting > Approver (Authorization, Approver group, Module)
    What changes
    Switch approval on for BOM and Production order, and put someone in an approver group for each. A BOM and an order are used only once Approved; without approval set up they stay Unapproved and the next document cannot use them (Approvals for purchases and vouchers). The journal's approval is the quality check and does not depend on this switch.
  2. Numbering series
    Who
    Administrator
    Where
    Document numbering
    What changes
    A series covering the fiscal year for Bill of material, Production order and Production journal. No Add button on a production screen means no series (Document numbering for sales).
  3. A cost centre
    Who
    Administrator
    Where
    Cost Center
    What changes
    Every BOM, order and journal needs one (Description, Type, Ledger, contact details).
  4. Machines, mechanics and fixed-cost titles
    Who
    Production manager
    Where
    The Bill of Material form (add a Machine / Plant or a Fixed cost title from the list), Employee
    What changes
    A machine has a name, Manufacturer and Machine/Plant number. A fixed-cost title has a Ledger. The Mechanic / Operator and the Production contractor are employees.
  5. Warehouses
    Who
    Store keeper
    Where
    Warehouse
    What changes
    A warehouse for the raw materials and one for the finished goods (Warehouses (godowns)).
  6. Products
    Who
    Store keeper
    Where
    Product settings
    What changes
    The raw materials and the finished goods as stocked items, with units. The Product stage field on a product or a category says what stage of production the product is in; choose the stage that fits, but not for finished goods, which are the products ready for sale (Product categories and sub categories).
  7. The zero-cost setting
    Who
    Administrator
    Where
    Configuration > Inventory > Allow production with zero rate raw material
    What changes
    On (the default) lets a journal use raw material with no cost; off refuses it (Production journal: record production and approve it).

Roles

RoleWhat they do
Production managerWrites BOMs and orders; approves the journal
Production staffRecords journals
Store keeperKeeps the raw materials and the finished goods warehouses right
ApproverA member of the approver group of the BOM, the order

Give the quality check ( Approve on the journal) to a person who is not the one who made the product.

Common questions

We cannot find any BOM on the production order.

No BOM is approved and unlocked. Check that approval for BOM is on and an approver has approved it.

A production screen has no Add button.

No numbering series covers today, or your role cannot create it.

Who can approve a BOM?

Members of the approver group paired with BOM in Company setting > Approver > Module.

Why does a fixed-cost title need a ledger if production posts nothing?

The ledger is a label kept with the cost; no entry is made on it. The amount only goes into the cost of the finished goods (What production changes in stock and in the books).

Should we allow production with zero-cost raw material?

With it on, a raw material with no cost goes into the finished goods at 0, so they are worth less than they cost you. With it off, the journal stops with "Raw material stock with zero cost value not allowed" until the raw material has a cost (Production journal: record production and approve it).

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