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The Work Order can be generated from the Production Plan based on Sales Orders.

To access the Work Order list, go to:

> Home > Manufacturing > Production > Work Order

1. Prerequisites

Before creating and using a Work Order, it is advised that you create the following first:

2. How to Create a Work Order

Go to the Work Order list, click on New.
Select the Item to be manufactured.
The default BOM for that item will be fetched by the system. You can also change the BOM.
Enter the quantity to manufacture. Raw material Items will be fetched only when this is set.
If the selected BOM has Operations mentioned in it, the system will fetch all Operations from BOM, these values can be changed.
Set the Planned Start Date (an Estimated Date at which you want the Production to begin).
Use Multi-Level BOM: This feature is automatically activated. If you intend to plan materials for sub-assemblies of the Item being manufactured, keep this option enabled. Alternatively, if you prefer to plan and manufacture the sub-assemblies separately, you can deselect this checkbox. For further details, please refer to this page.
Select Warehouses:
1. Source Warehouses: Choose the appropriate Warehouse in the Item row. This warehouse stores your raw materials, and each required item can have its own designated source warehouse. Group warehouses can also be selected as source warehouses. Upon submission of the Work Order, the raw materials will be reserved in these warehouses for production purposes.
2. Work-in-Progress Warehouse: This is the warehouse where your Items will be transferred once production begins. Group Warehouses can also be designated as Work-in-Progress warehouses.
3. Target Warehouse: After production, finished Items are stored in the designated Target Warehouse before being shipped.
4. Scrap Warehouse: All necessary items (raw materials) are extracted from the BOM and displayed in this table. Here, you have the option to modify the Source Warehouse for any item. Additionally, you can track the transfer of raw materials during production from this table.

Note: You can save a Work Order without selecting the Warehouses, but Warehouses are mandatory for submitting a Work Order.

A Work Order can also be directly created from a Sales Order.

2.1 Additional Options when Creating a Work Order

Sales Order: Work Orders generated from Sales Orders will be displayed here. Additionally, you have the option to link an existing Sales Order containing the Item slated for manufacturing to this Work Order.
Project: Associate the Work Order with a Project to facilitate progress tracking, particularly in scenarios such as engineer-to-order projects.
Allow Alternative Item: Occasionally, when producing a finished product, specific materials may not be available. For instance, using plastic beads instead of plastic crystals may be necessary, resulting in a different finished product. By checking this box, you gain the ability to select an Alternative Item. For more information, please refer to this page.
Skip Material Transfer to WIP Warehouse: Typically, a Stock Entry is generated when raw materials are transferred to a Work-in-Progress Warehouse. However, in this instance, where raw material consumption is assumed, the Stock Entry is omitted. If you select this checkbox, the subsequent option will be displayed.
Backflush Raw Materials From Work-in-Progress Warehouse: Checking this box triggers the automatic creation of a Stock Entry labeled ‘Manufacture’. This signifies that raw materials were consumed from the Source Warehouse, utilized in the production of finished goods, and another Stock Entry was generated for your Target Warehouse.

3. Features

3.1 Time

Here, you can establish the Planned Start Date and Expected Delivery Date. By default, the Planned Start Date is set to the current date and time when the Work Order is created.

3.2 Required Items table

The Source Warehouse can be changed for the raw material items used here. The default Warehouse can be set at the Item level in the Item master or globally in Stock Settings.

Required Quantity: This will be calculated automatically based on the Bill Of Materials.
Transferred Quantity: As the Work Order initiates and Job Cards are executed, items are moved from the Source Warehouse to the Work In Progress Warehouse. This field reflects the quantity stored in the WIP Warehouse. It’s important to note that if you select ‘Skip Material Transfer to WIP Warehouse’, this column will remain unaltered.
Consumed Quantity: Once the Item is withdrawn from the WIP Warehouse and the finished product is produced, this field will be updated accordingly.
Allow Alternative Item: In the event that a specific Item (whether raw material or sub-assembly) is unavailable, enabling this checkbox permits you to choose an alternative item from the Item Alternative list.
Skip Material Transfer: If there’s a desire to bypass the transfer of a particular raw material to the work in progress warehouse, you should activate this checkbox.Once uncheck this checkbox for an Item, you can still select it in the BOM and Work Order, but no Stock Entries will be created against it.

Once the Work Order is saved the following two fields will also show the availability in the respective Warehouses in the Required Items table:

Available Qty at Source Warehouse
Available Qty at WIP Warehouse

3.2 Operations table

Materials can be allocated against either a Work Order or a Job Card. Typically, this allocation is retrieved from the Bill Of Materials, although adjustments can be made within the Work Order itself.

The following details will be retrieved from the BOM:

In the Operations table: The designated Workstations where Operations will occur.
In the Items table: The Operations slated for each Item.

These values are subject to modification.

Upon saving the Work Order, the following fields become visible:

Completed Qty: Indicates the quantity of Items on which Operations have been executed.
Status: Reflects whether Operations are Pending, In Progress, or Completed. Status updates occur as Job Cards are updated.
Operation Time: Initially retrieved from the BOM, this parameter can be altered if necessary.
Planned Operating Cost: Calculated based on factors such as Operating Time, Hourly Rate, and Quantity being manufactured.

Actual Operation Time, Actual Operating Cost, Actual Start Time, and Actual End Time are updated alongside Job Card updates.

3.3 Operation Cost

In this section, the following are shown:

Planned Operating Cost: This is fetched as per the BOM and the Operations defined in it.
Actual Operating Cost: This is fetched from the Job Cards based on the Operations run on the Items.
Additional Operating Cost: Any additional expenses you may have incurred when manufacturing the Item can be added here.
Total Operating Cost: This is calculated as Actual Operating Cost + Additional Operating Cost.

These values are calculated as per the Job Cards.

3.4 More Information

Here the Item Description and Stock UOM is shown for the Item being manufactured.

When a Work Order is created from a Material Request, it’ll be shown here.

3.5 Transferring Materials for Manufacturing

After submitting your Work Order, the next step is to initiate the Manufacturing Process by transferring the Raw Materials.
This action triggers the creation of a Stock Entry containing all the necessary Items required to fulfill the Work Order, which are then added to the Work In Progress (WIP) Warehouse. Sub-assembly Items are either included as they are or expanded to display the raw materials, depending on whether you’ve selected ‘Use Multi-Level BOM’.
Click ‘Start’ to proceed. Once initiated, Job Cards will be generated for the involved Operations.
Specify the quantity of materials to be transferred during this process.
You’ll then be directed to a Stock Entry for ‘Material Transfer for Manufacture’. Submit this entry.
The Work Order is subsequently updated with the Material Transferred for Manufacturing, based on the Stock Entry.

3.6 Material Transfer through Stock Entry

Use cases for this option are:

If a material transfer is done in bulk and/or is not required to be tracked against a particular Work Order.
If the responsibility for Material Transfer and Production Entry lies with two separate Users.

If this is the case, you can tick the ‘Skip Material Transfer’ checkbox, which will allow you to make the Stock Entry of type ‘Manufacture’ directly by clicking on the ‘Finish’ button.

3.7 Creating Job Cards

Tracking progress within the Work Order is facilitated through Job Cards.
Drafts of Job Cards are generated upon the submission of a Work Order.
To generate additional Job Cards for a Work Order, simply click the plus sign adjacent to Job Card on the Work Order dashboard.

To know more about Job Cards, visit this page.

3.8 Updating Finished Goods

Upon completion of the Work Order, the next step involves updating the Finished Goods.
This action initiates the creation of a Stock Entry, which deducts all items and sub-assemblies from the Work In Progress (WIP) Warehouse and transfers them to the Finished Goods Warehouse.
Click on ‘Finish’ to proceed.
Specify the quantity of materials to be transferred during this process.

Tip: You can also partially complete a Work Order by updating the Finished Goods stock creating a Stock Entry.

3.9 Capacity Planning in Work Order

Upon submission of a Work Order, the system schedules all operations based on the Planned Start Date and the availability of Workstations, provided the Work Order includes specified Operations.

Drafts of Time Logs are also generated according to the scheduled operations.

Upon Work Order submission, the system proceeds to allocate time slots for each Operation sequentially after the planned start date, contingent upon Workstation availability. Workstation availability is determined by factors such as Workstation timings, holidays, and existing scheduled Operations.

You have the option to specify the number of days for the system to attempt scheduling Operations within Manufacturing Settings, with a default setting of 30 days. If an Operation requires more time than the available slot, the system prompts you to divide the Operation. Once scheduling is complete, the system generates and saves Time Logs, which can be later modified and submitted.

4.0 Stopping a Work Order

When a Work Order is halted, its status shifts to “Stopped,” signifying the cessation of all production processes associated with that Work Order. However, prior to halting the Work Order, users must ensure whether the raw materials transferred to the Work In Progress warehouse have been returned. If the user attempts to halt the Work Order without returning the raw materials, the system will display an error and prevent the user from stopping the Work Order.

To stop a Work Order, click on the ‘Stop’ button.

You can also re-open the stopped Work Order.

4.1 Return Non Consumed Materials to the Stores from WIP Warehouse

If you’ve transferred surplus materials to the Work In Progress warehouse and wish to return them to the Store warehouse upon completion of the Work Order, you need to navigate to the Work Order and select “Return Components.” Subsequently, the system generates a return stock entry with the type labeled as “Material Transfer for Manufacture.”

Additionally, you can verify the returned components against the Work Order by utilizing the Work Order Consumed Materials report.