Production Order Summary — Complete User Guide — Two Accounts Web

Comprehensive guide for the Production Order Summary report — creating, reading, and validating a per-production-order view of materials consumed, non-inventory costs, finished output, unit cost, production stage, and completion status, with whole-system impact

Table of Contents

1. What Is the Production Order Summary Report?
2. Enabling via the Customize Menu
3. Related Settings and Configuration
4. Navigating to the Report
5. The Report List
6. Creating a Summary Report — Field-by-Field
7. Report Output Columns — Detail and Behavior
8. How the Report Is Calculated
9. Drill-Down
10. Reporting and Entire-System Impact
11. Sample Data and Verified Output
12. Accounting Regulation Validation
13. Common Notes and Best Practices

1. What Is the Production Order Summary Report?

The Production Order Summary report shows each Production Order as one row, with the quantity produced, the cost of the raw materials consumed (Bill of Materials), any added non-inventory costs (labour, overhead), the resulting total manufacturing cost, the unit cost, the production stage of the finished item, and the completion status.

It is a per-order report: one row per Production Order within the selected period. It answers practical questions such as:

• How much did this production run actually cost?
• What is the cost per unit of the finished item produced this run?
• Were all Bill of Materials quantities available, or was the order short?
• Is the finished item at the correct production stage in the routing?

2. Enabling via the Customize Menu

The report is only useful when Production Orders exist, and Production Orders are only available once the Inventory area is enabled.

How to Enable

1. Open the Customize Menu from the navigation bar.
2. Turn on Inventory Items.
3. With Inventory Items on, turn on the Production Orders sub-tab.
4. Click Save.

Once enabled:

• The Production Orders tab appears for entering orders.
• The Production in Progress (WIP) Balance Sheet account becomes available.
• Each Inventory Item gains the Production Stage field.
• The report appears under Reports → Inventory Items → Production Order Summary.

3. Related Settings and Configuration

4. Navigating to the Report

1. Open Reports from the main navigation bar.
2. Go to the Inventory Items category.
3. Click Production Order Summary.

This opens the report list — every summary you have created (and saved) for the business appears here, sorted by its From Date.

5. The Report List

The list shows one row per saved summary, with three columns:

Each row is clickable:

• Click the row to open the summary output.
• Edit opens the summary form to change the dates or description.

A New Report button at the top creates a fresh summary.

6. Creating a Summary Report — Field-by-Field

Click New Report to open the summary form. It contains four fields:

1. Enter a From Date and a To Date.
2. Optionally enter a Description.
3. Optionally tick Exclude Orders with No Movement.
4. Click Save.
5. The report opens showing the summary output for that period.

7. Report Output Columns — Detail and Behavior

The summary opens with a subtitle:

For the period from {From Date} to {To Date}

One row is shown per Production Order (ordered by Date, then Reference). The columns are:

8. How the Report Is Calculated

The report reads the same General Ledger cost data the rest of the system uses — the output of the cost of goods sold engine for inventory. Every figure is derived from ledger rows, not from the order screen alone, so amounts are consistent with the Trial Balance, Balance Sheet, and inventory reports.

8.1 BOM Cost

For each order, the report sums the base-currency value of the Bill of Materials consumption rows on the Inventory On Hand account. Those values were produced by the costing engine when it consumed each raw material layer:

BOM Cost = sum( Material Quantity consumed × layer cost for that material )

Layer cost follows the raw material item's method:
  FIFO           -> oldest layers consumed first
  LIFO           -> newest layers consumed first
  Moving Average -> average of all layers at the consumption date
Opening inventory layers are included as the item's first layer.

If stock is insufficient, the shortfall is valued at the last known /
estimated cost and re-valued when the next purchase arrives.

8.2 Non-Inventory Cost

Non-Inventory Cost = sum( Expense Item amounts entered on the order )
                     (labour, overhead, machine time, etc.)

8.3 Total and Unit Cost

Total Cost = BOM Cost + Non-Inventory Cost
Unit Cost  = Total Cost / Qty

The Total Cost is posted to the finished item as a new inventory
cost layer at the order's production date (Production in Progress clears).

8.4 Status

Requested BOM Qty = sum( BOM quantities entered on the order )
Costed BOM Qty    = sum( quantities the costing engine actually consumed )
Status:
  Complete     -> Requested == Costed
  Insufficient -> Requested > Costed
  Invalid      -> Finished item appears inside its own Bill of Materials

8.5 Production Stage and Elevation

Every inventory item has a Production Stage number (defaults to 1). It ranks the item inside a manufacturing routing:

Stage 1 = raw material       (e.g. Sheet Metal)
Stage 2 = semi-finished      (e.g. Sub-assembly)
Stage 3 = more finished      (e.g. Finished Assembly)

• Lower number = less processed; higher number = more processed.
• The column shows the finished item's stage.
• A * is added when the finished item's stage is not strictly above the deepest Bill of Materials input (e.g. 1* when the finished item and its input are both stage 1).
• The required stage for a finished item is max(BOM input stage) + 1.
• Use the Production Stage Elevation context on the Inventory Items tab to see items that need elevation and to batch-update them.

9. Drill-Down

The Reference, cell is clickable. which opens the production order behind that cell for the order:

10. Reporting and Entire-System Impact

11. Sample Data and Output

The following example uses base currency BDT and runs the summary for June 2026: 1-Jun-2026 to 30-Jun-2026.

11.1 Sample Setup

11.2 Sample Production Orders

Order PO-001 — 15-Jun-2026

Order PO-002 — 22-Jun-2026

Order PO-003 — 28-Jun-2026 (insufficient stock example)

11.3 Report Output

For the period from 1-Jun-2026 to 30-Jun-2026

11.4 Calculation

PO-001:

BOM Cost:
  Sheet Metal        200 × 20.00 = 4,000.00
  Plastic Moulding   100 × 15.00 = 1,500.00
  BOM Cost                          = 5,500.00
Non-Inventory Cost (Labour)         = 5,000.00
Total Cost = 5,500 + 5,000          = 10,500.00
Unit Cost  = 10,500 / 100           = 105.00  [check]

PO-002:

BOM Cost:
  Sheet Metal         40 × 20.00 = 800.00
  Plastic Moulding    20 × 15.00 = 300.00
  BOM Cost                          = 1,100.00
Non-Inventory Cost                  = 0.00
Total Cost                          = 1,100.00
Unit Cost = 1,100 / 20              = 55.00  [check]

PO-003 (insufficient):

Requested Sheet Metal        = 500
Available at order date      = 500 (slot consumed earlier) so costed less than requested
Requested (500) > Costed     -> Insufficient Quantity
Total Cost / Unit Cost       = 0.00 until the shortfall is covered by a later receipt

GL (PO-001) — debits equal credits:

Material issue:
  Dr Production in Progress        4,000.00   (Sheet Metal)
  Dr Production in Progress        1,500.00   (Plastic Moulding)
      Cr Inventory On Hand                      5,500.00

Labour added:
  Dr Production in Progress        5,000.00
      Cr (Non-Inventory cost captured into production)              5,000.00

Finished output:
  Dr Inventory On Hand (Widget-X 100)          10,500.00
      Cr Production in Progress                              10,500.00

Verification:
  Total debits   = 4,000 + 1,500 + 5,000 + 10,500 = 21,000.00
  Total credits  = 5,500 + 5,000 + 10,500         = 21,000.00
  Debits = Credits: 21,000.00 – 21,000.00 = 0.00  [balanced]
  Balance Sheet impact: WIP is zero after completion; Inventory On Hand increases by 10,500.00

Inv layer check (Widget-X, PO-001):

New layer added: 100 units × 105.00 = 10,500.00
After PO-002: layer total 100 + 20 = 120 units
                10,500.00 + 1,100.00 = 11,600.00
If everything were on that layer, unit cost = 11,600 / 120 = 96.67 (blended).
Each order still reports its own wave cost (105.00 and 55.00).

12. Accounting Regulation Validation

13. Common Notes and Best Practices

• Enable Production Orders before entering orders. The report and the WIP account only appear once the Production Orders tab is on in Customize.
• Keep material opening stock realistic. Set Opening Inventory Quantity and Cost before the first production order; otherwise the raw material is treated as unavailable and the order is flagged Insufficient.
• Run the cost engine data. The report reflects the same cost-of-goods-sold results used across the system. If a figure looks wrong, verify the underlying raw material layer costs and the item's valuation method first.
• Assign production stages. Make the finished item's stage strictly above its deepest input (max BOM input stage + 1). The * flag and the Production Stage Elevation context will guide you; use Batch Update to fix many items at once.
• Do not self-reference the finished item in the BOM. A finished item must not also be a raw material in its own order. Use a distinct processed item or a write-off / journal entry for repacking or grading the same item.
• Record non-inventory costs deliberately. Only add genuine conversion costs to the order; abnormal costs belong in the P&L, not capitalised into inventory.
• Reconcile at period end. Compare the report's Total Cost against the movement in the Production in Progress account and the Inventory On Hand movement; both tie to the Trial Balance.
• Reorder / production stage correctness. If a report shows *, elevation is required before multi-stage costing is directionally correct — fix the stages, then regenerate the report.

End of Production Order Summary Guide