To use a formula, it must first be created (Warehouse -> Formula).

1. Formula – when a formula is selected, the production form is automatically populated with the data from the formula. These details can be adjusted if needed.
2. Target warehouse – the warehouse where the finished product will be received during production.
3. Date – the production date; defaults to today’s date.
4. Description – additional information about the production (optional).

1. In the Raw materials section, you can see the components of the finished product, along with their quantities and amounts.
2. In this example, the finished product quantity is set to 1, and the formula is saved with the raw material quantities required to produce one unit.
   The cost price is calculated based on the component costs. When you change the finished product quantity, the system automatically recalculates the raw material quantities. Enter the production quantity and save the production.

If the finished product quantity exceeds the available raw materials, the system will display an error when you click Save, and the production will not be saved. In this case, adjust the finished product quantity so that there is enough raw material in stock.
If negative stock is enabled, this issue will not occur. However, allowing negative stock makes it more difficult to track cost price and control the cost of goods sold later. Therefore, enabling negative stock should be considered very carefully.

1. Formula– if no formula is selected, this field remains empty (“undefined”).
2. Target warehouse – the warehouse where the finished product will be received during production.
3. Date – the production date; defaults to today’s date.
4. Description – additional information about the production (optional).

1. Select the raw material item code. The content, unit and net cost sum are filled in automatically.
2. In the quantity field, enter the amount of raw material needed for production.
3. Add new line – adds a new row for raw material in production.

At the end of the row, there is a delete button (cross) that allows you to remove a line added by mistake.

1. Select the finished product item. If it is a new product, it is recommended to add it under items beforehand. If you create a new item directly from production, you will later need to open the item card from the item list and complete the details (sales price, fixed price or markup %, sales VAT type, etc.).
2. In the quantity field, enter the quantity of finished product.
3. The cost price is calculated based on the raw material quantities and costs. The “Total cost price” field at the top shows the total production cost, while below you can see the unit cost of the finished product.
4. Once all required data is entered, save the production.

After saving the production, an inventory transaction and a financial transaction are created.

The inventory transaction shows from which warehouse the goods were taken and to which warehouse the finished product was recorded. For a more detailed view, click the magnifying glass icon at the end of the line.
In addition to the warehouse movement, the system also creates a financial transaction.

When production is saved, a movement between balance sheet accounts takes place. The system automatically creates a financial transaction that decreases account 1640 Raw materials and increases the target warehouse account, in this example 1641 Production warehouse. This ensures that the amounts for raw materials and finished goods are recorded in the correct balance sheet accounts.