I seem to be having a problem understanding how the Manufacturing module works.
I have raw materials (RM) that I bought for a $500, I use this in setting up a BOM for a finished product (FG) that I am producing for the first time.
In my books this FG has zero value at creation.
I am using 1 unit of the RM to produce 5 units of the FG
When I carry out a work order I expect that the value of this raw material will be spread over the finished goods. So each FG will now have value of $100 each.
This is not happening.
For one during the production process ERPNext will not allow me continue without putting a valuation on the FG. So I make the valuation $1 each.
When the production process is concluded my FG is still valued at $1 each. The remaining $495 is posted by ERPNext to a stock adjustment account.
This does not sound right, what could I be doing wrong?