Questions about Manufacturing and Valuation

Hi all,
I am confused about how to record our production in ERPNext.

I was told to use Stock Entry for the purpose of Manufacture/Repack (instead of using BoM) as everyday our raw materials price and quantity used for production varies.

Lets say I want to produce 1 x Product A which requires 1 Kg of Sugar and 1 Kg of Salt

So I enter the following in Stock Entry form:
Source Warehouse: Raw Materials Warehouse
Sugar 1 Kg
Salt 1 Kg
The valuations for these two products are automatically generated based by the system, but lets assume that: 1 Kg of Sugar = USD$5.00 and 1 Kg of Slat = USD$4.00
Therefore total valuation is: USD$5.00 + 4.00 = $9.00

Therefore the valuation rate of 1 x Product A must be filled with $9.00
Otherwise, the stock entry won't be able to saved (not balanced)

Correct?

Then the next day:
Valuation rate of Sugar and Salt change:
Sugar: $5.10
Salt: $4.20

Therefore, the valuation rate of 1x Product A = $9.30 (not $9.00 like before)
That means, I have to manually calculate and adjust these valuation rates for Product A (to match the total values of all materials used) everytime there are changes in price and raw materials qty?

If yes, that's cumbersome to do. Especially if we have 20 different products to produce and each of those must be calculated whenever something changes.

Is this the correct practice as it seems so complicated just so I can produce something, and consume my raw materials?!


Andri



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I can understand your pain, will try to set valuation rate of repacked item, based on total valuation of outgoing items. Can you please raise an issue in github?

On 02-Jun-2014, at 2:42 pm, Andri Halim Gunawan <an...@krupuksuryajaya.com> wrote:

Hi all,
I am confused about how to record our production in ERPNext.

I was told to use Stock Entry for the purpose of Manufacture/Repack (instead of using BoM) as everyday our raw materials price and quantity used for production varies.

Lets say I want to produce 1 x Product A which requires 1 Kg of Sugar and 1 Kg of Salt

So I enter the following in Stock Entry form:
Source Warehouse: Raw Materials Warehouse
Sugar 1 Kg
Salt 1 Kg
The valuations for these two products are automatically generated based by the system, but lets assume that: 1 Kg of Sugar = USD$5.00 and 1 Kg of Slat = USD$4.00
Therefore total valuation is: USD$5.00 + 4.00 = $9.00

Therefore the valuation rate of 1 x Product A must be filled with $9.00
Otherwise, the stock entry won't be able to saved (not balanced)

Correct?

Then the next day:
Valuation rate of Sugar and Salt change:
Sugar: $5.10
Salt: $4.20

Therefore, the valuation rate of 1x Product A = $9.30 (not $9.00 like before)
That means, I have to manually calculate and adjust these valuation rates for Product A (to match the total values of all materials used) everytime there are changes in price and raw materials qty?

If yes, that's cumbersome to do. Especially if we have 20 different products to produce and each of those must be calculated whenever something changes.

Is this the correct practice as it seems so complicated just so I can produce something, and consume my raw materials?!


Andri



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For more options, visit https://groups.google.com/d/optout.




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