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Manufacturing, Production & Job Work Workflows

Innoventry's Manufacturing and Job Work module supports assembly units, fabrication workshops, packaging converters, and small-to-medium factories. It manages Bills of Materials (BOM), converts raw materials into finished goods, tracks production scrap, and handles outward/inward job work.

1. Bill of Materials (BOM) / Product Recipe Setup

Defines the standard recipe of raw materials, packaging supplies, and sub-assemblies required to manufacture one unit of a finished product.

  • Desktop Navigation: Items > Bill of Materials (BOM)

Step-by-Step Procedure

  1. Select Finished Good: Choose or create the manufactured item (e.g., Executive Office Chair).
  2. Define Raw Material Components:
    • Add component items and their precise consumption quantities required to build 1 unit:
      • Chair Base & Castors: 1 Pcs
      • Hydraulic Gas Lift: 1 Pcs
      • Padded Seat Cushion: 1 Pcs
      • Mesh Backrest: 1 Pcs
      • Bolts & Fasteners Set: 1 Set
      • Packaging Corrugated Box: 1 Pcs
  3. Overhead & Labor Additions: Optionally define standard direct labor and electrical overhead allocations.
  4. Save BOM: The recipe is stored and ready for batch production runs.

2. Executing a Production Run

Converts warehouse raw materials into finished inventory in a single verifiable transaction.

  • Desktop Navigation: Transactions > Production

Step-by-Step Procedure

  1. Click New Production Voucher.
  2. Select Product & Batch Size: Select the finished good (e.g., Executive Office Chair) and enter the production batch quantity (e.g., 50 units).
  3. Auto-Populate Raw Materials:
    • The system automatically multiplies the BOM component quantities by 50 and populates the Raw Materials Consumed table.
    • Review and adjust quantities if actual factory floor usage varied slightly due to minor wastage.
  4. Select Locations:
    • Source Godown: Select the raw material warehouse where components are stored.
    • Target Godown: Select the finished goods warehouse where assembled chairs will be stocked.
  5. Click Save:
    • Raw materials are immediately debited (reduced) from raw material inventory.
    • 50 units of finished office chairs are credited (added) to finished goods inventory at the calculated manufacturing unit cost.

3. Raw Material Consumption Entries

Used for ad-hoc material consumption on the factory floor, maintenance usage, chemical dilution, or recording material wastage not tied to a single finished product.

  • Desktop Navigation: Transactions > Consumption

Step-by-Step Procedure

  1. Click New Consumption Voucher.
  2. Select the warehouse where materials were utilized.
  3. Add the consumed items (e.g., Lubricating Oil, Cleaning Thinner, Welding Gas, Sandpaper).
  4. Enter the consumed quantities and cost center/department (e.g., Assembly Line 2).
  5. Save the voucher. Stock is removed from inventory and debited to the Direct Factory Expense account.

4. Outward Job Work Dispatch (Sending Goods for Processing)

Used when raw materials or semi-finished parts are sent to an external third-party vendor for specialized processing (e.g., powder coating, electroplating, stitching, cutting, heat treatment).

  • Desktop Navigation: Transactions > Job Work > Job Work Outward

Step-by-Step Procedure

  1. Click New Job Work Outward.
  2. Job Worker Party: Select the vendor (Job Worker ledger).
  3. Select Materials: Add the raw materials or semi-finished parts being sent out (e.g., Raw Mild Steel Frames - 200 Pcs).
  4. Expected Delivery: Set the agreed return date.
  5. Print Job Work Delivery Challan:
    • Save and print the Form GST ITC-04 Delivery Challan to accompany the material dispatch as required under GST job work rules.
    • Materials remain on your company's balance sheet under Stock with Job Worker.

5. Inward Job Work Receipt (Receiving Processed Goods)

Used when the job worker finishes processing and returns the completed parts along with their job work labor/machining invoice.

  • Desktop Navigation: Transactions > Job Work > Job Work Inward

Step-by-Step Procedure

  1. Click New Job Work Inward.
  2. Select the Job Worker and click Import from Outward Challan.
  3. Select the dispatched challan. The original components load automatically.
  4. Enter Received Quantities:
    • Record the received finished/processed items (e.g., Powder-Coated Steel Frames - 200 Pcs).
    • Record any process loss or scrap returned.
  5. Record Job Work Charges:
    • Enter the job worker's processing charges (e.g., ₹25 per unit = ₹5,000 + 18% GST).
  6. Click Save:
    • Processed stock enters your warehouse inventory.
    • The job worker's payable account is credited with the processing fee.
    • Input Tax Credit (ITC) on job work charges is recorded for GSTR-2B.