About the IN Production Entry Form
Use this form to enter production activity (production of finished goods from component materials).
This form is strictly for use with manual entry of production; it cannot be used to view or edit production entries posted via the Material Sales module.
When a finished good is produced, inventory is relieved of the necessary components based on specifications defined in the Bill of Materials. The system first checks to see if an override Bill of Materials exists for the specified Location. If it does, the system uses the override Bill of Materials to produce the finished good and relieve Inventory. If no override Bill of Materials is found, the system uses the standard Bill of Materials for the Location Group.
You can also have the system update the average cost of a finished good with the sum of the component costs during production. To do this, you must select the Update Average Cost of Material with Sum of Component Costs check box for the finished good in IN Location Materials and set the Cost Method for the location to Average Cost in the IN Locations form or the IN Location Category Override form (if overriding accounts by location/category). Then, when you add the finished good to a production batch, the system will automatically update the unit cost for the finished good based on the current costs of the components.