Receive finished goods from production

Hotel editions. On Reservation ERP (Gold) this module is called Precision Cooking and this screen is Receive Prepared Food. Everything below works the same way.

Use this when production hands back its output and you want it in stock ready to sell. It is the other half of Consume Raw Materials: that one takes the inputs out, this one brings the output in.

The cost the finished goods carry is up to you. The easiest and most accurate way to set it is to tell the receipt which raw-material issue the output came from: the receipt then knows what the batch cost and can cost the lines for you. You can also type the cost by hand, as before.

Before you start

• The finished product must exist as an Inventory item. If you are making something new, create the item first.
• Know which raw-material issue (Consume Raw Materials entry) this output came from, if there is one. If you issued the materials without recording it, you will need to know roughly what the batch cost: the materials used, plus any production expenses, divided by the quantity you got out.
• If the finished item is batch-tracked, have the batch number and expiry date ready.

Steps

1. Open Manufacturing → Receive Finished Goods.
2. Click New finished goods receipt. (From a raw-material issue, you can instead press Receive finished goods against this issue; the receipt opens already linked to it.)
3. Set the date production finished.
4. Choose the department the goods are going into — usually the shop or the finished-goods store, not the bakery floor.
5. Choose the account. For finished goods this is normally the Production Work In Progress account, so the cost lands where the raw material consumption left it.
6. In Raw material issue this output came from, pick the issue. The list shows each issue's date, purpose, the value issued and how much of it has already come back. Issues that are fully received are not offered.
7. Enter the share of the batch in this receipt (%). If the whole batch is coming back now, leave the suggested figure, which is whatever is still to be received. If only part of it is finished (the morning's bread, with the afternoon's still in the oven), enter that part, say 60.
8. Add one line per finished product: pick the item and enter the quantity you produced.
9. Press Spread the value over the lines. The receipt works out the value this share of the batch should carry (the issued value × the share) and sets each line's cost so that, together, the lines carry exactly that. With one product that is simply value ÷ quantity. With several, products that already have a cost keep their proportions; new products share the value per unit. You can still adjust any cost by hand afterwards.
10. Check the summary line under the issue: This receipt should carry against lines carry. Matches means the books will tie; under or over means a cost was edited after spreading, or a quantity changed. Press Spread again if you want to re-align.
11. Click Save.

The stock goes into the department immediately and the item's average cost is recalculated to take the new quantity and cost into account. On the issue, the receipt now shows under Finished goods received against this issue, with the share and value it took.

Receiving a batch in parts

A batch does not have to come back in one go. Record the first receipt with the share that is finished (say 60%), and the rest later with the remaining 40%. Each receipt takes its share of the issued value out of work-in-progress, the issue shows how much is still to come, and the shares can never add up to more than the whole batch. What is left in work-in-progress at any moment is exactly the value of the output still to be received.

Tips

• Record the receipt on the same day you recorded the consumption. Keeping the pair together makes the batch far easier to check later.
• Link every receipt to its issue when you work in two steps. It costs the goods correctly without arithmetic, it shows on the issue what has come back, and it keeps the work-in-progress account clean: when every issue is fully received, that account returns to zero.
• Do not forget the by-products. If the batch also produced something sellable — offcuts, seconds, bran — receive those too, at a low cost. Otherwise the whole cost sits on the main product and it looks more expensive than it is.
• If you produce the same thing repeatedly with the same recipe, ask about Production Recipes and Production Runs. They do the consumption, the receipt and the costing in one step and work the cost out for you.

Common problems

• The item is not in the list → only Inventory items can be received into stock. A Service or Non-Inventory item will never appear here.
• The account list looks short → the account choices are filtered to the ones valid for a finished-goods receipt. If Production Work In Progress is missing, someone needs to create it in Chart of Accounts as a Current Asset.
• The average cost moved more than you expected → average cost is worked out across the whole company, not per department. Receiving a small quantity at an unusual cost still nudges the average everywhere.
• You entered the wrong cost → open the entry and correct it, then save. Do not add a second entry to compensate; that leaves two receipts in the history for one batch.
• "Receipts against this issue already account for X%" → earlier receipts have taken that much of the batch. Enter a share no bigger than what is left. If an earlier receipt was wrong, open it and correct its share first.
• The issue is not in the list → it is either fully received already, or it was not recorded as a Raw Material consumption. Only Consume Raw Materials entries can be linked; a normal stock consumption cannot.
• Spread does nothing → no line has a quantity yet. Enter the quantities produced first, then spread.
• You cannot see the screen at all → this one needs the Stock Movement permission, which is separate from the one for consuming raw materials. Ask your administrator.