Production

Stock of ready to eat menu items that are prepared in advance without prior order can be tracked from the Production page

For example let's say, each day a restaurant prepares 100 plates of Mutton Biryani, and to make 100 plates of Mutton Biryani, say, the restaurant requires 25 kg Rice and 20 kg Mutton. The raw materials (and their quantity) required to prepare the menu item are defined as Bill of Materials (BOM) and the stock of the menu item (Mutton Biryani) is tracked from Production.

Discussed below are the various ways how BOM can be managed from Back Office.

Case 1 : Create BOM from Product page:

Bill of Materials can only be specified Make products (Procurement Method = Make).
So first step is to create a Make Product

Create a product from Masters > Product Management > Products page. For more details on Product setup, please refer Products page.
Select Procurement Method = Make.

Add branch. Branch here corresponds to branch name which prepares the item in advance.

Under Bill of Material, specify a Batch Size = 100 and set Active = Y.

NOTE: Multiple BOM can be added for the same product. In case of multiple BOM, select a Default BOM.

Under Raw Materials select the raw material name and specify quantity, and (+) add the line.

Save the details.

The above screen shot indicates that in order to prepare 100 plates of Mutton Biryani, raw materials (BOM) required are 25 kg of Kohinoor Basmati Rice and 20 kg of Mutton.

Production :

From Transactions > Inventory Management > Production page, click on New to add a record.
Under Production Details:

Select User Branch (which is same as the branch with which the Product was mapped above).
Select the Product Code of the Make product (Mutton Biryani), and the Product BOM No.

On selecting the Product BOM No, the Batch Size and the BOM specified while creating the product will be automatically populated under Line Details.

From the details entered, system will automatically calculate the Unit Price required to make 1 plate of Mutton Biryani (Unit Price= Total Material Cost / Batch Size).

You can additionally enter any other charges/cost (Labor Cost/Wastage Cost/Loading Cost/Overhead Cost) associated with preparing the item. For example say, a Labor charge of RS 200 and an overhead cost of Rs 100 is required to make 100 plates of Biryani. On entering these charges, system will automatically calculate the new unit price as shown in screen shot below.

Case 2. Create BOM from Production Page.

You can also create the BOM directly from the Production page. Stated below are the steps on how to achieve this in EffiaERP:

a. Click on New to create a Production record.

b. Under Production Details, select the User Branch, and Product code of the Make product.
Specify Batch Size for Production.

c. Under Line Items, manually select the product code of the raw materials (BOM) that you want to track for preparing the product. Enter Quantity, and (+) add the record.

d. Save as BOM and then Save the Production record.

The BOM will be directly saved under the make product Chicken Dum Biryani (as shown in screen shot below).

Case 3: Quantity Conversion

Say a store buys 100 kg packet of Basmati rice from its suppliers, and then makes 1 kg packet each. Stock of such items (parent product and make product) can be managed from the Production page.

Stated below are the overall steps how this can be achieved in Back Office.

a) Create a Product in Back Office:

Click on (+) Add and select the User Branch, and Product Code of the Make product (1 kg packet in this example).
Specify the Batch Size. Since 1 kg packets are made from a 100 kg packet, batch size = 100
Ensure Procurement Method = Make
Under Line Details, select the product code of the parent product (100 kg packet in this example) and add the line.

Save the BOM and then Save the Production record.

To view the BOM saved, select the make product (1kg packet) from the Products page and Edit.

b) Then when you sell the make product, say 50 units of the make product (1kg packet) were sold, stock can be tracked from Inventory Status page. In the below screen shot below, stock of make product (1kg packet) reduced by 50, whereas, stock of the parent product (100kg packet) reduced by 1 unit.