Production Orders
A production order subcontracts the full manufacture of a product. You place the order with a manufacturer, Pharus explodes the product's bill of materials down to raw materials, and the finished goods come back fully costed — the per-unit production cost plus the cost of the materials consumed.
What problem it solves
A production order is for off-site manufacturing where you care about the landed cost of the product, not just the labor. It captures an explicit production cost per unit, draws material cost from the consumed inputs at receipt time, and stamps the finished goods with the combined figure so finished-goods inventory carries an accurate valuation.
Lifecycle
The states mirror a work order: Draft is inert, Entered commits, Production allocates the materials, Received / Completed close it out, and Cancelled reverses everything.
Fields, line items, and receipts
- Header —
prodNumber, the production location, expected delivery date, notes. - Output items — the products to manufacture, each with a
quantityand a per-unitproductionCost. The production cost may be left open at first but must be set before you can receive. - Inputs — the BOM exploded all the way to raw materials only; component SKUs are flattened into their underlying materials.
- Receipts — each delivery of finished product back, with its own date and lines.
Inventory effects
| When | Ledger | Event |
|---|---|---|
| Entered (and beyond) | finished goods, per output | ORDER on the products being made |
| Entered (and beyond) | materials, per input | DEMAND on the materials |
| Production (and beyond) | materials | ALLOCATE on the materials |
| Receipt created | materials | CONSUME the materials, at weighted-average cost |
| Receipt created | finished goods | PRODUCE the products, at material cost + production cost |
The receipt is where costing happens: consumed materials are valued at their
weighted-average cost, and that per-unit material cost is added to the order's production
cost to value each finished unit. Every entry carries the production-order number as its
ref.
Work orders vs. production orders
| Work order | Production order | |
|---|---|---|
| You're paying for | Conversion / labor | The whole manufactured product |
| Inputs | Materials and component products (BOM one level deep) | Raw materials only (BOM fully exploded) |
| Output cost | Conversion cost only | Production cost + consumed material cost |
| Finished-goods valuation | Labor portion | Fully landed cost |
| Reach for it when | You own the materials and just need them assembled | You want a turnkey product costed end to end |
Both share the same lifecycle and both write ORDER → DEMAND → ALLOCATE → CONSUME → PRODUCE. The distinction is what counts as an input and how the finished good is valued.
Relationships
- Manufactured at a location.
- Outputs reference products; inputs come from the fully exploded BOM.
- Writes to the materials and finished-goods ledgers.
See also
Drive production orders through the REST API or the MCP server.