Manufacturing

Manufacturing turns raw materials into finished goods — define recipes (BOMs), plan and execute production, and capture true product cost including labor and overhead.

Bill of materials (BOM)

1. Go to XO Operations → Manufacturing → BOM → New.
2. Add the finished product and its components with quantities.
3. Add routings (the operation sequence) and workstations where steps run.
4. Save; clone BOMs for similar products.

Manufacturing orders (MO)

1. Create an MO from a BOM (or convert a production plan / sales order).
2. Issue materials via a linked requisition (stock deducts).
3. Move the MO through statuses (manual or automatic).
4. Finish the MO — finished goods receive into stock; XO posts the production journal. (You can undo a finished MO if needed.)

📷 Screenshot: an MO showing components consumed and finished goods produced.

Production plans

Plan ahead with production plans (from invoices/sales orders), then convert to MOs — useful for make-to-order and batch runs.

Costing

• Add indirect costs (labor, overhead) to the MO.
• XO rolls materials + indirect costs into the finished-good cost; view the total-cost report.
• Handle scrap items produced during the run.

Best practices

• Keep BOMs versioned and clone rather than edit live ones mid-run.
• Capture indirect costs so product cost (and margin) is real.
• Use production plans to batch demand before committing materials.

Troubleshooting

• Average cost off after finishing. Check component costs and indirect-cost allocation.
• Can’t finish an MO. Required materials aren’t issued, or stock is insufficient.

Related guides

• Inventory
• Products
• Quality