Understanding Manufacturing Order

This document provides a high-level overview of how Manufacturing Orders work in Zoho ERP. It explains the purpose of MOs, their lifecycle, how raw materials are consumed using a Bill of Materials (BOM), and how finished goods are produced and tracked during the manufacturing process.

What is Manufacturing Order (MO) in Zoho ERP?

A Manufacturing Order (MO) is used to plan, track, and manage the production of finished goods in Zoho ERP. It defines what item is being manufactured, the quantity, the bill of materials (BOM) required, and the production timeline. An MO helps monitor material consumption, work-in-progress, and the final output, ensuring smooth and controlled manufacturing operations.

How Assemblies Module Works in Zoho ERP?

The Assemblies module in Zoho ERP lets you combine multiple component items into a single finished product in a single step. When an assembly is created, the selected components are directly consumed from inventory, and the finished item is added to stock immediately.

What is the Difference Between Assemblies and Manufacturing Order?

AspectAssembliesManufacturing Orders (MO)
PurposeUsed to combine components to create a finished item instantly.Used to produce, track, and check the quality of item and the manufacturing process.
Process TypeOne-step process with immediate assembly.Multi-step process with defined production stages.
Bill of Materials (BOM)BOM is not required.Uses a BOM to consume raw materials during production.
TrackingNo production tracking or work-in-progress tracking.Tracks production status, material consumption, and output.
Stock ImpactComponents are consumed and finished goods are created immediately.Raw materials and operations move to In Progress status and then to finished goods upon completion.
Use CaseBest for simple, quick assembly scenarios.Best for complex manufacturing with planning and monitoring needs.

Lifecycle of a Manufacturing Order

  • Draft – The MO is created but not yet finalized. All details can still be edited.
  • Confirmed – The MO is reviewed and confirmed, locking in production plans.
  • Released – All operations in the MO are released as job cards.
  • In Progress – Production has started. Components are consumed once the status changes to In Progress.
  • Completed – Production is finished, and the manufactured item is added to inventory.
  • Cancelled – The MO is cancelled before completion.