From the bill of materials to the actual cost of the product.

We configure Odoo’s Manufacturing app for the factories in your group: accurate bills of materials, manufacturing orders that move between work centres, raw materials imported in dollars for a product sold in dinars at a known cost, and a factory that sells to the group’s sister companies inside the same system.

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What it covers

What happens in the factory, recorded step by step.

Manufacturing in Odoo is connected to inventory, purchasing and accounting, so every material issued and every operating hour reaches the cost of the product.

Bills of materials: The components of every product and their quantities, with multiple levels for semi-finished products, and alternatives when the specification changes.
Manufacturing orders: A manufacturing order reserves the materials, passes through the work steps and ends with a finished product in the warehouse.
Work centres: Each work centre’s capacity and hourly cost, with work orders that operators follow from a screen on the shop floor.
Actual production cost: The product’s cost is calculated from the materials actually consumed and the time at the work centres, and it appears in the cost analysis of every manufacturing order.
Quality checks: Control points at receipt of materials, during production and before delivery, with quality alerts followed until they are closed.
Maintenance: Scheduled preventive maintenance for equipment, and urgent maintenance requests, with a full record for every machine.

In holding companies

The factory is one of the group’s companies, and it sells to its sisters inside the system.

In many holding companies the factory handles production while sister companies handle distribution and sales. Odoo links the two sides with transactions whose documents are created automatically, and each company has its own stock and its own books.

A purchase order in the trading company creates the matching sales order in the factory, and the factory’s invoice creates the vendor bill in the sister company automatically.
Each company has its own warehouses and stock valuation, and goods move between the factory and the trading company on delivery and receipt documents.
Products and units of measure are defined once, so the factory and the distribution companies work with the same product record.
Selling prices between the group’s companies are set in price lists of their own.
Group management sees production cost in the factory and the sales margin in the trading companies within the consolidated reports.

In the Iraqi market

Raw materials in dollars, a product sold in dinars.

Many factories in Iraq import their raw materials in dollars and sell their output on the local market in dinars. We configure the system to calculate cost on that basis.

Buying in dollars, valuing in dinars.The vendor bill is recorded in dollars, and the material enters stock at its dinar value at the exchange rate on the day of receipt, so the product’s cost is built on actual figures.
Landed cost of imports.Shipping, clearance and customs charges are loaded onto the cost of the raw material, and so reach the cost of the finished product.
Long lead times.The lead time of imported materials goes into the reordering rules, so the system proposes purchase orders before stock falls below what production needs.
Arabic on the shop floor.Work order and quality check screens in Arabic for operators, and production and delivery documents in Arabic or in both languages.

Connects to

The factory is one link in a longer chain.

The chain starts with buying materials and ends with selling the product, all on the same database.

Common questions

Questions from factory and finance managers.

How is the product’s cost calculated when raw materials are bought in dollars?

Purchases are recorded in dollars and valued in stock in dinars at the exchange rate on the day of receipt, with shipping, clearance and customs charges added. At production, the product’s cost is calculated from the materials actually consumed and the time at the work centres.

Can the factory sell to another company in the group from inside the system?

Yes. Odoo supports inter-company transactions: a purchase order in the trading company creates the sales order in the factory, the invoice creates its matching bill, and each company keeps its own stock and its own books.

Does Odoo suit both make-to-order and make-to-stock production?

Yes. A manufacturing order is created from a confirmed sales order, from a reordering rule that keeps a minimum level of stock, or manually by the production planner. We settle the right approach for each production line at the design stage.

What hardware do we need on the shop floor?

Work order screens run on tablets or ordinary computers through the browser, and barcode scanners can be added to record material consumption and finished production.

Tell us what your factory produces, and we will map out its path on Odoo with you.

A first consultation in which we get to know your production lines, your bills of materials and the way cost is calculated today, and propose the stages of implementation.