ERP for Manufacturing — Production Management Software
Production runs, but your accounting is a fog? How much raw material actually went into a batch, what’s the cost of a product, where did the overspend happen, was the order profitable — without production accounting these questions go unanswered, and decisions have to be made blind.
Production accounting is the systematic control of everything that happens on the shop floor: how much material is written off, how much product is output and what it cost to make. ERPJS production accounting software connects raw material stock, production operations and finance into one picture — and gives you numbers you can rely on. Below — what exactly gets accounted for and which reports you’ll get.
What is production accounting and why do you need it?
Production accounting is the recording of raw material, labour and finished goods movement across all stages of manufacturing. It answers the owner’s key questions: how much it costs to produce a unit, whether there are enough materials for the plan, and where the business loses money on overspend.
Without accounting, production relies on a foreman’s intuition and cost is calculated «roughly». Systematic accounting replaces guesswork with facts: every batch has a precise cost, every material write-off is recorded, every order can be assessed for profitability.
What does production accounting software track?
Full production accounting covers four areas:
Orders and output
How much product needs to be made, what's already launched and what's completed. The status of every order — from launch to finished goods in stock.
Materials and write-offs
How much raw material is written off to production per the tech card norms. Material balances update in real time.
Cost
The actual cost of every product: materials plus labour. Calculated automatically when an order is completed.
Operations and equipment
The sequence of operations, the equipment on each and the volume actually done. You see where the process stalls.
Which reports does production accounting give you?
The point of accounting is the reports you base decisions on. Production accounting in the system gives the owner several key views:
- Cost per product. What it actually cost to make a unit and a batch — the basis for pricing and profitability assessment.
- Raw material balances and requirements. How much material is in stock and how much to buy for current orders so production doesn’t stop.
- Plan vs fact by operation. Planned quantity against actual on each operation — deviations and overspend become visible.
- Finished goods movement. How much was output, how much is in stock, how much shipped.
It’s exactly these reports that set accounting apart from a plain «warehouse»: you see not just balances but the economics of production. How to calculate cost correctly without including the wrong things — in the article Cost of Goods: What to Count and What Not To.
How is production accounting done in ERPJS?
In ERPJS production accounting is built around the tech card and the production order:
- The tech card defines what a product is made of and how (materials, operations, equipment).
- The order launches production of the required quantity — the system calculates the raw material requirement.
- Launch and completion automatically write off materials from stock and receive finished goods with the calculated cost.
All financial accounting entries are created automatically — production accounting doesn’t exist on its own but is connected to stock and finance. A general overview of the system is on the ERP for Manufacturing page, and the foundation of accounting is tech cards and materials accounting.
Production accounting in ERPJS shows the economics of the shop floor, not just balances: the actual cost of every batch, raw material requirements, plan and fact by operation. Everything is connected to stock and finance — with no spreadsheet reconciliation at month-end.
Why is software accounting better than Excel and manual records?
In Excel production accounting is a set of separate tables that have to be reconciled by hand and go stale after every price change. There’s no link between material write-offs, product output and finance, so cost is always approximate and an error is easy to miss.
In software, accounting runs on its own: write-offs and receipts create entries automatically, cost is recalculated from the facts, and reports are built in one click. More on automation in the article Production accounting: how to automate from raw materials to finished goods.
Which manufacturers is it for?
Production accounting in ERPJS is designed for small and medium businesses that make products from materials:
- Furniture and woodworking
- Garment and textile
- Food and confectionery
- Metalworking and assembly
- Advertising production and printing
- Windows, doors and structures
Frequently asked questions
What is production accounting in simple terms?
It’s the systematic recording of how much raw material was used, how much product was output and what it cost to make. Production accounting answers questions about cost, material requirements and order profitability.
How is production accounting different from inventory accounting?
Inventory accounting shows balances of goods and materials. Production accounting adds the economics: how much raw material went into making, what the cost of finished goods is, where the overspend is. It connects stock, production operations and finance.
How is cost calculated in production accounting software?
Automatically when an order is completed: materials actually written off per the tech card plus labour. This is the actual cost, not an estimate. General and administrative expenses are not included — they are accounted for separately in the profit and loss statement.
Can you control material overspend?
Yes. The actual quantity at each operation is recorded separately from the planned one, so deviations are visible in the plan/fact report. This lets you spot material overspend and look into its causes.
Is production accounting suitable for a small business?
Yes. The system is designed for small and medium manufacturing — workshops, ateliers, small plants. You can start on the free plan with no time limit and expand capabilities as needed.