How to Track Production Batches for a Small Factory
July 8, 2026264 views
Manufacturing involves turning raw materials into finished goods. Learn how to track production batches seamlessly to calculate accurate costs.
For small factories and manufacturing units, tracking the transformation of raw materials into finished goods is critical for calculating accurate cost of goods sold (COGS) and preventing waste.
The Production Lifecycle
- Bill of Materials (BOM): Define exactly what raw materials and quantities are needed to produce one unit of the finished product.
- Batch Creation: Initiate a production batch. The system automatically calculates the total raw materials required.
- Material Consumption: Deduct the raw materials from your warehouse inventory as production begins.
- Finished Goods Entry: Once the batch is complete, add the newly manufactured items to your finished goods inventory.
MRKS POS includes a robust manufacturing module that automatically factors in overheads and labor costs into your final product pricing.