Track Semi-Finished Goods
Note: This feature will be available in the ERPNext version 16
Semi-finished goods are materials that result from the completion of one operation and are used as raw materials to make final products or other semi-finished goods.
In ERPNext, if you want to track semi-finished goods, you need to create an item for each semi-finished good and also have an active Bill of Materials for each one.
So we thought, why can't we have a provision to define the finished/semi-finished goods against the operation as well as raw materials? With this, once we complete the operation, the semi-finished goods will be produced and the raw materials will be consumed. Similarly, after the completion of the last operation, the finished goods will be produced and all semi-finished goods will be consumed.
The user has to create a Bill of Materials for each finished/semi-finished good and assign it to operations of the final Bill of Materials, or they can manually select the raw materials required to produce the finished/semi-finished goods.
To use this feature:
- Tick “Track Operations” and “Track Semi-Finished Goods” in the BOM.
- In each operation row, you can define:
- Raw Materials: Specific materials consumed in that operation.
- Produced Items: One or more semi-finished or finished goods that are output of the operation.
- You can configure:
- Workstation, Operation Time, Batch Size, Hourly Rate
- Source Warehouse, WIP Warehouse, and Target Warehouse per operation.
On submitting a Work Order:
- The system creates a Job Card per operation.
- Upon completing a Job Card, the assigned raw materials are consumed, and the operation's output items (semi-finished goods) are created.
- At the final operation, all semi-finished goods are consumed and the finished item is created.
The system also supports:
- Material Transfer Based on Job Cards (or in bulk for the entire Work Order)
- Partial Job Card Completion per batch or per quantity
- Subcontracted Operations using subcontracted Purchase Orders and tracking raw materials issued to the supplier
- Skip Transfer to WIP and Backflush Materials settings for flexible inventory movement
- Job Card QR Code Scanning for mobile-driven production operations
- Project Linkage to monitor progress of multi-stage jobs or custom orders
Tracking semi-finished goods helps with better production visibility, cost breakdown at each step, and stock traceability across complex manufacturing processes.
BOM (with Operations)
If you want to track "Semi Finished Goods", you need to enable "Track Operations" and "Track Semi Finished Goods" while making the BOM. While creating a BOM, the user will have the option to define the operation, operation time, workstation, and workstation type. The user will also have the option to set default warehouses, such as the source warehouse, work in progress warehouse, and finished goods warehouse.
If the user has set 'Skip Transfer to WIP Warehouse', they can consume materials directly from the source warehouse or work-in-progress warehouse, depending on the configuration set in the BOM Operation table.
If users perform specific operations through subcontracting, they will have options to define subcontracted operations. Users will also have the option to create a subcontracted purchase order against the subcontracted job cards.
In addition, users can define the subcontracted supplier, raw materials issued, and expected output per subcontracted operation. Job Cards will track consumption and production at each operation level, and material movement will align based on Track Semi Finished Goods and warehouse settings.
In the Work Order
Users can see the finished/semi-finished good as well as raw materials against each operation. On submission of the Work Order, the system will create the Job Cards automatically, and users have to complete the Job Cards manually. Users can complete the Job Cards using the Job Card view or from the Workstation Dashboard. Below are different ways to complete the Job Cards:
If the 'Skip Material Transfer to WIP' checkbox is enabled and the 'Backflush Materials From WIP Warehouse' checkbox is enabled, then users must consume raw materials from the 'WIP Warehouse'. Users need to click the 'Start Job' button to begin the job and the 'Complete Job' button to stop the job.
After that, users must submit the Job Card to create a Stock Entry to consume materials from the WIP Warehouse and add finished/semi-finished goods to the Target Warehouse.
In ERPNext v16, the system also allows capturing actual time taken, additional costs, and rejected quantities directly within the Job Card. Rejected quantities can optionally trigger Quality Inspection if configured.
If the operation is linked to a Subcontracted Operation, the Job Card allows direct creation of a Purchase Order for subcontracting along with tracking subcontracted material consumption.
If the 'Skip Material Transfer to WIP' checkbox is enabled and the 'Backflush Materials From WIP Warehouse' checkbox is disabled, then users must consume raw materials from the 'Source Warehouse'.
Users need to click the 'Start Job' button to begin the job and the 'Complete Job' button to stop the job.
After that, users must submit the Job Card to create a Stock Entry to consume materials from the Source Warehouse and add finished/semi-finished goods to the Target Warehouse.
In ERPNext v16, when completing the job, users can also view the calculated operation cost, update batch information, and log any scrap generated during the operation. The Material Consumption Table within the Job Card now supports real-time editing and adjustment of consumed quantity if allowed in Manufacturing Settings.
If the 'Skip Material Transfer to WIP' is disabled, then users must have to transfer raw materials from the 'Source Warehouse' to 'WIP Warehouse'.
After that, users need to click the 'Start Job' button to begin the job and the 'Complete Job' button to stop the job.
After that, users must submit the Job Card to create a Stock Entry to consume materials from the 'WIP Warehouse' and add finished/semi-finished goods to the Target Warehouse.
In ERPNext v16, this workflow also tracks actual vs. planned operation times and allows users to log scrap quantities, batch numbers, and rejection notes directly during the submission of Job Cards.
Job Card
Users have to complete the Job Card, and once all Job Cards are completed, the system will complete the Work Order. From the Job Card, users must transfer materials from the Store to the Work In Progress Warehouse, if the Skip Material Transfer option is disabled on the respective Job Card.
After that, users need to create a Manufacture Stock Entry against the Job Card for the semi-finished or finished goods. ERPNext v16 allows the user to link the Job Card with Time Sheets for actual labor tracking, serial/batch tracking for WIP goods, and quality check templates before final submission.
While making the Manufacture Stock Entry, the system will prompt the user to confirm whether they want to submit the entry. If the user selects "Yes," the system will create the Stock Entry in a Submitted state; otherwise, it will be created in a Draft state.
Additionally, ERPNext v16 introduces enhanced permission rules, where only authorized users can submit stock entries, and notifications are triggered if discrepancies exist between planned and consumed materials.
Workstation Dashboard
Using the Workstation Dashboard, users can start, pause, resume, and complete Job Cards.
Also, users can transfer raw materials from the Source Warehouse to the WIP Warehouse against the Job Cards from the Workstation Dashboard. If "Skip Material Transfer" has been enabled, then there is no need to transfer raw materials. Also, users don't get the subcontracted operations in the Workstation Dashboard.
In ERPNext v16, users can also view time logs, track workstation utilization, and record downtime reasons for performance analysis directly within the Workstation Dashboard. Additionally, the dashboard now supports filtering Job Cards by status, priority, and assigned operator.
Transfer Materials
In the case of the operation of the "Brake Making", the user has not set the option of not transferring materials i.e. the operation of not transferring raw materials in the stores to the work in progress warehouse. In the case of the Chain Making operation, the user has already set "Skip Material Transfer" enabling the user to avoid transferring raw materials.
In ERPNext v16, the material transfer interface provides real-time validation for material availability, suggests alternate warehouses, and supports batch and serial number tracking at the point of transfer for traceability.
Start Job
To start the job card, click on the 'Start' button from the menu. On start, system auto fetches the employee of the logged-in user and sets it in the modal. In ERPNext v16, you can also select or override the employee manually if required, and system logs the start timestamp with precision for analytics.
Pause Job
To pause the job card, click on the 'Pause' button from the menu. System records the pause timestamp and allows users to add optional notes or select a reason code (e.g., machine issue, break, shortage) introduced in ERPNext v16.
Resume Job
To resume the job card, click on the 'Resume' button from the menu. The system resumes the timer and continues tracking labor time and productivity. In ERPNext v16, you can also view a log of past pauses and resumes per job card.
Complete Job with Auto Stock Entry
On click of 'Complete' button, system asks you to enter the quantity and creates the auto stock entry with type as 'Manufacture'. This stock entry consumes the raw materials and adds finished/semi-finished goods. In ERPNext v16, the system also supports real-time validation of available materials and prompts users to select batches/serials if required.
Start and Complete Jobs Using QR code
If you have QR codes for the job cards, you can use them to start and complete the job cards by scanning the QR codes in the 'Start Job'/'Complete Job' QR code fields.
ERPNext v16 introduces mobile-friendly QR scanning support, enhanced accuracy, and logs the action with geo-location and device metadata (if enabled).