Production and Resource concept in SAP B1 Invoice:

In SAP Business One, we can manage the company’s entire production processes. In addition to items, we can define and manage different resources, such as machinery usage hours and employee’s labor time that are necessary for the production process.

In the Bill of Material document, we indicate the components and resources needed to manufacture the finished product. Then, to start the production process we issue a Production Order document based on the Bill of Materials and release the components from the warehouse to the shop floor. When the production process is completed, the finished product is added to inventory. Note that this is the main production process concept in SAP Business One, but not the only one.

The resource is defined as master data in the system. There are two main types of resources: Machine type & Labor type.

Machine type : resource linked to a fixed asset, taken from the Fixed Assets Master Data list
Labor type : resource linked to an employee, taken from the Employees Master Data list.

When a bill of materials is produced, a machine is often needed in a production process and an employee may be needed as well, for example, to operate this machine. In SAP Business One, we can plan and define a daily capacity for the resources. By monitoring this capacity, we can optimize the production plan and avoid bottlenecks.

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