BOM-based consumption
Material use calculated from what you produced.
- Automatic consumption
- Wastage allowance
- Actual vs standard use
Track raw material, work in progress, finished goods, scrap and stock lying with job workers, all in one place. Material is consumed according to your BOM, shortages are flagged before they stop production, and wastage is finally measured.
| Material | Stock | Status |
|---|---|---|
| PP granules (raw material)Reorder level: 2,000 kgBelow level · PO drafted | 1,450 kg | Low |
| Buckets 15 L (in production)Production order PO-318 | 600 pcs | WIP |
| Buckets 15 L (finished)Batch B-1027 | 2,340 pcs | Ready |
| Moulds at job workerRepair, sent 12 days ago | 2 | Out |
In a shop, what you buy is what you sell. In a factory, material changes form. Granules become buckets. Sheets become cabinets. Fabric becomes shirts. Along the way, some of it is half-made, some is scrap, and some is out with a job worker.
That is why factory stock is so hard to keep right. The register shows what came in, but not what was used, wasted or left half-finished on the floor. By the time you do a physical count, the difference is too big to explain.
Milaan ERP follows material through every stage. Raw material is issued to production or consumed automatically from the BOM. Work in progress is visible by production order. Finished goods are added when work is completed, and scrap and wastage are recorded against what the BOM allowed.
Stock held by job workers is tracked separately, so you always know what is yours, where it is and what it is worth.
These are the stock problems manufacturers mention most often.
Material is taken from the store as needed, and the register falls behind.
Issue material against production orders, or let the BOM reduce it when output is entered.
Half-finished goods sit on the floor, counted as neither raw material nor finished goods.
See material in process for each production order, and its value.
You know the factory wastes material, but not how much or where.
Record scrap against production. Compare actual use with the BOM to spot waste.
A material runs out mid-production because nobody saw it coming.
Planned production is checked against stock, and low levels raise alerts with draft orders.
From the goods-in gate to the dispatch bay.
Material use calculated from what you produced.
See what is half-made and where.
Goods go into stock as they are completed.
Measure what is lost, and sell what can be sold.
Know what is out with job workers.
Never be caught short again.
How stock moves from the gate to the dispatch bay.
Two tonnes of granules arrive. The store records the goods receipt with batch number, and raw material stock goes up.
Production starts on a run of buckets. Work in progress shows the order and the material now on the floor.
The supervisor enters 1,200 finished buckets and 26 kg of scrap. Granules are consumed from the BOM, and scrap is recorded.
Granules are now below the reorder level, so a draft purchase order is waiting. Wastage for the day is within the BOM allowance.
Good stock records matter for GST too. Input tax credit is claimed on raw material you buy, so your purchase records need to be complete. Scrap you sell is a taxable supply. Material at a job worker must be tracked and brought back within the time limit.
Because Milaan ERP tracks every stage of stock, these GST details are already in place: purchases with input tax, scrap sales with GST, and job work challans with their due dates.
Tip: Keep batch numbers on raw material. If a supplier’s batch has a problem, you can trace which products used it.
Choose cloud if the office, store and owner need to see the same data from different places. Choose offline if everything runs from one office computer.
from ₹9,999 one-time + GST extra
Installed on your factory office computer. Works without internet.
from ₹12,999 per year
Office, store and owner on the same live data. Updates and backups included.
Prices are before 18% GST. Manufacturing features such as BOM, production planning and job work are in the higher plans. Need several users or more than one unit? Ask us for a quote. Compare all plans.
Can’t find your question here? Message us and a real person will reply.
Tell us what you make and what goes into it. We’ll show you how your stock would look at each stage.
Yes. When you enter how many units were made, raw material is consumed according to the BOM, including any wastage allowance.
Yes. Material issued to a production order shows as work in progress until finished goods are entered.
Record scrap against each production order. You can sell scrap with a GST invoice, and reports show scrap and wastage over time.
Yes. Material sent on job work challans shows as stock with that job worker until it comes back.
Yes. Raw material and finished goods can carry batch or lot numbers, so you can trace what went into what.
Yes. Raw material, work in progress and finished goods are valued separately, and together.
The offline desktop plan starts at ₹9,999 as a one-time payment and online cloud plans start at ₹12,999 per year, both before 18% GST. Features such as barcode billing, batch tracking, e-invoicing and multi-location are in the higher plans, so tell us what you need and we’ll suggest the right one.
Usually yes. If you have your items, raw materials, customers and opening stock in Excel or another software, our team will import them during setup. We also help you set up your first few BOMs.
Try Milaan ERP in your factory for 7 days. We’ll import your materials and set up your BOMs, free of charge.