# Manufacturing module (recipes and production)

> Make your own products in SmartPOS Hub with recipes, production orders, wastage and real batch costing that updates stock automatically.

Source: https://docs.smartposhub.com/modules/manufacturing/  
Last updated: 2026-10-30  
Product: SmartPOS Hub (https://smartposhub.com)

The **Manufacturing** module lets you turn raw materials into finished products inside SmartPOS Hub. You write a recipe (bill of materials) once, plan production orders, and when a batch is completed the ingredients leave stock and the finished goods arrive with their real cost. It is for bakeries, central kitchens, food and drink makers, garment and furniture workshops, and anyone who produces what they sell.

> **How to turn it on**
> 1. **Plan:** Your plan must include Manufacturing (Settings › Package Subscription). If not, see plans or contact support.
> 2. **Switch:** Settings › Business Settings › Modules › Industry modules › Manufacturing, then click Update settings.
> 3. **Permission:** Manufacturing permissions in User Management › Roles (Admins have all).
> - **Mobile app:** SmartPOS Business app › Production (orders and recipes; start, complete or cancel orders).

## What you get

| Menu item | What it is for |
|---|---|
| **Dashboard** | Planned, in progress, overdue, completed today, completed and value produced in 30 days, charts, **Open orders**, **Material shortages**, top produced products |
| **Production orders** | Plan, run and complete batches. "Stock moves only when a batch is completed." |
| **Recipes** | What goes into each product, how much one batch yields and what it costs, with margin against the selling price |
| **Reports** | Production, material consumption, wastage, recipe costing, planned vs actual, cost per unit trend, materials needed |
| **Settings** | Numbering & lots, costing, production rules, stages and waste reasons |

![Manufacturing dashboard with order counts, completed batches chart, orders by status and open orders](https://docs.smartposhub.com/_astro/manufacturing-dashboard.Br0eV7cc.png) (web app page: `/manufacturing`)
*Production at a glance: open orders, output, shortages and cost.*

## Before you start

- Add your **raw materials** and your **finished product** as normal products (finished products can be variable, each variation gets its own recipe). See [Add products](https://docs.smartposhub.com/catalog/add-products/).
- Buy or enter **opening stock** of the raw materials so costs and availability are real.
- If your goods expire, switch on product expiry in **Settings › Business Settings** so batches get an expiry date.

## First-time setup

1. Switch the module on in **Settings › Business Settings › Modules** (**Manufacturing**) and click **Update settings**.
2. Open **Manufacturing › Settings** and check each tab:
   - **Numbering & lots**: production order prefix and digits (for example MFG-2026/0001) and **Give each completed batch a lot number automatically**.
   - **Costing**: the **Material cost method**, **Default margin for suggested prices**, **Include material waste in the product cost**, and default extra costs.
   - **Production rules**: **Allow production with insufficient stock**, **Track production stages (routing)**, **Production orders need approval before they start**, and completion notifications.
   - **Stages** and **Waste reasons**: your reusable steps (mixing, baking…) and reasons staff pick when recording waste.
3. Go to **Manufacturing › Recipes** and click **Add recipe**, or **Import prebuilt** to start from a template.
4. In the recipe, pick the finished product, the **batch output**, each ingredient with its quantity (any unit of the product) and **Waste %**, optional by-products, **Extra costs** (labour, electricity, packaging, overhead; fixed per batch, per unit or % of material) and stages. Save.
5. Check the **Unit cost** and **Margin** on the recipe list. Use a new version when the recipe changes, so old batches keep their history.

![Recipes list with finished products, version, batch output, ingredient count, unit cost with margin and selling price](https://docs.smartposhub.com/_astro/manufacturing-recipes.Bgv58hxa.png) (web app page: `/manufacturing/recipes`)

## Everyday use

1. Click **New production**. Pick the recipe, location, quantity, planned and due dates and the staff member it is **Assigned to**. The order starts as **Planned**.
2. If approval is switched on, an approver clicks **Approve**.
3. Click **Start production** when work begins (status **In progress**). With stages on, update each stage as it is done.
4. When the batch is finished, click **Complete production**. Enter what was actually used and produced (planned quantities are filled in), any wastage with its reason, rejected output, the lot number and expiry, and adjust extra costs if needed.
5. Click **Complete and update stock**. Ingredients leave stock, the finished product arrives at its batch cost, and the order shows **Completed**.

![Production orders list with status cards, filters and orders in progress and completed](https://docs.smartposhub.com/_astro/manufacturing-production-orders.CyNE66nc.png) (web app page: `/manufacturing/production`)
*Filter by status, location, product, staff and date; tick Only overdue to see late orders.*

**What happens next:** the stock report and product stock history show the batch as "Manufactured" and the ingredients as "Used in production". When you sell the product, its cost of goods sold is the real production cost. With [Accounting & Bookkeeping](https://docs.smartposhub.com/modules/bookkeeping/) set up, each completed order also gets its own journal entry.

## Settings explained

| Setting | What it does |
|---|---|
| **Material cost method** | How estimates are priced: **Last purchase price**, **Average cost of stock on hand**, **Stock lots in the business's FIFO / LIFO order**, or **Default purchase price of the product**. Completed batches always use the actual cost. |
| **Default margin for suggested prices** | Used to suggest a selling price from the cost |
| **Include material waste in the product cost** | On: waste makes the finished product dearer. Off: waste is shown as a separate loss |
| **Update the product's default purchase price with the latest batch cost** | Keeps the product's cost field current |
| **Allow production with insufficient stock** | Lets you complete even when the system shows less stock than needed |
| **Track production stages (routing)** | Shows stage progress on each order |
| **Production orders need approval before they start** | Approvers are users whose role has "Approve production orders" |
| **Notify when production is completed** | In-app notification to the creator and any users you add |

## Permissions

| Permission (as on the Roles page) | Lets the user |
|---|---|
| Open the Manufacturing dashboard | See the dashboard |
| See production costs and margins | See costs and prices (without it, quantities only) |
| View recipes / Add recipes / Edit recipes and versions / Delete recipes | Work with recipes |
| View all production orders | See every order |
| View own production orders (assigned to or created by the user) | See only their own orders |
| Add production orders / Edit and start production orders | Plan and start batches |
| Approve production orders | Approve (these users are the approvers) |
| Update production stages | Tick off stages |
| Complete production (posts stock) | Complete batches |
| Cancel production orders / Delete production orders | Cancel or remove orders |
| View manufacturing reports | Open reports |
| Manage manufacturing settings | Settings, stages, waste reasons |

The prebuilt roles **Production Manager** and **Production Worker** are available under the roles import (see [Prebuilt](https://docs.smartposhub.com/modules/prebuilt/)).

## In the SmartPOS Business app

The **Production** screen has **Orders** and **Recipes** tabs, counters for in progress, planned, overdue and 30-day yield, and a search by order number, product or lot. Open an order to see its materials with stock on hand, then **Start**, **Complete** (enter good and rejected output and the lot) or cancel it.

![Production orders list in the app with in progress, planned and overdue counters](https://docs.smartposhub.com/_astro/manufacturing-app-orders.dGZn8dSA.png)
![Production order detail in the app with materials and a Complete button](https://docs.smartposhub.com/_astro/manufacturing-app-order-detail.Dyw8x1r6.png)
*Production in the SmartPOS Business app.*

## Tips and mistakes to avoid

- Each order makes one main product. To produce different products, create separate orders.
- Enter the **actual** quantities when completing; the planned ones are only a starting point.
- Reopening is only possible while none of the batch has moved, so check before you sell from it.
- Labour and electricity you enter as extra costs are part of the product cost. If you also record those bills as expenses, tell your accountant so they are not counted twice.

## Related pages

  - [Expiry and batches](https://docs.smartposhub.com/inventory/expiry-and-batches/) — Lots and expiry dates on stock.
  - [Stock reports](https://docs.smartposhub.com/reports/stock-reports/) — Manufactured stock in the stock report.
  - [Purchase orders](https://docs.smartposhub.com/inventory/purchase-orders/) — Order raw materials you are short of.
  - [Accounting & Bookkeeping](https://docs.smartposhub.com/modules/bookkeeping/) — Production journals in your books.

## Frequently asked questions

### When does stock change, when I create the order or when I complete it?

Only when you complete it. Completing a production order takes the ingredients out of stock and adds the finished product with its real batch cost. Planned and in-progress orders only reserve materials in the availability check.

### How is the cost of a finished product worked out?

Estimates use the costing method in Manufacturing settings. A completed batch always uses the actual cost of the ingredient stock it consumed, plus the extra costs such as labour or electricity, so your profit on the finished product is exact.

### Can one recipe make a product in several sizes?

Each recipe belongs to one product variation, so a 400 g and an 800 g loaf have their own recipes. A recipe can also produce by-products with a share of the cost.

### What if I am short of an ingredient?

The order shows a shortage and the dashboard lists Material shortages. You can buy the material first, or switch on Allow production with insufficient stock in settings.

### I completed a batch by mistake. Can I undo it?

Yes, a completed order can be reopened as long as none of the produced stock has been sold, used, adjusted, returned or transferred yet. A user needs both the complete and cancel permissions.

### Are there ready-made recipes?

Yes. Recipes › Import prebuilt offers recipe templates for bakeries, food processing, beverages, sweets, dairy, furniture, garments, cosmetics, cleaning chemicals and candles, plus stage and waste-reason lists.

### Does the produced batch get a lot number and expiry date?

Yes. With automatic lot numbers on, each completed batch gets one like LOT-261031-001, and its expiry is worked out from the product's expiry period when product expiry is on.