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Production: materials and finished goods accounting

Manufacturing accounting software in Torgsoft is the additional option «Manufacturing: accounting for materials and finished goods». It keeps records across the entire product path: from purchasing raw materials to producing finished goods and selling them. For each product, a routing sheet is created with consumption standards; during production, the software writes off materials from the warehouse and calculates the cost per unit.

The option is needed by businesses that manufacture products themselves: sewing workshops and clothing factories, bakeries and confectioneries, ateliers, jewelry and furniture workshops, and cosmetics manufacturers. It solves the typical problem of small-scale production — accounting «through spreadsheets, calls, and clarifications», when no one knows exactly how much material was used for a product, where the batch is, and how many finished goods can be shipped.

In Torgsoft, manufacturing, warehouse, and sales work with the same data. In one system, the owner sees raw material balances, the quantity of finished goods produced, cost, and order status. If there are hired employees in production, piece-rate pay can be recorded based on actual manufacturing. As a result, manual control is replaced by data-driven management: it is clear what the product was made from, who performed the operations, when the goods were produced, and for whom they were reserved.

A single system: materials, manufacturing, and sales

Routing sheets, raw material write-offs, cost, and production orders — in one Torgsoft program, without separate spreadsheets or manual reconciliations.

Routing sheets with standards Material write-off Batch and unit cost Production orders Piece-rate pay
Torgsoft manufacturing accounting software: materials, routing sheets, and finished goods

What manufacturing accounting in Torgsoft is

Manufacturing accounting is a separate Torgsoft module that counts not only goods in the warehouse, but also what they are made from. The software stores the product recipe (routing sheet), records completed operations, writes off raw materials, and calculates how much each unit and the entire batch cost. Manufacturing, warehouse, customer orders, and finances are stored in one database, so the financial result is visible without manually consolidating spreadsheets.

Basic concepts

RS

Routing sheet

A product template: a list of operations and materials with consumption standards per unit.

ACT

Production act

A document for manufacturing a specific batch, created based on the routing sheet.

ROUTE

Route sheet

An act in real-time control mode: operations have barcodes, and completion is recorded by scanning.

OUTPUT

Product output

Closing the act: materials are written off, and goods are posted to the warehouse with cost.

COST

Cost

The value of a product from materials and operations. Calculated for the batch and for a separate unit.

ORDER

Production order

A manufacturing plan for a customer: readiness date, order composition, and payment control.

Who this option is for

The option is needed where products are manufactured in-house and materials and cost must be calculated. It provides the greatest value to businesses with several employees, a model range, or piece-rate pay.

CLOTHING

Sewing production and clothing factories

A model range with sizes and colors, fabric and accessories standards, and piece-rate pay for operations.

BAKERY

Bakeries and confectioneries

Recipes, ingredient write-off based on actual baking, portion cost, and stock balance control.

ATELIER

Ateliers and workshops

Custom manufacturing, material accounting, readiness deadlines, and payment to the craftsperson.

WORKSHOPS

Jewelry, furniture, and cosmetics workshops

Complex products made from semi-finished goods, serial numbers, labeling, and precise batch cost.

Who does not need the option. If you only resell finished goods and do not write off raw materials — Torgsoft basic warehouse accounting is enough. If you have one craftsperson without hired employees and without material accounting, the option will not provide a new result compared with the basic functionality.

When the option should be connected immediately

  • Hired employees have appeared, and piece-rate pay based on actual manufacturing is needed.
  • The number of orders has increased, and managers ask the workshop every day when the goods will be ready.
  • It is difficult to calculate how much material goes into a product and what the real cost is.
  • A model range with sizes and colors has appeared, and it is difficult to maintain it in spreadsheets.

What tasks the option solves

Below are typical situations in a manufacturing business and what changes after the option is connected.

Pain point
Solution in Torgsoft
Result
Pain pointIt is unknown how much material was used for a product
SolutionConsumption standards in the routing sheet, automatic write-off based on actual output
ResultAccurate accounting of raw materials and waste
Pain pointCost is calculated «by eye»
SolutionCalculation of batch and unit cost from materials and operations
ResultClear markup and profit control
Pain pointThe manager asks the workshop every day about the readiness date
SolutionProduction order with an end date and statuses
ResultThe manager sees the deadline without calling the workshop
Pain pointIt is unclear who manufactured how much
SolutionLinking the operation to the performer, grades, and coefficients
ResultPiece-rate salary based on actual work
Pain pointMaterials are purchased blindly
SolutionCalculation of material requirements based on orders and stock balances
ResultSupplier orders without surplus

How it looks before and after

An example of a small sewing production business that manufactures products to order and sells retail and wholesale. This is an illustrative scenario explaining the work logic.

Before

Materials are counted in a separate spreadsheet, and cost is estimated manually. The manager calls the workshop to find out the order deadline. No one reconciles fabric and accessories balances with output, so materials periodically «disappear», and some products are sold at a loss.

After

Each model has a routing sheet. The manager creates a production order with a readiness date, and the workshop sees what must be manufactured. During output, materials are written off automatically, the software calculates cost and posts the goods to the required warehouse. The owner sees stock balances, finished goods, and the status of each order.

How manufacturing accounting works: 5 steps

Create a product routing sheet. Add operations and materials with consumption standards. For complex products, routing sheets can be created for semi-finished goods, and for clothing — for a model range.

Create a production act or route sheet for a batch. An act is the simpler mode; a route sheet provides operation control by barcodes.

Record completed operations. With a route sheet, completion is marked by scanning, and the operation is linked to a specific performer.

Release finished goods. The software will write off materials and substitutes, calculate cost, and post the goods to the warehouse with a specified markup. If needed, it will generate serial numbers and print labels.

If needed, plan production for a customer. Create a production order with a readiness date and calculate material requirements for purchasing.

Important. Material can be written off both during the manufacturing process and upon product output. The write-off procedure is set in the routing sheet: proportionally to the number of operations, all material on the first operation, or all material on the last operation. Written-off material goes into Write-off Acts together with waste accounting.

Try manufacturing accounting in your business

Download the Torgsoft demo version and activate the option for 30 days. Data is stored on your computer, so after purchase you will continue accounting without losing the information you entered.

Option capabilities

Function
What it does
Who benefits
FunctionRouting sheets
What it doesStore material standards and the list of operations for a product, semi-finished good, or model range
Who benefitsAny manufacturing business with repeatable products
FunctionMaterial substitutes
What it doesAllow replacing a material during manufacturing without changing the routing sheet
Who benefitsWorkshops with unstable raw material supply
FunctionRoute sheets
What it doesControl manufacturing in real time using operation barcodes
Who benefitsProduction with several stages and performers
FunctionCost calculation
What it doesCalculates batch and unit cost including materials and labor
Who benefitsOwners who control profit
FunctionMaterial and waste write-off
What it doesWrites off raw materials during the process or upon output and keeps write-off acts
Who benefitsManufacturers with expensive or controlled raw materials
FunctionFinished goods output
What it doesPosts goods to the warehouse with cost, markup, serial numbers, and labels
Who benefitsThose who sell their own products retail and wholesale
FunctionProduction orders
What it doesPlans customer-based manufacturing with a readiness date, models, payments, and statuses
Who benefitsManufacturers working to order
FunctionPurchase planning
What it doesCalculates material requirements based on orders and balances, creates supplier orders
Who benefitsThose who want to avoid shortages and surpluses
FunctionPiece-rate pay
What it doesLinks operations to performers, takes grades and salary coefficients into account
Who benefitsManufacturers with hired employees
FunctionEquipment accounting
What it doesTracks equipment usage and load for production planning
Who benefitsWorkshops with a limited equipment fleet

Scenarios by niche

CLOTHING

Children’s clothing factory

For each model — a routing sheet: fabric, accessories, and sewing operations. The order is created for a model with sizes and colors. The manager sees the requirement, production sees what must be sewn and by what date, and the warehouse works with finished goods. The product becomes immediately available for retail, wholesale, and online sales.

BAKERY

Bakery and confectionery

The routing sheet serves as a recipe: standards for flour, sugar, fillings, and other ingredients. After baking a batch, the software writes off products and calculates portion cost. The owner sees whether there is enough raw material for tomorrow’s output and what markup to maintain.

JEWELER

Jewelry workshop

Complex products are assembled from semi-finished goods, and each item can have a serial number. The routing sheet accounts for metal, inserts, and craftsmen’s operations, while cost is calculated by batch and unit. Labeling is generated during output.

Example: a small children’s clothing factory

The factory uses Torgsoft not as a regular warehouse program, but as a single system for managing manufacturing and sales. Routing sheets are created for products: what materials are needed, what operations are performed, and what is included in making the model. Based on the routing sheet, a production act is created, and when the batch is ready — the software records output, writes off materials, and shows the goods in the required warehouse or retail location.

Work with orders is configured separately. Managers issue invoices and reserve goods. If the required product is not available, a production task appears: when it will be ready and what can be promised to the customer. Here Torgsoft becomes a shared working environment — the manager sees the customer’s need, production sees what must be manufactured, and the warehouse and shipping work with already released goods.

In addition to manufacturing, related modules are connected: payroll calculation, bulk SMS and e-mail, customer management, and synchronization with the online store. Automation goes beyond the workshop and connects production, managers, warehouses, retail locations, online sales, and financial accounting.

Which options and equipment it works with

Manufacturing accounting is part of the Torgsoft program, so it interacts with the rest of the functions. Most often, the option is strengthened by:

  • Payroll and personnel motivation — piece-rate pay based on actual manufacturing.
  • Customer management and bulk SMS, e-mail, and Viber mailings — for order communication.
  • Online sales: export of goods and prices to an online store, to Prom and Rozetka — to sell your own products online.

To automate technological processes in production, we recommend compatible equipment:

Comprehensive manufacturing automation in Torgsoft. Together with manufacturing accounting, one system provides: warehouse accounting for materials and finished goods; financial accounting and settlements with suppliers and customers; customer management and discount programs; supplier invoice import; personnel accounting; pricing with minimum markup control; repair and warranty service; retail and wholesale sales; trade with invoice issuance and consignment note control; marketing and mailings; online sales; analytics and access rights separation.

Price and connection terms

Cost of the option «Manufacturing: accounting for materials and finished goods»
23000 UAH
  • Licenses. Works with Torgsoft Ultra and Terminal.
  • Connection. For each workplace, one per local network, or one per terminal license server.
  • Demo version. Free for 30 days, data is stored on your computer.

How to connect

  1. Order the option in the online store or from the sales department.
  2. Pay the invoice and send the receipt.
  3. Activate the option with the help of technical support.

Frequently asked questions

What is manufacturing accounting software in Torgsoft?

It is the additional option «Manufacturing: accounting for materials and finished goods». It keeps records from purchasing raw materials to producing and selling the product: routing sheets with standards, material write-offs, cost calculation, and production orders in one system.

What type of business is the option suitable for?

For those who manufacture products themselves: sewing workshops and clothing factories, bakeries and confectioneries, ateliers, jewelry and furniture workshops, and cosmetics manufacturers. The greatest benefit comes when there are hired employees, a model range, or piece-rate pay.

Can I do without this option?

If you only resell finished goods and do not write off raw materials, Torgsoft basic warehouse accounting is enough. The option is needed where material standards, product cost, and manufacturing stages must be controlled.

How is the cost of finished goods calculated?

Based on actually consumed materials and completed operations. The software calculates the cost of the batch and a separate unit, accounts for waste, and allows recalculating cost after a new receipt of raw materials.

Are materials written off automatically?

Yes. Write-off is linked to operations or to the fact of product output. You can set the procedure: proportionally to the number of operations, all material on the first operation, or all material on the last operation. Written-off material goes into Write-off Acts.

Can material purchasing be planned?

Yes. Based on customer orders and available balances, the software calculates material requirements and helps create supplier orders.

How is manufacturing connected with piece-rate salary?

Each operation is linked to a performer, has a grade and a salary coefficient. Together with the option «Payroll calculation and personnel motivation system», this provides piece-rate pay based on actual manufacturing.

Is the option suitable for a model range with sizes and colors?

Yes. Routing sheets are created both for individual products and for a model range. In a production order, you can specify the model with the required sizes and colors.

Which Torgsoft licenses does the option work with?

With Torgsoft Ultra and Terminal licenses. The option is connected to a workplace, to a local network, or to a terminal license server.

How much does the option cost and is there a demo version?

The cost of the option is 23000 UAH. Before purchase, you can download the demo version and activate the function for 30 days. Data is stored on your computer, so after purchase you will continue accounting without losing the information you entered.