Manufacturing Module

IFRS Compliant Cost Accounting System

IAS 2 IAS 16 IAS 38 IFRS 15

Overview

The Manufacturing module provides IFRS-compliant cost accounting plus a production platform: industry packs, nested recipes/BOM, work centres, work orders with RAW→WIP→FG, and job cards. Stock availability for materials uses HQ/branch inventory pools, mirrored by warehouse locations.

Updated Aug 2026. Related guides: Recipes quick start · Warehousing · Job cards & BOM · Roles

Production platform (how to run a job)

1. Recipes & packs

Open Recipes/BOM. Optionally enable an industry pack, then create a platform recipe (finished product, yield/scrap, nested BOM, optional routing).

2. Stock ready

Materials must sit in the correct HQ or branch pool. Receive into warehouse RAW with pool credit, or allocate from HQ. See Warehousing.

3. Work order board

Manufacturing → Work Orders (WIP): create WO (product, qty, site mode, optional recipe). Then Pick → Release → Issue → Complete.

4. Location moves
  • Issue — pool consume + RAW → WIP
  • Complete — FG into pool + WIP → FG
  • Pick list compares pool vs warehouse RAW

Job cards

Use Job Cards for workshop / quotation-driven jobs (materials, labour, VIN/BoQ fields when packs are on). Status flows to completed and ready-to-invoice. For batch production with location WIP, prefer the Work Orders board.

Open Manufacturing Open Recipes

Key Features & IFRS cost accounting

IFRS Compliance Dashboard

IAS 2 Compliance

Inventory valuation for tangible goods

IAS 38 Compliance

Intangible asset accounting

IAS 16 Compliance

Property, Plant & Equipment allocation

IFRS 15 Integration

Revenue recognition for digital products

Multi-Product Type Support

  • Raw material cost tracking
  • Direct labor cost allocation
  • Manufacturing overhead distribution
  • Work-in-progress (WIP) inventory management
  • Standard inventory valuation methods

  • Airtime/Phone Credits: Platform costs, commission tracking
  • Software Applications: Development, licensing, and maintenance costs
  • Digital Content: Creation, distribution, and marketing costs
  • Subscription Services: Operating and customer acquisition costs

  • Software Licenses: Acquisition and implementation costs
  • Patents & Trademarks: Legal and registration costs
  • Development Assets: R&D capitalization
  • Intellectual Property: Valuation and amortization

Advanced Cost Allocation Methods

Direct Cost Assignment

Direct allocation to specific products

Activity-Based Costing (ABC)

Cost drivers and activity pools

Standard Costing

Predetermined costs with variance analysis

Job Order Costing

Project-specific cost tracking

Process Costing

Continuous production cost averaging

Real-Time Analytics & Reporting

Interactive Charts
  • Cost Breakdown Analysis: Bar chart showing cost categories
  • Product Type Distribution: Doughnut chart of product mix
  • Cost Allocation Summary: Pie chart of allocation methods
Summary Metrics
  • Raw Materials Total
  • Direct Labor Costs
  • Manufacturing Overhead
  • Intangible Assets Value
  • Work-in-Progress Inventory
  • Total Production Costs

Data Management Examples

Tangible Goods

{ type: 'tangible', rawMaterialCost: 50.00, directLaborCost: 25.00, manufacturingOverhead: 15.00, totalUnitCost: 90.00, inventoryValue: 4500.00 }

Digital Products

{ type: 'digital', category: 'airtime', developmentCost: 5000.00, platformCost: 1000.00, marketingCost: 2000.00, operatingCost: 500.00, revenueModel: 'commission' }

Intangible Assets

{ type: 'intangible', acquisitionCost: 10000.00, licensingCost: 2000.00, implementationCost: 3000.00, usefulLife: 5, amortizationMethod: 'straight-line' }

Benefits & Value Proposition

Compliance

  • IFRS Standardization
  • Complete Audit Trail
  • Regulatory Reporting
  • Financial Transparency

Operational

  • Better Cost Control
  • Data-Driven Decisions
  • Efficiency Tracking
  • Scalability

Strategic

  • Product Profitability
  • Resource Optimization
  • Cost Benchmarking
  • Investment Planning

Financial Reporting Features

Cost Center Analysis
  • Departmental cost allocation
  • Activity-based cost distribution
  • Overhead absorption rates
Product Profitability
  • Unit cost calculations
  • Margin analysis
  • Break-even analysis
Variance Reporting
  • Standard vs. actual comparison
  • Material, labor, overhead variances
  • Performance metrics
Inventory Valuation
  • FIFO, LIFO, weighted average
  • Lower of cost or market adjustments
  • Obsolescence provisions

Workflow Integration

Product Creation Process

  1. Product Type Selection: Choose from tangible, digital, service, license, or intangible
  2. Cost Structure Definition: Set up relevant cost categories
  3. Allocation Method Selection: Choose appropriate costing method
  4. Initial Cost Entry: Record baseline costs
  5. Ongoing Cost Tracking: Regular cost updates and adjustments

Cost Entry Workflow

  1. Product Selection: Choose existing product
  2. Cost Type Classification: Select appropriate cost category
  3. Allocation Method: Specify cost allocation approach
  4. Quantity & Unit Cost: Enter detailed cost information
  5. Documentation: Add notes and supporting information