Semi-Finished Goods Tracking

Note: This feature is available from ERPNext Version 16.

Semi-finished goods are products that have completed one or more manufacturing operations but still require additional processing before becoming the final finished product. These intermediate products can either be consumed in subsequent manufacturing operations or used as components in other products.

ERPNext Version 16 introduces the ability to track semi-finished goods directly within the manufacturing process. Instead of managing separate production cycles for each intermediate product, users can now define the finished or semi-finished goods against individual operations in a Bill of Materials (BOM). As each operation is completed, ERPNext automatically consumes the required raw materials and produces the corresponding semi-finished goods. During the final operation, the system consumes all intermediate products and produces the finished item.

This feature provides better production visibility, accurate inventory tracking, and improved costing throughout every stage of manufacturing.

How Semi-Finished Goods Tracking Works

To track semi-finished goods, ERPNext requires every finished or semi-finished product to be created as an Item with its own active Bill of Materials (BOM).

Users have two options for defining the manufacturing process:

• Create a separate Bill of Materials for each finished or semi-finished item and assign it to the respective manufacturing operation.
• Manually specify the raw materials required for producing the finished or semi-finished goods directly within the BOM.

Once configured, ERPNext automatically manages material consumption and production at every manufacturing stage.

Configuring the Bill of Materials (BOM)

When creating a Bill of Materials for products that require intermediate manufacturing stages, ERPNext provides several configuration options.

• Enable Track Operations and Track Semi Finished Goods while creating the BOM.
• Define the manufacturing operation, operation time, workstation, and workstation type for each production stage.
• Specify the default Source Warehouse, Work In Progress (WIP) Warehouse, and Finished Goods Warehouse.
• If Skip Material Transfer is enabled, materials can be consumed directly from either the Source Warehouse or the WIP Warehouse.
• For subcontracted manufacturing operations, define the subcontracted operations within the BOM. ERPNext also allows users to create Subcontract Purchase Orders directly from subcontracted Job Cards.

Work Order

After creating a Work Order from a BOM that tracks semi-finished goods, ERPNext automatically displays the raw materials, semi-finished goods, and finished goods associated with each manufacturing operation.

Once the Work Order is submitted, the system automatically generates the required Job Cards for every operation. These Job Cards can be completed either individually or through the Workstation Dashboard.

Manufacturing Scenarios

The manufacturing workflow depends on the material transfer configuration selected in the BOM.

Skip Material Transfer Enabled and Backflush from WIP Enabled

• Raw materials are consumed from the Work In Progress (WIP) Warehouse.
• The operator starts the production using Start Job.
• After completing the operation, the operator selects Complete Job.
• Submitting the Job Card creates a Manufacture Stock Entry that consumes materials from the WIP Warehouse and produces the semi-finished or finished goods into the Target Warehouse.

Skip Material Transfer Enabled and Backflush from WIP Disabled

• Raw materials are consumed directly from the Source Warehouse.
• The operator starts and completes the Job Card.
• Upon submission, ERPNext creates the Manufacture Stock Entry, consumes materials from the Source Warehouse, and transfers the produced goods to the Target Warehouse.

Skip Material Transfer Disabled

• Raw materials must first be transferred from the Source Warehouse to the Work In Progress Warehouse.
• Production begins after the transfer is completed.
• Once the Job Card is completed and submitted, ERPNext consumes materials from the WIP Warehouse and produces the finished or semi-finished goods into the Target Warehouse.

Job Card

Each Job Card represents an individual manufacturing operation. Operators complete Job Cards as production progresses through different manufacturing stages.

Depending on the manufacturing configuration, users may first transfer raw materials from the Source Warehouse to the Work In Progress Warehouse before beginning production.

After completing the operation, users create a Manufacture Stock Entry against the Job Card to produce the corresponding semi-finished or finished goods.

When creating the Manufacture Stock Entry, ERPNext asks whether the Stock Entry should be submitted immediately.

• Select Yes to create the Stock Entry in the Submitted state.
• Select No to create it as a Draft document for later review.

Once all Job Cards associated with the Work Order have been completed, ERPNext automatically marks the Work Order as completed.

Workstation Dashboard

The Workstation Dashboard provides a centralized interface for managing manufacturing operations directly from the shop floor.

Using the dashboard, operators can:

• Start manufacturing jobs.
• Pause active jobs.
• Resume paused jobs.
• Complete manufacturing operations.
• Transfer raw materials from the Source Warehouse to the Work In Progress Warehouse.

If Skip Material Transfer is enabled for the operation, no material transfer is required before production begins.

Subcontracted operations are not displayed in the Workstation Dashboard.

Transfer Materials

For operations where Skip Material Transfer is disabled, users must transfer raw materials from the Source Warehouse to the Work In Progress Warehouse before manufacturing can begin.

For operations where this option is enabled, ERPNext allows production without performing the transfer.

Start Job

Click the Start button to begin the manufacturing operation.

ERPNext automatically identifies the employee associated with the logged-in user and records the operator against the Job Card.

Pause Job

If production needs to be temporarily stopped, users can select the Pause option. This records the interruption without completing the operation.

Resume Job

After production resumes, selecting Resume continues the previously paused manufacturing operation.

Complete Job with Automatic Stock Entry

When the operator selects Complete, ERPNext prompts for the quantity produced.

The system then automatically creates a Manufacture Stock Entry that:

• Consumes the required raw materials.
• Produces the corresponding semi-finished or finished goods.
• Updates inventory based on the manufacturing transaction.

Starting and Completing Jobs Using QR Codes

ERPNext also supports QR Code-based manufacturing operations.

If QR Codes have been generated for Job Cards, operators can simply scan the appropriate QR Code to start or complete a manufacturing job.

This reduces manual interaction, speeds up shop floor operations, and minimizes data entry errors while tracking production activities.

Business Benefits

• Tracks inventory at every stage of manufacturing.
• Automatically produces semi-finished goods after each completed operation.
• Improves production visibility across multi-stage manufacturing processes.
• Provides accurate inventory valuation for intermediate products.
• Reduces manual Stock Entry creation through automation.
• Supports flexible manufacturing workflows based on warehouse configurations.
• Enables efficient shop floor management through the Workstation Dashboard.
• Accelerates production using QR Code-based job processing.

Key Summary

The Semi-Finished Goods Tracking feature introduced in ERPNext Version 16 enables manufacturers to produce and track intermediate products throughout the manufacturing lifecycle. By combining operation-based production, automated material consumption, Job Card integration, Workstation Dashboard controls, and QR Code support, ERPNext provides complete visibility into every stage of manufacturing while improving inventory accuracy, production efficiency, and operational control.