Multiple finished goods with single raw material

Multiple finished goods with single raw material

It is a common occurrence in the manufacturing sector for one RM (raw material) to be used in the production of many finished goods. This business use-case can be found in the majority of chemical production businesses. What is the best way to map this use-case in ERPNext? Let's use the oil manufacturing sector as an example. From crude oil, numerous products, such as gasoline, diesel, kerosene, and others, are manufactured.

• Create an item master first, using crude oil as your RM and fuels like gasoline, diesel, kerosene, etc. as your FG. Each product in this case has a variable UOM.
• Create a BOM for any of the FG you intend to make from crude oil after creating the item master (RM). Here, I've constructed a BOM for 25 liters of gasoline using 100 liters of crude oil (RM). The remaining FG, such as gas, diesel, and kerosene, I added to the scrap portion.

• You can include operations while establishing a BOM and conduct your production cycle (Work order) accordingly.

• When the work order is finished and the back-flush entry is made, your raw materials will be used up and you will have a number of finished goods.