Glossary · Inventory and manufacturing

What is work order?

See the example

DefinitionInventory and manufacturing

Work order

Also called production order, manufacturing order

A work order is an instruction to make a set quantity of a product from its bill of materials by a set date, tracking the materials issued, the operations and the output.

Term 65 of 65, A to ZUpdated

What it means

A work order turns a plan into factory work. It names the product, quantity, BOM, due date and warehouses: where raw materials come from, the work-in-progress store, and where finished goods go. As work happens, materials are transferred to WIP, each operation is done and timed on a job card, and finished goods are received into stock at their rolled-up cost.

Example

Work order WO-26-0091, 4 Nov 2026: make 200 teak chairs by 15 Nov.

Step What moves
Material transfer 800 legs, 200 seat assemblies, 40 kg screws, 50 litres polish to WIP
Job cards Assembly, 400 hours; polishing, 200 hours
Finished goods receipt 196 chairs to Finished Goods; 4 rejected at inspection
Cost per good chair total cost ÷ 196

The 4 rejects are why output is planned slightly above the order.

Common mistakes

  • Issuing material without a work order, so cost per unit is unknown.
  • Closing the order without recording rejects and leftover material.
  • Not updating job cards, so labour cost is a guess.

In MyRecords

A work order made from a BOM lists the required items with quantities and source warehouse on save. Start (transfer materials) moves them to work in progress and Finish (receive finished goods) books the output; each operation is a job card you start, pause, resume and complete, and the Shop floor page keeps working when the network drops, sending its queue when it is back.

Next step

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