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Product Features Introduction

You produce goods for sale—baking, tailoring, cosmetic formulation, component assembly—but at the end of each month, you still can't answer the simplest question: how much does it cost to make one of my products? Ingredients are tracked in one place, labor is calculated mentally, and machinery costs are "estimated." When you sell, profit is just a guess.

From today, you no longer have to guess.

GTG CRM now includes a Production Management module integrated with your existing Inventory, Purchasing, and Accounting systems. Define your product recipes (Bill of Materials - BOM), and production orders will automatically calculate the exact raw materials needed, deduct them from inventory when started, and automatically calculate the cost of finished goods = raw materials + labor + overhead costs upon completion. Finished goods are entered into inventory at this exact cost, and the cost of goods sold entry is made directly into your accounting ledger—no more finished goods with "zero cost."

Problems Businesses Face

Old Method	Consequences
Recording raw materials in notebooks, mentally calculating labor costs	Uncertainty about true cost, incorrect pricing, apparent profit turning into actual loss
Not knowing if enough raw materials are available for upcoming orders	Running out of stock mid-production, or tying up capital in dead inventory of raw materials
Finished goods entered into inventory with "zero cost" because the software couldn't calculate it	Incorrect profit and loss reports, inaccurate Cost of Goods Sold (COGS)
Inventory, purchasing, accounting, and production spread across separate software	Multiple data entries, inconsistent data

GTG CRM consolidates everything into one process: define recipe → create production order → deduct raw materials → calculate cost → inventory finished goods → post to accounting ledger—seamlessly within the same system you use for sales and invoicing.

Highlights

1. Multi-level Bill of Materials (BOM)—the "recipe" for your products

• Define once, use forever: list each raw material (quantity, unit, scrap percentage) and work steps (which department, setup time + run time).
• Multi-level: a component in a recipe can itself be a sub-assembly with its own recipe—the system will fully break down all levels.
• Activate when ready: maintain multiple recipe versions, using only activated versions.

2. Production orders automatically calculate materials and costs

• Automatic recipe explosion: select product, recipe, and quantity—the system accurately calculates the required raw materials and work steps (including scrap).
• Deduct from inventory upon start: raw materials are deducted from inventory when you click Start; shortages are immediately flagged.
• Automatic cost calculation upon completion: enter the quantity produced and actual time spent—the system calculates unit cost = (raw materials + labor + overhead) ÷ quantity produced, and finished goods are inventoried at this precise cost.

3. Cost of Goods Manufactured (COGM) directly posted to the ledger

• No more zero-cost finished goods: self-produced items always have a cost basis, ensuring accurate Cost of Goods Sold (COGS) and profit/loss reports.
• Automatic journal entries: completed production costs (COGM) are automatically posted to the general ledger, matching your chart of accounts.
• Accounting and production unified: no manual reconciliation between two separate systems.

4. Material Requirements Planning (MRP) and Production Planning—including for customer orders

• Set inventory levels (minimum/reorder point/target) for each product, then run Planning (MRP): the system compares demand with inventory and suggests purchase orders (what to buy) and production orders (what to make).
• Factor in open sales orders: enable "include demand from sales orders" for planning based on customer orders—the system subtracts ordered quantities from inventory and ongoing production, suggesting production for the exact shortfall.
• Understand the suggestion source: each suggestion clearly states its origin (inventory levels, sales orders, or both).

5. Production by order—directly linked from sales orders

• From a sales order: open the order, view the Production Plan tab—it shows how much has been ordered, how much is in stock, how much is in production, and how much is still needed. Click "Create Production Order" for the shortfall, and the order is directly linked to that sales order.
• Track progress: the plan status on the sales order will show "In Production" and then "Ready" when completed; it will provide a reminder for delivery if not yet fully produced (it won't block you from shipping).

6. Quality control and variance analysis

• Quality checks: record inspections during raw material receipt, production, or for finished goods (passed/failed, action: accept/rework/reject/quarantine). Open non-conformance reports (NCRs) with corrective actions and close them upon completion.
• Variance from standard: if standard costs are set for products, each completed order will clearly show the variance (actual vs. standard for raw materials, labor, overhead)—instantly revealing why a batch exceeded or fell under budget.

💡 AI Assistant support: explains cost variances, drafts corrective actions (CAPA), and interprets MRP results in easily understandable language.

Benefits for Your Business

Feature	Practical Benefits for You
Multi-level BOM definition	Standardized recipes, ensuring consistent quality and cost regardless of who produces it
Production orders automatically calculate cost	Accurate knowledge of how much it costs to make a product—leading to correct pricing
Cost directly posted to ledger (COGM)	Accurate profit and loss reporting, eliminating the issue of "zero-cost" finished goods
MRP based on customer orders	Prevents running out of raw materials mid-production and avoids tying up capital in dead inventory
Production directly linked to sales orders	Produce exactly what customers need, when they need it, with no missed deliveries
Quality control + variance analysis	Control waste, pinpointing which batches are unprofitable and why

Who is it For?

• Small and medium-sized manufacturing workshops: food and beverage, cosmetics, apparel, furniture, metalworking, printing, household goods.
• Shop owners who also produce (cakes, handmade items, custom fabrication) and want to know the true cost to set prices.
• Growing businesses looking to move beyond Excel/separate production software and integrate with their sales, inventory, and accounting systems.

How to Get Started?

Go to Manufacturing within the system, define Units of Measure and Production Departments, set up the Bill of Materials (BOM) for a product, and then create your first production order. Have existing raw material/BOM lists in Excel? Drag and drop your file, and let AI match the columns. See the step-by-step Production Management guide, or read the real-world story From Raw Materials to Finished Goods—Knowing the Exact Cost to Price Without Guesswork.

Try it for Free—no credit card required.

→ Start for Free with GTG CRM