ERPNext’s Manufacturing module lets you manage your entire production process — from Bill of Materials to Work Orders to finished goods. This guide walks you through setting it up from scratch.

STEP 1 Enable Manufacturing Module

During the ERPNext setup wizard, make sure Manufacturing is checked. If you already set up ERPNext, go to:

Setup > Module Settings > Check "Manufacturing"

STEP 2 Create Items

You need two types of items — raw materials and finished goods.

# Raw Material Example
Item Name: Wooden Plank
Item Group: Raw Material
Stock UOM: Nos
Is Stock Item: Yes

# Finished Good Example
Item Name: Wooden Table
Item Group: Products
Stock UOM: Nos
Is Stock Item: Yes
Default BOM: (will set after creating BOM)

STEP 3 Create a Bill of Materials (BOM)

The BOM defines what raw materials and quantities are needed to manufacture one unit of a finished good.

Item: Wooden Table
Quantity: 1

BOM Items:
- Wooden Plank: 4 Nos
- Screws: 16 Nos
- Wood Varnish: 0.5 Ltr
- Table Legs: 4 Nos

STEP 4 Set Up Workstations

Workstations represent physical locations where manufacturing happens.

Workstation Name: Cutting Station
Production Capacity: 10
Hour Rate: 50

STEP 5 Create Operations

Operation: Cutting
Default Workstation: Cutting Station
Description: Cut wooden planks to size

Operation: Assembly
Default Workstation: Assembly Line
Description: Assemble table components

Operation: Finishing
Default Workstation: Finishing Station
Description: Apply varnish and quality check

STEP 6 Create a Work Order

A Work Order tells your factory floor to produce a specific quantity of an item.

Production Item: Wooden Table
BOM: BOM-Wooden Table-001
Qty to Manufacture: 10
Planned Start Date: 2026-04-15

STEP 7 Submit and Track

Submit the Work Order and create Job Cards for each operation. Workers can update job card status as they complete each step. When all operations are done, create a Stock Entry to move finished goods into your warehouse.

Work Order > Create Job Cards > Start > Complete
Work Order > Finish > Stock Entry (Manufacture)

Your manufacturing pipeline is now set up. ERPNext will track raw material consumption, production costs, and inventory levels automatically.