(Note: to be able to use Production Orders you need to have activated the Production Order module by going to Settings > Account Setup and ticking the Enable Production Order check box.)
This assumes you have added a Production Order and you're ready to take it to the next stage.
To allocate components to the virtual Work-In-Process (WIP) inventory location click the Allocate Components option in the Production Order.
This will bring up the Allocate Components dialog window:
The user has two options: a) Input finished good quantity for automatic calculation of component quantity or b) Manually input individual component quantity to allocate.
In the first option the user should enter the quantity of the Finished Good to manufacture (should be less than the Ordered Quantity of the Production Order) and click Show Component Availability to start the calculation of the Raw Material quantity that needs to go into the virtual Work-In-Process (WIP) inventory location to produce/manufacture the quantity of the Finished Good entered.
In the second option, the user may allocate manually Raw Material quantity to the virtual Work-In-Process (WIP) inventory location.
Allocating Raw Materials (components) quantity reduces the Quantity of the Raw Material products in the inventory location of the Production Order and increases the quantity of the Raw Material products in the virtual Work-In-Process inventory location.
Once you have allocated components to a Production Order the next stage is to receive the finished goods.