(Note: to be able to use Production Orders you need to have activated the Production Order module by going to Menu > Settings > Account Setup and ticking the Enable Production Order check box.)
This assumes you have started receiving finished goods against a Production Order and you're ready to start wrapping it up.
If a Production Order is either in In Process - Partially Completed or Completed state a user may Close the Production Order.
That action states that no more Finished Goods will be received from the Production Order. In case the status of the Production Order is In Process - Partially Completed and you proceed on closing the Production Order, the remaining Finished Goods will also return back to the inventory location those components that are still in the virtual Work-In-Process (WIP) inventory location. This means that the quantity of the Components will increase in the inventory location of the Production Order according to the remaining quantity of the Finished Good and the bill of materials of the Finished Good.
This completes the basic Production Order cycle. Note there are additional functionalities with regards to the Production Order workflow.