PRODUCTION ORDER

A production order defines which material is to be processed, at which location, at what time and how much work is required. It also defines     which resources are to be used and how the order costs are to be settled.           The work processes within the company are executed using orders.

Production orders are used to control production within a company and    also to control cost accounting.

You can use the production order to specify:

·         What is to be produced

·         What are the input materials

·         How much to be produced

·         How much is the production cost