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Home/Odoo/General manufacturing
Odooimplemented by BUline
Odoo · Industries · Manufacturing

Manufacturing — from the bill of materials to actual cost in one chain

Both series and made-to-order production: the process card, work centers, raw-material imports and cost are linked in Odoo. A manager sees plan and actual side by side.

Bill of materials (BoM)Work centersSeries and made-to-orderImported raw materialsCost of goodsReport
Problems

Where plan and reality part ways at a manufacturing company

At most companies the plan lives in Excel, consumption in the warehouse notebook, and cost emerges in accounting at month-end. The three places do not match each other.

Plan and shop floor

  • The shop floor learns verbally what to start and when
  • Machine load is not visible; a delay is discovered only at the end
  • The next operation starts before the previous one has finished
  • Series and made-to-order jobs get mixed up in one table

Materials and purchasing

  • Consumption in the bill of materials differs from actual consumption
  • A raw-material shortage is noticed only after work has stopped
  • Freight and customs costs of imported raw materials do not enter the cost
  • Semi-finished goods stock goes unrecorded

Cost and reporting

  • Cost is estimated only roughly at month-end
  • It is unknown which order is profitable
  • Production costs and period costs get mixed together
  • Data for reporting and taxes is collected by hand
In Odoo

Which app does which job

Shop Floor, Quality, PLM and Barcode are part of the Enterprise edition (odoo.com/page/editions). PLM and Maintenance are not installed automatically with Manufacturing; they are enabled separately as needed. Which apps are required is determined during the diagnostic.

Production

Bill of materials, manufacturing order, backorder, by-products, cost, work centers.

Shop Floor

Shop-floor screen: starting an operation, steps, defects, operator time.

Warehouse

Stock of raw materials, semi-finished and finished goods, reordering rules, lots.

Purchase

Purchase request, supplier history, subcontracting.

Quality

Control points, inspections, defect alerts.

PLM

Managing changes to the product and process card with approval.

Maintenance

Preventive and corrective maintenance of equipment, linked to the work center.

Barcode

Receiving, picking and consumption with a scanner; reduces errors.

Accounting

Inventory valuation, cost entries, invoice, VAT 12% and 0%.

Studio

Custom fields and screens: for example, a shop sheet or a laboratory result.

Series and made-to-order

Make-to-stock and make-to-order production

Odoo runs both modes in a single database. A reordering rule (minimum and maximum) is set on a series product: when stock falls below the minimum, a manufacturing order is created or suggested. A made-to-order product gets the “made to order” (MTO) route: a manufacturing order is created as soon as the sales order is confirmed. For long-term planning and seasonal demand there is the master production schedule (MPS).

  • MPS only gives recommendations and does not create purchase or manufacturing orders itself; the documentation advises against applying a reordering rule together with MPS to a product in the schedule
  • A large order can be split into batches (Split), and orders with the same bill of materials can be merged (Merge)
  • If only part is ready, the remainder is moved to a separate order (backorder)
  • In continuous production, the finished portion moves straight to the next operation, so the machine is never left idle
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Process

From plan to finished product

A manufacturing order goes through six states from draft to close: draft, confirmed, in progress, to close, done, cancelled.

01Demand and plan

A sales order, a reordering rule or the master production schedule opens a manufacturing order.

02Bill of materials and operations

The order takes its components and operations from the bill of materials; they can be changed inside the order if needed.

03Material check

For a missing component, a purchase request is prepared or the component is sent to a subcontractor.

04Scheduling by work center

An operation is placed according to the work center's working hours, efficiency and booked time.

05Execution on the shop floor

The operator starts and finishes the work order and records rejects; time is logged automatically.

06Quality and receipt into stock

A control point requests an inspection, the finished product moves into the warehouse, and a batch number is assigned.

07Cost and reporting

When the order is closed, planned and actual cost are compared and accounting entries are posted.

Bill of materials and work centers

The recipe is one thing, the order another

A bill of materials (BoM) describes the product's composition and operations, while a manufacturing order launches it with a specific quantity and date. A work center can be a machine, a bench or a section. Its card sets the working hours (40 hours a week by default), time efficiency, setup and cleanup time, cost per hour and an alternative work center. At 50% efficiency, a 30-minute operation takes 1 hour: the same card gives different times at different work centers.

  • The expected duration is entered manually or calculated automatically from the most recent completed work orders
  • The “Blocked By” setting defines a sequence, such as cutting before gluing: a blocked work order stays in the “Blocked” state
  • OEE and work center load appear in the report (if work orders are enabled)
  • Details: bill of materials and manufacturing order, work center and work order, Shop Floor
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Imported raw materials

So that import costs are included in the product cost

Freight, insurance and customs costs for imported raw materials usually arrive later, on a separate invoice. In Odoo, “Landed Costs” adds them to the value of the received goods and allocates them in five ways: equal, by quantity, by current value, by weight, by volume. Condition: the valuation method of the purchased products' category must be average cost or FIFO. With the standard cost method, such costs are not added to the product cost. A validated entry cannot be cancelled; you correct it with a reversing (negative) entry.

  • The accounting standard (BHMS No. 4, para. 15) includes customs duty, transport and procurement costs, and insurance in the purchase cost
  • On import, the VAT base consists of the customs value, excise tax and customs duty (Tax Code, Article 254)
  • To claim input VAT, the import tax must have been paid to the budget (Article 266)
  • Details: Landed Costs, inventory valuation
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Cost of goods

Cost methods under the national standard and the matching Odoo tools

BHMS No. 4 “Inventories” (Uzbekistan's national accounting standard) lists four main methods of determining cost (simple, normative, job-order, process — para. 37); the fifth row shows accounting for joint and by-products. The mapping below is BUline's own analysis: we confirm with your accountant which method your accounting policy uses.

Method (BHMS No. 4)When it appliesMatching tool in Odoo
SimpleOne type of product, no semi-finished goodsBill of materials and manufacturing order; unit cost per order
NormativeConsumption of raw materials, labor and capacity is set by normsConsumption in the bill of materials as the norm; the difference between planned (MO Cost) and actual (Real Cost) is visible
Job-orderOne-off, non-serial production; costs are accumulated per orderA separate manufacturing order for each order, with actual cost at closing
ProcessRaw material passes through several stagesMulti-level bill of materials: a semi-finished product has its own card and cost
Joint and by-productsOne process yields several products or a residue“By-products” in the bill of materials; the allocation rule is agreed separately
Honest scope

What Odoo includes as standard and what we add

Not everything works out of the box. The list below is clarified against your process during the diagnostic.

GoalIn standard OdooExtra work (BUline)
Bill of materials, operations, work centersYes: component, operation, working hours, efficiency, cost per hourEntering and checking data for your products and sections
Planned and actual costYes: MO Cost and Real Cost; the WIP entry for work in progress is posted manuallyCost rates, employee hourly cost and calculation rules
PlanningReordering rules, MTO, MPS, Gantt and Kanban viewsAutomatic sequence optimization (for example, the best schedule under limited capacity) is not described in the documentation: assessed on request
Shop-floor screen and barcodeShop Floor, Barcode (Enterprise)Choosing devices and labels, configuring the shop-floor screen
Quality controlControl points, inspection types, defect alerts (Enterprise)Entering your control plan and norms; compliance with a standard (certification) is settled with the relevant body, not with Odoo
Subcontracted productionYes: three modes, the component is held at the subcontractor in a separate locationDocument exchange with the subcontractor and a liability agreement
Electronic invoice to the tax systemOdoo has an invoice; connection to the tax system is not mentioned in the Uzbekistan localization documentationConnection to the operator is assessed separately
PayrollWorking-time and work-order data are availableThe payroll module is a separate project: a ready-made localization for Uzbekistan is not mentioned in the documentation
External production software (MES, cutting, CAD)Not described in the documentationAn integration or a custom module, each assessed separately
Uzbekistan requirements

Tax, reporting and document requirements for a manufacturer

The items below were checked against official sources. The current version is re-checked at the start of the project, because lists and rates change.

Tax (VAT)

  • The standard rate is 12%, and the tax period is one month (Tax Code, Articles 258 and 259)
  • Goods placed under the export customs regime are taxed at 0% (Article 260); export is confirmed by the contract, the customs cargo declaration and accompanying documents (Article 261)
  • Input VAT on export-related costs is claimed in proportion to the share of foreign-currency proceeds; for a tax-compliant taxpayer, regardless of proceeds, but if no proceeds arrive within 180 calendar days, it is reversed (Article 266)
  • Odoo's official Uzbekistan localization (Fiscal Localization → “uz Uzbekistan”) provides 12%, 0% for export and exempt turnover; other cases you configure manually: VAT settings

Documents and electronic systems

  • An invoice is, as a rule, issued electronically (Article 47); from January 1, 2026, every electronic invoice is analyzed by risk level (Cabinet of Ministers Resolution No. 830)
  • If goods are sold with shipment, the electronic invoice can be combined with the waybill (Resolution No. 168, since March 19, 2025)
  • IKPU (MXIK) codes: about the classifier; electronic invoice: how it relates to Odoo

Accounting and compliance

  • Three permitted methods of inventory valuation: identified cost, weighted average cost, FIFO; one method per group for the whole year (BHMS No. 4, paras. 62 and 63)
  • Production cost includes material, labor, depreciation and other production costs; selling and administrative expenses are excluded (paras. 35 and 36)
  • Some products are on the list for mandatory conformity assessment (Cabinet of Ministers Resolution No. 43): which item your product falls under is checked during the diagnostic
Integrations

What you may need to connect

Each integration is assessed and connected separately. We do not promise that a ready-made connector exists.

Shop floor and equipment

  • Barcode scanners and label printers
  • Weighing instruments and sensors (IoT)
  • Existing MES or CAD software

Sales and supply

  • Website and order channels
  • Supplier documents
  • Exchange with the subcontractor

Finance and government systems

  • Electronic invoice operator
  • Bank statements
  • Customs and export documents
Reports

What the manager sees

The indicators are built from work orders, inventory and accounting entries.

Production

  • Order status and delays
  • Work center load and OEE
  • Operation duration: plan vs. actual

Finance

  • Planned and actual cost per order
  • Margin and unprofitable orders
  • Value of work in progress (WIP)

Inventory and purchasing

  • Raw material shortages and minimum stock
  • Material held by the subcontractor
  • Supplier lead times
Mistakes

Common mistakes and how to avoid them

The situations below follow from limitations described in the Odoo documentation.

Configuration

  • If work orders are not enabled, OEE is not calculated
  • If cost rates are not entered, the planned cost looks too low
  • The variants mode cannot be changed after it is added to a product

Planning

  • Applying both MPS and a reordering rule to the same product causes excess orders
  • Only an order with all its components available appears in Shop Floor: a shortage stops the shop floor
  • In one-step mode, the issue of a component from stock and the receipt of the finished product into stock are not recorded as a separate transfer document

Accounting

  • Landed Cost does not affect products with the standard cost method
  • A validated Landed Cost cannot be cancelled; a negative entry is needed
  • Zero-rated and exempt turnover look the same in Odoo, but the legal consequences differ
The BUline Method

How we implement it at a manufacturing company

The stages follow the general BUline Method; the timeline is agreed in writing after the diagnostic. We study the process for your industry during the diagnostic. Implementation process →

01Diagnostic1–2 weeks

We trace the path of an order: plan, material, shop floor, quality, warehouse, cost. Result: a BRD and an honest coverage table.

02Architecture1–3 weeks

We confirm the apps, bill of materials structure, work centers, valuation method, roles and integrations.

03Sprints8–16 weeks

In the first sprint, 1–2 product groups go through the full path from bill of materials to cost, then the rest.

04Training and launch

The planner, storekeeper, foreman and accountant are trained by role, and a real order is used as a test.

05Post-launch support30 days + ongoing

Intensified support, then new apps, reports and integrations.

Preparation

What to gather before we start

This list speeds up the diagnostic; you can start even if not everything is ready.

Product and process

  • Product list and composition (material, quantity)
  • Operations, sections and working hours
  • Reject and waste norms

Inventory and purchasing

  • Stock of raw materials, semi-finished and finished products
  • Suppliers, import routes
  • Subcontractors and the work assigned to them

Finance and documents

  • Accounting policy and valuation method
  • Current cost accounting (Excel, 1C or other)
  • Information about the electronic invoice operator
FAQ

Frequently asked questions

Can serial and made-to-order production run in one database?

Yes. A serial product gets a reordering rule, and a made-to-order product gets the MTO route. For long-term planning there is a master production schedule (MPS). Which product runs in which mode is determined during the diagnostic.

How do I see the cost?

On every order, Odoo shows two costs: planned, from the bill of materials (MO Cost), and actual (Real Cost). Materials, work center cost and employee hourly cost must be entered, otherwise the planned cost will come out too low. Which costs are included in production cost is decided by the accounting policy and your accountant.

Can freight and customs costs of imported raw materials be added to the cost?

Yes, Landed Costs is designed for exactly this. The valuation method of the purchased products' category must be average cost or FIFO. The national accounting standard also includes customs duty and transport costs in the purchase cost.

Does Odoo have a standard cost method, and does it comply with the national standard?

Odoo offers three valuation methods: standard cost, average cost and FIFO. BHMS No. 4 permits identified cost, weighted average cost and FIFO. So in inventory accounting, average cost or FIFO is usually chosen; the final decision rests with the accounting policy.

Does quality control satisfy certification requirements?

Odoo manages control points and inspections, but it does not replace certification or mandatory conformity assessment. Which requirement your product falls under, we check during the diagnostic against the official list.

Which edition is needed to use a tablet on the shop floor?

The Shop Floor and Quality apps are available in the Enterprise edition. Custom-code modules cannot be installed on Odoo Online; if custom-code development is needed, Odoo.sh or your own server is chosen.

Can data be migrated from the old software?

Products, bills of materials, stock levels and counterparties are imported. Data quality and structure are assessed during the diagnostic and verified in a test database. About migration

How much does the service cost and how long does it take?

The Odoo license is calculated by the number of users and apps (terms on odoo.com). The scope of BUline's service depends on product groups, sections, users, branches, integrations, data volume and training; the exact cost and timeline are given in a written proposal after the free diagnostic.

Free diagnostic

Let’s decide together which Odoo apps to start with

During the diagnostic, we review your processes and tell you where standard Odoo is enough and where configuration is needed — with an app list, edition and phases.

Free diagnostic