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I created an MO through an SO with one step manufacturing process, created an invoice and delivered it. However, the quantity on-hand remains the same. it moved from stock to production, total being the same.

the onhand qty does not reduce.why is it so?

MO product move


On-hand qty


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Hi,

While creating manufacturing order there will be a stock move , the components move from WH/Stock (your main warehouse- internal location) to Production location (production), so that there is decreasing in the components quantity, according to the product we want to produce, the finished goods move the production location to corresponding internal location that means the WH/Stock (your main warehouse) then the quantity will updated , If the location is not set properly there is no change in the onhand quantity, please make sure that you set the location properly.

Regards

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The on hand qty did not change as the required qty from SO was met by manufacturing it and subsequently delivering it.

Stock qty + MO qty - Delivered Qty .. since MO qty and delivered qty are the same there is no change to on hand qty.

What should have changed (reduced) is the BOM component qty that were used in the MO

Hope my understanding of the question is correct.

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Author

I have delivered the product, but the stock still sits in Production location

The production location is a virtual location. Physical stock is shown on Internal location.
When you consume components in production, stock are moved to the virtual location 'Production'.
This is also what your list of movements show.

Similar is done with Scrap, Inventory adjustment, Send to customer, Receive from vendor. It is all movements from / to a virtual location to/ from a internal location. When you process these moves, Financial journal entries are automatic created.

So unless you have modified standard and changed the production location to Internal, this is normal.

When you open reports for what you have in stock, default setting is that it only show Internal location.

Author

Hi Lars,
1. so even when the products are consumed, the qty will not reduce?
2. I tried changing the "Finished Products Location" in MO from location stock to Yard(internal location) however, there's no stock in there.

As in @
Lars Aam
 comment, are you able to validate if the production location is set as virtual location and not as internal?

Inventory > Configuration > Locations



Quantities in internal locations are only included in the on-hand stock

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