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When I click produce on a manufacturing order it automatically reduces materials and increases inventory. However, manufacturing is not instantaneous, and I see no mechanism for accounting for the intermediate step.

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A set of configurations is required to have real-time inventory values recorded, which include the movement of value from raw materials, through WIP, to finished goods. I created a video and shared slides that give an overview of this process.

http://ursainfosystems.com/homesite/webinar-us-accounting-on-openerp-7-0/

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Your suggestions seem to work except one weird problem. When manufacturing, the last entry debits Finished Goods for 0 and Credits WIP for 0. Why would it have the proper accounts to debit and credit, but not record there value?

Check the cost price of the product.

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the cost price is 0 which I don't understand because I manufactured the product. Shouldn't it have taken the value from the consumed materials?

It is up to you to maintain this price, unless you install https://www.openerp.com/apps/trunk/product_cost_incl_bom/

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It says "Available for 6.1" they don't have it for version 7?

The trunk version is fine to use with v7.

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Here is a question from my programer: We are using stock OpenERP 7 on Linux.

I cannot find where addons should go.

There are a bunch of addon directories here: /usr/lib/python2.6/site-packages/openerp-server/addons

However, I don't see any new addons that I copy to that directory. Also the descriptions displayed for the addons in OpenERP do not match the descriptions in the files in the addon directory. Can you point me to where addons should be installed?

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We are using Ave Cost method. What do I have to do to use this addon with Ave Price?

Hi Ray,
Please do you still have this video?

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OpenERP has a very simple mfg module, that it is not suitable for real manufacturing without "massive" tailoring. It seems that this lack of real mfg module is the most weak point of OE. There are several different "proprietary" OE mfg modules available, but only for "closed" usage. It seems that there is not yet strong open source community for OE and that may be reason for that people are not sharing best practice solutions with each other.

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(1) It depends on what you mean by real manufacturing - there are many users who find it just fine for their needs (we have only one client who has done 'massive' tailoring, and it was mostly related to tracking serial numbers through work centers, using scanners to stop and start work orders). (2) I strongly disagree that there is not a strong open source community for OpenERP. You only have to look at Launchpad, these forums and the old forums. The "community" now maintains their own public branch of OpenERP!