Manufacturing ERP built for Philippine production operations — BOM, MRP, shop floor, and BIR compliance in one system.

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Every line of code we write is yours at cutover. No license. No annual increase. No lock-in.

What does a manufacturing ERP need that a generic ERP doesn't provide?

Production-specific workflows: bill of materials with yield loss, MRP with Philippine lead times, shop floor tracking, and actual cost accounting — not standard templates.

Generic ERP systems model manufacturing as a sequence of transactions. Philippine manufacturers need a system that models how they actually produce — a food manufacturer's BOM must account for moisture loss and co-products, a garment manufacturer needs style-colourway tracking, a pharmaceutical manufacturer needs GMP-aligned batch records. These are not configuration options in ECOUNT or Odoo out of the box.

What is a bill of materials (BOM) and how does the system manage it?

A BOM defines every raw material, component, and packaging item required to produce one unit of finished goods. The system maintains BOMs per product, per production version, and per yield assumption.

A multi-level BOM allows for sub-assemblies — a finished product BOM references a packaging assembly BOM which references the individual packaging components. Yield loss percentages are built into the BOM so MRP calculates gross material requirements, not net. BOM versions are dated — a formula change takes effect on a future date without affecting historical production orders. The landed cost of imported components is included in the BOM cost rollup.

How does material requirements planning (MRP) work for Philippine manufacturers?

MRP reads open sales orders and the production schedule, checks current inventory, and generates purchase order recommendations with Philippine supplier lead times built in.

Philippine manufacturers often deal with long lead times for imported raw materials — 30 to 90 days for ocean freight from key supplier countries. MRP factors in the lead time per supplier per material so purchase orders are triggered early enough to avoid stockouts. Safety stock levels are configurable per material. When a production order changes, MRP recalculates and adjusts open purchase orders automatically.

Can the system track production orders across multiple production lines or shifts?

Yes. Production orders are assigned to a production line and shift. Output, scrap, and material consumption are recorded per shift per line.

A factory running two to three shifts on multiple production lines needs yield and downtime data per line and per shift — not just a daily aggregate. The system records production order output, scrap by cause, and actual material consumption per shift. Downtime events — equipment failure, changeover, material shortage — are logged against the production order. The result is a shift report the production supervisor can review without a spreadsheet.

How does actual cost accounting work compared to standard costing?

Actual cost accounting posts the real raw material cost from the purchase order into the production order. Standard costing uses a pre-set unit cost that goes out of date when prices move.

Standard costing is simple to administer but produces cost variances that must be reconciled at period-end. For Philippine manufacturers dealing with frequent raw material price movements — particularly for agricultural inputs and imported chemicals — actual costing gives the CFO real margin data per production run, not a variance pile to explain. The system computes actual production cost from the goods receipt and production order records, not from a periodic update.

How does the system handle raw material inventory management and cycle counting?

Raw material inventory is decremented at goods issue to production in real-time. Cycle counting schedules replace the monthly physical stocktake.

The monthly physical stocktake — where production stops so the warehouse team can count everything — is a symptom of poor perpetual inventory. The system maintains a running inventory balance by location by material; adjustments from production losses and scrap are posted as they occur. Cycle counting assigns a rotating subset of materials to count each week so the entire inventory is counted over a 30- to 90-day cycle without stopping production.

Does the system support lot traceability for food and pharmaceutical manufacturers?

Yes. Each production lot is traceable from the raw material batch received from the supplier through to the finished goods lot shipped to the customer.

FDA lot traceability requires manufacturers to be able to identify — within hours of a recall notice — which raw material batches went into which production lots and which customers received those lots. The system records the raw material lot at goods receipt, maps it to the production order at goods issue, and records the finished goods lot at shipment. A recall simulation can be run in minutes: which customers received goods from lot X, which raw material lots did those production orders consume.

How does the system manage quality inspection — incoming materials and finished goods?

Incoming material inspection holds the received goods in a quality inspection stock status until the QC team clears them. Finished goods inspection clears the production order output before release to the warehouse.

Raw materials that fail inspection are moved to blocked stock; the supplier claim is generated from the inspection result. Finished goods that fail quality inspection are moved to rework or scrap, and the production order is updated. Inspection checklists are configurable per material or per product. Statistical sampling plans — AQL-based inspection — are supported where the QC team uses them.

Can the system handle toll manufacturing and subcontracting arrangements?

Yes. Toll manufacturing — where Orkids' client owns the raw materials and a third party converts them — is handled as a subcontract production order. Material sent to the toll manufacturer is tracked as materials in transit.

Philippine manufacturers often use toll manufacturers for peak demand periods or for specialized processing — co-packing, powder milling, cold storage. The system manages the subcontract purchase order, the material transfer note, the conversion cost invoice from the toll manufacturer, and the goods receipt of finished goods back into the warehouse. Material ownership at the toll manufacturer's facility is tracked as a sub-inventory location.

How does BIR compliance work for manufacturing operations specifically?

Manufacturing operations generate purchase invoices for raw materials, official receipts for finished goods sales, and 2307 withholding certificates for major suppliers — all from the same system.

A manufacturing company's BIR obligations are more complex than a trading company's because of raw material imports, sub-contractor payments, and the need to track input VAT on materials against output VAT on finished goods sales. The system posts every purchase and sale to the appropriate VAT account, generates the SLSP from actual posted records, and produces the 2307 for each supplier subject to expanded withholding tax. EIS e-invoicing for sales invoices is built in for companies covered by RR 11-2025.

How does the system handle import documentation for raw materials?

Import documentation — purchase order, import entry, BOC official receipt, and customs duty — is recorded at goods receipt, and the landed cost is allocated to inventory valuation.

Imported raw materials have a landed cost that includes the FOB value, freight, insurance, and customs duties. The system records each cost element at the point it is known — FOB at the purchase order, freight at the bill of lading, duties at the customs entry. The landed cost is allocated to the raw material inventory value so that BOM cost rollups and actual production costs reflect true cost, not just the purchase price.

Does the system integrate with our existing accounting or payroll system?

Yes. If you build accounting with us, the manufacturing module and the ledger are one system. If you have an existing accounting system, we scope the integration at discovery.

The most common integration scenario for Philippine manufacturers is connecting a manufacturing module to an existing accounting system — often QuickBooks or a legacy local system. We build the integration to export purchase journals, sales journals, and general ledger postings in the format your existing accounting system imports. Full replacement of the accounting system is optional; the manufacturing module runs standalone where needed.

Can the system support multiple warehouses or production facilities in different locations?

Yes. The system manages inventory across multiple warehouse locations and production facilities in real-time, with transfer orders between locations.

A manufacturer with a factory in Cebu and a distribution warehouse in Metro Manila needs inventory visibility across both locations simultaneously. The system maintains separate inventory balances per storage location with transfers between locations generating a transfer order and a goods movement document. Production orders are assigned to the facility where the work is performed.

How much does a manufacturing ERP build cost?

You own a manufacturing ERP build outright for one fee — typically 30–50% of a five-year SAP Business One subscription for comparable scope, with no annual licence increase. Optional ops support is ₱50K–250K/month with no lock-in. Your exact scope and price are confirmed on the first call.

A full manufacturing build covering BOM management, MRP, production order management, shop floor tracking, quality inspection, raw material inventory, and BIR compliance is at the higher end of the range. A focused scope — BOM, production orders, and basic inventory — is at the lower end. Scope is confirmed at the first call; the proposal contains the number. There is no per-user fee and no annual licence increase.

How does the system handle production planning for seasonal demand?

Production plans are built from a demand forecast or from the rolling sales order book. Seasonal build-up runs are modelled as planned production orders against the forecast.

Philippine food and consumer goods manufacturers often produce ahead of peak seasons — Christmas, summer, Fiesta season — which requires building inventory beyond current orders. The system models this as a production plan against the demand forecast, generates the MRP for the build-up period, and creates purchase orders to cover the additional raw material requirements. The plan is adjusted as actual orders confirm.

Does the system generate the production reports management needs?

Yes. Daily production output, yield rate, scrap rate, line efficiency, and material consumption variance are generated from production order data — not from a separate spreadsheet.

Production management needs reports that are current and sourced from the system, not compiled by a production clerk from shift logs. Daily production summary — output per line, scrap by cause, efficiency against target — is generated at the close of each shift. Monthly production P&L — revenue from production, raw material cost, conversion cost, and margin per product line — is generated from actual cost postings. The CFO's standard cost variance report is also generated from the same data.

How does the system track work-in-progress (WIP) inventory?

WIP inventory is tracked as the material value consumed by open production orders minus the finished goods output already posted. The WIP balance updates in real-time as production orders progress.

WIP inventory is one of the most misunderstood items on a Philippine manufacturer's balance sheet — it is often estimated at period-end based on a physical count or a standard percentage of throughput. The system computes WIP as the actual material and conversion cost posted to open production orders minus the goods received to inventory. Month-end WIP is a system report, not a physical count.

How does the system handle co-products and by-products in food and chemical manufacturing?

Co-products and by-products are defined in the BOM. Their inventory receipt is posted when the production order closes, and the co-product value is allocated from the total production cost.

A coconut oil manufacturer produces crude coconut oil (main product) and copra meal (by-product) from the same raw material. A chemical manufacturer produces a main solvent and a lower-value residue. The BOM defines the co-product and by-product outputs and their allocation method — fixed price or physical volume-based. The production order closes with finished goods receipts for all outputs, and the total cost is allocated per the BOM method.

Can the system handle custom or made-to-order manufacturing?

Yes. Made-to-order manufacturing creates a unique production order per sales order with a customer-specific BOM or route if required.

Furniture manufacturers, metal fabricators, and custom packaging producers make goods to customer specification — each order has a unique design, materials list, and production route. The system manages this by linking the sales order to a production order and allowing a customer-specific BOM. Job costing accumulates material and labour cost per job, and the profit margin per customer order is visible in the billing report.

Does the system support production scheduling and capacity planning?

The system models work centre capacity — available hours per line per shift — and loads production orders against that capacity to identify scheduling conflicts before they become stockouts.

Finite capacity scheduling — where the system prevents production orders from being scheduled when the work centre is already at capacity — is available for facilities that need it. For manufacturers with more flexible scheduling, infinite capacity planning is the default: the system generates the MRP-based production schedule and the planner adjusts it. Bottleneck work centres are identified from the order loading report.

What industries in the Philippines typically use this manufacturing ERP?

Food and beverage, pharmaceutical, cosmetics, chemical, garment, furniture, packaging, and metal fabrication are the most common manufacturing sectors we build for.

Each manufacturing sector has specific requirements. Food and beverage needs lot traceability and FDA audit trail. Pharmaceutical manufacturers need GMP-aligned batch records and quarantine management. Garment manufacturers need style-colourway tracking and cut-and-sew work order management. Furniture and metal fabrication manufacturers need job cost tracking per customer order. The core manufacturing module is the same; the industry-specific configuration is agreed at scoping.