Operations
Items, inventory, production, projects, fixed assets, and business units.
Operations is the physical layer of the business. It answers the questions that Finance cannot answer alone: What stock do we actually hold right now? What did it cost to make that product? Where are our assets and how much have they depreciated? Which project is over budget?
Every physical event in Operations that changes value — receiving goods, adjusting stock, finalizing a production batch, depreciating a fixed asset — produces financial consequences automatically. Operations does not ask Finance for permission. It posts the journals and Finance receives them.
What Operations Manages
Operations covers five distinct domains. Each has its own data, its own workflows, and its own impact on the ledger.
| Domain | Core Question | Financial Output |
|---|---|---|
| Items | What do we sell, buy, make, or expense? | None — master data only |
| Inventory | How much stock do we have and where? | Stock adjustment and transform journals |
| Production | What did it cost to make one unit? | Finished goods journals on finalization |
| Projects | Where did labour and cost go? | None — time entries and costing post no journal |
| Fixed Assets | What do we own and how much has it lost in value? | Depreciation and disposal journals |
| Business Units | Which center owns which stock, assets, and costs? | Center-tagged entries on every transaction |
What Creates Journals
Not every event in Operations produces a journal entry. The table below is the definitive reference for what does and does not hit the ledger.
| Event | Creates a Journal? | Debit | Credit |
|---|---|---|---|
| Opening Balance / Quantity Adjustment (increase) | Yes | Inventory Account (item) | Opening balance account |
| Quantity Adjustment (decrease) | Yes | Opening balance account | Inventory Account (item) |
| Wastage / Operational Use / Write-off | Yes | Expense account chosen on the form | Inventory Account (item) |
| Stock Transform | Yes | Inventory Account (target item) | Inventory Account (source item) + additional-cost account, if any |
| Stock Transfer (between business units) | No | — | Quantity moves when the receiving unit acknowledges the transfer (Completed); no journal is posted |
| Stock Request raised or fulfilled | No | — | A request is a message. Fulfilling it issues a Pending transfer; nothing moves until that is acknowledged |
| Opening stock imported or recorded | Yes | Inventory Account (item) | Opening balance account |
| Production Finalized | Yes | Inventory Account of each Main / Co-Product output | Inventory Account of each material, labour expense accounts, overhead accounts |
| Depreciation Charged | Yes | Depreciation Expense (asset) | Accumulated Depreciation (asset) |
| Asset Disposal | Yes | Accumulated Depreciation + proceeds and any loss (both to the asset's Depreciation Expense account) | Fixed Asset Cost + any gain (to the asset's Depreciation Expense account) |
| Item Created, priced, or imported | No | — | — |
| Price list created or applied | No | — | — |
| Fixed asset registered | No | — | The register is a schedule; charging begins only once auto-charge is configured |
| Timesheet Logged or Approved | No | — | — |
| Project Created | No | — | — |
| Business Unit Created | No | — | — |
| Production Batch Created | No | — | Journal posts only on finalization |
Operations Module Topics
Items
The master data behind everything you sell, buy, make, or expense. Define item types, sub-types, ledger account mappings, valuation methods, categories, and barcode labels. Every inventory movement, bill line, invoice line, and production input references an item.
Inventory
Track stock levels, movements, and adjustments across every business unit. Covers the inventory detail view, the adjustment tiles (opening balance, quantity adjustment, wastage, operational use, write-off, transform), stock transfers, and the weighted average cost mechanism.
Production
Track manufacturing costs — materials, labour, and overhead — for true cost per unit. Define cost cards, run production batches, record outputs (main, co-products, by-products, waste), and finalize to post the journal and set the finished item's cost.
Projects
Track work, time, and costs across jobs and tasks. Set a billing method, log timesheets, and approve time. Time entries flow through Draft → Submitted → Approved (or Rejected).
Fixed Assets
Track long-term assets from purchase to disposal. Define useful life, scrap value, and depreciation method. Auto-post monthly depreciation to the ledger and record disposals with gain or loss recognition. Three methods: Straight Line, Reducing Balance, Units of Production.
Business Units (Centers)
Manage warehouses, branches, outlets, and departments. Every inventory movement, fixed asset, and cost allocation is tagged to a center. Centers support sub-center hierarchies, operating hours, capacity, and stock transfer workflows.
How Operations Connects to Finance
Every journal entry that Operations generates conforms to the ledger rules established in Finance. Operations does not define accounts, tax codes, or posting periods — it uses the accounts configured in the Chart of Accounts and applies them according to the item's ledger mapping. An item's ledger slots fall back to the business defaults when left blank; stock adjustments and transforms need the item to resolve an inventory account before they can be recorded.
The flow is always one-directional: Operations events produce journal entries, Finance receives and reports them. Finance never modifies what Operations posted. If a stock adjustment was posted with the wrong account, the correction is a new counter-adjustment in Operations — not a manual journal edit in Finance.