A production order is an order issued within a company to produce a specific quantity of material within a certain timeframe. A production order may be issued pursuant to a

sales order {{unref, date=December 2018 The sales order, sometimes abbreviated as SO, is an order issued by a business or sole trader to a customer. A sales order may be for products and/or services. Given the wide variety of businesses, this means that the o ...

, and its issuance triggers a number of events. If components in the

bill of materials A bill of materials or product structure (sometimes bill of material, BOM or associated list) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture an end ...

are in stock, reservations are generated for those items; if they are not in stock, then requisition orders may be generated. Requisition orders may also be generated for production that occurs externally to the firm. Planned costs for the order are also generated and capacity requirements are generated for the work centers. It is mostly used in trading.

References

Production and manufacturing {{business-stub