Guidelines for adding a composite product containing a set of pre-bundled products in the system:
First: What is a Composite Product?
A composite product is a final product consisting of:
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Regular products
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Raw materials
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Services
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Or even another composite product
It is treated within the system as a single product during sales, with its components managed internally based on its status (stocked or non-stocked).
The Key Difference: Stocked Composite Product vs. Non-Stocked
This is the most important point in this entire topic.
Case One: Non-Stocked Composite Product
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Does not require a manufacturing order.
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When sold, the system automatically deducts quantities directly from its component materials.
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No separate inventory is created for it.
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Can be sold directly if the raw materials are available.
If the required quantity of any component is not available, an error will appear in the sales invoice indicating the unavailable product.
Cost Calculation
The cost of each component within the composite product is calculated, then summed and the total cost is displayed in reports.
Case Two: Stocked Composite Product
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Requires creating a manufacturing order to add quantity to inventory.
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Cannot be sold until a quantity is manufactured.
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Accounting entries are created when the manufacturing order starts and completes.
What Happens Accounting-Wise?
When you click “Start Process”:
An automatic accounting entry is created:
From the main inventory account
To the temporary manufacturing account
When you click “Complete Process”:
Another accounting entry is created:
From the temporary manufacturing account
To the composite product inventory account
Upon Sale
When selling a stocked composite product:
COGS is calculated from the average cost
And is charged to the expense account specified when creating the product.
Here are the steps to add a composite product in a sequential and organized manner:
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Access the Products and Costs Menu:
From the dropdown menu, click the + next to Products and Costs.
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Select the Product Type:
Choose the product type “Composite Product”. -
Enter Basic Information for the Composite Product:
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Arabic Name: Enter the composite product name in Arabic, for example: Pizza
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English Name: Enter the composite product name in English, for example: Pizza.
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SKU: Enter a sequential number for the product or generate one from the available option.
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Category: Select the product category from previously added categories, such as “Pastries”. You can click “+” to add a new category.
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Description: This is optional and allows you to describe the product for it to appear on the invoice if desired.
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Terms and Conditions: If there are specific terms and conditions for the product.
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Unit of Measurement: Select the appropriate unit of measurement or add a new unit using the “+” icon.
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Barcode: Enter a barcode manually or generate a random one.
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Note: If there are multiple barcodes for other classification purposes, the first barcode is added to the SKU field, while the second barcode is added to the barcode field that will be used when selling the product.
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Tax: Select the tax type (zero, exempt, or 15%). If zero tax is entered, a tab will appear to add the tax reason.
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Unit Conversion: Add new units for the same product if available, such as: carton.
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Add Product Image: To display at POS or on the invoice if desired when printing.
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Specify whether the product is stocked or not, and add the sales price, sales account “revenue account”, and cost account “if the product is stocked” which is the expense account.
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Enter composite product details: Click “Add More” and select the products that make up the final composite product, specifying the quantity for each.
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You can enter a “reorder point”.
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After verifying all details, click Save to add the composite product to the system.
Save:
After verifying all details, click Save to add the composite product to the system. -
Can a Service or Non-Stocked Product Be Used as a Component?
Yes.
You can use:
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A service
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A non-stocked product
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Another composite product
Inside a stocked or non-stocked composite product.
Editing Bundle Details
If you modify the components of the composite product after saving it by clicking “Edit” next to the composite products in the products list:
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It will not affect old manufacturing orders.
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It will only affect new manufacturing orders.
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It will affect the average cost after creating a new manufacturing order.
Average cost is updated only based on new operations.
Manufacturing Order, When Do I Use It?
A manufacturing order is required only if the composite product status is “stocked”.
You cannot create a manufacturing order for a non-stocked composite product.
Steps to Create a Manufacturing Order:
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Products and Costs → Manufacturing Orders
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Create a Manufacturing Order
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Set the Date and Location
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Specify the Temporary Manufacturing Account
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Add the Composite Product and Quantity
Status Options:
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Save as Draft
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Start Process
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Start and Complete
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Complete Process (if in progress)
A manufacturing order cannot be edited if it is:
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In Progress
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Completed
It can only be edited if it is:
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Draft
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Pending Approval
What Happens If Quantities Are Not Available?
An alert will appear:
“Quantity is not available, Show Details”
When you click “Show Details”, the following will appear:
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Category
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Required
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Available
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Shortage
The system does not allow negative inventory.
Calculating Average Cost of a Composite Product
Stocked Composite Product
Average cost is calculated automatically after completing a manufacturing order, based on the cost of materials involved in manufacturing.
To view it:
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Products and Costs
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View next to the Composite Product
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Click the location name
All movements and average cost will appear
You can export to Excel or PDF
Non-Stocked Composite Product
There is no average inventory cost.
Component costs are calculated manually and summed upon sale, appearing in reports.
Selling a Composite Product Without a Manufacturing Order
If the product is non-stocked → you can sell it directly provided a quantity of its component products is available if they are stocked,
If it is stocked → you must manufacture a quantity first
Cannot sell without available quantity.
Very Important Restrictions
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Composite products are not purchased and do not appear in purchase invoices or documents at all. There is no “purchased” option for them. To source their components, you must purchase each component separately and then manufacture the composite product via a manufacturing order.
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You cannot convert a composite product from non-stocked to stocked after having operations.
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You cannot convert a regular product to a composite product.
Solution: Archive or delete it, then create a new composite product. -
You cannot archive any product (of all types: raw material, service, regular product, composite product, or expense) if it is used within a composite product.
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You cannot manufacture in one location and add the quantity to another location.
However, you can transfer inventory after manufacturing.
Manufacturing Order Permissions
You can control them from:
Settings → Users → Manage Positions → Edit Position
Enable:
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Read
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Create
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Delete
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Approval
Activities That Benefit from Composite Products
Restaurants: pizza, meals
Cafes: mixed beverages
Factories: finished products from raw materials
Auto repair shops: product + service
Maintenance services: materials + service
A Simple Practical Example
A burger meal consisting of:
Bread + meat + sauce + fries
You can:
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Make it a non-stocked composite product → deducted upon sale
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Or a stocked composite product → manufacture 50 meals in advance
The difference here is not technical… but operational.
Training Course:
How to Manage Products and Manufacturing Orders in Qoyod Cloud Accounting Software: https://www.youtube.com/watch?v=j1nViZ-hvEA
How do I add a bundle containing more than one product I have, such as (scarf + fabric)? / Can composite products be purchased? / Why don’t composite products appear on the purchase order? / Where is the “purchased” option for composite products?
