How to Add Raw Materials: Inventory Configuration and Cost Account Linking for Assembly

Adding a Raw Material in Qoyod

What is a Raw Material?

A raw material is any component or substance that is purchased for use in manufacturing a composite product. Unlike regular products, raw materials are not sold directly to customers, but are only used in the manufacturing process. Example: If you are manufacturing furniture, wood and nails are considered raw materials.

Is this feature available in your plan?

Before you start, make sure your plan supports adding raw materials:

• New plans: Available only in the Advanced plan, and not available in the Professional plan and Basic plan

• Legacy plans (discontinued): Available in Premium plan, Advance plan, and Qoyod Plan, and not available in Plus plan and Lite plan

If you don’t see the “Raw Material” option when creating a new product, it means your plan doesn’t support this feature and you will need to upgrade your plan.

How do you add a raw material?

First Step: Access the Products and Costs page

From the sidebar menu, click the + button next to “Products and Costs” and a menu of product types will appear:

• Product

• Composite Product

• Raw Material

• Service

• Expense

Select Raw Material.

Second Step: Fill in the Raw Material Details

You will find several fields. Here’s an explanation of each field:

Arabic Name and English Name (Required) Enter the raw material name in Arabic and also in English. Example: “خشب بلوط” and “Oak Wood”.

Serial Number (Required) This is the code assigned to the raw material in the system. You can enter it manually or click the “Generate Serial Number” button to have the system create it automatically.

Category (Required) Choose the classification to which this material belongs. You can select an existing category or add a new one by clicking the + icon.

Unit of Measure (Required) Specify the unit of measure for the raw material such as: kilogram, meter, liter, piece, etc.

Tax % (Required) Specify the tax rate applied to this material when purchasing it.

Description You can add a descriptive explanation for the raw material. This field is optional but useful for clarifying material details to other users.

Terms and Conditions An optional field to add any notes or conditions specific to this material.

Barcode You can add a barcode to the raw material to facilitate scanning operations.

Unit Conversion If the raw material is measured in more than one unit of measure, you can add a conversion formula here. Example: 1 kilogram = 1000 grams.

Track Inventory (Very Important Option) This option determines how the raw material is handled in the system and has a direct impact on manufacturing operations:

• If you enable the “Track Inventory” option: It means that the raw material will be tracked in inventory and will appear in inventory reports, and you can monitor its quantities at any time. In this case, you must purchase the required quantity first via a purchase invoice or enter it as an opening balance before using it in a manufacturing order, otherwise the manufacturing order will not be accepted.

• If you do not enable the “Track Inventory” option: It means that the raw material will not appear in inventory and its quantities will not be tracked. In this case, you can use it in a manufacturing order directly even without purchasing it beforehand, and the manufacturing order will be automatically accepted.

Alert: This option cannot be edited later if there are recorded movements on the material, so be sure of your choice before saving.

Purchase Price (Required) Enter the purchase price per unit of the raw material, which is a default price that appears when creating the invoice and does not affect reports except for the actual price purchased. You can also enable the “Purchase Price Includes Tax” option if the price you enter already includes the tax.

Expense Account (Required) This field differs based on the inventory option:

• If the raw material is tracked in inventory: Select the appropriate Cost Account (only accounts added in the chart of accounts will appear)

• If the raw material is not tracked in inventory: Select the appropriate Expense Account (only accounts added in the chart of accounts will appear)

Third Step: Save the Raw Material

After filling in all required information, click the Save button to create the raw material. After saving, the material will appear in the Products and Costs list and you can link it to a composite product later when creating it.

Edit or Delete a Raw Material After Creating It

Edit: You can edit the raw material data at any time by going to Products and Costs and clicking the edit option next to the desired material. However, there are two important exceptions:

• “Track Inventory/Do Not Track Inventory” option: It cannot be edited at all if there are recorded movements on the material, not even by technical request.

• Expense Account: If there are no recorded movements, it can be edited directly. However, if there are recorded movements, you must submit a technical request through the support team by sending:

  1. The serial number of the raw material

  2. The name and number of the new expense account

  3. Add a Qoyod support user

  After that, the conversation will be transferred to an employee to submit the technical request.

How is a Raw Material Linked to a Composite Product?

The linking is not done when creating the raw material, but is done when creating the composite product, where you will select the raw materials that make up that product and specify the required quantity of each material.