Introduction

This article provides a brief introduction to the production module in TRAEDE and explains the key terminology used when working with suppliers, production orders, deliveries, and cost prices. Understanding these concepts is essential before creating or managing production orders.

Understanding the production module

Supplier

A supplier in TRAEDE is a company you buy finished products from.
Important notes:

• TRAEDE works with finished goods, not raw materials.

• If your supplier also buys raw materials and assembles products, they are still considered the supplier in TRAEDE.

• If you buy raw materials and send them to a factory for assembly, the factory assembling the products is your supplier.

• Raw material purchasing and management is not supported in TRAEDE’s production module.

Production order

A production order in TRAEDE is a purchase order of finished goods from your supplier.
It represents the total number of pieces you instruct your supplier to produce.

Key points:

• A production order is not a purchase order for raw materials.

• It may be delivered in multiple shipments over time.

• It reflects the total planned production quantity across all deliveries.

Production delivery note

A production delivery note represents an actual delivery from your supplier against a production order.

Example scenario:

• You place a production order for 100,000 pieces.

• The supplier ships the order in three deliveries, each with one-third of the total quantity.

• TRAEDE stores:

  • One production order = 100,000 pieces

  • Three production delivery notes = approx. 33,333 pieces each

When the warehouse receives goods, what they receive is a production delivery note, not the production order itself.

Cost price

The cost price in TRAEDE refers to what you pay your supplier for the finished product.

Important considerations:

• The cost price does not include raw materials if you purchase them yourself.

• It includes only the supplier’s invoice price for the finished goods.

• Example:

  • Total production cost per unit = €10

    • €8 is raw materials

    • €2 is the supplier’s assembly cost

  • If the supplier invoices €10, your cost price is €10.

  • If the supplier invoices €2 (because you provide raw materials), your cost price is €2.

Other costs—such as freight, customs, and landing costs—are handled separately and will be explained in another guide.