What is production orders, suppliers, production order deliveries and cost prices?

  • Updated

Introduction

This guide provides a brief overview of the key terminology used within the Production module in TRAEDE.
Understanding these concepts will make it easier to work with suppliers, production orders, delivery notes, and cost prices throughout the production workflow.

 

 

Supplier

A supplier is the company you purchase finished products from.

Important notes:

  • TRAEDE works with finished goods, not raw materials.

  • If you buy raw materials separately, the company assembling your products is considered the supplier in TRAEDE.

  • TRAEDE does not currently support raw-material purchasing flows; all production workflows are based on finished product acquisition.


Production order

A production order is a purchase order for finished goods from a supplier.

Key points:

  • It represents the total quantity of finished products a supplier should produce.

  • A production order may include many different products and variants.

  • One production order can be delivered across multiple shipments.

Think of a production order as the full instruction telling the supplier what needs to be produced.


Production delivery note

A production delivery note represents one delivery related to a production order.

Example scenario:

  • You order 100,000 pieces from a supplier.

  • Production takes time, so the supplier delivers in three shipments of approx. 33,000 pieces each.

  • You will have:

    • 1 production order (for 100,000 pcs)

    • 3 production delivery notes (one for each delivery)

Important:
When goods arrive at your warehouse, you are receiving a production delivery note, not the production order itself.


Cost price

The cost price in TRAEDE is the price you pay the supplier per finished product on the production order.

Important clarifications:

  • Cost price does not include raw material costs unless the supplier provides those materials.

  • If your supplier sources raw materials and invoices you the full amount (e.g. €10 per unit), then the cost price is €10.

  • If you purchase raw materials yourself and the supplier only charges a fee for assembly (e.g. €2), then the cost price is €2.

  • Costs like customs, freight, or logistics are not included in the basic TRAEDE cost price. These are handled separately under landed cost, which is covered in another guide.

 

Was this article helpful?

0 out of 0 found this helpful