An Inventory Conversion turns one or more items into one or more different items at a center — assembling components into a finished product, dismantling a product into parts, or moving stock between batches. When approved, it consumes the input items and produces the output items, carrying the consumed cost across to the products.
The Inventory Conversion list shows every conversion with its id, date, center, products, employee in charge, and status. Use the quick filter tabs to switch views and Advanced Filters to narrow the list. From the list you can create a new conversion, open an existing one, edit a draft, or delete a draft.
List columns
| **Column** | **Shows** |
|------------|-----------|
| Id | Conversion reference number. |
| Date | Conversion date and time. |
| Center | Center where the conversion takes place. |
| Products | Items produced by the conversion. |
| Employee In Charge | Employee responsible for the conversion. |
| Status | Current status of the conversion. |
Quick filter tabs
| **Tab** | **Shows** |
|---------|-----------|
| Default | All conversions except cancelled ones. |
| Approved | Conversions that have been approved. |
| Closed | Conversions that have been closed. |
| Draft | Conversions saved but not yet approved. |
| Cancelled | Conversions that have been cancelled. |
Advanced Filters
Id, Center, Employee, Produced Item, Raw material, Project, Status, Date, and Created date.
List row actions
| **Action** | **Available when status is** |
|------------|------------------------------|
| Edit | Draft |
| Delete | Draft |
| View | All statuses |
Quick Start — Create an Inventory Conversion
1. Navigate
Go to Inventory → Inventory Conversion from the left menu.
2. Create new conversion
Click New to open the conversion entry screen.
3. Fill in details
Set the Date and choose the Center * where the conversion happens.
Choose the Cost Method * — Percentage or Value.
Under Products Obtained, add the items the conversion produces with their Quantity.
Under Inventory Inputs (Consumed), add the items the conversion consumes with their Quantity and Unit.
4. Save
Save — keeps the conversion as a Draft.
Save And Approve — approves the conversion in one step and posts the stock movements.
Reset / Cancel — clears or closes the form without saving.
Header Fields Reference
| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date and time of the conversion. |
| Center * | Center where the input stock is consumed and the output stock is produced. |
| Employee In charge | Employee responsible for the conversion. |
| Cost Method * | How the consumed cost is allocated across the products — Percentage or Value. |
| Has BOM | Turn on to build the conversion from an Inventory BOM. When on, the conversion is restricted to a single product and a BOM can be picked per product row. See Using a BOM. |
| Project | Optional project link. |
| Project Task | Task within the selected project. Enabled after a project is selected. |
| Notes | Remarks about the conversion. |
> A conversion can also be created from a Sale Order, or as a reversal entry of an existing conversion.
Products Obtained (Outputs)
The items produced by the conversion. These are added to stock when the conversion is approved.
| **Column** | **Description** |
|------------|-----------------|
| Sl Num | Line serial number. Auto-numbered. |
| Item * | Item produced. Stock and consumable items only. A new item can be added inline. |
| Variant | Item variant, where the item has variants. |
| Description | Optional line description. |
| Quantity * | Quantity produced. |
| Unit | Unit of measure. Defaults from the item. |
| BOM | The Inventory BOM used to produce this item. Shown only when Has BOM is on; the list is filtered to BOMs for the selected item. |
| Batch | Batch for the produced stock. Shown for batch-tracked items; a new batch can be added inline. |
| SerialNumbers | New serial numbers for the produced stock. Shown for serial-tracked items. |
| Inv Bin | Bin within the center. Shown when bin tracking is enabled. |
| % of cost Allocation | Share of the consumed cost assigned to this product. Shown when the Cost Method is Percentage. |
| Unit Value | Cost value per unit for this product. Shown when the Cost Method is Value. |
> When Has BOM is on, the product table is limited to a single row (rows cannot be added or removed) and a Fetch Raw Materials button appears in the section header — see Using a BOM.
Inventory Inputs (Consumed)
The items consumed by the conversion. These are removed from stock when the conversion is approved.
| **Column** | **Description** |
|------------|-----------------|
| Sl Num | Line serial number. Auto-numbered. |
| Item * | Item consumed. Stock and consumable items only. |
| Variant | Item variant, where the item has variants. |
| Description | Optional line description. |
| Quantity * | Quantity consumed. |
| Unit * | Unit of measure. Defaults from the item. |
| Serial Numbers | Serial numbers consumed. Shown for serial-tracked items. |
| Batch | Batch consumed. Shown for batch-tracked items; lists batches available in the selected center. |
| Inv Bin | Bin within the center the stock is consumed from. Shown when bin tracking is enabled. |
Using a BOM
Instead of typing the consumed inputs by hand, you can pull them from an Inventory BOM. The BOM supplies the recipe; the conversion scales it to the quantity you are producing and fills the Inventory Inputs for you.
How to use it
Turn on Has BOM in the header. The Products Obtained table is now limited to a single product row.
In the product row, select the Item, enter the output Quantity, and choose the BOM (the list shows only BOMs defined for that item).
Click Fetch Raw Materials in the Products Obtained section header.
The Inventory Inputs (Consumed) table is filled with the BOM's raw materials, each scaled by product quantity ÷ BOM quantity.
Review and adjust the fetched lines if needed (quantities, batches, bins), then Save or Save And Approve.
Example. A BOM produces 1 unit from 2 kg of material. Producing 11 units fetches 22 kg. Change the output quantity and fetch again to re-scale.
> The fetched raw materials are fully editable and are stored on the conversion as normal input lines. Re-fetching replaces the current input lines with a freshly scaled set.
Cost Method
The conversion takes the total cost of the consumed inputs and spreads it across the products. How that cost is split depends on the Cost Method:
| **Cost Method** | **How cost is allocated** |
|-----------------|---------------------------|
| Percentage | Enter a % of cost Allocation on each product. The percentages must add up to 100. |
| Value | Enter a Unit Value on each product. The values must add up to the total consumed cost. |
When there is only a single product, the full consumed cost is assigned to it automatically.
Multi Inventory Conversion
When you need to produce several BOM-based items at once, use Multi Inventory Conversion to create one conversion per item in a single step — instead of opening the form repeatedly.
Open it
From the Inventory Conversion list, click Multi Conversion. A popup opens where you enter shared header details once and list the items to produce.
What to enter
| **Field** | **Description** |
|-----------|-----------------|
| Date * | Date and time for the created conversions. Defaults to today. |
| Center * | Center where all the conversions take place. |
| Employee In charge | Employee responsible, applied to every created conversion. |
| Notes | Remarks copied to every created conversion. |
| Items table | One row per item to produce: Item *, Quantity *, Unit, and BOM * (filtered to that item). |
Save
Save — creates one Draft inventory conversion for each row.
Save And Approve — creates and approves one conversion per row in one step, posting the stock movements.
Each row becomes its own conversion: the chosen BOM is expanded and scaled to the row's quantity to produce that conversion's consumed inputs, exactly as with the Fetch Raw Materials flow. Every row must have an item, a quantity, and a BOM; empty rows are ignored.
Generate the report and select the item rows you want to produce.
Click Create Inventory Conversion.
The Multi Inventory Conversion popup opens pre-seeded with the selected items, their quantities, and units.
Pick a BOM for each row, complete the header, and Save or Save And Approve.
This creates a separate inventory conversion for each selected item, each built from its BOM. The button appears when you have access to create inventory conversions.
Actions & Status
View toolbar actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Approve | Approves the conversion and posts the stock movements. | Draft |
| Edit | Opens the conversion for editing. | Draft |
| Delete | Permanently removes the conversion. | Draft |
| Clone | Creates a copy of the conversion. | All (if permitted) |
More menu (⋮) actions
| **Action** | **Description** | **Available when status is** |
|------------|-----------------|------------------------------|
| Create Inventory Transfer | Opens a new Inventory Transfer pre-filled from this conversion to move the produced stock to another center. | Approved |
| Create Reversal Entry | Opens a new conversion that swaps the inputs and products to undo this conversion. Product and input lines must match the original (swapped) and cannot be edited. See Reversal Entry. | Approved |
| Add/Update Note | Adds or edits a note on the conversion. | All |
| Master Update | Updates selected header fields without reopening the full form. See Master Update. | Approved, Closed |
| Print Labels | Opens label printing for the produced items. | All |
| Print | Prints the conversion. | All |
Statuses
| **Status** | **Description** |
|------------|-----------------|
| Draft | Saved but not yet approved. Can be edited or deleted. No stock has moved. |
| Approved | Finalized. Inputs have been consumed and products produced. |
| Closed | Conversion is closed — typically once an Inventory Transfer created from it has been approved. |
| Cancelled | Conversion has been cancelled. |
| Reversed | A reversal entry has been approved against this conversion, undoing its stock movements. |
Reversal Entry
Use Create Reversal Entry on an Approved conversion to undo it. The system opens a new conversion that swaps the original sections:
Original Inventory Inputs (Consumed) become the reversal's Products Obtained.
Original Products Obtained become the reversal's Inventory Inputs (Consumed).
Cost percentages on the reversal products are pre-filled from the original conversion's consumed cost so the stock value is restored correctly.
What you can change
Header fields such as Date, Notes, and related references can be adjusted as needed.
Products Obtained and Inventory Inputs lines are locked to the original conversion: you cannot add, remove, or edit item lines (item, unit, quantity, batch, bin, or variant).
Validation
On save, update, and approve, the system checks that:
Every reversal product line matches a corresponding original raw material / input line.
Every reversal raw material / input line matches a corresponding original product line.
Line counts match — no lines added or removed.
If the lines do not match, save or approve is rejected with an error. Approving a valid reversal posts the reverse stock movements and marks the original conversion as Reversed.
Stock Posting
When you approve a conversion:
The Inventory Inputs are removed from stock at the center, at their current cost.
The total cost of those inputs is allocated to the Products Obtained using the chosen Cost Method.
The products are added to stock at the center with that allocated cost.
A conversion moves stock value from the consumed items to the produced items — total inventory value is preserved and no accounting journal is created. An item cannot appear in both the inputs and the products of the same conversion. Use Create Reversal Entry to undo an approved conversion.
Master Update
Master Update lets you change selected header fields on an approved conversion without editing the full document or item lines. Open the three-dot menu on the conversion and select Master Update.
| **Field** | **Can be updated?** | **Notes** |
|-----------|---------------------|-----------|
| Date * | Yes | Cannot be set before the accounts closing date. The stock movement date is updated to match. |
| Employee In charge | Yes | |
| Project | Yes | |
| Center, Cost Method, products, inputs, quantities | No | Create a reversal entry and a new conversion to change these. |
Click Confirm to save changes or Cancel to close without saving.
View Tabs & Side Panels
When you open a conversion in full view, the right side shows tabbed panels.
| **Tab** | **What it shows** |
|---------|-------------------|
| History | Activity log — who created, approved, edited, or reversed the conversion and when. |
| Attachments | Files uploaded to this conversion. |
Best Practices
Make sure the input items have enough stock at the Center — approval consumes that stock.
Pick the Cost Method that matches your costing: Percentage for a proportional split, Value when you know each product's unit cost.
With Percentage, confirm the allocations add to 100; with Value, confirm they add to the total consumed cost.
Use Batch and Serial Numbers so produced and consumed units stay traceable.
Use Create Reversal Entry to undo a conversion rather than editing approved stock movements. Do not change the swapped product or input lines on the reversal — only header fields such as date or notes.
Use Create Inventory Transfer when the produced stock needs to move to another center.
FAQ
Does a conversion change my total inventory value?
No. It moves cost from the consumed inputs to the produced products. Total inventory value is preserved and no accounting journal is posted.
What is the difference between the Percentage and Value cost methods?
Percentage splits the consumed cost by a share you set on each product (totalling 100%). Value lets you set each product's unit cost directly, and those values must add up to the total consumed cost.
Can the same item be both an input and a product?
No. An item cannot appear in both the Inventory Inputs and the Products Obtained of the same conversion.
How do I undo an approved conversion?
Use Create Reversal Entry, which builds a conversion that swaps inputs and products. Approving it reverses the original and marks it Reversed. Product and input lines on the reversal must stay exactly as generated (swapped from the original) — they cannot be added, removed, or edited. See Reversal Entry.
Why can't I edit product or input lines on a reversal entry?
A reversal must fully undo the original conversion. The system requires the reversal's products to match the original inputs (and the reversal's inputs to match the original products), including item, unit, quantity, batch, bin, and variant. Changing those lines would leave stock or cost incorrect, so save and approve are blocked if they do not match.
Why is my conversion showing as Closed?
A conversion is closed once an Inventory Transfer created from it is approved, moving the produced stock onward.
Does saving a draft conversion move any stock?
No. Stock is consumed and produced only when the conversion is approved.
What happens when cost percentages do not total 100%?
Approve fails when using the percentage cost method and product lines do not sum to 100%.
What happens when fixed product costs do not match total input cost?
On the value cost method, the sum of product line costs must equal the total consumed input cost before approve.
Can I edit an approved conversion?
No. Use Create Reversal Entry to undo, or Master Update for allowed header fields only.
How do I use a BOM on a conversion?
Turn on Has BOM, select the item, quantity, and BOM in the single product row, then click Fetch Raw Materials to fill the consumed inputs scaled to the quantity. See Using a BOM.
Can I create many conversions at once?
Yes. Use Multi Conversion from the list, or select items in the Item Wise Material Request Report and click Create Inventory Conversion. Each item becomes its own BOM-based conversion.
Related Topics & Videos
Related documentation
Inventory BOM — the recipe used to auto-fill consumed inputs on a conversion.
