A AION Academy

Lesson 4 of 5 · 10 min read

Lab: Producing a mango juice batch

A hands-on walkthrough in the Oasis Fresh (Saudi) demo BG. You'll review a formula, create a job order for 10,000 bottles of mango juice, issue materials, complete production, record scrap, and watch the cost flow from raw material → WIP → finished goods. Pearl F&B (Qatar) and Nile Foods (Egypt) run the same flow in QAR and EGP respectively.

Before you start

Open the demo in a new tab:

Your mission: Produce 10,000 bottles of Oasis mango juice 500ml. Follow the cost from raw materials into WIP, then into finished goods inventory.

Estimated time: 10 minutes.

Step 1 — Review the formula

Navigate to: Manufacturing → Formulas

Find the Mango Juice 500ml formula. Open it.

You should see the ingredient list (water, mango concentrate, sugar, citric acid, preservative) with percentages. Check the status — it should be Approved v1.0.

This is the recipe. It has a version, an approver, and a locked set of ingredients. A change requires a new version and re-approval.

Step 2 — Review the BOM for a 10,000-bottle batch

From the formula screen, click Generate BOM → 10,000 bottles. AION computes the exact quantities:

ItemUoMQty
Mango concentrate 65° Brix (RM-001)L750
Refined sugar (RM-003)kg200
Citric acid (RM-004)kg15
PET bottle 500ml (RM-005)pcs10,000
(Additional components auto-filled from formula)

Save the BOM as a template for future batches.

Step 3 — Check material availability

Navigate to: Manufacturing → Planning → Availability Check

Enter the BOM. AION shows:

  • Required vs. on-hand for each material
  • Shortages (if any) with recommendation to create purchase requisitions

For this lab, the demo has seeded sufficient inventory. Proceed.

Step 4 — Create the job order

Navigate to: Manufacturing → Job Orders → New

Fill in:

  • Product: FG-001 Oasis Mango Juice 500ml
  • Quantity: 10,000 pcs
  • Formula version: v1.0 (locked from the formula)
  • Planned start: today
  • Planned end: today + 1 day
  • Cost center: Bottling Line 2

Save. Note the job order number — something like JO-2026-00123.

Release the job order. This:

  • Reserves the required raw materials in inventory (they can’t be picked for another job)
  • Creates the empty WIP bucket for this batch
  • Locks the formula version

No GL impact yet. Materials haven’t physically moved.

Step 5 — Issue materials

Navigate to: Manufacturing → Material Issues → New

Select JO-2026-00123. The issue screen pre-populates the required quantities. For each material, AION suggests a lot (FEFO).

Confirm the lots (for mango concentrate, you should see MAN-2026-0512-EGY from the P2P lab — or another lot from seeded data).

Save and post the issue.

GL impact — automatic (for each material line, summed):

AccountDRCR
1210 Work in Process~18,500 SAR (sum of all materials at period avg cost)
1200 Raw Material Inventory18,500 SAR

Exact total depends on seeded costs. Typical for a 10K-bottle mango batch: concentrate dominates (~14,000), sugar ~1,500, bottles ~2,500, other ~500.

Check it: Trial Balance → accounts 1200 and 1210. Raw material inventory dropped; WIP grew by the same.

Step 6 — Record completion

After production is done (simulated — the demo doesn’t make you wait 24 hours), navigate to: Manufacturing → Completions → New

Fill in:

  • Job order: JO-2026-00123
  • Produced quantity: 9,850 bottles (yielded 98.5% of target; the other 150 went to scrap)
  • Lot assigned to FG: auto-generated, something like FG-001-2026-0617-A
  • Expiry date: 6 months out (default for mango juice)

Save and post.

GL impact — automatic:

AccountDRCR
1220 Finished Goods Inventory~18,200 SAR (9,850 units × standard cost ~1.85 SAR)
1210 Work in Process18,200 SAR

Step 7 — Record scrap

150 bottles failed QA. Navigate to: Manufacturing → Scrap Entries → New

Fill in:

  • Job order: JO-2026-00123
  • Quantity: 150 bottles
  • Reason: Filler under-fill

Save.

GL impact — automatic:

AccountDRCR
5200 Manufacturing Variance — Scrap280 SAR (150 × 1.85)
1210 Work in Process280 SAR

Step 8 — Close the job order

Navigate to JO-2026-00123 and click Close Job Order.

AION reconciles:

  • Total actual materials issued: 18,500 SAR
  • Total applied (FG completed + scrap): 18,200 + 280 = 18,480 SAR
  • Variance: 20 SAR under-applied (actual > applied)

GL impact — automatic:

AccountDRCR
5210 Mfg Variance — Yield20 SAR
1210 Work in Process (clearing)20 SAR

WIP balance for this job: zero. The 20 SAR variance sits in the P&L for analysis.

Step 9 — Trace the lot (the magic moment)

Navigate to: Inventory → Lots → FG-001-2026-0617-A

Click Where Used (Backward). You’ll see:

  • Made in job order JO-2026-00123
  • Which consumed raw material lots: MAN-2026-0512-EGY (mango concentrate), sugar lot, citric lot, etc.
  • Those lots originally came from specific PO receipts and specific suppliers

This is your recall audit trail. In 5 seconds you know exactly which raw material lots went into any finished good lot.

Verify the full picture

Net impact across all steps for this job order:

AccountNet
1200 Raw Material Inventory−18,500
1210 Work in Process0 (opened at issue, closed at completion + scrap + variance)
1220 Finished Goods Inventory+18,200
5200 Mfg Variance — Scrap+280
5210 Mfg Variance — Yield+20

The variances land in the P&L (we can see how much margin was lost to scrap and yield deviations). The finished goods are in stock, ready to sell. The raw material is consumed.

Every step is a balanced journal entry. Every entry posted automatically.

What would have been different with Excel

  • Materials tracked on paper pick lists; issues reconciled monthly
  • Completion recorded on a spreadsheet; WIP balance is imaginary
  • Scrap often not recorded at all
  • Standard cost used for FG is the only cost; no variance visible
  • Lot traceability: 3-4 hours per recall query, and only if the right person is in the office

That’s the gap. Next lesson turns it into numbers.

Also runs in Pearl F&B (Qatar) and Nile Foods (Egypt)

The same production flow runs across all three demo Business Groups — same recipe structure, different cost basis per BG (driven by local raw material prices, packaging costs, and currency).

🇸🇦 Oasis Fresh (Saudi)🇶🇦 Pearl F&B (Qatar)🇪🇬 Nile Foods (Egypt)
CurrencySARQAREGP
Featured FGOasis Mango Juice 1L (std cost SAR 10.5)Pearl Mango Juice 1L (std cost QAR 9.2)Nile Guava Juice 1L (std cost EGP 36)
Featured rawMango concentrate (drum, SAR 42/kg)Mango concentrate (drum, QAR 38/kg)Egyptian mango concentrate (EGP 145/kg)
CFO logincfo.saudicfo.qatarcfo.egypt

The BOM rollup logic is identical across BGs. Cost variances (material usage, labor efficiency, overhead) post to the same SLA-driven journals. The difference is the cost basis — Egyptian local concentrate is cheaper per kg than imported Saudi concentrate, but the finished good sells at higher prices to local distributors.

Try the same lab in another region:

Next lesson

In Lesson 5 — Cost flow & GL impact, we’ll look at the complete cost flow, the variance analysis reports, and the ROI of running P2M properly.