# Initiate Production Through Issue for Processing - First Process
**YouTube:** [How to Initiate Production Through Issue for Processing - First Process?](https://www.youtube.com/watch?v=jrGxngNCz2U)
## How to Initiate Production Through Issue for Processing - First Process?
In this tutorial, we will learn how to initiate the **first process in production** using the **Issue for Processing** feature in **Logic ERP**.\
This process marks the beginning of the production cycle after creating a **Job Order**.
***
### **Create a Job Order**
The **Job Order** represents the **planning stage** of production — where you define what needs to be produced, for whom, and how.
#### **Open Job Order**
Navigate to the Production\Production Vouchers and then select **"Job Order".**\
Under the **Assigned To** field, choose whether the process will be handled:
* By a **Worker** → for in-house processing, or
* By a **Party** → for outsourced processing.
* Let’s proceed with creating a **Job Order for an external party.**
* Select the **Party Name**, and if required, enter additional details such as **Remarks** or **Job Order Instructions**.
#### **Add Items and Quantities**
Enter the items to be produced along with their required quantities.\
You’ll notice a **color flag** next to each item:
* The **Green Flag** indicates that the **raw material is available**.
You can view raw material details by clicking **Raw Material Details**, which displays:
* Total raw material requirement.
* Virtual reserved stock (based on pending purchase or production orders).
* Specifications like **Size**, **Shade**, and **BOM structure.**
* From here, you can add or edit **Raw Materials, BOM Expenses, and Process-wise Rates** as per your requirements.
* Modify **Raw Material Specification**
* Setup **BOM Expenses**
* Update **Item Rates Per Process**
**Note:** These changes apply only to the current job order.
Once all details are verified, **click Save** to record and finalize the job order.
***
### **Issue for Processing – First Process**
The **Issue for Processing** marks the **first stage of the actual production**.\
It defines which styles, designs, or quantities are being released for processing.
**a. Select Party or Worker**
Choose whether the work is handled **internally (Worker)** or **externally (Party)**.\
When issued to a **Party**, it is also referred to as a **Purchase Order Issue**.
**b. Define Process Details**
* Select the **Party Name**
* Choose the **Process** to be initiated
* Enter the **Processing Rate**
* Select the **Relevant Job Order**
The total quantity from the job order will be automatically retrieved.
> A single Job Order can be divided into multiple **Issues for Processing**, allowing production to be executed in **smaller batches** or across **multiple dates**.
Enter the required quantity (e.g., 50 pieces per batch) and **Save** the document.
***
### **Issue Raw Material for Processing**
After issuing the process, the next step is to **issue raw materials** required for production.
#### **Open Module**
Go to **Raw Material Issues Against Job Order (External)**.
This module is used by the **Stores Department** to issue materials to external vendors or job workers.
### **Select Job Order and Production Issue**
Select:
* The **Job Order**, and
* The corresponding **Production Issue** (also known as the Purchase Order Issue).
* Press **F8** to calculate and retrieve the required raw materials.\
Click **Refresh** — the system will fetch all materials based on the **Bill of Materials (BOM)**.
* Click on Save button.
* Raw material issues can be made **process-wise**, ensuring accuracy in consumption tracking.
> **Important:**\
> When raw materials are issued to an external party, it is mandatory under GST to file **Form ITC-04** to report these transactions.
***
### **Generate GST Form ITC-04**
**Open GST Returns Module**
* Go to **GST Returns**
* Select return type as **GST ITC-04**
* Click **Show**, and specify the **date range**
* Click **Generate**
The system will display all relevant data for issued materials.\
After verification, you can either:
* Prepare a **JSON file** for upload to the GST Portal, or
* **Export the data to Excel** by clicking **Upload**
***
### **Receive Against Issue**
Once the processing is completed, you can record the **receipt of semi-finished goods**.
**Open Module**
Navigate to **Receive Against Issue (External)**.
Select:
* The **Party** from whom goods are received
* The corresponding **Process** (e.g., Cutting)
* Click **Add Issues.**
* Select the **Job Order**, choose the **Item**, and click **OK**.
**Record Material Consumption**
* Use the **RM Consumption** button to record:
* **Raw material consumption**
* **Returns or wastage**
* This ensures accurate production costing and resource tracking.
* Finally, **Save** the document.
***
### **Result**
You have successfully learned how to:
* Create a **Job Order**
* Perform **Issue for Processing (First Process)**
* **Issue raw materials** to job workers
* Generate the **GST ITC-04** report
* Record **Receipts Against Issue**
This process ensures a smooth, compliant, and traceable production flow in **Logic ERP**.
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