Bill of materials & costing
Build a bill of materials for each product, roll up component and labour costs, and see a true cost of production per finished unit — not a guessed price.
Manufacturing & production · UAE
Accounting software for UAE manufacturing
Cost every product from its bill of materials, track work in progress, value stock on FIFO, and keep VAT and Corporate Tax handled — AIMuhaseb gives UAE manufacturers a true cost of production and margins you can act on.
Where the cost of a product actually hides
A manufacturer’s margin is decided long before the invoice goes out. It lives in the bill of materials, in the components sitting on the floor as work in progress, and in how raw materials are valued when prices move. Miss any of these and your Profit & Loss tells you a comforting story that the bank balance later contradicts.
AIMuhaseb is built for that reality. You cost each product from its BOM, move materials through WIP into finished goods, value everything on FIFO, and self-account VAT on imported components — with an AI assistant handling routine categorisation so your finance team can focus on the numbers that decide whether a production run was worth running.
What you get for your factory
The workflows a UAE manufacturer needs — from the BOM to the tax return.
Work in progress (WIP)
Track raw materials moving through production so unfinished goods sit in WIP and only hit finished-goods stock when a batch is completed.
FIFO inventory valuation
Value raw materials, WIP, and finished goods on a FIFO basis, so your closing stock and cost of goods sold reflect what components actually cost.
VAT & Corporate Tax ready
Apply 5% VAT on domestic sales, self-account reverse charge on imported components, and keep IFRS records that feed a clean Corporate Tax return.
Supplier & job payables
Manage vendor bills and cheques for steel, packaging, chemicals, and freight, with aged payables so you know what falls due against each production run.
Margin by product line
Live Trial Balance, P&L, and Balance Sheet update with every entry, so you can watch gross margin per product line and spot rising input costs early.
From raw material to filed return
A clear production-to-books rhythm.
01
Set up your plant
Add your TRN, fiscal year, and a UAE chart of accounts with raw-material, WIP, finished-goods, and cost-of-production lines ready.
02
Define your BOM
Record the components and quantities for each product so the software can cost a finished unit as materials and labour are consumed.
03
Run production
Book material issues into WIP and completed batches into finished goods on FIFO, keeping stock valuation and COGS accurate.
04
Report & file
Review margin per line on the live P&L, then generate a VAT 201 and IFRS statements ready for filing and your Corporate Tax return.
Why UAE manufacturers choose AIMuhaseb
A true cost of production, honest stock, and compliance handled — so you run the plant, not the spreadsheet. Explore related tools and industries:
- Bill-of-materials costing that gives a real cost of production per unit
- WIP tracking so unfinished batches never distort finished-goods stock
- FIFO valuation for raw materials, WIP, and finished goods
- Reverse-charge handling for imported components and machinery
- Aged payables for material, freight, and packaging suppliers
- IFRS statements and a VAT 201 generated straight from the ledger
Manufacturing accounting questions
Can AIMuhaseb cost a finished product from its bill of materials?
Yes. You define a bill of materials for each product — the components and quantities it consumes — and the platform rolls up material and associated costs into a cost of production per finished unit. As component prices change, your costed BOM and gross margin move with them, so pricing decisions rest on real numbers rather than an out-of-date estimate.
How is work in progress (WIP) handled?
When raw materials are issued to a production run they move out of raw-material stock and into work in progress. Only when a batch is completed does the value transfer into finished goods. This keeps your Balance Sheet honest: part-finished production is not counted as sellable stock, and your cost of goods sold reflects goods that were actually completed and sold.
Which inventory valuation method does it use?
AIMuhaseb values inventory on a FIFO (first-in, first-out) basis across raw materials, WIP, and finished goods. As you record purchases and consumption, the earliest costs flow into cost of goods sold first, so closing stock is valued at more recent prices — consistent with IFRS and suitable for a UAE Corporate Tax computation.
How does VAT work on imported raw materials and machinery?
Imports of goods and services from non-resident suppliers fall under the reverse-charge mechanism, where you self-account for both output and input VAT — net nil where the input tax is fully recoverable. AIMuhaseb records this treatment and produces a VAT 201 from your ledger. Confirm any specific item’s treatment with your tax adviser or the FTA and apply it in the software.
Will it produce statements for Corporate Tax and audit?
Yes. The platform keeps IFRS double-entry records and generates a Trial Balance, Profit & Loss, and Balance Sheet on demand. Because manufacturing carries significant inventory, keeping FIFO stock and WIP accurate throughout the year gives you audit-ready statements and a clean starting point for your Corporate Tax return.
Do I need an accountant to run it?
No. AIMuhaseb uses proper double-entry bookkeeping behind the scenes, and the AI assistant suggests account categories and drafts journal entries for you to review and approve. Your production and finance teams stay in control of what is posted, while the software handles the mechanics.
Enquire
Talk to us about your manufacturing business
Tell us about your products, production runs, and inventory — BOM costing, WIP, FIFO valuation, or the full back office. A UAE specialist will get back to you shortly.