Vinkle said:

Can please someone guide me how to convert raw material into finished goods in the sage 50.

For recording assemblies that are more or less identical, you can set up the raw materials quantities and assembly cost in the 'Bill of Materials' tab in the Finished Goods inventory item, then use the 'Bill of Materials' to record how many were built.  The individual costs of raw materials in a Bill of Materials are always automatically calculated and added to the 'assembly cost' from the 'Bill of Materials' tab.

To record 'one-of' or more complicated assemblies from raw materials into finished goods (such as one work order for multiple raw materials items into multiple finished goods items), you can use 'Item Assembly'.   Item Assemblies can be saved as 'recurring transactions' to save typing the whole thing each time.  Be aware that if you over-ride the cost in the Item Assembly screen and save as a recurring transaction, Sage 50 will store what you put in, rather than updating the costs as inventory raw materials costs change.  

Sage 50 does not allow using a bill-of-materials or an Item Assembly unless all raw materials are recorded as on hand, so it's easiest to record purchase of raw materials as soon as possible - even if you haven't received the supplier invoice you can record them as received.  Either enter from a PO or the vendor's packing slip and price list, and uncheck 'Invoice received'.  Adjust the invoice to add the final invoice number and due days when it's received.