Bill of Materials (BOM)

A Bill of Materials (BOM) is a list of raw materials, components, and sub-assemblies needed to manufacture a product. It defines the recipe for production.

Creating a BOM

1. Go to Manufacturing > Bill of Materials and click New.
2. Select the Item (the finished product being manufactured).
3. Select the Company.
4. Enter the Quantity — the BOM is always for a specific quantity (usually 1 or a standard batch).

1. Add items in the Items table:

- Item Code: The raw material or component

- Quantity: How much is needed

- UOM: Unit of measure

- Rate: Cost per unit (for costing)

- Operation: The manufacturing step where this material is consumed

1. In the Operations table, define manufacturing steps:

- Operation: Description of the step (e.g., "Mixing", "Assembly", "Painting")

- Workstation: Where this operation is performed

- Time (mins): Estimated time for the operation

- Operating Cost: Cost per hour of this operation

1. Click Save and Submit.

BOM Types

BOM Costing

The BOM calculates:

• Raw Material Cost: Sum of all component costs (Item Price × Quantity)
• Operations Cost: Sum of (Operating Rate × Operating Time) for each operation
• Total Manufacturing Cost: Raw Material Cost + Operations Cost

This cost becomes the Valuation Rate of the finished product (along with any additional manufacturing overhead).

Multiple BOMs

An item can have multiple BOMs:

• Different BOMs for different manufacturing methods
• BOM with Is Default checked is used by default
• Different BOMs can yield different quantities (e.g., BOM for 1 unit vs BOM for 100 units)

BOM with Sub-Assemblies

For complex products, create BOMs for sub-assemblies first, then reference the sub-assembly item in the parent BOM. This creates a multi-level BOM structure.

Related Topics

• Work Order
• Item
• Production Planning