Bill of Materials (BOM)

A Bill of Materials defines the components needed to create assembled or manufactured products.

BOM Concepts

What is a BOM?

A BOM specifies:

• Components required
• Quantities of each
• Assembly relationship

BOM Types

Example: Multi-level BOM

Finished Computer
├── Computer Case (1)
├── Motherboard (1)
│   ├── CPU (1)
│   ├── RAM Module (2)
│   └── Cooling Fan (1)
├── Power Supply (1)
└── Hard Drive (2)

Creating a BOM

Step 1: Navigate to Product

1. Open the product to define BOM for
2. Go to Bill of Materials tab

Step 2: Add Components

1. Click Add Component
2. Select component product
3. Enter quantity required
4. Set unit of measure
5. Repeat for all components

Step 3: Configure Options

Step 4: Save BOM

Review and save the bill of materials.

BOM Management

Viewing BOMs

See all products with BOMs:

1. Go to ERP > Products
2. Filter by "Has BOM"
3. Click product to view structure

Editing BOMs

1. Open product's BOM tab
2. Add, remove, or modify components
3. Update quantities
4. Save changes

BOM Versions

Track BOM changes over time:

• Version history maintained
• Compare versions
• Roll back if needed

BOM Operations

Exploding BOMs

Expand to see all components:

Flattened view:

Cost Roll-up

Calculate assembled product cost:

1. Sum component costs
2. Add labor costs
3. Add overhead
4. Apply scrap factor

Example calculation:

Where-Used

Find where a component is used:

1. Open component product
2. View Where Used section
3. See all parent assemblies

BOM in Workflows

Production Orders

When creating production:

1. Select assembled product
2. BOM components reserved automatically
3. Track component consumption
4. Complete production

Purchase Planning

Plan purchases based on BOM:

1. Forecast demand for assembled products
2. Explode BOMs to component level
3. Calculate component requirements
4. Generate purchase orders

Stock Management

BOM affects inventory:

• Component stock checked for availability
• Reservation includes BOM components
• Shortage alerts for missing components

Best Practices

BOM Accuracy

• Verify quantities through physical assembly
• Update BOMs when designs change
• Review periodically for accuracy

Component Management

• Use consistent part numbers
• Maintain component inventory
• Set minimum stock levels

Scrap Factors

Account for waste:

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