The Bill of Materials (BOM) document lists components that define the make up of an assembled product. A particular BOM may represent a finished product for re-sale, or a sub-assembly or intermediate manufacturing stage. Each component of BoM may itself have a BoM allowing nesting of sub-sub-assemblies.
The Parent (Product Code to be produced) and BOM (component) Product Codes require stability or oversight when Product Code Standard Costs change. 'Refresh Component Costs' will check and update the Stock Account cost of the BOM components. 'Update Assembled Product' will update the Standard Cost of the parent product according to the Standard Cost of the BOM components.
Documents > Stock > Bom Maintenance > Update Boms is the oversight process that can be run across all Product Codes, both parent and component, instantly performing the role of the buttons 'Refresh Component Costs' and 'Update Assembled Product'.
The typical outcome sought is that the accumulated Standard Cost of the BOM components would equal the Standard Cost of the parent product. The parent item (if to be sold) may then have a Selling Price Markup from its Standard Cost.
Refresh Component Costs
Fetch component costs and other details from the Stock Account. Your system will use either Standard, Current, or Average Cost.
Update Assembled Product
Set the Standard Cost of the assembled product.
Recost!
Reset the Standard Cost in the Stock Account to the Current Cost. The reset Standard Cost will apply to all BoM components here, and in their respective Stock Account cost data. Note: If Current Cost in Stock Account is zero, Standard Cost will become zero.
Quantities and Products.
Product Code (parent) to contain BoM.
Working Cost
The Working Cost will update dynamically as the BOM is edited. Standard Cost of the assembled Product Code should be updated to reflect the Working Cost, by using the 'Update Assembled Product' button from the ribbon, at the conclusion of BOM editing.
Copy!
Selecting a product in the 'From Product' field, and clicking Copy! will copy the BOM from the 'From Product' to the body of this document.
Work Centres (Documents > Job > Work Centres) may be established to manage labour or a process.
It is permissable to add cost to a BOM without invoking a Product Code where appropriate in accounting terms.
1. Bill of Materials - Production Order
Page 2 Bill of Materials
The Production Order allows items to be produced into stock, using products from the Stock Account, without the produced item being sold immediately.
The produced (parent) Product Code is added (debited) to the Stock Account. The Component Product Codes used in assembly are reduced, (credited). The product may then be sold, or potentially used a component in a nested BOM under another Product Code.
**Refer to the Production Order Help Page for Bill Of Material use in the Production Order context**
2. Bill of Materials - Build Stock of BoM -> in Sales Order
Page 3 Bill Of Materials
This method allows a Bill of Materials to be pulled at the Sales Order stage. It is provided as an alternative to a Production Order.
STRHLO03C: Using "Info Window" Build Stock of BoM to pull all BOM in a Sales Order Sales Order -> ‘Build Stock of BoM’ -> Sales Invoice *There is then no need for a Production Order in this scenario. *This will keep the Stock of STRHLO03C at zero. 1 in (Build Stock of BoM), 1 out (Sales Invoice). All BOM is pulled from the Stock Account, including nested BOM.
To pull all BOM in a Sales Order, enter the Items and select a Product Code containing a Bill of Materials. Click on the Product Code to see the 'Info Window' From the 'Info Window' click Build Stock of BoM. This will present the Build BoM window. A suggested Build number will appear matching the Sales Order Items of the Product Code. Click the OK button to update the Sales Order column BoM Built -> Y This Process will: - Pull (Credit) the BOM component from the Stock Accounts(s), including Product Codes with nested BOM, at the Stock Account Standard Cost of the components. - Put (Debit) the (parent) Product produced, in this example STRHLO03C into Stock.
Progressing the Sales Order to Invoice will: - Pull (Credit) the (parent) Product Code in the Sales Order, in this example STRHLO03C from Stock. - Debit TRADING : COST OF SALE at the Standard Cost of the product STRHLO03C. - Credit TRADING : SALES at the Selling Price of the Product Code. (The price of STRHLO03C can be manually edited in the Sales Order). - Credit BALANCE : GST : SALES - Debit the customer account.
Documents > Parameters > Stock Status: Can be used to flag (associate a colour) with Product Codes which contain a Bill Of Materials. The associated colour can be presented in the Sales Order to assist with identification of Product Code containing BOM.
2. Bill of Materials - Build Stock of BoM -> in Sales Order ... continued
Page 4 Bill Of Materials
The Stock Account image below shows the Stock added as a result of using the OK button, applying Build Stock of BoM.
Sales Order -> Invoice
Progressing the Sales Order to Invoice will then credit (remove) the product code built from BOM. The Audit Trail report below shows:
Ref: Sales Or 027627 -> Build Stock of BoM. Credits to the BOM, and Debit to the Product Code STRHLO03C
Ref: Invoice 032579 -> Contains the postings a associated with the actual sale of Product Code STRHLO03C.
3. Bill of Materials - General Fabrication - 'Get BoM'
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General Fabrication: The 'Get BoM' button from the ribbon of the Sales Order can be used to explode all or some of the Bill of Materials for a Product Code which contain a Bill of Materials.
For general fabrication, where similar components are repetitively used at varying quantities, to save the operator input time, a template Bill of Materials can be associated with a Product Code such as GENPOST. From a Sales Order, the 'Get BoM' button can be used to explode the template Bill of Materials GENPOST where the commonly used components in the BOM are edited to fabricate a unique or custom GENPOST.
Bill of Materials
Page 6 Bill of Materials
Purpose: This document provides the facility for the initial creation or editing of a Bill of Materials.
Prerequisites: This document uses Stock Account data, established at Documents > Stock > Account.
Context: A Bill of Materials can be a component product of another Bill of Materials.
Product Code: Type in the product key (or click the right mouse button) and select the key from the list. Product Description: Displays the short description of the product. From Product: Type in the products key (or click the right mouse button) and select the key from the list. This is the product that the Bill of Materials will be copied from when the user clicks the Copy button. Selling Price 1: Type in the selling price. Standard Cost: This is updated to the Working Cost when the user click the Update button. Working Cost: Displays the current cost of the goods in the Bill of Materials.
Items: Type in how many items of this product are used to make the assembled product. Product: Type in the component products key (or click the right mouse button) and select the key from the list. Product Description: Displays the short description of the product. This can be overtyped if required. Quantity: Displays the quantity of this product used to make the assembled product. Unit: Unit of measurement. Cost: Standard, Current, or Average Cost. Extension: Displays the value of the line. This is the Quantity x Cost.
From Here: Once a Bill of Materials Product is established in the LILAC database it may be produced, purchased, or sold.
