Bill of materials

A bill of material (BOM) contains structured information for making an item. It defines the components that make up an item, and given this, the material cost of the item.

A BOM is an assembly, a finished item, made up of components, raw materials and instructions needed to build or maintain the item. A BOM often has a hierarchy of subassemblies in its list of components. Each subassembly will itself have a list of components, and this list can also contain subassemblies. The lowest level of the BOM is individual components and raw materials.

It is important that a bill of material is complete and accurate to ensure that the production process is efficient. If the BOM is not accurate it can cause manufacturing delays, which can result in increased operating costs.

Create a bill of material

1. To add a new bill of material (BOM) you can:
   1. Select Create from the main view or the Create icon in the split view.
   2. Select an existing BOM, then select the Duplicate icon. You can edit the duplicated BOM as needed.

2. Leave the assembly Status of the bill of material as In development.

   Change an In development status to Available to use when the bill of material is complete and the structure of the BOM has been confirmed.

3. Enter the bill of material Name.

4. Enter or select the finished Item the structured information in the bill will make, then enter or select the production Site.

   If you select an inactive item, you will have to remove it so you can save the BOM.
5. Enter the Base quantity to use for the components that make up the finished item.
6. Leave the Total standard cost. The cost will accumulate automatically as you add the components that make up the finished item.

7. Save the BOM details.

   The image of the finished item and the routing that defines the sequence of shop floor processes to build or maintain the item are displayed.

Add components

You add the components of the bill in the Components grid.

1. To add a component, from the Components grid, select Add.

2. In the New component panel, enter the Component number.

   Use a number that provides a starting point for sorting an ascending sequence of components. The increment should allow for components and instructions to be inserted into the sequence if necessary. For example, start with Component number10 and use increments of 10 for subsequent component numbers.

3. Leave the Type as Normal.

   To add assembly or production instructions, select Text then go to Add instructions.

4. Enter or select the component Item, which can be a single item or raw material or a bill of material (BOM) as a new subassembly.

   If you select an inactive item, you will have to remove it so you can save the BOM.
5. Enter or select the Operation name or the stage of production in the routing that consumes the component.
6. Leave the default Component name or edit it if it's too long or overly technical. You might prefer to use the name that's commonly used for the component at your production site, for example.

7. Leave the Fixed quantity checkbox clear if the quantity of the component needed to make the finished item needs to be calculated in proportion to the UOM link quantity.

   Select the checkbox if the component quantity is a fixed quantity.

8. Enter the UOM link quantity.

9. Enter the Scrap factor %.

   The work order component quantity is automatically increased to compensate for the loss percentage.
10. Enter special instructions appropriate to the component and links to supporting documentation for building the finished item.
11. Add the component.
12. Repeat steps 1 to 11 until you have added all the components that make up the structure of the finished item or bill of material.

Add instructions

You add instructions to individual components and as text lines in the Components grid.

• To add instructions to individual components, see Add components, step 10.
• To add instructions as text lines in the Components grid, from the Components grid, select Add then continue from step 1 here.

1. In the New component panel, enter the Component number.

   If the structure of the bill already contains a list of component numbers, you can insert an instruction line if an increment has been applied to the component sequence numbers.
2. Set the Type as Text.
3. Leave the Operation blank.
4. In the Component name field, enter the assembly or production instructions.
5. Leave the UOM link quantity and Scrap factor % as 0.
6. Enter additional or special instructions and links to supporting documentation for building the finished item.
7. Add the text line.
8. Repeat until you have added all the assembly or production instructions needed for the finished item or bill of material.

Finalise a bill of material

1. When the BOM is complete and the structure of the components is confirmed, set the BOM Status as Available to use.

2. Check that a Routing name is displayed if the BOM needs a routing to assemble it into a finished product.

   If the production process is simple or not relevant and the finished item does not need a series of production processes to make it, check the Routing name is blank.

3. Save the BOM.

Select the Multilevel view tab to view the list of subassemblies, components, raw materials, component images and text or instructions for the finished product. Any number of subassemblies can exist in a BOM component list. Each subassembly will itself have a list of components and this list can also contain subassemblies. From this tab you can view multiple levels of the assembly below the final assembly (the finished item) down to the lowest level component or raw material.

If you print the BOM, you can optionally include the standard cost of the finished item and instructions on the print. Instructions include assembly or production instructions and instructions for individual components. When the print is complete, you can access the PDF file from a link in the Notification centre. You can also access the print from a link on the Batch task history page, on the Logs tab. If you download the PDF file, you can export the list of components for review.

Receive finished items from production

You can receive finished items from production on the Production tracking page or you can create tracking documents from this page that automatically track a receipt from production according to the BOM definition and the associated routing definition.

If a routing is assigned to the BOM, the following tracking documents are created from this page when you receive finished items from production:

• A work order:
  • If all component stock is available, the work order is set to Completed status. All components, operations and released items are tracked in full. You cannot edit the work order.
  • If one or more component items are in shortage, the work order is set to In progress or Pending status.
  • If the material issue or production receipt failed, the work order is set to Error status.
• The material tracking: Consumption quantities for the operations and the components used to make the finished items are tracked simultaneously, with the material issue status reflecting the work order status.
• The production tracking: The finished item receipt and consumption quantities for the operations and the components used to make the finished items are tracked simultaneously.
• A time tracking: Resource operation times and operation quantities used in production are based on the operation details defined in the routing.

If a routing is not assigned to the BOM, only an assembly order is created.

1. To receive finished items from production and create the appropriate tracking documents automatically, select Track.

   This action is only available if the finished item is not serial numbered and none of the components are serial numbered.
2. In the Stock receipt detail window, enter the actual Quantity of the Item received from production.
3. Leave the current Date or select the expected receipt date.
4. The default Category is displayed. You can select a different category if you want to change whether the routing and/or bill of material need to be added to the work order when it's created.
5. To check availability of component stock that will need to be issued for the work order, select Check stock.

6. If the Component shortage grid suggests there is sufficient component stock, from the Stock details grid select Add a line.

   You can receive finished items from production when there is a shortage of component stock but you will need to progress the tracked work order and related tracked documents manually.

7. The default Quantity in stock unit is the actual Quantity of the finished item received from the production site. You do not need to change this value to receive the released items as a single batch or lot.

   To split the released items, edit the Quantity in stock unit figure in the grid.

8. Enter or select the Location or bin in the warehouse or workshop the released items are stored in, if applicable.
9. Enter or select the inspection and quality assurance Status rating given to the released items.
10. Enter or select the Lot identification number or batch code the released items are stored in, if applicable. You can edit the Expiry date of the lot, if necessary.

11. Repeat steps 6 to 10 if the released items are stored in different bins in the warehouse or workshop, or because some of the released items have different inspection and quality assurance ratings, or they are stored in different lots or batches, or have different expiry dates.

    The Quantity in stock unit defaults to the remaining balance on each new line. This ensures the sum of the Quantity in stock unit column always equals the Quantity figure.

    Complete the details for the final remaining balance line in the grid.
12. To save your stock details and create the tracking documents, select OK.

13. Select the Trackings tab to view the tracked production receipt quantities. Select the Open line panel icon from the received quantity line to view the tracked documents.

    If the tracked work order is set to In progress or Error status, check the status of each related material issue, production receipt or time tracking document and progress the documents that are not complete. You can then progress and close the work order.

Edit a bill of material

You can control availability of the BOM using its Status. For example, you can suspend a BOM if it has become obsolete or its production is temporarily outsourced. You can progress existing work orders for a suspended BOM however you cannot create a new work order for it.

You can filter the main list by status.

From the finished item and component item records, you control the Total standard cost of the finished item. From the finished item record you control the image of the finished item.

You can edit all other BOM fields as necessary. See Create a bill of material, steps 2 to 7.

You can change an item to use a different component, however the assumption is that if the BOM needs to be edited, only the planned costs would be updated and not the components.

To change a component for an alternative component, you need to insert the new alternative component into the BOM then delete the original component. A change to the components is only reflected in new work orders, existing works orders retain the original BOM components. See Add components.

You can edit all component fields. Select the More actions icon for the component number then select Edit.

Remember to recalculate the item-site costs when you change the Status to Available to use in case the costs have changed.

Delete a bill of material

You can delete individual components, assembly or production instructions with a component number, and a complete BOM.

From the main list, you can delete one or multiple BOMs.

If a work order has been created for a BOM, you cannot delete the BOM.

You can only replace an obsolete BOM with a new BOM when the obsolete BOM is deleted.

Limitations

You can print a job traveller for a work order created from a BOM but not a pick list. The material issue is at Completed status. You can only print pick lists for work orders at Pending and In progress status.

The material tracking posting will fail if the stock allocated to the material issue was used for a different stock allocation transaction before the new automatic material tracking record was finalised. If the Stock status in the material issue header information displays Error you might need to edit the component stock allocations. See the Material issue inquiry page for further information.

Working with bills of material

Refer to the list of questions in this section for guidance on how to use your Sage Distribution and Manufacturing Operations solution to carry out day-to-day production tasks.

• Can I create an alternative or supersession BOM?
• I need to make the item a different way. Can I change the structure of the BOM?
• The structure of the BOM components is in doubt. What should I do?
• Can I change a component for a different component?
• I need to provide specific instructions for the production team. Can I do this?
• I need to be able to accurately answer questions and report on the components in the finished product. What's the best way to obtain this information quickly?
• Can I see the cost of the finished item?
• If the cost of a component changes, is the finished item updated to reflect the new costs?

Can I create an alternative or supersession BOM?

No. A single item can only have one BOM defined to make the item, per production site.

You can change an item to use a different component, however the assumption is that if the BOM needs to be edited, only the planned costs would be updated and not the components.

I need to make the item a different way. Can I change the structure of the BOM?

Yes. You can add and delete components as required.

1. Add or insert a new alternative component with a unique Component number.

2. Delete the original component.

   Select Delete from the More actions icon.

The structure of the BOM components is in doubt. What should I do?

Change the Status of the BOM to Suspended. New work orders cannot be created for suspended BOMs however existing work orders can be progressed until they are complete and closed. When the order of the components has been corrected and the structure of the BOM is confirmed, change the Status to Available to use.

Can I change a component for a different component?

Yes. You can add and delete components as required.

1. Add or insert a new alternative component with a unique Component number.

2. Delete the original component.

   Select Delete from the More actions icon.

I need to provide specific instructions for the production team. Can I do this?

Yes. You add assembly or production instructions in the Components grid. See Add instructions.

You can also enter special instructions for individual components when you add a new or edit an existing component. The component instructions are free-format and can include links to supporting documentation for building the item or bill of material. The instructions are added to new work orders. Existing work orders are not updated with new or edited instructions. See Add components, step 10.

You can optionally include all instructions on a print of the BOM.

I need to be able to accurately answer questions and report on the components in the finished product. What's the best way to obtain this information quickly?

Select the Multilevel view tab. On this tab you can view the list of subassemblies, components, raw materials, component images and text or instructions for the finished product down to the lowest level component or raw material.

From the main list, you can print one or multiple BOMs. You can print all levels of the BOM down to the lowest level component or raw material. You can optionally include the standard cost of the finished item and instructions on the print. Instructions include assembly or production instructions and instructions for individual components. When the print is complete, you can access the PDF file from a link in the Notification centre. You can also access the print on the Batch task history page. On the Logs tab is a link to an individual PDF file for each BOM you printed and to a zip file if you printed multiple BOMs. If you download a PDF file or the zip file, you can export the list of components for review.

Can I see the cost of the finished item?

Yes. The total component cost is displayed in the Total standard cost field. You can optionally include the Total standard cost on a print of the BOM.

The breakdown of the costs involved in building or maintaining the finished item is displayed in the Planned versus actual block on a work order.

If the cost of a component changes, is the finished item updated to reflect the new costs?

Yes. The component Standard cost and Total standard cost of the finished item are updated when the new cost becomes effective, if the component item-site record is costed at standard cost. The effective date of the new cost is the item-site cost Start date.