Create a bill of materials
List what a product is made of and how much one run makes, with labour and overhead, so production uses the right stock and cost.
A bill of materials (BoM) is the recipe for a product: which components go in, how many, and how much one run makes. Manufacturing orders follow it to take the components out of stock and put the finished product in.
Steps
-
Open Manufacturing and click New BoM. Bills of materials lists the ones you have.
Open Manufacturing -
Choose the product you make and how many one run makes. For example, one 25 kg bag fills 5 packs, so one run makes 5.
Product and quantity made -
Add the components. Pick each component and the quantity one run uses. Click + Add component for the next one.
Add the components -
Add the labour and overhead per unit (optional) and a name such as Machine packing. The estimated cost per unit at today's costs is shown below.
Labour, overhead and name -
Click Save. The BoM shows what it makes, each component with its cost now, and the cost of one run.
Save it
Tip A product can have several BoMs, for example Hand packing and Machine packing. Tick Default BoM for this product on the one new orders should use.
Good to know
- Components and finished products are ordinary stock items in Inventory.
- Changing a BoM doesn't change orders already produced. Archive a BoM you no longer use; its history stays.