Bill of Materials Overview
What is Bill of Materials?
The parts list of a product — what it's made of. A Bill of Materials names the components, raw materials, labour and services that go into a finished item, along with their quantities and costs. You use it to build kits (via Stock Conversion) and to drop a product's component lines onto a document in one click.
A BOM is optional, and it does not drive how a product is manufactured — that's the job of a separate WO Process (the production route).
New to this? See BOM vs WO Process — the difference between what a product is made of (the BOM) and how it's made (the route).
Who Uses This?
Product Teams
Define product structures and recipes with component costs
Costing Teams
Calculate accurate product costs including material, labor, and wastage
Purchase Teams
See the components each product needs, to plan purchasing
Quality Teams
Set specifications and quality parameters for finished products
Key Features
Multi-Level Structure
Base model BOMs for parent items with component breakdown
Wastage tracking with percentage-based material loss allowances
Multiple item types - components, raw materials, labor, services, consultation
Cost Management
Automatic cost rollup from component costs to finished product pricing
Cost breakup by category with percentage contribution tracking
Dual pricing separate cost price and sales price per BOM item
How It Works
Typical Workflow
Create BOM - Select base model item and define BOM type (component, raw material, labor, service)
Add components - Specify required items with quantities, UOM, wastage percentage, and unit costs
Configure details - Set cost breakup, specifications, quality parameters, and attach technical documents
Put it to work - a BOM captures a product's components and their costs
BOM Structure
| BOM Type | Description | Use Case |
|---|---|---|
| Component | Sub-assemblies or manufactured parts | Intermediate products used in final assembly |
| Raw Material | Base materials for production | Steel, plastic, chemicals, fabric - consumed in manufacturing |
| Labor | Human effort required | Assembly time, welding hours, packaging labor |
| Service | External services needed | Heat treatment, painting, testing, certification |
| Consultation | Expert input or design services | Engineering design, R&D, technical consulting |
| Software License | Software components or licenses | Embedded software, firmware, license costs per unit |
| Overhead | Indirect costs allocated to product | Utilities, depreciation, facility costs per unit |
Getting Started
| Task | Guide | Time Required |
|---|---|---|
| Create New BOM | How to Add BOM | 10 minutes |
| Edit BOM Structure | How to Edit BOM | 5 minutes |
| View BOM Details | How to View BOM | 3 minutes |
Related Sections
- Items - Create items before adding to BOM
Quick Tips
Best Practices
Create base model items first before building BOMs - ensures proper parent-child relationships
Include wastage percentages for materials prone to scrap during production to maintain accurate costing
Use cost breakup tab to categorize expenses by direct costs, overhead, and operational expenses for better margin analysis
Need help? Contact support at support@bizconnekt.com