Manufacturing businesses must monitor their expenses effectively to ensure smooth production and minimize operating costs. Creating a bill of materials (BOM) is crucial for achieving this.
Note: Make sure when you have created a product for BOM, you enable the "Manufactured" check box as shown in the below screenshot.
Follow the below steps to create the bill of material:
Step 1: Select "Manage Purchases" from the Navbar and Click on "BOM."
Step 2: Click on "+Add New Bill of Material" from the Bill Of Material section.
Note: Only the items checked as Manufactured while creating a product will get listed in the Menu. If your required variant is not on the list, you can add a product by clicking the "+" option.
You can add the details of your products here. Ensure that the "Manufactured" option remains checked. Click the "Add Product" button. This product will get listed under the manufactured products, and you can use it in a Bill of Material.
Click here to learn more about how to add a new product to FF Inventory.
Step 3: Select the Bill of Material Item from the drop-down list.
Step 4: Select the yield quantity of your product
Step 5: Now add the components required to build the Bill Of Material Item. To add a new part, click on "Add another item."
Note:
Wastage: Part of the component material which won't be converted into a complete finished product.
Quantity: The component material quantity.
Cost Per Item: Individual cost of component material. This cost is predefined.
Total Cost: The total required cost of component material. The cost will get calculated automatically.
Step 6: Add the other optional costs like labor & other additional expenses which can be part of the production process. To add extra items, click on "Add another item."
Step 7: Specify the notes/instructions regarding the production of the item in the Notes Field.
Step 8: Now add the Bill Information as shown below.
Note:
Reference Number: Mandatory field to track the order using the number.
Default Location: The warehouse location.
Default Assignee: The appointed nominee for the Bill of Material.
Step 9: Once you add all the details to your Bill Of Materials & are assured with the details, click on the button "Create BOM & View" to produce the Bill of Material. Once done, your Bill of Material will get created successfully.
Note:
You can only edit the Bill of Material if it has no production order attached.
Once the Bill of Material is produced, it gets listed with other BOMs in the Bill of Material section.
You can start creating the production order once the BOM is generated.