What Do We Need to Know About Bills of Materials (BoM) in an ERP System?

A BOM or Bill of Materials is regarded as the extensive list of materials, instructions, or components that are required for constructing, manufacturing, or repairing a specific product or service. A Bill of Materials is usually known to appear in a hierarchical format. The highest level is known to depict the finished product. On the other hand, the bottom level of the given list indicates individual materials or components.

When taken in terms of ERP, a BOM software solution can be regarded as a type of ERP application for manufacturers. The given software solution is known to outline the overall structural composition of the products that the manufacturers are selling, assembling, costing, or planning. It is known to encompass every style of BOM while being integrated with all functions in the given supply chain –right from customer order processing to the costing of the production of goods.

Top Features of ERP BOMs

  • Is Active –A product could be manufactured with the help of an alternate set of operations or materials. In the given case, the specific box can be unchecked for disabling the BOM and using another one.
  • Is Default –The given BOM will be selected on a default basis in the section Work Orders and others upon the selection of the product.
  • Inspection Required –This component is going to make the option of “Quality Inspection” compulsory for both the finished goods as well as the raw materials. The option Quality Inspection Template is required to be selected after the given checkbox.
  • Allow Alternative Item –In some cases, during the manufacturing of the goods, particular materials might not be available. Upon ticking the given option, you can look forward to creating as well as selecting some alternative item from the list of Item Alternative.
  • Allow an Item Multiple Times –During some typical cases of manufacturing, the same items might be required to be added more than once. The selection of the given checkbox would allow you to select the given item several times.
  • Rate of Materials Based On –The rate of the respective raw materials can be analyzed on the basis of various parameters like valuation rate, last purchase rate, and price list.

Additional Options While Creating the Bill of Materials

Some of the common features of this software solution to look out for are:

  • Date & ECN effectivity
  • Attaching operations
  • Automatic issue based on production
  • Query related to “how many bills can I build?”
  • Indented and single explosion
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