BOM is a must feature for the production Industries. When the raw material is sent for production, raw material inventory should decrease and the finished goods (Product) inventory should increase.
In the same way BOM is configured in AccountingGuru. Below, are the steps to use BOM.
- Create product
- Create component (Will be sent for production)
- Bill of Material
When we make a production entry, we need to create the product which is going to be assembled by the components.
To create a product, click on Masters -> Products as shown below
Click on +New Product as shown below
In the next screen, add the Product details as shown below.
Ex: We are going to assemble a Computer. Computer is the product. So, first we need to create Computer as a Product. Create the product as shown below
- Click on Stock Item check box
- Click on Assembled Product check box, when creating the product
After creating the product which we are going to produce, we need to create the components of the product.
To assemble a Computer, we need the following components.
- Mother Board
- Hard Disk
- CD/DVD Drive
- Floppy Disk Drive
- Power Cables
After creating the product & it's components, components should be sent for production. To send the Components, click on Production -> Bill of Material as shown below
Select the product and it's components as shown below. Total value is calculated automatically.
After adding the components to the product, click on Save as shown above. Now, the components are added to the Product.
Now we need to assemble the product. To assemble the Product Click on Production -> Assembly as shown below
Note: Before assembling a product, make sure that you have enough stock of the components. Also, make sure that you have configured the taxes.
The below screen appears. To assemble, follow the instructions
- Select the product you want to Assemble (Computer)
- Feed in the quantity you want produce
- Select the production date
- Give product comments
Once you select the product, all the components of the product will be displayed below.
On Successful Creation, the following screen appears.