All about Bill of material in Tally ERP9
“A bill of materials (sometimes bill of material or BOM) is a list of the raw materials, sub-assemblies, intermediate assemblies, sub-components, parts and the quantities of each needed to manufacture an end product”
To k now more about bill of material theoretically go here.
In simple a bill of material is the pre defined list of raw material required for manufacturing finish goods.
Remember this lesson is first step of creating manufacturing journal or manufacturing transaction in tally
Where BOM is used
BOM is used in manufacturing journal, to create finished goods. T
Types of BOM in tally
In tally there are three kinds of BOM available based on the usability.
- Single BOM: This is the standard BOM.
- Multiple BOM: This is useful when you use different set of components to manufacture the same finished goods. For example: Customer may ask for Desktop with Core™ i3 Processor and Desk top with Core™ i7 Processor, but all other components remain same. Here we require multiple BOM
- BOM with Item: This type of used when, in addition the finished goods, a byproduct is produced .For example: Baby Frock as a byproduct from manufacturing Churidar.
How to activate Bill of Material?
To activate bill of material, make Yes to the option “Allow component list details (Bill of materials) in stock item configuration screen. To access stock item configuration screen perform following sequence.
Gateway of Tally >> Inventory Info >> Stock Items >> Create
Press F12 function key, the current screen is stock item configuration window.
How to Create BOM?
We can create a bill of material with the following example.
A readymade manufacturer manufacturing a Shirt with Following Components
|Raw materials ( Components)||Quantity|
Perform the following sequence:
Gateway of Tally > Inventory Info. > Stock Items > Create
Create stock item “Shirt “
Type name, then select stock group, then select appropriate unit
A new Option will active immediately “Set components (BoM)”
Select : Yes
The BOM List for the Product (here shirt) will appear.
Type the BOM Name: Shirt 40”
In the next screen you will see following field
Unit Of manufacture: Type the units manufactured using the listed material
Enter item, Godown, quantity as in the below image,
The godown will appear only if you have enabled in F11 Features. Press enter until you reach stock item, again press enter and save.
Various customers have various needs, for example some customers require shirts with pocket buttons, and in such case you can create an additional BOM for the same product with slight change.
To make additional or multiple BOM
Gateway of Tally > Inventory Info. > Stock Items > Alter
In the stock item alteration screen, find the option “Alter components”. Set this Yes
Press Enter Key,
Previously created BOM Will be there
Press Down arrow key to create new one
Type the second BOM name
Lets Name it : Shirt 4” Modern
Press Enter Key
In the next screen, the options are similar to above except button, we are using two additional buttons in this BOM
Press enter until you save the stock item. In manufacturing journal both the bill of material will display while entering the manufacture of shirt. Select the appropriate BOM as per requirement.
BOM with Item
Assume that the cut piece of the cloth is used to make kerchief, hence the kerchief is the byproduct of the Shirt. To include this by product we are creating BOM with item.
To create BOM with item kerchief, the item must be created as a stock item and define the type of component in the BoM List
We know how to how to create a stock item
How to define the type of components BoM list?
To define this you should activate the option “Define Type of component for BOM”
This option available when you are in BOM List creation screen
Press F12 Button
Make the option Yes
Now In BoM List screen you can enter, Types of items like ,By product, component, scrap,,Co-product etc.
In the below screen we can you will get a clear picture of BOM with item
Press enter and save the screen, by using this BOM in the manufacturing journal, you will get a kerchief apart from shirt.
Copy existing BoM to New BoM
To Copy Existing BOM to New BoM, For Example
We want to copy Shirt 40” Modern to Shirt 40” Classic
From The BOM Name List Type the new name Shirt40” Classic
On the right hand top there is a copy button
Click on the Button or Use short cut Key Ctrl + C
In the next screen, all existing BOM Populated, select the existing one from which data is to be copied
Press Enter, The selected BOM will have copied to new one.