“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.

  1. Single BOM:  This is the standard BOM.
  2. 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
  3.  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.

And save.

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
Cloth 2 Meter
Buttons 8 Nos
Thread 1 Roll

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

Press enter

A new Option will active immediately “Set components (BoM)”

Select : Yes

Press enter

The BOM List for the Product (here shirt) will appear.

Type the BOM Name: Shirt 40”

Press enter

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.

Multiple BOM

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

Press Enter

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.