A Bills of materials (BOM) is a comprehensive inventory of the raw materials, assemblies, sub assemblies, parts and components, as well as the quantities of each, needed to manufacture a product.

For example to produce a Computer, we need its various parts i.e. keyboard,Mouse, Monitor, CPU etc. Therefore BOM can easily help the user to plan purchase of Raw material, Estimate Material cost, inventory control and so on.

In this article we will cover the various steps included in the process of BOM:

Step 1: Process to Enable BOM in Marg Software

Step 2: Process to Create Manufacturing Formula

Step 3: Process of issuing Raw Material to Production Department.

Step 4: Process of Receiving Final product from the Production Department.

Step 5: Process to view Reports of pending stock, costing of the product & the production planning.

STEP 1: PROCESS TO ENABLE BOM IN MARG SOFTWARE

• Firstly, Go to Masters >> Marg Setups >> Control Room. Press Enter.

• A Control Room window will appear.

• The user will select ‘Search in all’. Press Enter.

• A Controls window will appear in which the user will Search “BOM”.

• Now click on ‘Accept’.

• A BOM window will appear.

• In ' Bill of Material (General Manufacturing)' option, the user will select 'Y'.

• The user will now press Esc key twice.

• Now click on ‘Yes’ to save the changes.

STEP 2: PROCESS TO CREATE MANUFACTURING FORMULA

• Go to Transactions > Bills of Material (BOM)> Manufacturing Formula. Press Enter.

• An Items window will appear.

• Firstly, select the Final Product (which will be created by sub items).

• Suppose, in our case we are going to manufacture a Computer so we’ve selected ‘Computer’ as final product.

• A Manufacturing Formula window will appear on which define the ‘Quantity’ for which the manufacturing formula is being generated.

• Suppose, we are generating manufacturing formula for ‘1’ PCS of computer.

• Now again an ‘Item’ window will get opened and you need to select the Sub Item (with which the final item will be created).

• Suppose, we need CPU, Monitor, Keyboard etc to create ‘Computer’ so here we are selecting the Sub-items one by one.

• Firstly select we are selecting ‘CPU’.

• Now mention ‘How much quantity of the sub item you need to assemble your final product’?  

• Suppose, we need 1 CPU to manufacture a Computer. So we’ve mentioned 1 here.

• Now mention the cost of the sub-item.

• Suppose, in our case, cost of CPU is Rs 1000. Therefore, mentioned Rs 1000/-.

• Similarly, mention all the Sub-items (to be used) to generate a final product.

• As we’ve selected all the sub-parts of the computer.

• Then press ESC key to save the formula.

• Now again press ESC key to get exit from the manufacturing formula.

STEP 3: PROCESS OF ISSUING RAW MATERIAL TO PRODUCTION DEPARTMENT.

Note: Before Issuing the Raw Material to the production department, the user needs to purchase the product. 

• Now again Go to Transactions > Bills of Material (BOM) > Issue. Press Enter

• An Issue Entry will be opened in which the user will Enter the date of the transaction.

• Now a Ledgers window will appear, select the manufacturer (to whom you are issuing the raw material to produce the final product).

• Suppose, we’ve selected ‘Production Department’.

• Now an ‘Items’ window will appear.

• Select the Sub item that needs to be issued to the production department.

• Suppose, select CPU.

• Now mention the ‘QTY’ (to be issued).

• Similarly, the user will load the items (to be issued) and save the transaction by pressing CTRL+W key.

• A Save Changes window will appear.

• Select ‘Yes’ to confirm the saving process.

STEP 4: PROCESS OF RECEIVING FINAL PRODUCT FROM THE PRODUCTION DEPARTMENT.

• Now again Go to Transactions > Bills of Material (BOM) > Receipt. Press Enter

• A Receipt Entry will be opened and in which the user will Enter the receiving date of the product.

• Now a Ledgers window will appear, select the manufacturer (from whom you are receiving the final product).

• Suppose, we’ve selected ‘Production Department’.

• Now press Enter to select item (Final Product).

• Now an Items window will appear.

• Now select the final product (that is being receiving).

• Suppose, we’ve selected ‘Computer’.

• Now mention ‘Quantity’ (is being receiving).

• Suppose, mention 7.

• Now the user can view the total items (that has been used to produce a final product).

• Then press ESC key to get exit from this window.

• Now save the transaction by pressing CTRL+W key .

• A Save Changes window will appear.

• Select ‘Yes’ to confirm the saving process.

• Thereafter you can view that the final product will be added to your stock list.

STEP 5: PROCESS TO VIEW REPORTS OF PENDING STOCK, COSTING OF THE PRODUCT & THE PRODUCTION PLANNING.