Create a bill of materials (BOM)

Create a bill of materials (BOM)

Overview

You may need to combine items to create a finished product. A bill of materials (BOM) lists the items that create a product. A BOM is like a recipe. You list the ingredients (component products) and amounts required to make the finished product. Reuse or edit that recipe to build or sell the finished product.

There are two BOM types:

  • Make
    Manufacture the final product in your own company. List all products needed to create the final product. For example, mattress + frame + headboard = bed.
    Use the Make BOM in Production Job.

  • Addon
    Contract manufacture products with 3rd party services or suppliers. For example, t-shirt + embroidery service = embroidered t-shirt.
    Use the Addon BOM in Purchase Order.

Contact Cin7 Omni support to enable Addon BOMs.

You can also add BOMs in bulk by importing them into Cin7 Omni.

Create BOM products

Before creating a bill of materials, you need to make the final product and products used.

  1. Select Products in the navigation.

  2. Select Create New Product and create the finished product (for example, a bed or embroidered t-shirt).

  3. Select Save & Create New.

  4. Create the products used to make the finished product. For example, create three products that build the bed: a mattress, frame, and headboard.

    • Only create products for items you will stock. For example, the embroidery t-shirt won't have a product for the embroidery service. Instead, you will create products for:

      • Embroidered t-shirt (finished product)

      • T-shirt (component product)

Check that you have all component products and the finished product. For example, a BOM for a bed has four products:

  • Bed

  • Mattress

  • Frame

  • Headboard

Create a bill of materials (BOM)

After you have created your BOM products, you can set up the BOM.

  1. Select Products in the navigation.

  2. Find the finished product in the product list.

  3. Hover over Custom Links for your finished product.

  4. Select BOM. You can edit existing BOMs by selecting Edit BOM.

  5. In the BOM Master, the finished product (and its product options) will show in the grid.

  6. Click in the Make BOM column. You can set up the BOM for each product option.

  7. Select Make or Addon.

    1. Make
      Make the finished product in-house with products you have in your warehouse or branch.

    2. Addon
      Add a 3rd party service or product to make the finished product.
      Contact Cin7 Omni support to enable Addon BOMs.

  8. Blue lines will appear below with Use in the Make BOM column.

  9. Add the component products by entering the Code or Product Name. Component products are the items you use to build the finished product.

  10. Each component product needs to be on a new row with Use in the Make BOM column. You can insert more rows for component products.

    1. In a new row, click in the Format column.

    2. Select Insert Row Below.

  11. In the Qty column, add the amount needed for each component product to build the finished product.

  12. Select Approve Back to List.

The BOM Master costs may be different from your current product cost. Unlike other product costs, BOM Master shows the average cost of each product.

Use a BOM

Depending on the BOM type, you can use BOMS in purchase orders, sales orders, or production jobs.

Make BOM

You can use the Make BOM to create your finished productwith a production job. This will:

  • Increase the stock on hand amount for the finished product.

  • Decrease the stock on hand amount for the component products.

 

You can view the virtual stock for Make BOMs in the product list. Virtual stock shows the amount of finished products you could make for a branch.

Sales orders can use the Make BOM as well. For example, you want to sell the finished product, but it is out of stock. Making the BOM in the sales order will build a new product for that sales order. It will not decrease or increase the stock on hand amount for the finished product. Component products stock on hand amount will decrease.

  1. In the navigation, select Sales and then New Sales Order.

  2. Add the customer details and other sales order information.

  3. Add the finished product to the sales order product grid.

  4. Select Make BOM.

  5. Select Make New BOM from Master BOM.

  6. The products that make the finished product will appear. You can then edit the BOM or add other products to the sales order.

  7. Select Approve.

Addon BOM

You can use Addon BOMs in purchase orders which will:

  • Decrease the stock on hand amount for the component products (you may send these products to the contract manufacturer).

  • Increase the stock on hand amount for the finished product (when you receive the purchase order).

Contact support to enable Addon BOMs in purchase orders.

  1. In the navigation, select Purchases and then New Purchase Order.

  2. Add the details for the contract manufacturer (the supplier creating the finished product).

  3. Add the finished product to the purchase order product grid.

  4. Add the amount of the finished product you want to the Qty Ordered column.

  5. Select Addon BOM.

  6. Select Load Master BOM Addon.

  7. The products that make the finished product will appear. You can edit the BOM or add other products to the purchase order.

  8. The BOM Cost shows the price to make the finished product. It will only show the cost of the component products until you add the contract manufacturing costs. Contact Support to enable this field in a purchase order.

  9. Add the Unit Costs for the finished product. This is the amount the supplier charges you to create each finished product (the contract manufacturing costs). The image below is an edited view of the purchase order product grid.

  10. The BOM Cost will update to include the Unit Cost. This amount will help calculate your gross profits and landed costs.

  11. Add any other details to create the purchase order.

  12. Select Approve.

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