{"id":23601,"date":"2024-11-18T08:15:20","date_gmt":"2024-11-18T08:15:20","guid":{"rendered":"https:\/\/docs.daftra.com\/tutorial\/%d8%a5%d8%b6%d8%a7%d9%81%d8%a9-%d9%82%d8%a7%d8%a6%d9%85%d8%a9-%d9%85%d9%88%d8%a7%d8%af-%d8%a7%d9%84%d8%a5%d9%86%d8%aa%d8%a7%d8%ac\/"},"modified":"2024-11-24T08:08:47","modified_gmt":"2024-11-24T08:08:47","slug":"add-bill-of-materials","status":"publish","type":"tutorial","link":"https:\/\/docs.daftra.com\/en\/tutorial\/add-bill-of-materials\/","title":{"rendered":"Adding Bill of Materials"},"content":{"rendered":"<div dir=\"ltr\" lang=\"en\">\n<h2 id=\"what_is_a_bill_of_materials?\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">What is a Bill of Materials?<\/h2>\n<p style=\"margin: 0 0 14px; line-height: 1.9; font-size: 16px; color: #1f2430;\">A Bill of Materials (BOM) is a list that includes the final product to be manufactured, the raw materials involved in the manufacturing process, and the waste materials generated from it. It also includes the manufacturing operations (workstations) and the direct expenses related to the production process. Based on the BOM and its contents, you can create manufacturing orders, and the manufacturing order will carry the same details from the BOM, with the option to modify them.<\/p>\n<h3 style=\"font-size: 18px; font-weight: bold; color: #111827; margin: 24px 0 10px;\"><\/h3>\n<h2 id=\"how_to_add_a_bill_of_materials?\" style=\"font-size: 22px; font-weight: bold; color: #111827; margin: 32px 0 14px; padding-bottom: 8px; border-bottom: 2px solid #eef0f3;\">How to Add a Bill of Materials?<\/h2>\n<ol style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"text-align: left;\">Click on \u201c<strong style=\"color: #111827;\">Manufacturing<\/strong>\u201c.<\/li>\n<li style=\"text-align: left;\">Choose \u201c<strong style=\"color: #111827;\">Bill of Materials<\/strong>\u201c.<\/li>\n<li style=\"text-align: left;\">Click on \u201c<strong style=\"color: #111827;\">Add Bill of Materials<\/strong>\u201c<\/li>\n<li style=\"text-align: left;\">Enter the bill of material information as follows:\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><b style=\"color: #111827;\">Name:\u00a0<\/b>Add a name for the bill of material.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Code:<\/strong> An automatic number generated by the system for each Bill of Materials.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Turn on the \u201c<strong style=\"color: #111827;\">Active<\/strong>\u201d button if you want to activate the BOM.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Turn on the \u201c<strong style=\"color: #111827;\">Default<\/strong>\u201d button if you want this BOM to be automatically selected in a manufacturing order after the final product is chosen.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Products:<\/strong> Select the final product to be manufactured from the dropdown list.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The product must be added already in your system to appear here. For more information on how to add a new product, refer to this <a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/adding-a-new-product-or-a-new-service\/\" style=\"color: #1a56db;\">guide<\/a>.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Account:<\/strong> Choose an account from the chart of accounts to assign to the BOM.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">You can modify the chart of accounts and add a new account for this BOM. For more information, refer to this <a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/adding-a-new-account-in-the-chart-of-accounts\/\" style=\"color: #1a56db;\">guide<\/a>.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Quantity:<\/strong> Enter the quantity of the product to be manufactured.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Production Routing:<\/strong> Choose the production route to assign to the BOM.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">For more information on how to add a production routing, refer to this <a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/%d8%a5%d8%b6%d8%a7%d9%81%d8%a9-%d9%85%d8%b3%d8%a7%d8%b1-%d8%a5%d9%86%d8%aa%d8%a7%d8%ac\/\" style=\"color: #1a56db;\">guide<\/a>.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Materials<\/strong>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Products:<\/strong> Choose the raw materials used in manufacturing the product.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">For a raw material to appear here, it must be added as a product in the system. For more details, refer to the guide for <a href=\"https:\/\/docs.daftra.com\/en\/tutorial\/adding-products-services\/\" style=\"color: #1a56db;\">adding a new product<\/a>.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Click the \u201c<strong style=\"color: #111827;\">+Add<\/strong>\u201d button if you want to add more than one raw material.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Quantity:<\/strong> Enter the required quantity of raw material to produce the specified quantity of the product.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">The unit of measurement is based on what was defined when adding the raw material to the system.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Price:<\/strong> This is automatically determined based on the price entered when adding the raw material in inventory. It will either match the average cost price or the purchase price if there is no average cost price from various purchases.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Production Operation:<\/strong> Select the production operation during which this raw material is needed.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Expenses<\/strong>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Account:<\/strong> Enter the account to link this expense to from the chart of accounts.<br>\nYou can modify the chart of accounts and add a new account for this expense. For more details, refer to this guide.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">You can modify the chart of accounts and add a new account for this expense. For more details, refer to this <a href=\"https:\/\/docs.daftra.com\/en\/user_manual\/adding-a-new-product-or-a-new-service\/\" style=\"color: #1a56db;\">guide<\/a>.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Cost Type:<\/strong> There are three different types based on how the cost is calculated. The difference between them becomes clear when issuing a manufacturing order with a different quantity than the one listed in the BOM.<br>\nChoose from the following options:\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Fixed Amount:<\/strong> In this case, the cost remains fixed even if the number of products in the manufacturing order changes.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Example:<\/strong> If an expense costs 100, and the BOM lists a quantity of 5, but the manufacturing order is modified to 7, the cost remains 100 and will be allocated to the 7 products instead of 5.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Based on QTY:<\/strong> In this case, the cost is distributed based on the quantity of products in the BOM. If the quantity in the manufacturing order changes, the total cost will be recalculated based on the new number of units.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Example:<\/strong> If an expense costs 100 and the BOM lists a quantity of 5, but the manufacturing order is changed to 7, the total cost will change to 140.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Formula:<\/strong> A flexible method where you can input variables to calculate the cost. The default system formula is:\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\">Amount in BOM * (<strong style=\"color: #111827;\">Quantity in BOM \/ Quantity in Manufacturing Order<\/strong>) This is the same as calculating the cost based on quantity.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Amount:<\/strong> Enter the value of the expense.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Description:<\/strong> Add a description of the expense, if needed.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Production Operation:<\/strong> Select the operation of production where this expense occurs.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Manufacturing Operations<\/strong>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Workstation:<\/strong> Select the workstation from the list of workstations you have previously added to the system.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Operating Time:<\/strong> Specify the operating time based on the unit set for the workstation.\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Example<\/strong>: If the workstation unit is \u201c<strong style=\"color: #111827;\">minutes<\/strong>\u201d and you want the operating time to be one hour, enter \u201c<strong style=\"color: #111827;\">60<\/strong>.\u201d If the unit is \u201c<strong style=\"color: #111827;\">hours<\/strong>\u201d and you want the operating time to be one hour, enter \u201c<strong style=\"color: #111827;\">1<\/strong>.\u201d<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Description:<\/strong> Add any description related to the workstation.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Production operation:<\/strong> Select the production operation for this workstation.<\/li>\n<\/ul>\n<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Scrap Items<\/strong>\n<ul style=\"margin: 0 0 16px; padding-left: 26px;\">\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Products:<\/strong> Enter the product to be considered as waste.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Quantity:<\/strong> Enter the quantity of the waste product.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Price:<\/strong> Enter the price of the waste product.<\/li>\n<li style=\"margin-bottom: 10px; line-height: 1.9; font-size: 16px; color: #1f2430;\"><strong style=\"color: #111827;\">Production Operation:<\/strong> Select the production operation where the waste material is generated.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li style=\"text-align: left;\">Click the \u201c<strong style=\"color: #111827;\">Save<\/strong>\u201d button.<\/li>\n<\/ol>\n<\/div>\n","protected":false},"author":13,"featured_media":0,"template":"","categories":[7288,7262],"tags":[7307,7308,7309,7312,7310,7313,7311,7290,7291,7292,7294],"class_list":["post-23601","tutorial","type-tutorial","status-publish","hentry","category-bill-of-materials","category-manufacturing","tag-activate-bom","tag-bill-of-materials","tag-bom","tag-production","tag-raw-materials","tag-set-bom-as-default","tag-what-is-a-bill-of-materials","tag-----en","tag-------en","tag------en"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v17.8 - 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