How to define BOM for an item

A Bill of Materials (BOM) is a list of items and quantities required to manufacture an Item.

Example: If you want to assemble a computer you need RAM, Hard disc, CPU frame, Processor. If you are making a Pizza you will need flour, baking powder, sugar, salt, eggs and so on.

To define a BOM for an item, follow the steps below:

Step 1. Login to your AltheaSuite account.

Step 2. From main menu option, go to Products > Items.

Step 3. Click + New to add new item. If you want to edit existing item, select the item to be manufactured and click item options. From options select Modify.

Step 4. Enter item name and other details as required. Mark this item Has BOM.

Step 5.  To add an BOM items (Raw Materials) to this item, click Set BOM.  

Step 6.  Add Item to this BOM: Select raw materials used to manufacture this item. If you click  […] button,Item Manager will open.

• Use the search option to search by SKU, Item Name (or other details) to find the desired item.
• Select the item and click OK.

Step 7. Quantity: Enter quantity of Raw Material required to manufacture this item . For example, 2 quantities of B required to produce A.

In this example, I’m defining BOM for Custom Computer consisting below assembly parts

• RAM SR 5 1qty
• Computer Case 1qty
• HDD SH-1 1 qty
• Motherboard I9p57 1 qty
• Processor Core i5 1 qty
• Graphic Card 1 qty
• Mouse Wireless 1 qty

Step 8.  If you wish to remove the item BOM , click item option and select Remove option. 

Step 9. BOM can be Adjusted at Make Time: Sometimes when manufacturing a finished good, specific raw material may not be available. If you tick this, you can create and select an alternative raw materials at time of manufacturing.  

Step 10.  Review the details you have entered. Click OK to complete the BOM.

Step 11.  Click Create/Update from New Item/Modify Item screen .

 

BOM Pricing

Enable Suggest Sales Price option to calculate your BOM costing.

Labor/Packing Charge : Enter the Labor and Packing Charges as applicable.  

Suggested Sales Price: The costing section in a BOM gives an approximate cost of manufacturing the Item.

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  • Suggested sales based on item cost price: The costing is calculated from the Purchase Rate of the raw materials/sub-assemblies. For example, total cost price of raw materials is $ 50, and if you applied a profit margin of 10%, then suggested sales = $ 50 +10% of $ 50= $ 55.

• • Suggested sales based on item sales price: The costing is calculated from the Sales Rate of the raw materials/sub-assemblies. For example, total sales price of raw materials is $ 60, and if you applied a discount of 10%, then suggested sales = $ 60 -10% of $ 60= $ 54.

Choose the suggested sale price as required and click Apply to set suggested price as sales price of finished item (mian item).