A bill of materials (BoM) is a list of the parts or components that are required to build a product. The BoM provides the manufacturer’s part number (MPN) and the quantity needed for each component.
At its most complex, a BoM is a multi-level document that provides build data for multiple sub-assemblies (products within products) and includes for each item: part number, approved manufacturers list (AML), mechanical characteristics and a whole range of component descriptors. It may also include attached reference files, such as part specifications, CAD files and schematics.
Originally used internally within a company, the BoM served as a way to track product changes and maintain an accurate list of required components. As manufacturing has become increasingly distributed, however, the BoM has taken on even greater importance. It serves as the primary reference file for product data when transferring product information from the original equipment manufacturer (OEM) to the electronic manufacturing services (EMS) provider and from the EMS to its vendors and suppliers.
A Gel pen is made by 3 ingredients i.e. Ink, Nip, and Refill Cover. & Party 1 is purchase the items as following inventory:
Ink 25KG. @ Rs. 25
Nip 100000 Nos. @ Rupee 1 Per Pc.
& refill Cover 100000 @ .50 Pc per Pc.
So the total purchase is 25KG Ink, 100000 Nos. Nip, & 100000 Nos. Refill Cover
Now we create a manufacturing journal for showing bills of material effect.
Go to Inventory, Voucher Types and Create:
See the following Video to Create Manufacturing Journal and rest steps to take effect of Bills of Material: