Creating Bill of Materials for a Stock Item

green_left.gifgreen_right.gif

Bill of Material feature is useful for manufacturing organisations and can be set up through F12: Configure.

To setup Bill of Materials

Go to  Gateway of Tally > F12: Configure > select Accts/Inventory Info. > set Allow Component List Details (Bill of Materials) to Yes

24_Creating_Bill_of_Materials_for_a_Stock_Item_1.gif

OR

Go to Gateway of Tally > Inventory Info > Stock Items > Create > Press F12:Configure (Stock Item Configuration) and set Allow Component List Details (Bill of Materials) to Yes.

24_Creating_Bill_of_Materials_for_a_Stock_Item_2.gif

For a Stock Item, you can create

Creating Single Bill of Material for a Stock Item

Single BOM can be created for a stock item where you use standard set of inputs to manufacture finished goods.

Let us create a new Stock Item Television and specify BoM.

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

In Stock Item Creation screen

24_Creating_Bill_of_Materials_for_a_Stock_Item_3.gif

Note: The Set Components List option will not displayed in Stock Item master on enabling the configuration option Allow Component list details (Bill of Material),option will display in item master only on entering/ specifying the unit of measure in the Units field.

24_Creating_Bill_of_Materials_for_a_Stock_Item_4.gif

Note: The godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features)

Observe to create 1 Television we require 5 different inputs. The Quantity of inputs consumed to manufacturer finished goods is 1 each of 5 different inputs.

24_Creating_Bill_of_Materials_for_a_Stock_Item_5.gif

Creating Manufacturing Journal for a Stock Item with Single Bill of Materials

All the manufacturing transactions can be accounted through a Stock Journal.

Note: Bill of Material should be created before accounting the manufacture of an item.

Go to Gateway of Tally > Inventory Vouchers

  1. Select the button F7: Stk. Jrnl or press Alt + F7.

If you have created a new voucher type Manufacturing Journal, a pop-up menu will be displayed with the options default Stock Journal and Manufacturing Journal.

24_Creating_Bill_of_Materials_for_a_Stock_Item_6.gif

Select Manufacturing Journal to view the Manufacturing Journal voucher creation screen

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption) side based on the BOM defaulted.

Note: Godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features)

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

The completed Manufacturing Journal is displayed as shown

24_Creating_Bill_of_Materials_for_a_Stock_Item_7.gif

Creating Multiple Bill Of Material for a Stock Item

Multiple BOM can be created for a stock items where you use varying set of components to manufacture a specific finished goods based on the availability of goods or customer requirements.

The facility to create Multiple Bill of Materials for Stock Item has been provided in Tally.ERP 9 Release 3.0. Where you can create multiple BOM with different component list for a stock item & appropriate BOM can be selected in the manufacturing Voucher.

This feature will be useful where you are using different components to manufacture the same stock item based on the customer requirement

Example: Customer A wants Television to be manufactured with specific brand of Picture Tube. Where as other customers has not specified any such specifications. In this scenario ABC company needs 2 BOM, one for Customer A as per his component specification & other may be a standard BOM for all other customers.

To create multiple Bill of Material

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

In Stock Item Creation screen

If BOM is specifically created for a specific customer/sale you can enter the customer or sale name in Name of BOM field to identify the BOM while recording manufacturing transaction.

24_Creating_Bill_of_Materials_for_a_Stock_Item_8.gif

24_Creating_Bill_of_Materials_for_a_Stock_Item_5.gif

24_Creating_Bill_of_Materials_for_a_Stock_Item_9.gif

Note: In the above scenario for Stock item - Television we have created 2 BOM. Similarly you can create multiple BOM with different component list for the stock items.

Creating Manufacturing Journal for a Stock Item with Multiple Bill of Materials

In Manufacturing Journal voucher

24_Creating_Bill_of_Materials_for_a_Stock_Item_10.gif

Note: The list of Raw materials required for the manufacture of finished goods will be displayed in Components (Consumption) side based on the BOM defaulted.

Note: Godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features)

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

24_Creating_Bill_of_Materials_for_a_Stock_Item_11.gif

Creating Single/Multiple Bill Of Material with Type of Item

In some of the manufacturing processes along with the finished goods, Co-Products or By-Products or Scrap may be produced.

In this scenario while defining the BOM for the Finished goods, you may want to identify the inputs which are consumed to manufacture Finished goods & the By-products /Co-Products/ scrap manufactured.

Now in Tally.ERP 9 Release 3.0, you can create the BOM by selecting & identifying the components as consumption, By-Product/Co-Product/ Scrap.

Let us take the case of manufacture of Sugar and create the BOM for the stock Item

To create Bill of Material with Type of Item

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

In Stock Item Creation screen

1. Enter the Stock Item Name, select the appropriate Stock Group and specify the appropriate Unit of Measurement in Unit field

2. Set Component List: To create the component list required to manufacture the Finished goods enable this option to Yes and press Enter to view Stock Item Multi Components (M BOM) screen

3. In Stock Item Multi Components (M BOM) screen

24_Creating_Bill_of_Materials_for_a_Stock_Item_12.gif

4. In Stock Item Components (BOM) screen,

Set up:

24_Creating_Bill_of_Materials_for_a_Stock_Item_13.gif

On enabling the configuration option Define Type of Component for BOM in Stock Item Components (BOM) screen a new column Type of Item will be displayed.

24_Creating_Bill_of_Materials_for_a_Stock_Item_14.gif

Note: Cursor will not move to Rate (%) column when the Component Type selected is Consumption.

Note: If the Component Type selected is Co-product/By-Product or Scrap, cursor will move to Rate (%) column to define the percentage of cost of production of Co-product/By-Product or Scrap.

The completed Stock Item Component (BOM) screen for Stock Item - Sugar appears as shown

24_Creating_Bill_of_Materials_for_a_Stock_Item_15.gif

Observe to manufacture Sugar, Sugar Cane & Lime are identified as Raw materials (Component). Bagasse & Molasses are identified as By-Products.

Note: When the Manufacturing Journal is recorded to account the manufacture of Sugar using the above created BOM the stock items identified as Component will be displayed under Components (Consumption) section. The stock items identified as CoProduct/ByProduct or Scrap will be displayed under Co-Products/By-Products/Scrap section

Creating Manufacturing Journal for a Stock Item with single/Multiple BOM created with Component Type

In Manufacturing Journal voucher

For Stock Item Sugar we have created only one BOM, hence that BOM is defaulted. If Multiple BOM are created application displays the BOM list for selection

24_Creating_Bill_of_Materials_for_a_Stock_Item_16.gif

Note:Based on the BOM selected

 

* The list of Raw materials required to manufacture finished goods will be displayed in Components (Consumption)side

 

*The By-products & scrap produced during the manufacture will be displayed under Co-Products/By-Products/Scrap side

 

The default of Raw Materials &  Co-Products/By-Products/Scrap will be based on the Component Type defined in BOM.

Note: Godown option will be displayed only when Maintain Multiple Godown feature is enabled in F11: Features (Inventory Features)

Quantity of Raw material will be defaulted based on the quantity requirement defined in the BOM multiplied by the Quantity of finished goods manufactured.

Quantity of Co-Products / By-Products / Scrap will be defaulted based on the quantity defined in the BOM multiplied by the Quantity of finished goods manufactured.

24_Creating_Bill_of_Materials_for_a_Stock_Item_17.gif

Copy Components of BOM

In Bill of Material creation the capability has been enhanced to copy the components of one BOM to another BOM.

Example: For stock item Television, ABC company has 2 BOM - Customer A and Standard. Now company wants to create a new BOM - Customer B as Customer wants Television to be manufactured with specific brand of Picture Tube - Picture Tube LG. Except Picture Tube, the components used to manufacture Television will be same as defined in Standard BOM. Hence ABC Company wants to copy the components of standard BOM to Customer B.

To create the BOM

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

In Stock Item Alteration

24_Creating_Bill_of_Materials_for_a_Stock_Item_18.gif

24_Creating_Bill_of_Materials_for_a_Stock_Item_19.gif

24_Creating_Bill_of_Materials_for_a_Stock_Item_20.gif

24_Creating_Bill_of_Materials_for_a_Stock_Item_21.gif

24_Creating_Bill_of_Materials_for_a_Stock_Item_22.gif

Note: Copy BOM option copies only the components of one BOM to another. Users have to define the Unit of Manufacture and Quantity of inputs (components).

green_left.gifgreen_right.gif