Bill of Materials (BOM)

Goal

Create a Bill of Materials (BOM), sometimes called a recipe, that defines what components are consumed to produce a target item.

Before You Start

• Output item already exists.
• Component items already exist.
• Units of measure and expected batch size are known.

Steps

1. Navigate to Manufacturing > BOMs.

2. Click New BOM.

   

3. Select Output Item.

4. Enter Output Quantity for the batch standard.

5. Add component lines with required quantity.

6. Save the BOM.

Expected Result in Formul

• BOM is available for work order creation.
• Component requirements are calculated from target production quantity.

Why BOM Design Matters

• Output quantity defines your production standard and drives scaling math.
• Component quantities directly determine shortage detection and material consumption.
• Bad BOM definitions cause either over-consumption (inflated cost) or under-consumption (false stock confidence).

If Something Looks Wrong

• Ensure all components are valid inventory items.
• Ensure no duplicate or zero-quantity component lines.

Next Step

Execute production in Work Orders.

Tip

For multi-level production, create BOMs for intermediate outputs first, then use those outputs as components in higher-level BOMs.