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Bill of Materials (BOM)

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Summary

This guide explains how to use the Bill of materials feature in Sage 50cloud Accounts Professional.

Description

The BOM is a list of all the other products or sub-components that make up the final product or product assembly. If a product consists of a number of other products then it has a Bill of Materials (BOM). In Sage 50cloud Accounts Professional, you can create BOMs using up to 50 items.

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Resolution


Add a BOM to a product

  1. Products and services, double-click the required product record, Bill of materials or BOM.
  2. Complete the BOM tab as follows:
    Product CodeChoose the product code for the sub-component. 

    CAUTION: You must enter a different code to that of the main product code.


    Assembly LevelThis automatically populates and shows how many sub-assemblies there are below this sub-component.
    Link LevelThis automatically populates. It is the number of assemblies or sub-assemblies to which the sub-component belongs. Each product can be a component for more than one assembly or sub-assembly.
    DescriptionThis automatically populates with the product description for the sub-component.
    QuantityEnter the quantity required to make up the main product.

    In addition to the sub-component details, the following details appear for the main product or product assembly:

    Assembly LevelThis shows how many levels of components and sub-assemblies there are below this sub-component.
    Link LevelThis is the number of assemblies or sub-assemblies to which the sub-component belongs. Each product can be a component for more than one assembly or sub-assembly.
    Available to MakeupThis shows the number of units that can be made using the current stock levels. To update this figure after you have entered your Product Record BOM details, click Refresh.
  3. Click Save then click Close.



Assembly Level and Link Level

Assembly Level

This shows how many levels of sub-components there are below this product.

EXAMPLE: 




In the above example:

  • Product A - The assembly level is 2 as one of its components, Product B, has its own BOM.
  • Product B - The assembly level is 1 as it is made up of components that do not have further BOMs.

CAUTION: There is an issue where the Assembly Level shows as 1 regardless of the number of levels of sub-component. This can affect all versions of Sage Accounts.

Link Level

This shows how many BOMs this product belongs to. In other words, how many different products it is a sub-component of.

For example, Product D is a sub-component of Product B, and therefore has a link level of 1. Although Product B is in turn a sub product of A, this does not increase the link level for for Product D, this would only increase if it was a sub component of a different product as well.


How to check if you've enough stock for a BOM

  1. Click Products and services then click Check bill of materials.
  2. Choose the product code for which you want to check the availability of the sub-components.
  3. In the Qty Req box, enter the number of the main product you want to make, for example, if you want to make ten bicycles, enter 10 in the Qty Req box then click Check.

    If you have the required amount of the sub-components in stock, an information window appears confirming that the quantity is already in stock click OK and proceed to step 5.

    If you do not have enough of a component to make up the required number of product assemblies, an information window appears advising you of the Quantity Not In Stock, or Shortfall, and the Quantity Available to Make Up click OK.

    Sage 50 Accounts Professional only - If you've a stock shortfall, to automatically create a purchase order, select the stock items that you want to order and click Create order.

  4. If required, to print the product shortfall details click Print list or Print
  5. Click Close.



Transfer sub-components to the finished item

  1. Click Products and services then click Stock transfer.
  2. Enter the required information onto the Stock Transfers window, using one line per transfer, for example:
    Product CodeEnter the main assembly product code.
    DetailsThe name of the product code appears but can be changed if required.
    DateThe program date appears but can be changed if required.
    Ref.Enter a reference for the transfer.
    QuantityEnter the required quantity of finished stock.

    NOTE: The following values also appear but cannot be edited:


    In stockThis value shows the current in stock quantity of the selected product.
    On orderSage 50 Accounts Professional only - If you have placed a purchase order on order for this product, the quantity ordered appears.
    AllocatedSage 50 Accounts Professional only - If you have allocated a sales order for this product, the quantity allocated appears.
  3. Click Save then click Close.

You've now transferred your stock. A movement out (MO) has been posted to the sub-components' activity and a movement in (MI) has been posted to the activity of the main item.

For a product assembly with sub-assemblies and components, the movement out (MO) transaction is only posted to the lowest level components as the stock is transferred directly from the basic components to the main product assembly.

TIP: If the first level of sub-component has insufficient stock to transfer, Sage Accounts looks to the next level to see if there are sufficient quantities of the next level of sub-components.

In the example, Product B has two sub-components, Product D and Product E. We now amend the BOM so Product E has two sub components of its own Product F and Product G.

When transferring to BOM, the quantities currently in stock for Product D and Product E are used first. If there is insufficient quantity of Product E, Sage Accounts uses Product F and Product G as part of the transfer.

Sage 50cloud Accounts takes items from stock on a First In, First Out (FIFO) basis and automatically calculates the cost price of the product assembly by adding together the cost price of each of the components.


How to check which BOM a product is a sub-component of

You can check which BOM a product is part of by running the Reverse Product Explosion report. If this report isn't showing in your software it is included in the Additional Reports Backup that you can download.

  1. Click Products and services and ensure no products are selected then click Reports
  2. Click Product explosion and BOM then run the Reverse Product Explosion Report.

If you have more than 50 components

You must create a new product record with a BOM for the remaining items.

EXAMPLE: 

  • Product A is made up of sixty different components.
  • Component 1 - Component 49 have been entered in the BOM tab and there is room for one more item.
  • There are still 11 products to add, Component 50 - Component 60.
Solution
  1. Create a new product record, for example, Product A_SUB.
  2. Add the remaining 11 Components, Component 50 - Component 60 to the BOM tab of this new product.
  3. Add Product A_SUB to the Product A BOM tab.

Delete a BOM

Click Products and services then double-click the required product record and click Bill of materials or BOM, select each line and press F8 on your keyboard.


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