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Create Production BOMs

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A production bill of material (BOM) holds master data that describes the components and subassemblies used in the production of a parent item. Once a production order is created for that parent item, its production BOM will govern the calculation of material requirements as represented on the Prod. Order Components page.

Business Central also supports assembly BOMs. You use assembly orders for making end items from components in a simple process that can be performed by one or more basic resources, which are not machine or work centres, or without any resources. For example, an assembly process could be to pick two wine bottles and one coffee sack and then pack them as a gift item. For more information, see Assembly BOMs or Production BOMs.

Tip

The Contoso Coffee Demo Data app includes demonstration products for a variety of production BOM scenarios that can be used on a test environment, including during a trial. Learn how to set up the Contoso Coffee Data and find walkthroughs for different scenarios at Introduction to Contoso Coffee Demo Data.

Before you can set up a routing, the following must be in place:

To create a production BOM

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter Production BOMs, then choose the related link.

  2. Choose the New action.

  3. Fill in the fields as necessary. Hover over a field to read a short description.

  4. To edit the BOM, set the Status field to New or Under Development. To activate it, set the Status field to Certified.

    Proceed to fill in the production BOM lines.

  5. In the Type field, select whether the item on this BOM line is an ordinary item or a production BOM. If the item on the line is a production BOM, then it must already exist as a certified production BOM.

  6. In the No. field, look up and select the item or production BOM in question, or type it in the field.

  7. In the Quantity per field, enter how many units of the item go into the parent item, for example, 4 wheels for 1 car.

  8. In the Scrap % field, you can enter a fixed percentage of components that are scrapped during production. When the components are ready to be consumed in a released production order, this percentage will be added to the expected quantity in the Consumption Quantity field in a production journal. For more information, see Register Consumption and Output.

    Note

    This scrap percentage represents components that are scrapped during production when picking from inventory, whereas the scrap percentage on routing lines represents scrapped output before putting on inventory.

  9. In the Routing Link Code field, enter a code to connect the component to a specific operation. For more information, see To create routing links.

  10. To copy lines from an existing production BOM, choose the Copy BOM action to select existing lines.

  11. Certify the production BOM.

  12. You can now attach the new production BOM to the card of the parent item in question. For more information, see Register New Items.

Note

To calculate the unit cost of an assembly or production BOM, the parent item and its component items must use the Standard costing method. Any resources in the BOM are rolled up if they have a unit cost that is defined on the resource card. To recalculate the item's standard cost from the item card, choose the Manufacturing action, then choose the Calc. Standard Cost action.

To create a new version of a production BOM

New versions of production BOMs are used when, for example, an item is replaced by another item, or when a customer requires a special version of a product. The version principle enables various versions of a production BOM to be managed. The structure of the production BOM version corresponds to the structure of the production BOM. The basic difference is in the time validity of the versions. The validity is defined by the starting date.

The starting date indicates the start of the period in which this version is valid. For all other considerations, the starting date is a filter criterion for calculations and evaluations. The BOM version is valid until the next version becomes valid for its starting date.

  1. Choose the Lightbulb that opens the Tell Me feature. icon, enter Production BOMs, then choose the related link.

  2. Select the production BOM to be copied, then choose the Versions action.

  3. Choose the New action.

  4. Fill in the fields as necessary.

  5. In the Version Code field, enter the unique identification of the version. Any combination of numbers and letters is permitted.

    The newly created version is automatically assigned the status New.

  6. When the BOM version is completed, setting the Status field to Certified.

The time validity of the version is specified by the Starting Date field.

Note

Select the Item option in the Type field to use an item from your item master data in the production BOM. If the item also has a production BOM, whereby the Production BOM No. field is filled in on the item card, this production BOM is also considered.

Select the Production BOM option if you want to use a phantom production BOM on the line.

Phantom production BOMs serve for structuring products. This production BOM type never leads to a finished product but is used exclusively for determining the dependent demand. Phantom production BOMs do not have their own item master data.

Quantity calculation formula on production BOMs

The quantity is calculated taking into consideration different dimensions that are also entered on the production BOM lines. The dimensions refer to an order unit of the respective item. The length, width, depth, and weight can be entered as dimensions.

The Calculation Formula, Length, Width, Depth, and Weight columns are not displayed, because they are only used by some users. If you wish to use the calculation of the quantity, you must first display these columns.

The relation of the individual components is defined by the calculation formula. The following possibilities are available as a calculation formula:

  • Empty - No consideration of dimensions. (Quantity = Quantity per.)
  • Length - Quantity = Quantity per * Length
  • Length x Width - Quantity = Quantity per * Length x Width
  • Length x Width x Depth - Quantity = Quantity per x Length x Width x Depth
  • Weight - Quantity = Quantity per x Weight
  • Fixed Quantity - Quantity = Quantity per

Note

The Fixed Quantity calculation formula ensures that the consumption of a component is the same, regardless of the scrap or output quantities. For production order components, when the Calculation Formula field is set to Fixed Quantity, the Expected Quantity field value is always equal to the Quantity per field. The scrap percentage that is defined on the same line is ignored. Fixed quantity is respected by the Availability by BOM report. The report will show the item as the bottleneck if the available quantity is less than the quantity in the Quantity Per Parent field. The Able to Make Parent and Able to Make Top Item fields are always blank, regardless of the available quantity. Fixed quantity is also included in calculations for standard costs. The lot size for the produced item impacts the cost that is allocated for one item.

Example

A production BOM requires 70 metal parts with the dimensions length = 0.20 m and width = 0.15 m. The values are entered as follows: Calculation Formula = Length x Width, Length = 20, Width = 15, Quantity per = 70. The quantity is given by the Quantity per x Length * Width, that is, Quantity = 70 x 0.20 m x 0.15 m = 2.1 m2.

See also

Create Routings
Manage Product Variants
Walkthrough: Variants
Setting Up Manufacturing
Manufacturing
Planning
Work with Bills of Material
Work with Assembly BOMs
Inventory
Purchasing
Work with Business Central

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