# Bill Of Materials

<p class="doc-lead">A Bill of Materials (BOM) defines how to produce a finished or semi-finished item — raw materials consumed, overhead charges, by-products generated, output quantity, and variance limits. Production Orders and vouchers pull material and cost structure from the BOM.</p>

<div class="doc-toc">
<p class="doc-toc-title">On this page</p>
<div class="doc-toc-links">
<a href="#/production/bill-of-materials?id=overview">Overview &amp; List View</a>
<a href="#/production/bill-of-materials?id=quick-start">Quick Start</a>
<a href="#/production/bill-of-materials?id=header-fields">Header Fields</a>
<a href="#/production/bill-of-materials?id=line-tables">Line Tables</a>
<a href="#/production/bill-of-materials?id=view-tabs">View Tabs</a>
<a href="#/production/bill-of-materials?id=actions">Actions</a>
<a href="#/production/bill-of-materials?id=faq">FAQ</a>
</div>
</div>

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<h2 id="overview">Overview &amp; List View</h2>

Go to <b>Production → Settings → Bill Of Materials</b>.

<b>List columns:</b> Id, Name, Type, Item, Unit, Quantity.

<b>Quick filter tabs:</b> Active, Suspended.

<b>Advanced Filters:</b> Name, Item, Item Group, Unit, Raw Material, By Product, Overhead, Status, Branch, Created Date.

<b>List row actions:</b> New, Edit, Delete, View, Suspend, Activate.

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<h2 id="quick-start">Quick Start</h2>

<ol>
<li>Click <b>New</b>.</li>
<li>Enter <b>Name</b>, select <b>Item</b>, <b>Quantity</b>, and <b>Unit</b> for the BOM output.</li>
<li>Add <b>Raw Materials Consumed</b>, <b>Overheads</b>, and optional <b>By Products Generated</b> lines.</li>
<li>Set <b>Output Variance Limit (%)</b> and wage settings if applicable.</li>
<li>Save. Use on Production Orders as the single-stage BOM.</li>
</ol>

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<h2 id="header-fields">Header Fields</h2>

| **Field** | **Description** |
|-----------|-----------------|
| Name * | BOM name. |
| Item * | Finished or semi-finished item produced. |
| Type | BOM type classification. |
| Variant | Item variant. |
| Quantity * | Output quantity this BOM produces. |
| Unit * | Unit of measure for output. |
| Output Variance Limit (%) | Allowed finished-good variance before multi-level approval is required on Production Voucher approve. Overrides workspace default when set. |
| Wage Type | How employee labour is calculated on Production Vouchers — Piece Rate or Hourly Rate. Visible only when production wages are enabled in Payroll Settings. |
| Piece Rate | Rate per unit for Piece Rate wage type. Hidden when Wage Type is Hourly Rate. |
| Branch | Branch scope. |
| Notes | Remarks. |

Batch and serial numbering options are available when items require them.

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<h2 id="line-tables">Line Tables</h2>

<b>Raw Materials Consumed *</b> — component items, quantities, units, optional scrap/wastage factors, and optional <b>Deviation Limit (%)</b> per line for material usage variance checks on Production Voucher approve.

<b>Overheads</b> — expense accounts, rate per unit or fixed amounts.

<b>By Products Generated</b> — secondary outputs that credit production cost. Each line uses either <b>% of cost Allocation</b> or <b>Per unit cost</b> (not both). See <a href="#/production/production-voucher?id=by-products">Production Voucher — By Products &amp; Cost Split</a> for how allocation flows to the main product unit cost.

<h3 id="wage-types">Wage types</h3>

| **Wage Type** | **When to use** | **Rate source** | **Example** |
|---------------|-----------------|-------------------|-------------|
| Piece Rate | Pay workers per unit produced | BOM <b>Piece Rate</b> field | Assembly: ₹25 per completed unit |
| Hourly Rate | Pay workers by time spent | Employee <b>Hourly Rate</b> from Payroll Group | Machine operator: 6 hours × group hourly rate |

<p>Enable wages on the BOM only after turning on <b>Enable Piece-Rate/Hourly-Rate Wages in Production</b> in <a href="#/payroll/payroll-settings">Payroll Settings</a>. Approved voucher wages flow to <a href="#/payroll/production-wage">Production Wage</a> and then Payrun.</p>

<h3 id="by-product-cost">By-product cost allocation</h3>

| **Field** | **Description** | **Example** |
|-----------|-------------------|-------------|
| % of cost Allocation | Share of total production cost assigned to the by-product | Molasses gets 8% of total sugar-process cost |
| Per unit cost | Fixed cost credited per by-product unit | Waste scrap valued at ₹5/kg × 100 kg |

<p>Total cost on the voucher = raw materials + overheads + employee wages. By-product costs are deducted first; the main item receives the remaining balance.</p>

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<h2 id="view-tabs">View Tabs</h2>

| **Tab** | **Shows** |
|---------|-----------|
| General | Item, quantity, raw materials, overheads, by-products, notes. |
| Cost Estimation | Estimated material, overhead, and total cost at current rates. |
| Attachments | Supporting documents. |
| History | Change log. |

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<h2 id="actions">Actions</h2>

| **Action** | **When** |
|------------|----------|
| edit | Modify BOM. |
| delete | Remove BOM. |
| suspend | Deactivate (Active BOMs). |
| activate | Reactivate (Suspended BOMs). |
| Clone | Copy to new BOM. |
| Print | Print BOM. |

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<h2 id="faq">FAQ</h2>

<p><b>Can one item have multiple BOMs?</b><br>Yes — select the appropriate BOM when creating a Production Order.</p>

<p><b>How do I export all BOM components?</b><br>Use <a href="#/production/reports/bom-wise-raw-materials-report">BOM Wise Raw Materials</a> report.</p>

<p><b>What is Output Variance Limit?</b><br>Maximum allowed difference between planned and actual output on a Production Voucher before multi-level approval is required. Workspace default is set under <a href="#/production/production-settings-config">Production Settings Configuration</a>.</p>

<p><b>How do by-product cost fields work?</b><br>Use <b>% of cost Allocation</b> for proportional split or <b>Per unit cost</b> for a fixed rate per by-product unit. The main finished item absorbs the remaining cost after by-products are allocated.</p>
<p><b>Can raw material equal finished item?</b><br>No — same item cannot appear as product and raw material on BOM.</p>
<p><b>QC on BOM?</b><br>Link <a href="#/production/quality-check-template">Quality Check Template</a> for mandatory QC on production.</p>