BOM (bill of materials)
What is BOM? The parts list for one finished product: every part and how many of each you need to make a single unit. It is used to plan material and work out cost.
In plain words
A BOM is the recipe for one finished product: which parts, and how many of each. Costing, purchasing and stock planning all start from it, so a wrong BOM makes every one of them wrong.
A worked example
The BOM for one office chair.
| Part | Quantity | Rate | Cost |
|---|---|---|---|
| Castor wheel | 4 | ₹60 | ₹240 |
| Gas lift | 1 | ₹350 | ₹350 |
| Seat | 1 | ₹450 | ₹450 |
| Backrest | 1 | ₹380 | ₹380 |
| Screw set | 1 | ₹25 | ₹25 |
| Material cost of one chair | ₹1,445 |
An order of 200 chairs needs 800 castor wheels. If the shop floor uses 850, that is 6.25% more than planned, which is the kind of gap worth asking about.
Why it matters
- Cost. The BOM sets the material cost of every unit you sell, so a missing part means your margin is overstated.
- Deadline. Purchasing and production planning read it to work out what to order and when.
- Risk. Quietly higher use of a part (waste or theft) is visible only when you compare actual use with the BOM.
See a BOM of yours turned into a material and cost list.
In Kinnow
How Kinnow handles it
In Make, a BOM can have parts that are themselves made from other parts, up to 10 levels deep. Kinnow rejects a BOM that points back to itself when you save it. Each line can carry a loss factor for material that is wasted in making.
The BOM Variance agent compares planned and actual material use and flags anything beyond 5% either way. It flags and does not change the BOM. Planning runs only recommend: a person approves any purchase or work order that follows.
A cost difference against plan is reported as a memo. It is not posted as a journal entry.
Questions
What is a BOM?
The parts list for one finished product: every part and how many of each you need to make a single unit. It is used to plan material and work out cost.
Can a part in a BOM have its own BOM?
Yes. A made part can have its own BOM, up to 10 levels deep. A BOM that refers back to itself is refused when you save it.
Does Kinnow change my BOM when actual use differs?
No. The BOM Variance agent flags use that differs from plan by more than 5%. A person decides whether the BOM, the process or the stock record needs to change.
Bring one product and its parts list, and we will show the cost and variance view.