Define Bill of Materials

OBJECTIVE

The Define Bill of Materials function is used to define product assemblies that will subsequently be used in the various options of the system in relation to the product catalogue. This includes Stock Order from Catalogue, Enter a Requisition, Enter Work Orders, Manufacturing Management and Procurement Planning.

If an assembly is defined for an item, the contents of the assembly are displays in the description when the transaction is entered.

PREREQUISITEs

Steps

maestro* > Purchasing > Maintenance > Catalogue > Define Bill of Materials

Create a bill of materials linked to a catalogue item

Enter the required information in the Details tab:

Fields followed by the * character are mandatory fields.

Field

Description

Code*

Used to select the item from Catalogue Management with which other items are associated.

Description

Description associated with the item in Catalogue Management.

Recipe Quantity

Total quantity required for assembly.

NOTES: This quantity is sent to the Quantity field in the Default Values section of Enter a Requisition. The items included in the assembly are added to the grid and the required quantity is adjusted according to the quantity for the recipe.

This quantity is used for procurement management if production items are processed based on requisitions that contain assembled products.

The system calculates the quantities required for the order on a pro rata basis, or the quantity deducted from stock based on this quantity and those entered for each of the items in the breakdown.

Rate for Production Cost

Used to set a production cost rate, which is added to the cost of items.

NOTES: For example, the time required to cut an item before the sale.

This rate is used in Manufacturing Management. When manufacturing is completed, the system generates a Inventory to Project Transfer transaction and adds the production cost to it.

Product Type

Enables users to specify if inventory adjustments must be made for each individual item included in the bill of material (Sale) or if it should be processed as an assembled and finished product (Manufacturing).

NOTES: The Inventory Adjustments option will take into account the selected Product Type only if the Adjustment of Inventory parameter of the Receivable Project (accessible through the Billing module in the General Settings) is set to Deferred.

The Product Type defaults to Sale.

Add master item to component list

When checked, this box ensures the master item (the item for which the BOM is displayed) is processed as a component and is added with the other ones to the component selection window, in the breakdown grids.

The component selection of catalogue items window is displayed from the following options:

Stock Order from Catalogue

Enter a Requisition

Receipt of Goods

Customer Orders

Point of Sale Invoicing

Enter a Sale

Inventory-Project Transfer

Inventory-Site Transfer

Internal Sales

Material Reservation

Enter Work Orders

Estimating

Change Order Management

NOTES: This functionality only applies to items with a Kit Status in the Catalogue Management option (Item Description tab, Identification section) for which the hierarchy, list and quantity for each component are defined in the window.

Additionally, to display the selection window, the Activate automatic component selection setting must be activated in the Purchasing module’s Configurations, under the General option, in the Kits with Bill of Materials section.

Breakdown section:

Field

Description

Product*

Item code from Catalogue Management and required for assembly.

Description

Displays the description associated with the item in Catalogue Management.

Formula

Used to enter a formula for converting units and calculate the exact quantity required for assembly.

NOTES: The system always starts with a quantity of 1. For example, *0.5 = 0.5.

The / + - * symbols can be used.

Quantity*

Quantity required for assembly.

NOTE: This quantity cannot be changed if a formula is entered.

Fixed Quantity

Does not take the Recipe Quantity into consideration, if the box is checked.

NOTES: The system only orders or reduces the quantity entered for the item in the breakdown.

The fixed quantity is used with the Enter Work Orders, Enter a Requisition, Purchase Planning and Reconciliation/Invoicing options.

Selected

When checked, this box indicates that the item is treated as a basic component of the bill of materials. It will be checked by default in the component selection window, in the breakdown grids.

NOTE: To display the selection window, the Activate automatic component selection setting must be activated in the Purchasing module’s General Settings, under the General option, in the Kits with Bill of Materials section.

The breakdown grid displaying the bill of materials also enables the selection of items that are BOMs, which in turn include components.

Field	Description
Code*	Used to select the item from Catalogue Management with which other items are associated.
Description	Description associated with the item in Catalogue Management.
Recipe Quantity	Total quantity required for assembly. NOTES: This quantity is sent to the Quantity field in the Default Values section of Enter a Requisition. The items included in the assembly are added to the grid and the required quantity is adjusted according to the quantity for the recipe. This quantity is used for procurement management if production items are processed based on requisitions that contain assembled products. The system calculates the quantities required for the order on a pro rata basis, or the quantity deducted from stock based on this quantity and those entered for each of the items in the breakdown.
Rate for Production Cost	Used to set a production cost rate, which is added to the cost of items. NOTES: For example, the time required to cut an item before the sale. This rate is used in Manufacturing Management. When manufacturing is completed, the system generates a Inventory to Project Transfer transaction and adds the production cost to it.
Product Type	Enables users to specify if inventory adjustments must be made for each individual item included in the bill of material (Sale) or if it should be processed as an assembled and finished product (Manufacturing). NOTES: The Inventory Adjustments option will take into account the selected Product Type only if the Adjustment of Inventory parameter of the Receivable Project (accessible through the Billing module in the General Settings) is set to Deferred. The Product Type defaults to Sale.
Add master item to component list	When checked, this box ensures the master item (the item for which the BOM is displayed) is processed as a component and is added with the other ones to the component selection window, in the breakdown grids. The component selection of catalogue items window is displayed from the following options: Stock Order from Catalogue Enter a Requisition Receipt of Goods Customer Orders Point of Sale Invoicing Enter a Sale Inventory-Project Transfer Inventory-Site Transfer Internal Sales Material Reservation Enter Work Orders Estimating Change Order Management NOTES: This functionality only applies to items with a Kit Status in the Catalogue Management option (Item Description tab, Identification section) for which the hierarchy, list and quantity for each component are defined in the window. Additionally, to display the selection window, the Activate automatic component selection setting must be activated in the Purchasing module’s Configurations, under the General option, in the Kits with Bill of Materials section.

Field	Description
Product*	Item code from Catalogue Management and required for assembly.
Description	Displays the description associated with the item in Catalogue Management.
Formula	Used to enter a formula for converting units and calculate the exact quantity required for assembly. NOTES: The system always starts with a quantity of 1. For example, 0.5 = 0.5. The / + - symbols can be used.
Quantity*	Quantity required for assembly. NOTE: This quantity cannot be changed if a formula is entered.
Fixed Quantity	Does not take the Recipe Quantity into consideration, if the box is checked. NOTES: The system only orders or reduces the quantity entered for the item in the breakdown. The fixed quantity is used with the Enter Work Orders, Enter a Requisition, Purchase Planning and Reconciliation/Invoicing options.
Selected	When checked, this box indicates that the item is treated as a basic component of the bill of materials. It will be checked by default in the component selection window, in the breakdown grids. NOTE: To display the selection window, the Activate automatic component selection setting must be activated in the Purchasing module’s General Settings, under the General option, in the Kits with Bill of Materials section.

Click Save.

Define Bill of Materials

OBJECTIVE

PREREQUISITEs

Steps

Create a bill of materials linked to a catalogue item

See also