Bills of materials and recipes
Define what one batch of a product is made from and the work it takes, and let the app roll up its cost per unit for work orders and margins.
What it is
A bill of materials (BOM) says what goes into one batch of a product you make: the components, and the work (operations) it takes. Food and beverage makers see the same screen as Recipes, with Ingredients instead of components.
Every work order for the item starts from its BOM, scaled to the quantity you want to make, and the BOM's cost per unit becomes the item's catalogue cost.
Who it is for
- Light manufacturers and assemblers
- Food and beverage makers working from recipes
- Garment and textile makers costing a style
- Owners who want to know what a product really costs to make
Before you start#
- Production must be on in Settings › General or Settings › Business setup.
- The item made and its components must be stocked items; services and not-stocked items cannot be used.
- To cost machine time, switch on Work-centre costing in Settings › Business setup and add work centres with their hourly cost in Settings › Production.
- People need the add or edit right on bills of materials.
Step by step#
- Open Production › Bills of materials (or Recipes) and choose New.
- Choose the Item made.
- Enter One batch makes — the quantity one batch produces.
- Under Components (or Ingredients) for one batch, choose Add a component and search by name or SKU.
- Enter each component's quantity in its base unit.
- Under Work (operations), add each step: the Operation, Who does it, the Work centre if you cost machines, the time in hours, minutes and seconds, and the Rate per hour.
- Add a Note if useful, and save.
The app confirms the result, for example "Saved — 4.20 per unit".
How the cost is rolled up#
Cost per unit = (each component's quantity × its catalogue cost + each operation's hours × its rate, plus the work centre's rate where costing is on) ÷ the batch quantity.
The cost panel shows the components, labour and machine costs separately. Saving the BOM sets this as the item's catalogue cost, so quotations and margins use it straight away.
Rules#
- The batch quantity must be above zero, and a BOM needs at least one component (up to 300).
- An item cannot be a component of itself.
- Each operation needs a name, a duration, and a person or a work centre. New operation names are remembered for next time.
- Each item has one BOM.
- A BOM cannot be deleted while an open work order still makes the item from it — finish or close the work order first.
From BOM to work order#
On the BOM, choose Make a work order. The work order copies the materials and operations and scales them to the quantity you enter.
How it posts to the books#
Saving a BOM posts nothing. It sets the standard cost that finished-goods receipts use. Materials post when they are issued, and the finished goods when they are received (see Finished goods).
Limits and what is not there yet#
- One BOM per item: there are no versions or alternative BOMs.
- There is no scrap or waste percentage on a BOM line; enter the quantity you really use.
- By-products are not part of a BOM; receive them with a stock adjustment.
- A BOM is not approved separately; the bill of materials rights control who may change it.
Questions#
Can a component itself be made in-house?
Yes. Give that component its own BOM and make it with its own work order first. Each work order is one level; the app does not explode several levels at once.
Does the cost update when material prices change?
The cost is rolled up when you save the BOM. Open and save it again after cost changes to refresh the item's catalogue cost.
Why can't I add a service as a component?
BOMs take stock items only. Put labour on the BOM as an operation with a rate per hour instead.
What do food businesses see differently?
The same features under food words: Recipes, Ingredients, Ingredient issues and Prepared foods.