--- title: "Bills of Materials" canonical: "https://wiki.soft1.eu/space/SS5EN/12060413/Bills%20of%20Materials" format: markdown --- ![image](media://13a146df-651f-4c49-b65e-8cbff905d05a) In the header of each bill of materials complete the following:  - The code and name of the bill of materials. - The W/h where the product is imported. This area is provided as default in the production document. - Whether the BOM is active or not, that is whether is shall be displayed for selection at the points requiring its selection. - Whether BOM is main or not for the item produced. Only one BOM per item must be labeled as main. The main BOM is used in automatic creation of production document processes, where there is no user selection capability (i.e. Shortages / requirements job, order - reception documents conversion).   On page <**Main product**> fill in the following:  - **Product:** Select the main product produced. At this point, only the items that include in their data the value Product in production Type are available for selection. - **Qty 1 & Qty 2:** In these fields you can set the quantity of the product to be produced, based on the quantities of Raw/Aux.materials to be defined as consumption on the corresponding page. - **Phase:** Information field of the BOM used in printouts (i.e. production status). - **Waste:** Information field of the BOM used in printouts (Production & cost book). In the quantities of the product and consumptions you must complete the actual quantities, including accounting calculation of waste. Special case: If waste percentage is entered in the Raw material line, shall be used in case there are differences with the actual physical area and shall allocate Raw material to the products based on that percentage. For this purpose the following jobs are executed: - Physical stock taking (Inventory -Op. balances/ old menu: Inventory –Jobs): a series following a type with behavior 421 is selected and the actual warehouse quantities are entered. - Physical stock taking update (Inventory -Op. balances/ old menu: Inventory –Jobs): a series following a type with behavior 422 is selected and the import quantities to the warehouse are arranged. - Physical stock taking allocation (Production - Costing / old menu: Production -Jobs): this job corrects the production documents already created with the differences in consumption. That is, it relates the production documents with the consumption documents and then production costing is run.   - **Cost rate:** the operator defines for the product produced the cost rate which is known based on calculation and refers to the costs from Raw materials and co-products (for by-products the production document is selected to use standard costs). Cost rate is only useful to complete when there are co-products and by-products. If there are no such, the unit is implied. The rate indicates the extent of participation of the product or co-product in the consumption costs (consumption quantity * cost price) for Raw material. That is, what amount of the consumption costs shall be allocated to the main product and what amount to the co-product. Example: if the consumption cost for a Raw material is 300€ how is this allocated to the product and co-products: i.e. 80% to the product and 20% to the co-product, or 600 and 400 (that is a total of 1000), thus, the percentage is 600/1000 =0,6 that is 180€ and 400/1000=0,4, that is 120€ respectively.    On sub-page 1 <**Raw/Auxiliary materials**> the default items are the ones labeled Consumable and Produced. This is necessary because the production of an item may require the consumption of a Raw material and of a co-product/by-product, which shall be labeled in the production type as a product. The W/h is the one in which Raw materials are consumed.  ![image](media://ddbf9e03-8f72-465e-9a9c-e0cc5bf02fb6) Specifically, you must complete the following:  - the item for consumption (must be labeled as consumable in the items file, or as product if it is a semi-finished item); - the quantity to be consumed for the production of the specific quantity defined in product; - the Warehouse where the items shall be consumed in order to create the product. The production document shall include by default. - The phase and process which are information data to be used in printouts, - the percentage of waste, which is the additional consumption percentage, which was decided that might be used in the production process and can be justified as consumption after running the physical stock taking job and from the shortages that may arise.  It is used for the allocation of the shortage quantity after the physical stock taking, in order to allocate excess consumption quantity in the production documents prior to their costing - indicative price, which is either completed manually in order to derive an indicative BOM cost, or is updated by the related job, - creation of a semi-finished document, the flag (right click on the header of the line and addition of the respective field) of which defines whether during the production of an item having semi-finished elements, there shall be automatic production of the required quantity of the semi-finished item (in combination with the configuration of the production document type).   On sub-page 1 <**Costing data**> the costing data are defined, that is the "surcharges" to be allocated to the products, additionally to the raw materials (labor, G.P.C., depreciations, etc.).     ![image](media://0fe917bf-f6a9-4c68-82b1-b86ea6039b72) During creation of costing data, the following are appropriately set:  ![image](media://ba0869ca-fe92-4e5b-9bd0-d706e22c5d85) - the group of costing data - the cost accounting account from which to derive the value to be allocated (must be an actual and transacting account). - In calculation Method it is determined whether the value of the costing data shall be constant regardless of the quantities of the products, or there shall be consideration of the products quantities.  (Proportionally means that it shall update the item cost with the costing chart amount based on quantity. Constant means that, regardless from the source of the amount defined by the user - that is either directly to the unit, or from the values of account 92* - this shall always be the same, regardless of the product quantity). - In behavior set whether it shall be possible to modify the values of costing data or not (default method: Cannot be modified). - The Cost category which defines the printouts column - Direct labor or General industrial expenses in which the value of the costing data is to be included. - The Unit cost, which updates the values in production documents for the calculation of the indicative BOM cost. - Value based on account: if set to Yes, it means that this costing data shall receive values for allocation at the item cost from the balance of 92* and for the costing period. If set to No, it shall receive cost from the amount in field "cost value" in the production document and based on the unit found in the BOM, at the unit to be completed. The cost value to be entered "directly" in a production document for the costing data shall be the total value that refers to that period.   In the costing data grid, the units per product are defined. These operate proportionally and not in percentile. The units through which each costing datum participates are defined by the company and have the role of a surcharge rate (weight - complexity) of each product.    Example:  If the balance of 92* is 1000 and the specific costing datum participates in 2 products produced having units 50 in Α and 60 in Β, then the value attributed to product Α shall be (50/110)*1000=454 and 60/110*1000=454 respectively for product Β. This applies only in case the operator knows which product participates in the consumption costs and at what weight. Usually, given that the allocation is executed per quantity, units are 1 to 1 to the production quantity, that is the product is surcharged with a cost from the costing data that is proportional to the production quantity.    On page <**Co-products /By-products**> you can select the items to be produced using the BOM and distinguish them as follows:  ![image](media://07a9c76f-7a29-4fb0-b15c-59f278cfa9db) - Co-products: These are the items produced simultaneously with the main product and derive part of the costs borne by the bill of materials.  On each line set the cost rate (from Raw materials and costing data) to be allocated to the co-product (weight and not rate) along with costing. - By-products: These are the items arising simultaneously to the production of the main product, but do not participate in costing, that is they do not assume costs from it.  The are only quantitatively updated and operate under standard cost.   On page specify whether the BOM refers to a specific customer or project ![image](media://0f93d780-2d19-4bcb-8d90-3711d2ebeaf1)