Products Bill of Materials in Tally
Products Bill of Materials (BoM) for Manufacture in Tally
In general terms, Bill of Materials (BoM) is the list of consumable materials, components, etc, used to manufacture a specified quality of Products.
Often, standard products are manufactured in which specified consumable (Raw) materials are used to produce specified quantity of Finished Products (alongwith Bye Product / Joint Product in some cases).
To facilitate issue of standard quantity of consumable items for Production, and control consumption, in Tally, Bill of Materials (BoM) refers to profile of a Manufactured / Assembled product, showing the standard consumption of each Raw Materials / Components to produce Standard Assembled / Finished product. For any Manufactured / Assembled Item, where some materials are consumed to produce a different product (finished or semi-finished), the BoM may be created specifying the standard quantity for Production & Consumption. Bill of Materials (BoM) is used to create Manufacturing Journals used for control of materials issue & consumption in a production system and product cost estimation & computation.
Bill of Materials (BoM) Activation in Tally
Bill of Materials (BoM) Activation for Stock Item in Tally
BoM Details entry in Stock Items Masters in Tally
Having activated BoM feature at Configuration, set the BoM for the Stock Item (Manufactured / Assembled Product). Before creation of BoM, you should have already created the Stock Item Masters for component Stock Items, which would be used to produce the Finished Product for which the BoM is being created.
Stock Item creation has already been explained. Here we explain additional features related to BoM.
At Stock Item Creation / Alteration screen (GoT>Inventory Info>Stock Items>Create), set Yes at Set Components (BoM), to get BoM List entry screen .
Stock Item (BoM) Entry in Tally
Stock Item BoM List in tally
BoM entry screen has 2 main component. At the upper part, enter the details of Finished Product (Production part), while in Lower Part (Consumption part), enter the details of Standard Components used to produce the Item specified in Production part
Through BoM List, you may create multiple BoM as explained later.
Product BoM Details entry in Tally
At the upper part at of BoM entry screen, enter the details of Production Item, as follows:
- BoM Name : At BoM Name, the BoM Name as entered in BoM List is carried for reference
- Produced Item Name: At Components of, name of Produced Item is displayed for reference.
- Standard Quantity : At Unit of Manufacture, enter the standard quantity of the Finished Goods for which you wish to enter List of Components. For example, if you have Component List for making 100 Pcs Wallets, enter here 100 Pcs
Component list entry
BoM Consumption Details Entry in Tally
After the entry of Production Item, enter the details of Consumption items.
- Item Name :At Item column, select the Item consumed (pres Alt+C to create a new Item and then select the Item)
- Item Quantity : At Quantity column, enter standard quantity of the materials that would be consumed to manufacture the quantity of finished goods as specified at Unit of Manufacture.
Joint / Bye Products Details set up in BoM in Tally
To enter the details of Bye-Product / Joint Product also, at BoM Component entry screen, click F12:Configure to get BoM Configuration screen.
BoM Configuration in Tally
At BoM Configuration screen, at Define Type of Component, set Yes at to specify Component Type for each Stock Item entered
At BoM Entry screen, select Component Type from List
Component Type List
Now enter the Production Item and the respective consumption Component detail
BoM entry with additional product
- Consumption Item : Component for Items consumed. The stock of this Item would be reduced. (as it is a consumption Item)
- Bye-Product : Bye-Product for Bye-Products Produced. The stock of this Item would increase (as it is a Production Item)
- Co-Product : Co-Product for Joint Product Produced. The stock of this Item would increase (as it is a Production Item)
- Scrap : Scrap for Scrap Produced. The stock of this Item would increase (as it is a Production Item).
Expenses entry in BoM in Tally
In case of additional Items produced (Scrap / Bye Product / Co-Product), at BoM Entry screen, at Rate % column, you may enter the expenses (if any), in terms of % of total cost to recover the additional produced Item. For example, if some Scrap is produced, you may enter the % of value that would be spent to recover the Scrap / Bye Product (enter zero if there is no additional cost to recover the Bye Product / Joint Product / Scrap Item).
Stock Item Multiple BoM in Tally
Sometimes, Alternate versions / models of same Item may be produced in which the components used may differ to some extent. In such case, you create separate BoM (multiple BoMs) for each version (model) of the Item.
Multiple BoM Name in Tally
To enter additional BoM, at Stock Item entry/ alteration screen, at explained above, at BoM Name list screen , enter the name of another BoM (press down arrow to get next line).
Enter the name of BoM to get BoM Component List entry as explained earlier. Now enter the Item details for the BoM in the same way as explained earlier.
Additional BoM Entry in Tally
BoM Cost Estimation in Tally
Having created the BoM, you may display the Materials Cost of the Finished Products, as per BoM set.
At GoT>Display>Statement of Inventory>Cost Estimation, select the Stock Item Group.
Standard BoM of an Item in Tally
The Cost Item Report for the Stock Items (for which BoM have been entered) under the selected Stock Group are displayed. If there are multiple BoMs set for an Item, details of each BoM will be listed .
Multiple BoM of an Item in Tally
At Cost Estimate Report, you get following Buttons
BoM Display Button Bar in Tally
- F4 : Group : To select he Stock Group of the Parent Group of the Stock Items for which the Cost Estimate is to be displayed
- F5:Show Default / Show All BoM
- Click Show Default to show the Cost Estimate as per the first BoM specified for the Stock Item
- Click Show All BoM to show the Cost Estimate of all the BoMs specified for the Stock Item