A bill of materials (BOM) defines the hierarchical structure and components required to produce products. A BOM breaks down the final product into multiple levels, with level 0 being the finished good and higher levels containing subassemblies and individual parts. Each level lists the quantity of items needed to produce the next level. BOMs are used by other ERP modules to streamline production planning and order processing, helping to manufacture products consistently and efficiently.

1. Bill Of Materials(BOM)
Billsof Material,BOMs,are a keypiece of that ERP masterdata. Let’slookat a BOM to understand
howit can be usedand managedinyour ERP system.
A BOMis organizedbylevelsandincludesall the partsthatare usedto build yourproduct.Level 0 is
the final productsoldto yourcustomer.Level 1 mightbe one or more subassembliesusedinlevel0.
There isno limittothe levelsbutgenerallyyouwantasfew as possible tokeepthingssimple.
Withina BOMlevel are a listof part numbersandthe quantityneededtomake upthe nextlevel.
Part descriptions,unitsof measure,procurementtypes,etc.are oftenthoughtof asparts of a BOM
but theyreallyare itemsinthe part masterfile whichisadifferentERPmasterdataitem. Those
valueswill affecthowthe BOMworksinyour ERP and theyare veryimportant.
The Bill of Material module identifiesastandardlistof items,orcomponents,requiredtoproduce a
different,orparent,item.Itdefinesthe relationshipsbetweenitemsbeingproducedandthe items
neededtoproduce them.A produceditemcanbe composedof one or more itemswhichmightbe
purchased,assembled,fabricatedorchangedinsome wayto create a new item.Thisnew itemmay
be solddirectly,oruseditself tomake anotheriteminaproduct’sstructure.
These billsof material are usedbyothermoduleswithinFitrix tostreamline businessprocesses,
provide effectiveplanningtools,andtomanufacture productsina consistentandtimelymanner.
ProductionOrderProcessing–usesstandardbillsof material whencreatingproductionordersto
manufacture products.The standardbill iscopiedtothe productionorderbill asa startingpoint
Material Planning–usesstandardbillsof material toplanstrategicproductionandpurchases,in
supportof a longertermproductionplan