Assembly/Bill of Materials

Assembly/Bill of Materials

Assembly

CustomBooks™ has Assembly/Bill of Materials (BOM) functionality commonly used in the manufacturing industry, among others. The Assembly/BOM feature allows users to list all the components, raw materials, services or labor, and sub-assemblies required to produce another item or the final product. In AccountingSuite™, the Assembly/BOM feature plays a crucial role in inventory management, providing businesses with detailed insights into their manufacturing processes and associated costs.

Defining an Assembly/Bill of Materials is the first step in using the more advanced inventory features such as Assembly Builds and creating assemblies within assemblies. The Assembly/BOM is defined on the item card that is created for the final product. Before starting, ensure that all components or “ingredients” of the final product have been entered as inventoried items.

How to Enable the Assembly Feature?

Go to Admin Panel > Inventory Settings > under General category, check the Assembly checkbox.



Take note that if you already created an assembly, you cannot disable this feature.

How to Create an Assembly/Bill of Materials

  1. Enter a new Product Item. Go to Inventory > Items > Create > New. This item will be the final product.
  2. Select Product as the Type.
  3. Check the Assembly checkbox. The Assembly tab will appear.
  4. Click the Assembly tab. Here is where we will add or build the list of raw materials needed to build the final product.
  5. Click the Add button. Enter the Product Item Code or select it from the drop-down list.
  6. Enter the quantity needed for the final product.
  7. Enter the Unit of Measure (UoM), if applicable. 
  8. Enter the estimated waste percentage of the item upon production of the final product, if applicable.
  9. Repeat steps 5-8 for each item needed to assemble the final product.
  10. Save.


Labor/Services

Labor or Services may also be included as items on an Assembly/Bill of Materials.

To add a service item on a bill of materials:
  1. Check the Has Labor checkbox. The Labor tab will appear.
  2. Click the Labor tab.
  3. Click the Add button. Enter the Service Item Code or select it from the drop-down list.
  4. Enter the number of hours (Units of Measure) needed to finish the final product in the Quantity field. As a reminder, service items are not tracked in inventory.
  5. Save.


Building an Assembly (Assembly Build)

Once the assembly has been created, it may be built. 
  1. Go to Inventory > Assembly Builds > Create > New.
  2. Choose the Assembly Item to build from the drop-down menu. The list of raw materials needed will auto-populate in the Materials tab. Labor/Service items appear in the Labor tab.
  3. Choose the Location of the build. This is where the inventory of the completed items will be increased.
  4. Change the Build Date, Quantity, Unit of Measure (UoM) if needed.
  5. If your assembled item will be assigned a lot or a serial number, click the Lots/Serial Numbers tab and assign them.
  6. Enter a Memo (optional).
  7. Save.


Saving an Assembly Build has an effect on the inventory. The quantities of the items (raw materials) and waste used to build the final product will be decreased from inventory; Residuals and the quantity of the final product indicated on the Assembly Build will be increased.

Notes:
  1. The Assembly Build will fail to post if there are no sufficient raw materials in stock.
  2. On an Assembly Build, individual items may be added, changed or removed to reflect the actual use at the time of manufacturing.
  3. An assembly item may contain another item that is an assembly (sub-assembly) on its Bill of Materials. There is no limit to how far deep you can nest assemblies, but they must be built in order from the deepest nested assembly on up.

The Assembly/Bill of Materials feature is essential for businesses involved in manufacturing or assembly. By including services and labor alongside materials and components, it provides a comprehensive view of the resources required for production. By utilizing the Assembly/BOM feature, businesses can achieve greater efficiency, cost savings, and overall operational effectiveness.

For more details about the Assembly feature and Assembly FAQ, visit the knowledgebase articles below.
  1. Assembly FAQ (accountingsuite.com)
  2. Assembly/Bill of Materials Report


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