10.0. Simple BOM

The system does not have a dedicated BOM module. but you can create transactions to achieve a similar concept where you are combining multiple items into a finished product. 

All items used in the example are inventory type items.

Stock adjustment  in multiple mode is only for editing purposes. the system will create a adjustment document for each row in multiple mode.

there is no links between each of these adjustment documents, entering information in the remarks field of the adjustment is recommended. 

1. Required setup

A temporary Account to handle the interim adjustment value.

in this example – BOM Adjustment

Adjustment Type.

setup -> items details ->Adjustment type

create a new adjustment type.

this adjustment type is to control the qty used.

2. Stock Adjustment.

we have COMBINE01 as the finished product

Part01 ,Part02, Part03 are the parts.

for each of the parts we use negative qty to reduce the stock qty.

for the finished product use positive qty to increase the stock qty 

note the negative cost for the items being removed.

this is important as this is the value being removed from the stock account. 

As a check, the BOM_Adj account should be zero, this would indicate that all the cost used in the parts have been fully transferred to the finished product item.

3.Optional

if you had other cost to add to the finish product you can directly change the cost for finished product (eg. from 100  to 150.)  before saving.

the finished product now has a new cost.

you can then move the value to their respective expense accounts.

for example if you had to add labor or transportation cost to the unit cost of the finished product.

after this step the BOM_ADJ account will be zero on the Balance sheet.

the BOM_ADJ account should not have value

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