The Bill of Materials module gives you access to TWO related functions that let you group multiple inventory items into another item or on an invoice:
Bill of Materials & Kit Items
Bill of Materials
This lets you build, assemble, or manufacture an inventory item using other inventory items as parts or components.
What does manufacturing do for you? It lets you build an inventory item out of other inventory items. For example: You specify a recipe for pizzas, which would consist of the dough, cheese, tomato paste, and so on. You specify what quantity of each of the components is required to make one pizza. When you manufacture, you specify how many pizzas you are making. The system removes the requisite quantity from each component item and creates the specified number of pizza items.
You specify how you will assemble a computer, which would consist of motherboard, screen, keyboard, memory, and so on. You can use service items that have costs to represent labour and other costs, or you can use three additional manufacturing costs that you link to general ledger codes.
Here are two screenshots from the Bill of Material Masterfile:
This is your ‘Manufacture / Unmanufacture’ screen:
Bill of Materials Material Requirements (MRP) report
Kit Item Codes
This lets you specify one code on an invoice, and the system loads multiple invoice lines that can include inventory items and remarks lines.
When you invoice a manufactured item, you treat it like any other inventory item. Your customer does not usually see the component items. This module contains a separate facility called kit item codes. Kit Item Codes speed up invoicing, as you are able to create multiple invoice lines by entering one code only. Some uses of this facility are:
You can invoice complex items that consist of multiple invoice lines as well as remark lines. For example, if you are a dentist, you can create a kit item code for a filling procedure that will invoice out the fee for the filling, gloves, materials, and so on.
Long Item Descriptions
Inventory items have descriptions of up to 40 characters. If this is insufficient, you can create a kit item code for the item and add as many additional description lines as you require. You could combine this with a manufacturing process. For example, if you manufacture computers, you can detail the memory, hard disk, processor, and so on.
Replace Unavailable Items
You can use the same code for a kit item code and an inventory item. When an operator enters the item code in sales documents, there is an option All Above that will use the kit item in preference to the inventory item.
Reporting for this module includes an Audit Trail
• Components used in Bill of Materials / KIT Item Codes to track inventory items (components) allocated to a finished inventory item (manufactured product).
• Material requirements to determine whether you have sufficient components on hand to manufacture.