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The Bill of Materials (BOM) subsystem allows multi-level structures to be created and organized to form BOMs. Structures interface with inventory, sales analysis, purchasing and order processing, ensuring accurate inventory levels, sales tracking, and materials planning. There are four different structure types: Production, Finish, Selling and Receiving. Additionally, Option Based Order Entry is made possible through the use of Material Links and Material Modifiers.

Structure Types:

  • Production - The Production structure is used to plan for raw materials requirements needed to produce an item or sub-assembly. Raw material inventory is automatically reduced as a result of using this structure.
  • Finish - The Finish Structure is used to find the optimal combination, options, or choices available for a specific item. Meaning this structure can be used to select the finish color of wood, fabric for upholstery, back type of chairs, table top options, or any other customized choice you may need. This eliminates the time consuming task of entering an item number for every combination of components. Another benefit of this structure is that it reduces the maintenance of inventory masters, and eliminates the maintenance of BOM structures.
  • Selling - The selling structure groups items that are sold together under a single item number. Groups are tracked per component for more accurate sales analysis. So for example, tables and chair appear as a set of the table and the number of chairs for sales analysis and inventory purposes, while being priced as a set.
  • Receiving - The receiving structure is used for sub-items that are in inventory but at the vendor site for use in the construction of an item that eventually will be received. This is necessary if some of the raw materials are stored at the vendors site and used for our products. If we do not store products at the vendors site, a receiving structure is not necessary.

Material links provide a connection between an item and the material required to build or ship that item. These will allow your engineers to setup a manufacturing process for an item, regardless of how many different types of materials it’s ordered in. Additionally, material links allow you to setup one manufacturing process of multiple similar items that vary in size. Whereas, without material links in your system you would be required to setup a separate BOM structure for each variation. All material links are automatically tied into option based order entry to give even more functionality.

The BOM subsystem also features MRP functions allowing you to perform projected production, regular production, materials management and reporting. This system will give you a good indicator of the products and raw materials needed to fill actual and projected demand. This allows your purchasing department to look into the future, and see an accurate measure of what items or materials are needed for existing and new production orders; reducing the chances of running low in stock.

Other Applications

The following applications are designed to work hand-in-hand with Bill of Materials:

  • Accounts Payable
  • Accounts Receivable
  • General Ledger
  • Inventory Management
  • Order Processing
  • Point of Sale
  • Production Tracking
  • Purchase Order Tracking
  • Sales Analysis

"Bill of Materials" is part of the Perfect Circle Furniture System line of products, developed by Perfect Circle Solutions.