Skip to main content

Bill of Material (BOM)

What is a Bill of Material?​

A Bill of Material (BOM) is a comprehensive list of raw materials, components, subassemblies, and resources required to manufacture a finished product. It acts as a blueprint for product construction, production planning, inventory control, cost estimation, and traceability.

In an ERP system like PrismERP, the BOM integrates with production, inventory, procurement, and cost center modules to enable seamless planning and execution.

Key Features of BOM in PrismERP​

Multi-Level BOM Structure​

  • Supports both single-level and multi-level (nested) BOMs
  • Allows inclusion of subassemblies and intermediate products

Component Types​

  • Raw Materials
  • Semi-finished Goods
  • Packaging Materials
  • Labor & Machine Resources
  • Tools & Utilities (optional)

Cost Estimation / Pre-Costing​

  • Auto-calculate unit cost based on quantity, rates, and overheads
  • Compare estimated vs. actual costs in post-production reports

Version Control​

  • Maintain multiple versions of a BOM for the same product
  • Supports lifecycle changes and product engineering updates

Approval Workflow​

  • Submit BOMs for review and approval before activation
  • Ensures only validated BOMs are used in production

Routing Integration​

  • Optionally attach operation routing steps to each BOM
  • Enables scheduling and execution of each production phase

Wastage & Scrap Management​

  • Define expected wastage per material or operation
  • Integrates into costing and inventory reconciliation

Why Use BOM in Your ERP System?​

  • Streamline Production Planning Get exact material requirements and reduce under/over-stocking.

  • Cost Control & Analysis Understand material and resource cost breakdowns.

  • Process Consistency Standardize how products are built across batches and factories.

  • Inventory Forecasting Forecast material demand based on production schedules.

  • Auditability & Traceability Track what was used to build any finished product batch.

How to Use BOM in PrismERP​

Create a New BOM​

  • Go to: Bill of Material
  • Click Create New
  • Select the Finished Product
  • Define the BOM Type (Standard, Engineering, etc.)

Add Components​

  • Add raw materials, semi-finished goods, packaging, etc.
  • Enter Quantity and Unit of Measure (UoM)
  • Set scrap/wastage if applicable

Attach Routing (Optional)​

  • Link routing steps if production involves multiple operations

Define Cost Elements (Optional)​

  • Add labor, machine, and overhead costs for each component

Save & Submit for Approval​

  • Submit for review if approval workflow is enabled
  • Once approved, it becomes active for use in production

Use in Work Orders or MRP​

  • BOM will auto-fill in Production Orders and Material Planning

BOM Reporting & Analytics​

  • Active BOM List
  • BOM Cost Summary
  • Component Usage Report
  • Version History & Comparison
  • BOM Variance Report (Actual vs Estimated usage/cost)