Creating a Bill of Material

Bill of Material (BoM) is created only for those items that are being assembled in-house. For trading items, you do not need a BoM. Therefore, you need to specify a BoM at the time of creating a Stock Item or when altering its master.

Let us create a new Stock Item Television Flatron and specify its BoM.

Go to Gateway of Tally > Inventory Info. > Stock Items > Create

The Stock Item Creation screen is displayed below.

Some information like Batches, Alt. Units etc. depend upon the company features, configuration and invoicing set-up. For details on fields other than Set Components (BoM) refer to the Stock Item Creation section under Inventory Information.

The difference for India/SAARC would be in the field Rate of VAT and MRP/Marginal.

Unit of Manufacture

Specify the appropriate number of the finished product items that will be made. While manufacturing and recording through a stock/manufacturing journal, record the item in multiples of this unit of manufacture. The components are multiplied by the same factor automatically. You are allowed to alter the components to reflect actual consumption, if there is a change from BoM.

Note: Under certain circumstances, it is better to give a larger unit of manufacture, for example, per 1000 Pcs of nails, as raw material consumed for 1 piece of nail is insignificant.

Item, Godown (Location) and Quantity

Enter the component name and quantity. If there are multiple Godowns or Locations, specify the storage location for the item.

Enter the options for all appropriate fields for the stock item and accept the screen.

Manufacturing Journal Entry

If you are creating a new voucher type Manufacturing Journal, a pop-up menu is displayed with the options default Stock Journal and Manufacturing Journal.

Select Manufacturing Journal and the following screen will be displayed.