Bills of Materials are documents that describe the list of raw materials used to make a finished product. Just to illustrate the concept of Bom Specification, you will work on a finished product where the manufacturing plan is given to you.
Like, you want to manufacture 1 Car, and then your raw material will be 1 Engine, 1 Chassis, 4 Tyres etc.
This all looks simple and easy to understand but the problem arise when we have to select the Type of BoM.
- Normal BoM
- Sets/Phantom BoM
Each BoM has the Method. The BoM’s Method is a property of the BoM which is set automatically based on the Procurement Method of the BoM’s product and the type of BoM. Method Type is not editable directly
Type can be Normal BoM or Sets/Phantom.
If a product is used to make multiple products, it can be useful to create its own BoM. E.g. think of milk used to make different milk products. The milk would be a sub-product.
If you don’t want segregated manufacturing orders (one for the milk, one for the milk product) select Sets/Phantom as the BoM type – when you do this a single list of components will be shown on the manufacturing order.
If a Sets BoM is used for a standalone product, it will be sold and shipped as a set of components (like a kit), instead of being manufactured.
The BOM Method is On Order , On Stock or Set/Pack.
If Type is Sets / Phantom and the BOM is for a single product, the BOM Method will be Set/Pack.
If the Procure Method is Make to Stock, the BOM Method will be On Stock.
If the Procure Method is Make to Order, the BOM Method will be On Order.