Bill of materials (assembly)
Before starting to manufacture or disassemble products, you need bills of materials (BOMs) for these products. The BOM specifies the component products that make up the finished product, and any costs due to labor and overheads. Assembly BOM is intended to be used for simple assembly operations such as joining together multiple items in a pack or kit, or disassembling a case of stock into its component units.
Prerequisites
You must know how to create a product.
You will need the Inventory → Products and families and Inventory → Product - Bill of materialspermissions in order to add and edit the BOM for a product and enable/disable auto-assembly.
Add an assembly BOM to a product
Products require an assembly BOM for assembly or disassembly.
Select Inventory from the main menu, then Products.
Create a new product or select an existing product,
Select Assembly BOM from the Bill of materials dropdown field in the document header.
This activates the Bill of materials tab.
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Configure the bill of materials settings.
Check Auto-assembly/Kit to automatically produce the item after the sale order is authorized, assuming there are enough components in stock. Check Auto-disassembly to automatically disassemble products into components after a purchase order is completed.
The default Quantity to produce is set to 1. You may change this if needed. This should reflect the quantity of finished goods that will be created from the BOM components.
If you have a video or other instructions that show how the product is assembled, enter the link in the Assembly instruction URL box.
Click the + button or Add more itemsto select the component products from your inventory. You must have already created the component products before they can be added to an assembly BOM.
Enter the Quantity of each component product required in the assembly.
Enter the Wastage %, Wastage quantity and Disassembly cost % if required.
To include service items associated with the disassembly, click + Labour and overheads. When adding service items, it is required to include an Expense Account.
Replace BOM components
Replace one component with another for all BOMs including the first component (assembly BOMs, production BOMs, product family BOMs, NOT make-to-order BOMs).
Bill of material settings
Auto-assembly/Kit
The assembled product will be produced automatically after the sale order is authorized, assuming there are enough components in stock.
Auto-disassembly
Products are disassembled automatically after the purchase order for them is completed. Auto-disassembly is only recommended in the case where you do not sell the assembled product.
Quantity to produce
Enter the yield for the BOM. 1 is the default.
Assembly instruction URL
Enter a URL showing assembly/disassembly instructions for the product, if applicable.
Cost is estimated using
The Average cost, Latest purchase cost or Fixed purchase cost of the BOM components is used to estimate the cost of the finished costs.
This is for your reference only. Total cost in BOM is an estimate only. The actual cost of finished goods will be calculated using the costing method of each individual component and can vary from "Total" cost displayed in the BOM. Actual costs associates with finished goods can be seen using the Finished Goods Analysis Report.
Wastage % / Wastage quantity
Wastage % and Wastage quantity are optional and mutually exclusive. If some of the components are wasted during assembly, use these fields to include that information.
Disassembly cost %
Indicates what percentage cost each component product makes up of the parent product.
By default Cin7 Core splits the cost of the parent product equally between product lines in disassembly. However you can set rules on how Cin7 Core needs to distribute the cost of the parent product among the components. The total must equal 100%.
Example: Product A is disassembled into 2 x Product X and 1 x Product Y. If product A has $100 cost, the default settings in Cin7 Core will set $50 for Product X line, which will be split among 2 items giving the cost of $25 per instance of Product X and $50 for Product Y.
Suppose that you wish to set your own rules. You estimate that the cost of the product Y will be $80 and the cost of the product X will be $10 each. Your disassembly cost percentage will be 20% for the first line (product X) and 80% for the second line (product Y).
Labor and overheads
Service products are added to the BOM in this section. Add Quantity, Expense account used to accumulate these expenditures and Price tier used as a cost basis. If you do not have a standard rate for the expense, you can input the actual amount during production.
Computing assembly costs
If Wastage %, Wastage quantity and/or Disassembly cost % are left blank when adding an Assembly BOM, Cin7 Core splits the cost of the components equally between product lines.
For example, say you have a Finished Product A with the following component parts: [2 x Component Product X] + [1 x Component Product Y].
If Product A costs $100, the default settings in Cin7 Core will set to $50 as the cost of Component Product X and $50 as the cost of Component Product Y.
Since there are two (2) instances of Component Product X, the $50 cost for producing it will also be split into two. Thus, each Component Product X costs $25.
Suppose that you wish to set your own rules. You estimate that the cost of product Y is $80 and the cost of product X is $10 each. Your disassembly cost percentage will be 20% for the first line (product X) and 80% for the second line (product Y).
The BOM for the finished product estimates a cost using either Average Cost, Latest Purchase Cost, or Fixed Purchase Cost. This is for your reference only. The actual cost of finished goods will be calculated using the costing method of each individual component allocated to an assembly and can vary from "Total" cost displayed in the BOM. Actual costs associates with finished goods can be seen using the Finished Goods Analysis Report or the Unit Cost per production run can be seen from the Assembly List.
Import bill of materials
Import bill of materials details in CSV format.
Select Inventory from the main menu, then Products.
Select Import, then Bill of materials.
This generates a blank BOM CSV file when you can enter BOM details for one or more products.
Upload the saved file.
Edit bill of materials in bulk
BOM details can be imported in CSV format via the Inventory module, or exported, edited, and re-imported for fast bulk editing. Multiple product BOMs can be imported at once.
Select Inventory from the main menu, then Products.
Select Export then Bill of materials.
This generates a CSV file containing all products that have a BOM.
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Make any changes within the CSV file. Supported changes include:
Adding and deleting components
Changing component quantities
Changing wastage and cost percentage details, etc.
Save your changes.
Upload the saved file by selecting Import, then Bill of materials.
Bill of materials CSV headings
Action: (optional) Action column can have two possible values: Delete or Create/Update. If left blank, "Create/Update" is assumed.
ProductSKU: (required) Product SKU which BOM this line refers to.
ProductName: (optional) Product Name which BOM this line refers to. This field is used for information purposes only.
ComponentSKU: (required) Component SKU identifying the product used as a component to manufacture the product specified in the ProductSKU field. Should be unique for the same ProductSKU value.
ComponentName: (optional) Name of the product identified ComponentSKU field. This field is used for information purposes only.
Quantity: (required) Quantity of the component in BOM.
WastageQuantity_ForStockComponentOnly: (optional) Additional wastage quantity of the component in BOM. WastageQuantity_ForStockComponentOnly and WastagePercent_ForStockComponentOnly fields are mutually exclusive.
WastagePercent_ForStockComponentOnly: (optional) Additional wastage % of the component in BOM. WastageQuantity_ForStockComponentOnly and WastagePercent_ForStockComponentOnly fields are mutually exclusive.
CostPercentage_ForStockComponentOnly: (optional) % of the cost allocated to this component when disassembling product specified in ProductSKU.
PriceTier_ForServiceComponentOnly: (required for Service components) Identifies a sale price tier of the service to use when calculating Labour and Overheads related to production.
ExpenseAccount_ForServiceComponentOnly: (required for Service components) Expense account code or name to use to generate transactions related to this Service component.
View BOM component availability
Please use the BOM Component Details report to view a table of products in your inventory with an assembly BOM, each BOM product's components and component quantity in stock, available and on hand. Use this report to see what components are required for a parent product and whether you have enough stock at specific locations to produce the parent product.
The report can be filtered by assembly BOM products in/not in a sale and available component quantity.
Note: If you wish to use this report to show all of the BOMs / BOM components not related to Availability/On Hand quantities, filter by one location (doesn't matter which location) and save the layout. This will give the BOMs and BOM components in a simple format.