How to create a bill of materials

A Bill of Materials (BOM) says what goes into making a product. Manufacturing needs Inventory, because components and finished goods are inventory products.

1. Open Manufacturing and create a BOM.
2. Choose the finished product and the batch size.
3. Add the components, each with a scrap %. Component details are read from Inventory.
4. Set the status: draft, active or archived.

Routing and work centres

To cost labour and overhead, define work centres with a labour rate and an overhead rate per hour, then add operations to the routing. Setup is counted once per order and run time per batch.