Bill of Materials (BOM) is when a product has other products you in stock. It lists other components that are required to make the product, otherwise known as product assembly.
In Sage, each product assembly, sub-assembly, and component are set up as separate product records, and then you can set up a bill of materials to link them together.
Creating bill of materials
Creating a bill of materials for a product, Sage shows on the bill of materials levels of components and sub-assemblies that there are below the product assembly (the ASM), and the number of assemblies or sub-assemblies to which each component belongs (the link).
A product assembly (A) consist of 2 components (a and b). 1 sub-assembly (component c), and that sub-assembly consists of 3 components (x, y and z). The level for the product assembly (A) is 2.
Each product can be a component for more than one assembly or sub-assembly. For example, if a component (a spanner) is used on two different product assemblies (the toolkit and the spanner set), its link count is 2.
How to set up bill of materials
- Select the Product you wish to set up a bill of materials for (i.e., for the product assembly) from the Products window list box, and then choose the Product Record option.
- Choose the BOM Tab.
The BOM tab dialog shows the following headings which you can't edit:
| Product code | This is the product for the product assembly you are setting up |
| Description | This is the description for the product, which is taken from the product record |
| ASM | This is the number of levels of components and sub- assemblies below the product assembly |
| Link | This is the number of assemblies or sub-assemblies to which this product assembly belongs. |
In the BOM table, enter the following bill of material details, one line per component.
Product Code: Enter a product code for the component.
Qty: Enter the quantity of this component required for this product assembly.
The following information is shown, but can't be edited: ASM, Link and Description
To save your entries choose the Save button, or to clear any data you entered and start again choosing the abandon button. To exit the product record and return to the Products window, choose the Close button.
Entering product adjustments in
Use the Adjustment In option to record product adjustments to increase the available stock level, for movements for which you have not raised either a purchase order or a credit note.
Choose the Adjustment In option from the Products window list box.
In the boxes provided, enter the following details for each adjustment, one line per adjustment.
Product Code: Details: Date: Ref: Qty: Cost Price
On order: If you have placed a purchase order `on order' for this product, the quantity ordered appears here.
Free: This shows the current free stock level for this product.
To save your entries choose the Save button, or to clear any data you entered and start again, choose the abandon button
To exit and return to the Products window, choose the Close button.
| Product Code | Description | Date | Ref | Quantity | Cost price* per item |
| PO01 | Tool kit | 04/03/98 | AI-001 | 18 | 1000 |
| PO02 | Spanner set | 04/03/98 | AI-002 | 25 | 8,500 |
| PO02 | Spanner type a | 04/03/98 | AI-003 | 20 | 500 |
| PO03 | Spanner type b | 04/03/98 | AI-004 | 30 | 4,500 |
Make the above product Adjustment Ins and view the product history and valuation reports
Making Adjustments
When you use the Adjustments In option, Sterling automatically makes the following adjustments for each product.
In Stock quantity of the product is increased by the quantity of the adjustment. This is recorded as an AI (Adjustment In).
Cost price on the product record is updated with the cost price of the adjustment.
Product Activity file is updated with details of the transaction.
Entering Product Adjustment out
Use the Adjustments Out option to record adjustments to decrease your `In Stock' balance, for movements for which you have not raised either a sales order or a product invoice.
- Choose the Adjustment Out option from the Products window list box.
In the boxes provided, enter the following details for each adjustment, one adjustment per line.
Product Code, Details, Date, Ref, Qty, in stock, on order, Allocated
To save your entries choose the Save button, or to clear any data you entered and start again, choose the Abandon button.
To exit and return to the Products window choose the Close button
| Product Code | Description | Date | Ref | Quantity | Cost price* per item |
| PO01 | Tool kit | 04/03/98 | AI-001 | 18 | 1000 |
| PO02 | Spanner set | 04/03/98 | AI-002 | 25 | 8,500 |
| PO03 | Spanner type a | 04/03/98 | AI-003 | 20 | 500 |
| PO04 | Spanner type b | 04/03/98 | AI-004 | 30 | 4,500 |
Product Transfers
Use the Product Transfers option when you want to increase the `In Stock' quantity of Product Assemblies using components which are currently in stock. When you use the Product Transfers option, Sterling for Windows automatically calculates for you the cost price of each Product Assembly, by adding together the cost price for each of the components.
Choose the Product Transfers option from the Products window list box.
- In the boxes provided, enter the following details for each transfer, one line per transfer.
Product Code: Enter the code for the product assembly (i.e., the finished product item). Use the Finder button to select from the Product list.
Note: You can only enter a code for a product which you have already set up to be a product assembly using the BOM option.
Details: Date: Ref: Qty: In stock: On order: Allocated
- To save your entries choose the Save button, or to clear any data you entered and start again, choose the Abandon button.
To exit and return to the Products window choose the Close button.
The Adjustments That Are Made
When you use the Product Transfers option, Sterling automatically makes the following adjustments for each product.
In Stock quantity of the finished product is increased by the quantity entered. This is recorded as an MI (Movement In) on the Product Activity Report.
The `In Stock' quantity of each component and/or sub-assembly is reduced. This transaction is recorded as an MO (Movement Out).
The Product Activity file is updated with details of the transactions.
Viewing product activity
Use the Activity option on the Products window to view in table form, the individual transactions you have `posted' for your product records.
- Select the product or products you wish to view from the Products window list-box.
- Choose the Activity option from the Products toolbar.
- You can change these dates so that only activity within a specific date range is included (e.g., a week).
- Choose the OK button to continue or cancel to exit.
If you continue, the Product Activity window appears, showing the activity of the first product you selected.
Fields Displayed
| Tp | This is a code identifying the type of transaction |
| Goods In | via purchase orders |
| Date | Date entered for the product transaction when it was posted |
| Ref | Reference you gave to the transaction when it was posted |
| Details | Description text which was entered at the time of posting to identify the transaction. |
| Used | Sum of all the AO (Adjustments Out), GO (Goods Out) and MO (Movements Out) quantities for the product within the date range specified. |
| Cost price | When the transaction line refers to an AI (Adjustment In), GI (Goods In) or MI (Movement In), this shows the cost price. |
| Sales price | If the transaction line refers to an AO (Adjustment Out), GO (Goods Out) or MO (Movement Out), this shows the sales price. |
| Qty on order | Quantity of the product which has been ordered and placed `on order' using the Purchase Order option, but has not yet been delivered |
| Qty allocated | Shows the quantity of the product which has been `Allocated' to sales orders using the Sales Order Processing option |
| Qty in stock | Is the sum of all the AI (Adjustments In), MI (Movements In), GI (Goods In) and GR (Goods Returned), less the quantity used for the specified period. |
| Qty available | Quantity in stock less the quantity allocated |
To change the date range for your report, choose the Range button.
When you finish viewing your product transactions, choose another product using the Finder button, or to return to the Products window choose the Close button.
Read about SAGE in How to create a New Company in SAGE
How to set up defaults in SAGE
