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Bill of Materials

Bill of Materials

Publicado el
Published on
September 6, 2023
Actualizado en
Updated on
December 20, 2023


The production module in Cashflow is an essential tool designed to optimize and control the manufacturing process within your company. This module is divided into two key components that work together to ensure a precise and efficient workflow:

Bill of Materials (BOM)
The Bill of Materials or BOM is a template or document that details the components/ingredients required to produce a base quantity of a final product. It includes not only physical materials but also labor and indirect costs associated with production.

Production Order
The Production Order is the mechanism through which the Bill of Materials is taken to the actual production phase. At this stage, you select a specific Bill of Materials/Recipe and define multiples of the base quantity in the recipe that will be produced.

2. Creating a Bill of Materials

To create a new Bill of Materials, follow these steps:

  1. In the main menu, go to Inventory, and then click on Bill of Materials.
  2. In the Bill of Materials list, click the (+) button.
  3. Choose the Finished Item (Final Product), quantity, date, employee, and whether the list is Active.
  4. In the content section, you can define the Raw Material, Labor, and Indirect Cost Items. For each line, select an Item/product and define the quantity.
  5. To add more lines, simply click the (+) button below the list and repeat the previous step.
  6. You can write additional notes for this Bill of Materials in the Notes field.
  7. Click Save to save the document.
Bill of Materials
The bill of materials, also known as recipes, does not represent the production itself. Instead, it acts as a template detailing the ingredients, quantities, and sometimes indirect costs required to produce a specific product. It's like a chef's recipe that outlines everything needed to create a dish but without implying the actual cooking or assembly process.

2. Editing a Bill of Materials

To modify a Bill of Materials, follow these steps:

  1. In the main menu, go to Inventory, and then click on Bill of Materials.
  2. In the Bill of Materials list, find the one you want to edit.
  3. Click on the actions menu (three horizontal dots).
  4. Click on Edit.
  5. Make the necessary adjustments.
  6. Click Save to save the changes.
Modify Bill of Materials / Recipe
You can modify a bill of materials or recipe as needed. This will not affect past productions; only new productions using this recipe will be affected by the change. The reason for this is that bills of materials or recipes act as a template that defines a product to be produced, not as the production itself. Therefore, changes made do not have a retroactive effect on completed productions.

3. Deleting a Bill of Materials

You can delete Bill of Materials that are no longer needed. To delete a Bill of Materials, follow these steps:

  1. In the main menu, go to Inventory, and then click on Bill of Materials.
  2. In the Bill of Materials list, find the one you want to delete.
  3. Click on the actions menu (three horizontal dots).
  4. Click on Delete.
  5. You will be asked to confirm the action.
Delete Bill of Materials / Recipes
Deleting bills of materials or recipes is an action that should be handled with care. While this action will not affect past productions that used that bill or recipe, it can impact future production operations. If you have a recipe that you plan to use again in the future, you should ensure you have all the necessary information before proceeding with the deletion. Once deleted, the bill of materials or recipe will not be available for future productions, and you will need to create a new one if you need to produce that specific product again.

4. Send Bill of Materials to Production

If you want to start production with a Bill of Materials, follow these steps:

  1. In the main menu, go to Inventory, and then click on Bill of Materials.
  2. In the Bill of Materials list, find the one you want to produce.
  3. Click on the actions menu (three horizontal dots).
  4. Click on Copy to Production.
  5. You will be asked to confirm the action.
  6. Continue following the steps from the Production module.

5. Bill of Materials and Options

The Bill of Materials module provides a list of all created recipes or templates and a series of options in the action menu (three horizontal dots) for each list, allowing you to easily manage and track each component. The options in this menu are:

  1. Preview
    This option allows you to preview the bill of materials as it would appear when printed. It is useful for reviewing the information before taking any further action.
  2. Edit
    If you need to edit a bill of materials, this option allows you to make changes.
  3. Upload File
    You can add files related to the bill of materials, such as supporting documents, attachments, and more.
  4. Audit
    The audit shows the changes made to the document, allowing for detailed tracking of modifications.
  5. Copy to Production
    You can start production from a bill of materials using the 'Copy to Production' option. You can also do this directly from the production module.
  6. Delete
    If you need to delete a bill of materials for any reason, you can do so using this option.

These menu options are designed to facilitate the management of your bills of materials and provide greater flexibility and control in your production process.

Tips & Best Practices

  1. Clarity in Bill of Materials
    Ensure that each bill of materials is well-structured and detailed. It should contain accurate information about the materials, indirect costs, and labor required to produce the product.
  2. Regular Review
    It's essential to regularly review and update bills of materials and recipes. This ensures that changes in material costs or availability are reflected correctly.
  3. Exercise Caution When Deleting
    Before deleting a bill of materials or recipe, make sure it won't be used in future productions. Once deleted, the information is lost, and recreating it may take time and effort.
  4. Use the Audit Function
    Use the audit function to track changes in bills of materials. This can help you understand the adjustments made and who made them, which is useful for accountability and transparency.
  5. Attach Relevant Documents
    Use the option to upload files to attach any relevant documents that may be useful for the production process, such as technical specifications or safety instructions.
  6. Tracking and Control
    Efficient bill of materials management requires constant tracking and control. Utilize menu options for tracking and maintaining control over each component.
  7. Copy to Production Carefully
    When copying a bill of materials to production, ensure that all details are correct and complete. Review the recipe and confirm the action to prevent errors.
  8. Document Using the Notes Field
    Use the notes field to include additional information or specific instructions that may be useful during production.
  9. Training and Communication
    Ensure that everyone involved in the production process is well-trained and understands how to use the Bill of Materials module. Clear and effective communication is key to a smooth production process.

These tips and best practices can help users of the Bill of Materials module in Cashflow make the most of its features and manage the production process more efficiently and effectively.

Common Problems

Here are some common issues with the sales modules and their solutions.

  1. Changing the quantity to produce in the bill of materials doesn't update raw material quantities
    The bill of materials or recipes act as an immutable template in the production process, detailing a fixed relationship between the base quantity of the final product and the necessary ingredients or components. It's not a flexible document that adjusts automatically. Therefore, if you decide to change the quantity to be produced using a specific recipe, you will need to manually redefine the components and corresponding quantities required to meet the new desired base quantity. In other words, the bill of materials or recipes won't automatically update based on changes in the quantity to be produced; any adjustments must be made manually.
  2. Error in Material Selection
    Carefully review and confirm the details before saving or sending to production. Use the preview option to verify.
  3. Accidentally Deleted Bill of Materials
    Always confirm the need for a bill of materials before deleting it. Consider keeping a backup of important lists.
  4. Can't Make Changes to a Bill of Materials
    Ensure you have the proper permissions and follow the correct procedure for editing, as outlined in the article.
  5. Bill of Materials with Outdated Indirect Costs or Labor Details
    Regularly review and update the list to reflect current costs and requirements.
  6. Issues with Attaching Files
    Verify the file format and size, and make sure to follow the correct procedure for uploading files.
  7. Changed Bill of Materials and Don't Know Who Did It
    Use the audit function to keep a record of all modifications and who made them.
  8. Started Production with the Wrong Bill of Materials
    Cancel production if you haven't generated it yet. Always double-check the selected list before copying it to production and confirm all details.

Remember that if you can't resolve the issue, it's always best to contact technical support for assistance and to avoid potential errors that could affect your accounting records.