Cloudy Revenue Inventory Knowledge Base

Bill of Material (BOM)

The Bill of Material (BOM) object is the foundation of the manufacturing process in Cloudy Inventory. It defines the complete manufacturing specification for a finished product by identifying the product to be manufactured, the associated finished stock item, required components (through BOM Lines), production quantity, manufacturing type, revision, effective dates, warehouse, and production parameters such as scrap and yield percentages.

A Bill of Material serves as the master manufacturing document from which Production Batches are created. It ensures every production run follows standardized manufacturing instructions, resulting in consistent product quality, accurate inventory planning, and efficient production execution.

Why is it Used?

The Bill of Material object is used to:

• Define the complete manufacturing structure of a finished product.
• Specify the finished Product and Stock Item to be produced.
• Create and manage the list of required components through BOM Lines.
• Standardize manufacturing processes across production batches.
• Manage BOM revisions and engineering changes.
• Control manufacturing validity using effective dates.
• Estimate production yield and material scrap.
• Support production planning and scheduling.
• Link manufacturing to the appropriate Warehouse and Legal Entity.
• Serve as the basis for creating Production Batches.

Key Features

🏭 Manufacturing Blueprint

Acts as the master manufacturing document that defines how a finished product should be produced.

📦 Finished Product Definition

Associates the finished Product and Finished Stock Item that will be created after manufacturing.

🧩 Component Management

Works with BOM Lines to define all raw materials, components, and stock items required during production.

📅 Effective Date Control

Supports Effective From and Effective To dates, allowing organizations to maintain multiple BOM versions over time.

🔄 Revision Management

Maintains BOM revisions, ensuring manufacturing always follows the latest approved production specifications.

⚙️ Multiple BOM Types

Supports various manufacturing models including Manufacturing, Assembly, Kit, and Phantom.

📊 Yield & Scrap Planning

Defines Yield Percentage and Scrap Percentage to improve production planning, inventory estimation, and cost analysis.

🏢 Warehouse & Legal Entity Integration

Associates each BOM with the appropriate Warehouse and Legal Entity responsible for manufacturing.

🏭 Production Batch Integration

Acts as the parent manufacturing definition used when creating Production Batch records.

📈 Manufacturing Standardization

Ensures every production batch follows identical manufacturing specifications, improving quality, consistency, and operational efficiency.

Key Field Functionality

The Bill of Material object includes key fields that control processing behavior.

Example Business Scenario

Scenario: Creating a Bill of Material for Sedan Car Manufacturing

ABC Manufacturing Pvt. Ltd. manufactures Sedan Cars. Before production begins, the production manager creates a Bill of Material (BOM) from the Sedan Car product record to define the manufacturing specifications and production settings.

From the Sedan Car Product record, the user navigates to the BOM related list and creates a new Bill of Material with the following details:

• Bill of Material Name: BOM-2026-0001
• Finished Product: Sedan Car (Automatically populated from the Product record)
• Finished Stock Item: Maruti Dzire
• Legal Entity: Gateway Entity LLC
• Type: Manufacturing
• Status: Draft
• Quantity: 10 Units
• Effective From: 01-Jul-2026
• Effective To: 31-Dec-2026
• Yield Percentage: 98%
• Scrap Percentage: 2%
• Revision: Rev-1.0

After saving the Bill of Material, the production manager adds BOM Lines to define the components required to manufacture the Sedan Car, such as:

• Engine Assembly
• Chassis
• Transmission
• Wheels
• Battery
• Dashboard
• Steering Assembly
• Seats
• Electrical Wiring
• Brake System

System Behaviour :

• The Finished Product is automatically populated as a Sedan Car when the BOM is created from the Product record.
• The selected Finished Stock Item (Maruti Dzire) is linked to the Bill of Material.
• A new BOM record is created and associated with the Product.
• Multiple BOM Lines can be added to define the required manufacturing components.
• Once the BOM status is changed to Active, it becomes available for production planning.
• Production planners can create Production Batches using the approved Bill of Material.
• The system uses the BOM during manufacturing to ensure the correct components and quantities are consumed.

Outcome:

• A standardized manufacturing definition is established for the Sedan Car.
• Maruti Dzire is configured as the finished stock item produced after manufacturing.
• Component requirements are managed centrally through BOM Lines.
• Production planning and material consumption become more accurate.
• Manufacturing follows approved revisions and standardized production processes.
• The Bill of Material serves as the foundation for creating Production Batches and manufacturing finished goods consistently.

SEE ALSO :

_____👉Bill of Material Creation
_____👉BOM Line