If the finished product has a variant by colour, configuration, size etc., you can choose to have multiple BOM for a single product. The bill of material for finished goods not only lists the components but also the quantity of each component required to produce the finished goods. The finished product or goods may be the final product itself or a semi-finished product which is later consumed to produce a final or a larger product. What is Bill of Material (BOM)?īill of Material is a comprehensive list of raw materials, components, assemblies, sub-assemblies, parts, or anything which is required to manufacture the finished product. In this article, let us understand the bill of material (BOM) right from definition to different types of BOM with examples. Bill of Material (BOM) helps the manufacturing unit to design, plan inventories, determine cots estimation etc.
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