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ERP 2.50:How-to BOM Production

Contents

Introduction

Bill of materials (BOM) production in Openbravo ERP is a quick way of manufacturing products which do not require a production process but are only packed and delivered (kits of products, Christmas hampers, ...). This process updates in the warehouses the stock of products used.

Bulbgraph.png   Bill of materials feature is hidden in the Openbravo 3 out-of-the-box for simplification reasons. You need to enable it and then will be able to use.

More details are available in the following forum thread.

Bulbgraph.png   Please notice that BOM production:
  • Does NOT calculate costs automatically.
  • Does NOT include direct product costs (raw materials).
  • Does NOT include labor (workers) costs.
  • Does NOT include machines costs.
  • Does NOT include other indirect costs: cleaning, marketing, ...

If you want to manufacture final goods including a detailed cost calculation as well as timing and issues control please use the Production Management module.

This article will describe:

  1. the setup of a BOM product,
  2. the production of a BOM product,
  3. the accounting of the BOM production,
  4. and the stock of a BOM product.

BOM Product Setup

The setup of a BOM product involves 3 steps:

  1. the creation of the product,
  2. the definition of its list of materials
  3. and its validation.

BOM Product

Create a BOM product following these steps:

  1. Navigate to Master Data Management || Product
  2. Create a new record:
    1. Search Key = workkit
    2. Name = Work Kit
    3. Product Category = Tools
    4. UOM = Unit
    5. Product Type = Item
    6. Stocked = Yes (ticked)
    7. Production = No (un-ticket)
    8. Storage Bin = ML1
    9. Bill of Materials = Yes (ticked)
    10. Purchase = No (un-ticket)
    11. Sale = Yes (ticked)
    12. Tax Category = VAT 16%

Bill of Materials

Define the bill (list) of materials or components of the Work Kit product:

  1. Navigate to Bill of Materials tab.
  2. Create a new record:
    1. BOM Type = Part/BOM
    2. BOM Product = Hat
    3. BOM Quantity = 1
  3. Create a second record:
    1. BOM Type = Part/BOM
    2. BOM Product = Hammer
    3. BOM Quantity = 1
  4. Create a third record:
    1. BOM Type = Part/BOM
    2. BOM Product = Boots
    3. BOM Quantity = 2

Validate BOM Product

Validate the bill of materials defined by checking that there is no loop of products (for instance, product A is made of product B which is made of product A).

  1. Navigate back to Product tab.
  2. Click on Verify BOM button.
  3. Process completes successfully and BOM Verified check-box is ticked.

BOM Production

Let's produce and account some Work Kits.

Create Production

Create automatically the I/O products for 5 Work Kits.

  1. Navigate to Warehouse Management || Transactions || Bill of Materials Production || BOM Production.
  2. Create a new record:
    1. Name = Production of 5 Work Kits
    2. Project = select a project if you want this BOM production to be associated to a project
  3. Navigate to Production Plan tab.
  4. Create a new record:
    1. Product = Work Kit
    2. Production Quantity = 5
  5. Navigate back to BOM Production tab.
  6. Click on Create/Post Production button.
  7. Process completes successfully and Records Created check-box is ticked.
  8. Navigate to Production Plan tab and then to I/O Products tab.
  9. Check that 4 records have been automatically created:
    1. Work Kit with movement = 5
    2. Hat with movement = -5
    3. Hammer with movement = -5
    4. Boots with movement = -10

Process Production

Process the 5 Work Kits leading to an update of the warehouse stock.

  1. Check first the availability of products:
    1. Navigate to Warehouse Management || Analysis Tools || Stock Report.
    2. Select Work Kit, Hat, Hammer and Boots products.
    3. Click on HTML Format button and check that:
      1. there is enough stock for producing 5 Work Kits (5 Hats, 5 Hammers and 10 Boots)
      2. and there are no Work Kits in stock yet.
  2. Navigate back to BOM Production tab.
  3. Click on Create/Post Production button.
  4. Process completes successfully and Post button is displayed.

Post Production

Account this production of Work Kits.

  1. Make sure that BOM productions can be posted:
    1. Navigate to Financial Management || Accounting || Setup || Accounting Schema.
    2. Select the default accounting schema.
    3. Navigate to Account Schema Tables tab.
    4. Edit MaterialMgmtProductionTransaction record and tick Active check-box.
  2. Navigate back to Warehouse Management || Transactions || Bill of Materials Production || BOM Production.
  3. Select Production of 5 Work Kits record and click on Post button.
  4. Accounting entry for this BOM production is shown.

BOM Stock

Stock of Work Kits and its bill of materials (Hat, Hammer and Boots) has been updated during the BOM production process.

  1. Navigate to Warehouse Management || Analysis Tools || Stock Report.
  2. Select Work Kit, Hat, Hammer and Boots products.
  3. Click on HTML Format button and check that:
    1. There are 5 Hats, 5 Hammers and 10 Boots less in stock
    2. and there are now 5 Work Kits in stock.

Retrieved from "http://wiki.openbravo.com/wiki/ERP_2.50:How-to_BOM_Production"

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