Hello Learners 

                      Today's post is all about the bill of materials example in tally so that you can learn how to use BOM in Tally.

What is BOM Mean in Tally

Let me explain this with an example, If you are making any product then you need components and a comprehensive list of all the components (raw materials, sub-assemblies, and quantities required to manufacture or assemble a final product) is known as A Bill of Materials.

This helps a business to understand the structure and resources needed to create a finished product/item.

Now let's start with an example:

bill of materials example in tally

Product: Wooden Chair

Frame Assembly:

  • 4x Wooden Legs
  • 2x Wooden Crossbars
  • 4x Screws

Seat Assembly:

  • 1x Wooden Seat
  • 8x Screws


  • 1x Can of Paint
  • 1x Paintbrush

 How to Show Assembly of the "Wooden Chair" in Tally

Step 1: Inventory Items:

  • Create the necessary inventory items in Tally for components in this example components are "Wooden Legs," "Wooden Crossbars," "Screws," "Wooden Seat," "Can of Paint," and "Paintbrush."

Step 2: Create the Finished Product:

  •  Now create an inventory item for the "Wooden Chair" finished product in Tally.

Step3: Create the BOM In Tally

  • "Inventory Info" > "Bill of Materials" in Tally.
  • Create a new BOM by selecting "Create" or "Alter.
  • Choose your product in this case we have the "Wooden Chair" product as the parent item.

Step 4: Add Components to the BOM:

  • For example, under "Frame Assembly," add "Wooden Legs" (4 units), "Wooden Crossbars" (2 units), and "Screws" (4 units).

Step 5: Use BOM in Transactions


2023-08-24Sales OrderCustomer Ledger1000-Sales order for 10 wooden chairs
2023-08-24Delivery NoteCustomer Ledger-1000Delivery of 10 wooden chairs
2023-08-24Manufacturing Journal EntryFinished Goods1000Wooden Legs 100, Wooden Crossbars 50, Screws 50Manufacturing 10 wooden chairs

Step 6: View Cost Calculation:

  • calculate the cost of producing each wooden chair.

Step 7: Save and Close.

 format of bill of material

Product: Wooden Chair
Frame Assembly:
- Wooden Legs4
- Wooden Crossbars2
- Screws4
Seat Assembly:
- Wooden Seat1
- Screws8
- Can of Paint1
- Paintbrush1


Here in this post we add some examples for bill of materials in tally so if you are learning tally then you should read our post till the end.