Mastering Bill of Materials : Bill of Materials Example In Tally

 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

Finishing:

• 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

Example:

Date	Type	Account	Debit	Credit	Narration
2023-08-24	Sales Order	Customer Ledger	1000	-	Sales order for 10 wooden chairs
2023-08-24	Delivery Note	Customer Ledger	-	1000	Delivery of 10 wooden chairs
2023-08-24	Manufacturing Journal Entry	Finished Goods	1000	Wooden Legs 100, Wooden Crossbars 50, Screws 50	Manufacturing 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
Components:	Quantity:
Frame Assembly:
- Wooden Legs	4
- Wooden Crossbars	2
- Screws	4
Seat Assembly:
- Wooden Seat	1
- Screws	8
Finishing:
- Can of Paint	1
- Paintbrush	1

Conclsuion

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.