Single Bill of Materials (BOM) in TallyPrime: 3 Steps + Example

TallyPrime allows you to manage manufacturing processes by creating Bill of Materials (BOM) for stock items.

A BOM details the raw materials, components, and quantities needed to produce a finished product.

Here’s a breakdown of creating and using single BOMs in TallyPrime:

1. What is a Single BOM?

A single BOM is ideal when a finished product consistently requires the same set of components in the same quantities.

This is suitable for situations where there’s no variation in the production process.

2. Creating a Single BOM in TallyPrime:

1. Gateway of Tally (Alt+F12):

Launch TallyPrime and navigate to the Gateway of Tally by pressing Alt+F12 or clicking the menu icon (if applicable).

2. Create Menu:

Within the Gateway, locate the “Create” option and either click on it or press the C key.

3. Stock Items:

Select “Stock Items” from the “Create” menu. This opens the “Create Stock Item” screen.

4. Stock Item Configuration (F12):

Press F12 (Configure) to access configuration options for the stock item you’re creating (the finished product).

3. Enabling BOM in Tally:

• Under configuration options, look for the setting related to BOM (might be labeled “Set Component List,” “Bill of Materials,” or similar).
• Enable the BOM option. This activates the functionality to create and manage BOM for the stock item.

4. Adding Components to BOM in TallyPrime:

• Once BOM is enabled, you’ll find a dedicated section for “Stock Item Components (BOM)” or similar within the “Create Stock Item” screen.
• In this section, you can add each component required to manufacture the finished product.
• Specify the following details for each component:
  • Item Name: Select the raw material or component from the existing stock items list.
  • Stock UOM: Choose the unit of measurement for the component (e.g., meters, kilograms).
  • Qty: Enter the quantity of the component required per unit of the finished product.

5. Example: Creating a Single BOM for a Chair

You’re creating a stock item for a “Wooden Chair.” The chair consistently requires the following components:

• 4 Wooden Legs (each)
• 1 Chair Seat
• 2 Screws (each)

1. In the “Create Stock Item” screen for “Wooden Chair,” enable the BOM option (as explained earlier).
2. In the “Stock Item Components (BOM)” section, add the following components:
   • Item Name: Wooden Leg
   • Stock UOM: Each
   • Qty: 4
   • Item Name: Chair Seat
   • Stock UOM: Each
   • Qty: 1
   • Item Name: Screw
   • Stock UOM: Each
   • Qty: 2

6. Benefits of Single BOM:

1. Streamlined Production:

Having a single BOM readily available simplifies the production process by providing clear information on components needed.

2. Accurate Inventory Management:

BOM helps ensure you maintain sufficient stock levels of required components to avoid production delays.

3. Costing and Pricing:

BOM facilitates calculating the cost of producing the finished product by considering the component costs.

7. Additional Considerations:

• While creating the BOM, ensure the units of measurement for components and the finished product are compatible.
• TallyPrime also supports creating Multi-Level BOMs for more complex production processes with sub-assemblies.
• You can utilize features like Manufacturing Journal vouchers to record production activities and automatically deduct component quantities from your inventory based on the BOM.

By effectively utilizing single BOMs in TallyPrime, you can streamline your manufacturing processes, maintain accurate inventory levels, and gain valuable insights into production costs.