Defining a BOM: what a product is made of

A Bill of Materials (BOM) is a recipe for a manufactured product. It lists the raw materials, components, and quantities that go into making one finished unit. In Usystems, you define a BOM so the system knows what to deduct from inventory when you produce or build that product.

Before you start

• You must have manufacturing/assembly permissions (ask your admin if unsure).
• The raw materials and components must already exist in your Products list.
• You need to know the exact quantities (units) of each ingredient per finished item.
• If your product has multiple variants or sizes, you may need separate BOMs for each.

Steps

1. Go to Products and search for the finished product you are creating a BOM for. Open in Usystems

2. Click on the product to open its detail page.

3. In the product detail, look for the Bill of Materials or BOM section.

4. Click Add BOM or Create BOM (exact label varies by version).

5. Click Add component to add one ingredient at a time.

   • Choose the component (raw material or part) from the dropdown.
   • Enter the quantity needed for one finished unit (e.g., 2.5 kg of fabric for one shirt).
   • Choose the unit of measure (kg, meters, pieces, etc.) if not auto-filled.
   • If the component has a cost, Usystems will calculate the total BOM cost.

6. Repeat step 5 for each ingredient in your recipe.

7. Review the total BOM cost at the bottom. This tells you the material cost per finished unit.

8. Click Save to store the BOM.

Accounting impact

When you produce an item with a BOM, Usystems automatically deducts the components from inventory (at their cost value) and adds the finished product at its standard cost (based on the BOM total). The cost flows through your inventory accounts and eventually into Cost of Goods Sold when the product is sold.

Tips & common mistakes

• Start with a blank product. Create the finished product in your catalog first, even if it has zero quantity on hand. Then attach the BOM to it.
• Use consistent units. If your BOM is in kilograms, make sure all component costs are priced per kilogram, not per ton.
• Check component availability. Before you start producing, verify that all BOM components are in stock or on purchase orders.
• One BOM per product (usually). Most products have one BOM. If a product has variants (small / medium / large), you may need separate BOMs—ask your manager which approach is used.