Bill of Materials

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In Microsoft Dynamics 365 for Finance and Operations you can create such type of a product which is called a bill of materials (BOM) and its different versions. It refers to the complex component structure, basically this is the list of materials or components which is used to build the final product and from which this product actually consists. For example, customers are looking for a computer and they want to see the list of hardware the computer consists of. The ERP system can store a lot of different spare parts that are used to manufacture a product which are actually not intended to sell. These spare parts can be also a part of the complex product structure.

The BOM components are shown on the product details page using the Bill of Materials (BOM) link content element.

In the Sana webshop a customer can see a link View package contents on the product details page of a BOM. Clicking on this link opens the list of BOM components.

Create a Bill of Materials

Step 1: In Microsoft Dynamics 365 for Finance and Operations click: Product information management > Bills of materials and formulas > Bills of materials.

Step 2: Create a new BOM.

Step 3: Enter information to identify the BOM, such as Name, Site, Item group.

Step 4: On the Bill of materials lines FastTab, add the BOM lines (components).

Step 5: Select the item numbers to create additional BOM lines. Make sure that the BOM consists of the correct set of items and their quantity.

Step 6: When BOM and all its lines are setup, go to the action pane and on the Bill of materials tab, click Approval.

Step 7: On the Approve BOM or formula form, select an employee by whom the BOM will be approved.

Create BOM Versions

You can also create different versions of an existing BOM in the bill of materials header.

Step 1: On the BOM versions FastTab, create a new line.

Step 2: Select the relevant item number.

Step 3: Click Approve to approve the BOM version

Step 4: Click Activate to make the BOM version active.

Manage Visibility of BOM and Its Lines

A bill of materials can be also shown or hidden in the Sana webshop just like a regular product. In the Released products table, locate the necessary BOM and on the Sell FastTab, use the Visible in webshop option. If you make the BOM invisible, the items inside BOM still remain visible in the webshop as separate items.

You can also show or hide any BOM line in the webshop. In the Released products table, open the necessary BOM and on the Engineer tab, click BOM versions.

In the BOM versions window, select the appropriate bill of materials line and click Edit. Use the Visible in webshop option to make the BOM line visible or invisible in the webshop.

In Microsoft Dynamics 365 for Finance and Operations you can create different BOM versions for products which have variants with a different set of BOM components per variant. This configuration is also used on the Sana webshop. This means that if customers choose some product variant of the BOM item on the Sana webshop, they will see the correct set of the BOM components.

For more information about how to set up bill of materials, refer to the official Dynamics 365 for Finance and Operations Help: Bills of materials and formulas.

Explode BOM Lines

BOM explosion refers to the extensive list of raw materials or components that are required to produce a product. It is used in various situations, for example when designing, manufacturing or repairing a product it is necessary to know from which materials or components the product consists of.

When a customer adds the BOM item to the shopping cart, Microsoft Dynamics 365 for Finance and Operations can identify that the added product is the BOM item with components and automatically explode it. So, the customer will see all BOM components and their prices in the shopping cart instead of the finished BOM item. The same will be in the sales order in Microsoft Dynamics 365 for Finance and Operations.

To allow bill of materials explosion, in Microsoft Dynamics 365 for Finance and Operations click: Webshop > Common > Webshops. Select the necessary webshop and on the Order Processing FastTab, enable the Explode BOM option.

Also, BOM explosion is possible only if all BOM components are visible in the Sana webshop.

If the Explode BOM option is selected and all BOM components are visible in the Sana webshop, the BOM item will explode when a customer adds it to the shopping cart in the Sana webshop. A customer will see all BOM components and their prices right in the shopping cart.

Calculate Inventory for Bill of Materials

There are two ways to calculate and display the inventory of BOM items. You can use the one that works for you.

You can manage how to calculate inventory for bill of materials, using the option in the Webshops window.

In Dynamics 365 for Finance and Operations click: Webshop > Common > Webshops. Select the necessary webshop and on the Product information management FastTab, use the Calculate inventory for BOM lines option.

• If the Calculate inventory for BOM lines checkbox is disabled, then inventory is calculated for the BOM item as for one saleable unit. This means that the BOM item with all its lines is a finished product. When a customer purchases the BOM item, inventory will be deducted from it as from one saleable unit, but not from its lines. Use this option for products that you want to assemble ahead of sales and keep in stock until they are ordered.



• If the Calculate inventory for BOM lines checkbox is enabled, then inventory is calculated based on all available BOM lines. The system checks how many finished products can be produced from the available BOM lines. When a customer purchases the BOM item, inventory will be deducted from all BOM lines. Use this option for products that you do not want to stock because you expect to customize them to customer requests or because you want to minimize the inventory carrying cost.
  
  For example, you are selling bicycles and you allow your customers to purchase different components of it, so they can assemble a custom bicycle - wheels, bicycle frames and seats, pedals, etc.
  
  
  • If there are 2 wheels, 1 bicycle frame, 1 seat and 2 pedals in the warehouse, then a customer will be able to assemble 1 bicycle. Thus, the stock is 1.
  • If there are 4 wheels, 2 bicycle frames, 2 seats and 4 pedals in the warehouse, then the stock will be 2, because it is possible to assemble 2 bicycles from these components.
  • If there are 4 wheels, 1 bicycle frame, 2 seats and 4 pedals in the warehouse, then the stock will be still 1, because 1 bicycle frame is missing, and it is not possible to assemble 2 bicycles without it.