Item Card -> Assembly List -> Bill of Materials

Fisherman

Can someone tell me what this functionality does (see title)? My NSC tells me that it creates a BOM, but is not involved in the Production granule -i.e., no work centers, routings, or production orders.

Does the Sales Order relieve inventory for components specified on this BOM when you sell the item? Can anyone tell me when something like this might be used? Is there any documentation available on using this?

Thanks.

DenSter

It's not Production BOM, but BOM. Some people disagree that it is called BOM, because of that very reason. Look at it more as a Kit that needs to be assembled without going through the whole production process.

When you put an assembly list on the order, you can 'explode' it into tis parts, or you can work with BOM Journals, which are kind of like production orders, but basically only take the parts OUT of inventory and put the assembled items INTO inventory.

I don't know for sure where to find the training on that one, possibly in Inventory.

themave

The basic of BOM is that it is an item that is made up of individually stocked items and as such it can be created from the individual items, or broken up from the completed item back into the individual items. It is a basic manufacturing ability, but doesn’t entail the whole manufacturing process. This is done on the BOM Journal

If you do a positive adjustment on a BOM journal on an item, it will make a positive adjustment for that item and a negative adjustment for the component items.

If you do a negative adjustment on a BOM journal on an item, it will make a negative adjustment for that item and a positive adjustment for the component items.

The BOM journal is always a net zero transaction, it pluses in the completed item and negatives the component items, or vice versa.

If you use a BOM item on a Sales Order it remove the BOM item, not the individual components

If you have the item on an Sales or purchase order, you can use the function explode bom and the one item will convert to all the individual items.

So your sales order will now have say five individual items instead of the one BOM item and each individual item will be removed from inventory when you post the sales order, leaving the BOM item still there. This in my opinion this is a major flaw with BOM's since it will leave the one item still in inventory, even though you sold it.

So, if you want to break up a BOM item so you can sell some of the individual components, you should not use the explode BOM function on a Sales order, but instead post a negative BOM Journal, and manual break up the kit.

We use these for kits we sell, many items make up a kit, and at times, a customer will only need a part out of the kit, we will break a kit up into the individual parts and sell them that way.

David_Singleton

For most of it's history, Navision never supported Manufacturing, though there were a number of Add-On Manufacturing modules available.

So historically Navision had its BOMs, but really the term was not correct and they should have been called Kits. When Navision eventually worked out issues with Add-On providers, and got Manufacturing into Navision, it was still really an Add_on, not a fully integrated solution (much like Advanced Distribution). When 3.00 came out, I think everyone expected BOM to be renamed to Kits, but for some bizarre reason they kept the old name.

Normally I would remove the Assembly menus for a customer that uses manufacturing, and vica versa, since its rare that someone would use both.

As themave says, you would either Explode BOMs in the sales order, or post BOM journals, but you should never do both. Again I would remove one of these from the menu options to prevent a mistake.

DenSter

It really depends on how you want to use it. Some customers sell the assembled Items, others sell the individual components. When you sell the assembled Items, it's really no longer kits, but assembled items.

I've seen a customer who sells sporting equipment that they themselves stock as individual components. Their customers can choose to have the thing put together or get the parts and do it themselves, so they do both.

It is really up to how you want to deal with your inventory that determines whether you actually assemble them and do the BOM Journal, or if you want to explode the BOM to get to the individual parts.

Sometimes you want to have a 'standard' assembly and substitute one of the components. In that case the explode function is really useful, it's more of a way to bundle related items together. I like the flexibility, and it is really easy to modify for customers. I can see though that some people would object to not actually stocking the assembled item.

My rule of thumb is, if you have a bunch of people putting stuff together and stocking the assembled items, use BOM Journals. If you don't put thigns together until you get to the order, use explode, unless you don't want to display individual items.

DenSter

Another example of doing both. Say you have an assembled gadget that has Items 1, 2 and 3 as its components. You sell these gadgets to stores that also carry replacement parts. So on one order you could have 2 lines with 10 gadgets on one and 1 on the other. The line with qty 10 you leave alone, and the other one you explode. The system now puts all components on the sales order for that particular gadget, and you can enter quantities of spare parts for the store.