A bill of materials (BOM) is a comprehensive inventory that lists the raw materials, sub-assemblies, parts and components required to build a product. BOMs are a great way to manage stock management and track manufacturing costs.
MISys has extensive inventory and manufacturing features that are fully integrated with Sage 50 Accounts. Our modules provide intelligent work order and stock management with full traceability.
Inventory Management
If you produce large quantities of assembly items and the options for one of them change mid-stream, you can use a BOM revision to change the components used in the item. The revision will be effective from the date entered and used for all transactions that occur after that point. To create a revision, open the Maintain Inventory Items window for the stock item to be modified and select the Revisions button. You can enter an effective date and a note to help identify the purpose of the revision.
Once a BOM revision has been created, the new stock items will be automatically added to the existing list of Sage 50 inventory components. The system will also recalculate the beginning balances for the stock item and report them in the Inventory Beginning Balances window. This is a good time to check that the beginning balances reported here match those reported in the stock account in your general ledger.
If there are already inventory transactions on file for the stock item, these should be corrected or booked in FORMULATOR before the revision is made. In addition, the stocking units for raws and formulas, and finished goods must match. This is controlled by the security settings in FORMULATOR. Changing the unit of measure between Sage 50 and FORMULATOR can cause a lot of problems.
Purchase Orders
If you manufacture products or assemble them into finished goods then you’ll likely be using a bill of materials as part of your stock management system. The standard Sage 50 account software offers limited BOM and manufacturing capabilities and you’ll quickly outgrow the functionality. Cim50’s BOM feature combines stock assembly with works orders and reporting to provide advanced inventory and manufacturing capabilities. It allows you to create a works order for a production batch or single item, record machine and labour routings and visualise costing breakdowns including materials, labour and overhead costs.
You can also configure multipacks and UOM conversions for each stock item. For example you can purchase a product by the case but sell it as each. You can also revise a bill of materials and assign an effective date. This ensures that any assembly transactions conducted on or after this date will use the new revision of the bill of materials.
The Advantage Services BOM Manager add-on is designed to work alongside the Sage 50 BOM function and offer additional functionality not available within Sage itself. For example it can extract Sage BOM data into Microsoft Excel, which can be filtered before being re-imported back to Sage. It can also disassemble a Sage BOM assembly into it’s individual components to help you identify the parts required.
Sales Orders
There are two ways to handle sales and inventory where you have finished products on hand and need to record customer orders. You can create a sales order and then create the sales invoice when the merchandise is shipped to the customer or you can skip the sales order and create the sales invoice immediately.
The BOM tab in the Sage product record for an end product contains information about which subcomponents are used and how many of each is required to make up that product. This information is important because it helps you manage your inventory and production to ensure that you have the right amount of finished goods on hand to meet customer demand.
MISys Manufacturing (formerly MAS 90 and 200) is an addon to Sage 50 that provides advanced BOM and stock management capabilities for manufacturers. It also allows you to manage your shop floor operations by tracking work in progress, creating works orders and managing serial and batch numbers.
In addition to BOM and MRP functions MISys Manufacturing includes Intelligent Works Order Processing, Shop Floor Data Capture and a direct stock transfer function that transfers completed manufactured items from MISys Manufacturing to Sage 50 CA Sales Inventory. It can even detect shortages in sales inventory based on either the Sage 50 CA reorder or bring to zero (if you have negative on-hand quantities) settings. MISys Manufacturing also supports a set of GL Accounts that correspond to the standard Sage 50 CA GL Accounts.
Invoices
A BOM is a detailed inventory listing of all the raw materials, assemblies, sub-assemblies and components required to make up an end product. Often known as production recipes or assembly component lists they are a vital part of any manufacturing system.
MISys has an extensive BOM module that is the backbone of our software for those sites that operate a manufacturing process. It features a workspace that shows key information at a glance for users and is also available remotely via a web browser.
The BOM can be used to track a single item or across a range of items and includes a comprehensive costing breakdown for the product and its components. It includes the ability to create additional cost items for calculating your material, labour and machine overhead costs as well as a scrap allowance function that helps you identify possible component shortages which could result in a loss of production.
Each stock code in the BOM is linked to a unique Sage Inventory Assembly item so that when an order is entered it automatically updates the assembly with the correct quantities of each component. In addition to this the BOM has a revision function that allows you to change a BOM without having to create a new inventory assembly item and without changing any existing invoices or credit memos that have been issued against it. Each revision has an effective date and a note to identify the purpose of the revision and which items should be changed as a result.