Production BOM Settings
Product output quantity from the components in BOM
This is the quantity of the finished good that can be produced from the quantity of the components listed on the BOM. This quantity depends only on the components and does not take into account any resource capacity.
Manufacturing buffer time (Coming soon)
Manufacturing buffer is a value set in the Production BOM to protect the production process from breaking the deadlines; it is used for scheduling. It is set in % as the ratio of work time to buffer time.
Production Instruction URL
Enter a URL showing production instructions for the product, if applicable.
Operation sequence
This is the operation's sequence number. By default, it is filled with the sequence number in order starting from 1. Simultaneous operations should use the same number.
Name
Name of the operation. Character limit is 200.
Cycle time
Specify how long the operation takes to produce some number of units. This is the minimum time required to produce some number of finished goods. Input is in dd:hh:mm format.
Units per cycle
Set the maximum number of finished goods that can be produced per cycle time of an operation. For an operation, this is the minimum time taken to produce enough operation output for one unit of the BOM product.
Work Centre
This is a mandatory drop-down selection to assign a Work Centre to the operation.
SKU: Component
Component or resource is added by selection from a drop-down list with search ability.
Quantity
This is the quantity of components required to produce the finished good. This quantity should reflect the components required to manufacture the full amount specified in the Quantity to Produce field.
In the case of resource, the quantity defines how many individual resources are required to produce the finished good.
Wastage % and Wastage Quantity
Wastage % and Wastage Quantity are mutually exclusive. If some of the components are wasted during assembly, use these fields to include that information.
Cost per unit
This auto-filled field displays the current average cost of the selected component. For resources, the cost is set up in Resource per Unit of Time.
Total cost
This read-only auto-calculated field is used to display the total cost. If the line is a resource or component line, this will show the total cost of that component/resource for the operation duration. If the line is an operation line, this will show the total cost of all components/resources for that operation.
It is calculated as: Quantity x Cost per Unit. As for the resource, the total cost is calculated based on cost per unit and cycle duration: operation cycle time in min / resource cycle duration in min x average default cycle cost x Qty of Resource.
- Average Cost (an average of all purchase costs for an item) is used on the BOM page to estimate component costs. The actual cost of finished goods will be calculated using the costing method of each individual component allocated to an assembly. Actual costs associated with finished goods can be viewed using the Finished Goods Analysis Report.
- Resource costs are taken from the sum of all service products assigned to each resource and are calculated as Cycle time / Unit of Time x Total cost for Unit of Time.
IMPORTANT NOTE: The average cost for components is a reference value only. The average cost in DEAR does NOT affect your P&L statement. All COGS calculations are done using accounting costing methods such as FIFO or FEFO. Costs are distributed to products upon purchase invoice authorisation. COGS journal entries are generated when the Ship tab of a Sale is authorised.