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Add Bills of Materials

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A Bill of Materials (BOM) is a comprehensive list of raw materials, components, and instructions required to manufacture, assemble, or repair a product. In the eTIMS system, a BOM helps businesses track the inventory used in production, streamline cost management, and ensure accurate financial and tax reporting.

The process of adding a BOM in eTIMS involves defining the structure of a product, identifying all required components, and linking these components to inventory and production records.

Purpose of a Bill of Materials

  1. Inventory Management
    Tracks the usage of raw materials and components.
  2. Cost Control
    Provides transparency in the costs associated with production.
  3. Tax Compliance
    Ensures accurate reporting for VAT on purchased and used materials.
  4. Production Planning
    Helps manage resources efficiently, avoiding overproduction or shortages.

Steps to Add a Bill of Materials

  1. Define the Finished Product
    Specify the details of the final product being manufactured. The details include:
    1. Product Name
      Name or description of the finished product.
    2. Product Code
      A unique identifier for the product.
    3. Unit of Measure
      Indicate the measurement unit for the product (e.g., pieces, kilograms).
  2. List Components and Raw Materials
    Enter the details of all components or raw materials required for the product.They include the following:
    1. Item Name
      Name or description of the material.
    2. Item Code
      Unique identifier for each material.
    3. Quantity Required
      The amount of each material needed for one unit of the product.
    4. Unit of Measure
      Specify the unit (e.g., meters, liters).
  3. Define Costs
    Enter the costs associated with each component or material. This details include the following:
    1. Unit cost of each material.
    2. Total cost calculated based on required quantity.
  4. Specify Production Instructions (Optional)
    Add any specific instructions or notes for assembling the product. The information include the following:
    1. Steps for assembly.
    2. Special handling requirements.
  5. Save the BOM
    Review the details for accuracy. Then save the BOM, and the system will link it to your inventory and production records.
  6. Link BOM to Transactions
    Use the BOM to record production orders or track material usage in eTIMS via Slade360 Advantage.

Best Practices for Adding a BOM

  1. Ensure Accurate Quantities
    Double-check the quantities of materials required to avoid production discrepancies.
  2. Update Regularly
    Revise the BOM as needed to reflect changes in product design or material costs.
  3. Classify Materials Properly
    Group materials into categories for better inventory and tax tracking.
  4. Integrate with Inventory
    Link BOM components to your inventory to ensure real-time tracking of stock levels.

Benefits of Adding BOM in eTIMS

  1. Streamlined Production
    Simplifies planning and execution of manufacturing processes.
  2. Accurate Cost Tracking
    Provides detailed insights into production costs, helping businesses set appropriate pricing.
  3. Enhanced Inventory Control
    Prevents stockouts or overstocking of raw materials and components.
  4. Regulatory Compliance
    Ensures transparency in reporting material usage for tax purposes.

For additional information, please visit the following link: Stock.

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Why Bill of Materials?

Adding a Bill of Materials in eTIMS via Slade360 eTIMS APIs is a critical step for businesses involved in production, ensuring operational efficiency, cost management, and compliance with Kenya’s tax regulations.

Updated 4 months ago