BILLS OF MATERIAL

Bill of Material is a comprehensive list of raw materials, components, assemblies, sub-

assemblies, parts, or anything which is required to manufacture the finished product. The
finished product or goods may be the final product itself or a semi-finished product which is later
consumed to produce a final or a larger product.

The bill of material for finished goods not only lists the components but also the quantity of each
component required to produce the finished goods. If the finished product has a variant by
colour, configuration, size etc., you can choose to have multiple BOM for a single product. The
examples in the next section will help you understand this easily.

Format of Bill of Materials:

Go to Gateway of Tally -Inventory Info- Press F12-
Set Component list (Bill of Materials) In Stock Items – YES
Stock Item –Create – F12

Create – Stock Items – Create ( 1st stock name entry)

Gateway of Tally –Create – Voucher Type

Manufacturing Journals – Under Stock Journal

Manufacturing in journals –Yes
Print Voucher after Savings - Yes

Gateway of Tally –Accounting Voucher – F9 Purchase Vouchers

Gateway of Tally- Inventory Voucher –Press Alt + F7 Select Manufeturing Journals
Example:-1
IBM Company purchased following spare parts of HCL Computer at following rates:-
NAME OF COMPONENTS QTY PRICE
Cabinet 1-Nos 4500
CD Drive 1-NOS 600
KEYBOARD – Logotech 1-Nos 1500
Motherboard intel 1-nos 12600
Mouse-logitech 1-nos 500
Processor-intel 1-nos 4500
Ram 8GB 1-NOS 3200
HDD Seagate 2Tb 1-nos 6000
Monitor sony 20 inch 1-nos 16000
UPS APC 1-NOS 1600
WINDOWS XP 1-NOS 4500
TOTAL COMPONDENTS COSTING 55,500
INSTALLATION CHARGES 1500
TOTAL COSTING 57000

Some additional expenses were made on purchasing the spare parts, which are as given below:-
Power Charges -500 Packing Charges- 350 Do the above entries.

SUMS-2:
1) Stock Item : Television Flatron
2) Stock groups: Home Electronics
Name of Stock item Purchase for Moniter
1) Picture Tube – Television Flatron – 10 nos Rs.3750
2) IC Chibs – Television Flatron – 10Nos Rs. 5000
3) Sound Cards – Television Flatron – 10 Nos Rs 500
4) Mother Board – Television Flatron – 10 NOS Rs. 300.