BOM Update Tool
ERPNext's BOM Update Tool enables users to update a sub-assembly's Bill of Materials (BOM) in all parent BOMs where it is being referred efficiently. The tool is particularly helpful when a sub-assembly or component BOM has changed and the new BOM must be updated uniformly across various parent BOMs. It also facilitates users to automatically refresh and recalculate the costings of parent BOMs with reference to the newly updated child BOM.
Using this tool will allow one to end up with manual BOM tracking and updating in multiple levels, which will tremendously reduce the chances of error and save time when it comes to bulk manufacturing processes.
To access the BOM Update Tool, click on:
1. Utilizing the BOM Update Tool
In the latest release of ERPNext, the BOM Update Tool can provide a simplified way to replace a sub-assembly BOM with a new BOM in all the parent BOMs that it is used. It is particularly handy where a sub-assembly is modified structurally or at component level, keeping all the manufacturing hierarchies consistent without the need of altering each parent BOM manually. It also avoids human mistakes and assures accuracy when handling complex and multi-level BOM models.
Let us take a real-life example in order to comprehend this better.
Let's say a company produces Computers. A Bill of Materials (BOM) for a Computer (Finished Good) is such that it contains the following components:
- Monitor
- Keyboard
- Mouse
- CPU
Of all the components, the CPU is a piece that is built up, i.e., it is a sub-assembly and thus has a separate independent BOM. The initial BOM for the CPU could be as under:
- 250 GB Hard Disk
- Motherboard
- Processor
- SMTP
- DVD Player
Now, let's assume a need to increase the Hard Disk capacity from 250 GB to 950 GB. This modification needs a new BOM to be designed for the CPU with the new component. The revised BOM (let's say BOM-CPU-002) will include:
- 950 GB Hard Disk
- Motherboard
- Processor
- SMTP
- DVD Player
To revise the CPU BOM in the parent BOM (i.e., Computer BOM), execute the following steps using the BOM Update Tool:
- Make the New BOM of the Sub-Assembly (CPU)
- Click BOM module. Use the new parts to make a new BOM of CPU. Launch new BOM (e.g. BOM-CPU-002).
Get to the BOM Update Tool
Set up the BOM Replacement
- Item Selection: Select the sub-assembly item (in this scenario, CPU).
- Current BOM: Choose the current BOM of CPU (e.g., BOM-CPU-001).
- New BOM: Choose the newly created BOM (e.g., BOM-CPU-002).
- You can also decide whether to push the update to BOMs in Draft, Submitted, or both statuses based on your organization policy.
Perform the Replacement
- Press the Replace button.
- The system will scan for all parent BOMs where the CPU sub-assembly is referenced and replace the old BOM by the new one in each of them automatically.
- You may also choose the "Update Cost of Parent BOMs" option if the cost composition of the sub-assembly has been altered and must be reflected in the parent items' costings.
This makes sure that there is uniform application of the new CPU configuration on all manufacturing documents, planning operations, and cost calculations without the need to do discrete updates.
Will BOM Replace Tool be able to replace the exploded Items in the parent BOM?
No, blown-up Items that do not contain any BOMs of their own cannot be replaced in the parent BOM by the BOM Replace Tool. For instance, if the Item Monitor does not have a sub-assembly BOM linked with it, then it can't be replaced by this tool. Such flat-level or direct raw material parts are not processed by this feature.
For revising exploded Items (i.e., Items with no BOM of their own), you must either Cancel and Amend the existing BOM manually or add a new BOM for the completed item with the desired changes.
This restriction guarantees that hierarchical, BOM-linked Items are batch-managed through the Replace capability alone, maintaining structural readability between BOM versions.
2. Update BOM Cost
By using the Update latest price in all BOMs button, you are able to update the price of all Bill of Materials, according to the most recent item valuation. You can take the valuation from the most recent purchase price, price list rate, or valuation rate of raw materials present in your system.
This is especially helpful when your revised BOM has disparate Rates because of supply chain changes or vendor price changes. Updated BOM costs allow production, pricing, and profitability calculations to use the best possible data.
On clicking this button, the system will initiate a background process that updates the cost of all BOMs. Since this operation may take a few minutes depending on the volume of BOMs, it is handled asynchronously via background jobs.
This functionality can also be run automatically every day. To activate this, go to:
Home > Manufacturing > Settings > Manufacturing Settings
and verify the "Update BOM Cost Automatically" check box. With this activated, ERPNext will perform automated scheduled updates to ensure that BOM costing is updated with the most current item rates throughout your database.