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Bills of Materials (BOM)
@ Tally.ERP 9

Bill of Material (BoM) is created only for those items that are being assembled in-house. For trading items, you do not need a BoM. Therefore, you need to specify a BoM at the time of creating a Stock Item or when altering its master.


This is relevant for manufacturing organizations and can be set up through Configurations


Gateway of Tally.ERP9 Ø F12 : Configure Ø Accts Ø Inventory info
Bills of Materials (BOM)

Example :

To assemble one Computer (P4), the following peripherals are required..


Name of the Peripheral


Processor (P4)

1 Nos


1 Nos


1 Nos

Hard Disk

1 Nos


1 Nos


1 Nos


The company assembled 10 Computers with P4 configuration using the peripherals listed in the table and stored the same in the finished goods godown. Wages of Rs.10,000 and Overheads (including power) of Rs. 1000 (Overheads are arrived at Rs.100 per computer) where incurred.

The wages were paid by cheque.

Note 1 : Create a Manufacturing Journal under Stock Journal by setting Use as Manufacturing Journal to YES.


Solutions :

Step-1 :

Create Ledgers à Wages and Overheads both under Direct Expenses


Create Item Group à Finished Goods under Primary


Step-3 :

Create Stock Item à Computer P4

  1. Name : Computer P4
  2. Under : Finished Goods
  3. Units : nos
  4. Alt. units : Not Applicable
  5. Maintain in Batches : No
  6. Set Components (BOM) : Yes
  7. Give the components list of Computer P4 to Assemble a single computer system. Ensure that the Components of Computer P4 details is as shown.
Retain the rest field as default.
Bills of Materials (BOM)

Step-4 :

Create a Manufacturing Journal

  1. Go to Gateway of Tally.ERP Ø Accounts Info Ø Voucher Type Ø Create Ø Manufacturing Journal.
  2. Name : Manufacturing Journal
  3. Type of Voucher : Stock Journal
  4. Method of Voucher Numbering : Automatic
  5. Set Use as Manufacturing Journal to YES and enter the rest of entries as shown:
Bills of Materials (BOM)

Step 5 :

Make entry in a Manufacturing Journal

  1. Go to Gateway of Tally.ERP à Inventory Voucher à Manufacturing Journal (Alt + F7)
  2. Name of the Product : Computer P4
  3. Quantity : 10
  4. Type of Additional Cost :
    • Wages : Rs. 10,000
    • Overheads : Rs. 1000
  5. Press Yes or Enter to Accept the vouchers.
Bills of Materials (BOM)
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15 Chapters in Tally.ERP9 Book + 21 Chapters in GST Practical Assignment on GST in Tally.ERP9 & All features are described with Practical Problems with Solutions.

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