Explode BOMs
Overview
GoldFinch's Explode BOM (Bill of Materials) feature allows your business to manage scenarios where sales orders are placed for a Parent Item, but the order is fulfilled by shipping Component Items. This feature enables you to sell and price using a Parent Item while allocating and shipping the individual components.
Setup for Explode BOM
Configuring the Sales Order
Ensure that the "Explode BOM" button is available on the Sales Order page. If necessary, add the button to the Sales Order's Page Layout.
Setting Up the Parent Item
The "Replenishment System" field for the Parent Item must be set to "Work Order."
The Parent Item can be defined as a Service Item instead of an Inventory Item.
Create Item Formula (BOM) records to link the Parent Item with its Component Items.
Configuring Component Items
To enable automatic creation of Purchase Orders for Component Items via a Requisition, set the "Purchasing Type" field of the Component Item to "Special Order."
Steps to Use the Explode BOM Feature
Exploding the BOM
Once a Sales Order is created, click the "Explode BOM" button on the Sales Order page.
Component Items associated with each Parent Item will be grouped and added to the Sales Order.
The "Item Type" of Parent Items will be updated from "Inventory" to "Service."
Optional Adjustments Before Exploding
If you do not wish to explode certain Parent Items due to existing inventory, change the "Replenishment System" on the relevant sales lines to "Purchase" before clicking the "Explode BOM" button.
Modifying the Sales Order After Exploding BOMs
Add or delete components as needed under each Parent Item.
Update the "Line Type" to "Component" for any new sales lines added.
Automatic Item Allocation
Inventory is automatically allocated to the Sales Lines for the Component Items.
To prevent automatic allocation for this Sales Order, set the "Do Not Allocate" field to "True."
You can also disable automatic allocation at the Sell-to Customer level or Company-wide.
Handling Inventory Shortages
If inventory is insufficient to complete the Sales Order Allocation, create a Requisition Order to generate Special Purchase Orders.
Once the Purchase Order is received, GoldFinch will allocate the inventory back to the linked Sales Order.
Shipping and Invoicing
Create a Warehouse Shipment to ship the Component Items. Note that Parent Items will not be included in the Warehouse Shipment.
Generate a Sales Invoice to charge customers. The Sales Invoice will bill the Parent Items as Service Items, while all Component Items will be invoiced at $0.
By following these steps, you can effectively manage sales orders for Parent Items while fulfilling them with the necessary components, streamlining the order processing and inventory management.