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

1. 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.

2. 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.