In manufacturing, a finished product may contain components that are also manufactured separately. ERPNext supports Multi-Level Bills of Materials (BOMs) to manage these complex product structures and production requirements.

What is a Multi-Level BOM?

A Multi-Level BOM is used when a finished product contains sub-assemblies.

For example:

• Finished Product: Dining Table
  • Table Top
  • Table Frame
  • Table Legs

The Table Top may also have its own BOM containing wood, glue, and finishing materials.

How to Set It Up

1. Create Items for finished products, sub-assemblies, and raw materials.
2. Create and submit BOMs for each sub-assembly.
3. Create the final product BOM and include the required sub-assemblies.
4. Use the BOM structure for production planning and material requirements.

Benefits

Multi-Level BOMs help businesses:

• Plan raw material requirements.
• Manage sub-assembly production.
• Improve inventory visibility.
• Reduce production delays.
• Better understand complex product structures.

Best Practices

• Maintain a clear product hierarchy.
• Keep BOM quantities accurate.
• Review BOM costing regularly.
• Use the correct active BOM for production.
• Update BOMs when the product structure changes.

Conclusion

Multi-Level BOMs help manufacturers manage complex products by connecting raw materials, sub-assemblies, and finished goods within a structured production process.