What is Bill of Materials (BOM) in AutoCount?
Concept and Functionality
The BOM represents a list of materials and components required to produce a finished product. AutoCount’s module allows you to define this list once and reuse it across different production orders.
Benefits of using BOM:
How to Set Up BOM in AutoCount
Setting up your BOM is the first essential step. AutoCount offers multiple methods to accommodate various operational setups.
Method 1: Using Stock Item Maintenance
1. Navigate
Head to Stock > Stock Item Maintenance and select the Finished Good. Switch to Advanced Layout (if not already) to access the BOM section.
2. Switching to Advanced Layout
If you’re on Simple Layout, right-click the item and choose “Use Item Advanced Layout”.
3. Adding Materials and Costs
Add raw materials, specify required quantities, and define Assembly Cost and Overhead Cost accordingly.
Method 2: More Stock Maintenance
Navigate to Stock > More Stock Maintenance > Item BOM Maintenance. This interface is especially useful for branches or separated departments.
- Click ‘Edit’ or ‘New’
- Select a product and add the required raw materials
- Click ‘Save’ to finalize
Method 3: Excel Import Plugin
The Excel Import Plugin by SL Software lets you batch import BOM data efficiently. This plugin is purchasable separately and ideal for companies with extensive material lists.
Creating a Stock Assembly Order (Job Order)
Before production begins, many companies create a Stock Assembly Order, also known as Job Order, to manage and plan the assembly process efficiently.
Link with Sales Order
If a customer places an order, like 100 units of a product, but there’s no stock available yet, the process begins by creating a Sales Order for that customer. Once the Sales Order is in the system, you can go to:
- Stock > Stock Assembly Order
- Click ‘New’
- Select Transfer from Sales Order
- Adjust the production quantity if needed
- Click ‘OK’, then ‘Save’
This order now becomes the production team’s guideline for what needs to be assembled.
Calculating Materials and Costs
AutoCount automatically calculates the required quantity of each raw material and the associated cost. For instance, if the Assembly Cost is RM5 and you’re producing 80 units, the total assembly cost becomes RM400. This cost detail is visible in the order preview.
Executing Stock Assembly
Once the Stock Assembly Order is in place, the next step is actual production.
Transferring from assembly Order
Head to Stock > Stock Assembly, click ‘New’ and use the ‘Transfer from Assembly Order’ function to pull all relevant details. Once verified, click ‘Save’ to finalize the transaction. The system updates stock levels for both raw materials and finished goods accordingly.
Manual Production Without Order
You also have the flexibility to bypass the Stock Assembly Order and directly execute the production. This is especially helpful for small batches or when operating on a tight schedule.
Working with Semi-Finished Goods
In many production cycles, items aren’t always fully complete in one go, This is where Semi-Finished Goods come into play.
Definition and Usage
Semi-Finished Goods are products that have undergone some level of production but are not yet ready for delivery. They are useful in multi-stage production processes.
Importance of WIP (Work in Progress) Account Codes
Before using Semi-Finished Goods, it's essential to set up the appropriate Account Code under Work In Progress. This helps in tracking the cost of items still in production ad ensures that financial records remain accurate.
Automated Costing and Stock Update
One of the standout features of the AutoCount Stock Assembly Module is its real-time automation.
Understanding Assembly Cost vs Overhead Cost
Understanding these two cost types is vital for accurate budgeting and pricing.
Definitions and Calculations
Example
If you produce 10 finished goods requiring 3 units of Raw Material 1 (RM10 each), your calculation might look like:
- Sub-item Toal: 3 X 10 X RM10 = RM300
- Assembly Cost: 10 X RM5 = RM50
- Overhead Cost: RM13
Total Cost = RM300 + RM50 + RM13 = RM363
Using BOM Options for Flexible Production
There are scenarios where certain raw materials may run out and subtitutions are necessary. AutoCount’s BOM Options feature handles this seamlessly.
Setting Substitutions in BOM Option
Go to Stock > BOM Optional, click ‘New’, then:
- Select the applicable Finished Good
- In the ‘Details’ section, add the raw material you want to substitute
- Define the substitution ratio (e.g., replace 1 unit of Raw Material 1 with 2 units of Raw Material 3)
- Save the entry
Applying BOM Options During Assembly
When assembling, choose the saved BOM Option formula. The system recalculates costs and quantities automatically based on the updated materials.
Managing Variance in Stock Assembly
Sometimes the actual material used differs from what’s planned. This difference is known as Variance.
Handling Overused or Underused Materials
If a material is used less (e.g., 1 unit instead of 2), its Variance Qty becomes negative, and the subtotal cost adjusts downward. This ensures the actual cost reflects real usage.
You can view these changes in the Stock Card Report, which shows how variance affects inventory and costs.
Dismantled Quantity: Rare But Real scenarios
There might be instances where not all units in a batch are successfully completed. That’s where Dismantled Qty comes in.
When and Why to Use Dismantled Qty
If 1 out of 10 units fails during production, only the cost for 9 units is considered. This helps in tracking production efficiency but is seldom used due to its complexity.
Write-Offs vs Stock Adjustments
In such cases, Stock Write-Off is preferred over Stock Adjustment. The write-off absorbs the cost into good stock, whereas adjustment subtracts it.
Notification system for sales order fulfillment
AutoCount offers a handy feature to notify users when products are ready to fulfill a Sales Order.
Enable Notifications for Completed Products
To activate:
- Go to Options > Invoicing > Customize Invoicing 2
- Enable ‘Notify all Sales Orders that has this product’
How to Check Notification Inbox
Notifications appear in the Tools > Notification Inbox, helping the sales team act promptly when inventory is ready.
Great! Let’s finish up the article with a full FAQ section and a strong conclusion.
Common Mistakes & Best practices
To fully utilize the AutoCount Stock Assembly Module, it’s important to avoid common pitfalls and follow established best practices.
Mistakes to Avoid:
Best Practices:
Streamline Your Accounting Process
Find the Perfect Plan to Optimize Your Business Finances
Discover PlansConclusion: Streamline Your Production with Confidence
The AutoCount Stock Assembly Module isn’t just a tool—it’s a game changer for manufacturing and production companies. From automating BOM processes to enabling precise costing and flexible substitutions, this module simplifies complex workflows and improves operational accuracy.
Whether you’re managing a small factory or a large-scale production line, implementing this system can dramatically enhance your control over inventory, costing and product delivery. With features like real-time stock updates, automated costing, variance handling and notification systems, your team can stay proactive, not reactive.
Ready to take your production to the next level? Let the AutoCount Stock Assembly Module guide you there—with accuracy, flexibility and ease.
FAQs
It helps businesses combine multiple raw materials into finished goods, automatically updating inventory and calculating accurate costs.
Yes, you can produce directly using the Stock Assembly feature. However, using a Job Order helps track production more effectively.
Assembly Cost applies per unit produced, while Overhead Cost is fixed regardless of quantity.
BOM Options let you substitute materials in case of shortages. You can set which items to replace and with what alternatives during production.
Yes, especially when handling Semi-Finished Goods. It ensures accurate financial reporting for in-progress items.
Yes, the Variance Report shows any discrepancies between planned and actual material usage, helping refine your costing and process.