Friday, December 4, 2009

Inventory BOM vs Manufacturing BOM

I salvaged this post from the Microsoft Dynamics GP Partner Forum comparing the features in Inventory BOM versus those in Manufacturing BOM. The props go out to Microsoft's Jim Shauer for the detailed explanation.

The core Bill of Materials module works closely with the Inventory subledger. You can define bills and assemble the bills in this module. This module works best for companies with a very simple assembly/production process where the finished good production is normally recorded after the fact.

The Manufacturing BOM module stores the definition of the BOMs. It does require the use of the Inventory subledger and you must use this module together with Manufacturing Order Processing. This Order Processing module is used to record the production of the finished goods. The Manufacturing BOM (together with Manufacturing Order Processing) provides more functionality related to the definition of the BOMs and the methods in which those finished goods can be produced. These modules also provide the ability to track labor costs.

Below is a more detailed explanation of the two modules.

GP (Core) Bill Of Materials features:

  • Does not Track Work in Progress (WIP) for Material, Labor and Machine Time
  • Ability to enter a design quantity on the Bill Of Materials (BOM) along with a standard quantity
  • Create a link to associate the lot and serial numbers of components with the lot and serial numbers of finished goods
  • Ability to keep historical information for BOM assemblies BOM types are limited to sales inventory or kits (phantoms)
  • Copy components from one Bill of Materials to another
  • Each line item entered on the BOM (components) can have an effective and obsolete date
  • Use substitute components during assembly quantity shortages
  • Lead times are not tracked Quantities can only be entered in Base Unit of Measure
  • Ability to override quantity shortages during assembly
  • User defined fields for the assembly document
  • Visual indicators for Serial\Lot tracked and Overrides
  • No Integration with Sales Order Processing or Purchase Order Processing
Manufacturing Bill Of Materials features:

  • Tracks Work in Progress (WIP) for Material, Labor and Machine time
  • Ability to enter a fixed quantity on the BOM along with a variable quantity
  • Create a link with the item on the BOM to a particular routing sequence
  • Ability to keep a revision level of all changes made on a BOM
  • Multiple BOM Types and categories (Manufacturing, Engineering, Archived, Configured and Super)
  • Maintain history of BOMs by using BOM Copy
  • Each line item entered on the BOM (components) has an effective in date and effective out date
  • Label a component as being an alternate part
  • Lead Times for components can be calculated by the date entered on the BOM
  • Quantities can be entered using the U of M schedule (doesn't require the use of BASE U of M)
  • Choose to have a lot tracked item pull the quantity from one single lot
  • User defined fields for the components on the BOM Visual indicators for BOM items (Alternates, Serial/Lot tracked, or Phantom)
  • Ability to automatically update changes to BOMs by using the BOM Mass Update feature
  • Ability to mark items as Floor stock; value of the item goes to an expense account during the posting of a Manufacturing Order Receipt
  • Ability to enter Reference Designators Position numbers

Hope you get the value in a short and detailed explanation about the two modules, but at the same time be able to articulate the obvious differences between the two.

Until next post!

Mariano Gomez, MVP
Maximum Global Business, LLC


Anonymous said...

Can you create an MO for a BOM and use different BOM revisions? This seems to be grayed out.

Brad Smith said...

Cannot seem to locate the tables for Inventory BOMs and Manufacturing BOMs. Got a hint?

Anonymous said...

How many user defined fields are available on the core BOM and on the manufacturing BOM?

Unknown said...

Hello, is there any option to consume in a BOM substitute items?
Currently we have to manually change quantities once Main item is out of inventory


Mariano Gomez said...


I don't think that's an option at this point. I suggest you add this as a suggestion to Microsoft Connect at