Bill of Materials (BOM)
A BOM is simply a list of items required to build a finished product. QuickBooks Online itself does not contain all the tools required for BOMs and assemblies. There are some third-party apps that can help, but we will look at using the tools in QuickBooks Online alone to work through this.
When product/service categories are created, there is an option to use a bundle. A bundle can be used to help create a BOM. Multiple items can be associated with a bundle – all the materials required to build a desk, for example.
Figure 3.2 – Bundle option when creating a new product/service
When creating the Bundle, we select the quantities for each of the raw materials required to build the finished product.
Figure 3.3 – Items listed within a bundle
In addition to the raw materials required to build the product, an additional product/service item needs to be created to correct sales values that could...