# Item Formula

### **Module Guide: Item Formula (Bill of Materials - BOM)**

#### **Module Location**

#### Production > Item Formula

#### **Module Objective**

#### The **Item Formula** module serves as the master data hub for creating and managing the Formulas or **Bills of Materials (BOMs)** for every product that is manufactured. A BOM is the standard "recipe" that details all components (raw materials, packaging materials) and their quantities needed to produce one unit or one batch of a finished good.

### **1. Main View (Formula List)**

#### The main page of this module displays a list of all Formulas or BOMs that have been defined in the system.

#### **View Explanation**

- #### **View**: This page is a list of all product recipes. You can see the **Item/Service Code** of the finished good, the **Standard Quantity** (standard batch size), and the **Status** of each formula.
- #### **Action Buttons**:
    
    
    - #### **\[New\]**: The primary button to create a new Formula/BOM.
    - #### **\[Delete\]**: To delete a selected formula.

### **2. Steps to Create a New Formula**

#### **Step 1: Create a New Formula**

#### From the Main View, click the **\[New\]** button to open the **Add Formula** form.

#### **Step 2: Define the Product and BOM Code**

1. #### In the **Item/Service Code** column, select the Finished Good item from the dropdown for which you are creating a recipe.
2. #### In the **BOM** column, enter a unique code for this formula or recipe.
3. #### Click **\[Save\]**.

#### **Step 3: Detail the Components (Conceptual)**

#### After saving, you will be directed to a detail screen (similar to the *Bill of Materials* module) to detail:

- #### **Output Material**: The finished good that is produced.
- #### **Input Materials**: All the raw materials and packaging materials needed, along with the standard quantity for each material.

#### **Workflow & Integrated Business Process**

- #### **Planning Basis**: The BOM created here is the fundamental data that will be used by the **MRP (Material Requirements Planning)** system to calculate raw material requirements.
- #### **Production Basis**: This BOM will also be the reference when creating a **Production Order**.

### **Tips & Important Notes**

- #### The **accuracy of the BOM data** is crucial. An error in the material quantity will cause errors in purchase planning, cost calculation, and stock control.
- #### This is a vital master data module for the **PPIC, R&D, and Production** teams.