This hierarchy enables
-Accurate production planning-Cost roll-up calculations-Inventory tracking of nested components-Simplified manufacturing of complex products
Key Concepts
-Parent Item: Finished product (e.g., Ovita Waters 500ml).
- -Child Items:
- -Raw Materials: Base components (e.g., bottles, caps).
- -Sub-Assemblies: Intermediate items (e.g., “Pre-Mixed Oil Blend” for Luca Engine Oil).
1.0 Step-by-Step Setup
1.1 Create Sub-Assemblies
Define reusable intermediate products:- Go to:
Stock > Items > New Item - Set Item Type: Sub-Assembly.
- Example:
- Item Code:
PRE-MIX-OIL - Item Name: Pre-Mixed Oil Base for Luca Engine Oil
- Item Code:
1.2 Build Parent-Child Hierarchy via BOM
Link components to finished goods:-
Go to:
Manufacturing > BOM > New -
Configure:
- Item: Select finished product (e.g., “Luca Engine Oil 5W-30”).
- Quantity: Output quantity (e.g., 100 liters).
- With Operations: Enable if assembly steps exist.
-
Add Components:
Item Type Qty PRE-MIX-OILSub-Assembly 95 L ADDITIVE-PKGRaw Material 5 L 20 units 20 units 20 units
2.0 CGIC Product Examples
Onina Tissue
| Level | Item | Type | Qty |
|---|---|---|---|
| Parent | Onina Tissue (24-pack) | Finished Good | 1 |
| ↳ Child | Tissue Core Rolls | Sub-Assembly | 24 |
| ↳ Child | Pulp | Raw Material | 5 kg |
| ↳ Child | Adhesive | Raw Material | 0.5 L |
| ↳ Child | Packaging Box | Raw Material | 1 |
Valdana Bread
| Level | Item | Type |
|---|---|---|
| Parent | Valdana Bread Loaf | Finished Good |
| ↳ Child | Dough Batch | Sub-Assembly |
| ↳ Child | Packaging Sleeve | Raw Material |
3.0 Key Features
- Cost Roll-Up: Auto-calculates total cost (e.g., Pre-Mixed Oil + Additives = Luca Oil cost).
- Nested Manufacturing: Produce sub-assemblies first (e.g., make Dough Batch before baking Valdana Bread).
- Version Control: Track BOM revisions for formula changes.