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What is Bill of Material (BOM)?

A bill of material is an accounting entry used by a manufacturer, BOM (Bill of Material) is a comprehensive inventory of the raw materials, assemblies, parts, and components, as well as the quantities of each, needed to manufacture a product. Any Businessman who manufactures a product makes it a finished product, then he must use the bill of material (BOM) 

Bill of Materials Examples

As we mentioned above in the definition of Bill of Material, making finished goods by producing any raw material is called bill of material, Now we tell you some examples of Bill of Material

1) Fabric jeans manufacturing

2) Customizing mobile phones

3) Manufacture children’s Toys

Different types of Bill of Materia

The Following are the different types of Bill of Material 

  • Assembly Bill of Material
  • Single Level Bill of Material
  • Multi-Level Bill of Material 
  • Configurable Bill of Material
  • Service Bill of Material
  • Manufacturing Bill of Material 
  • Sales Bill of Material 
  • Engineering Bill of Material 

Bill of Material in Tally Prime

So by now, you have learned that what is Bill of Material, now we are going to tell you in detail in this article that if you want to learn how to maintain the accounting of bill of material/process of the bill of material in tally software, then you have to follow the steps from which will have to follow you will be explained in detail 

Step 1: First of all you have to create a new company by opening Tally Prime and enter your details it, 

Step 2: After creating a company in Tally prime software, in 2nd step, you have to create a group of raw material and finish Goods 

Step 3: After creating the groups, in the next step, you have to create your stock of raw material and finish goods.


Stock Item 

Under Group

Hard Disk

Raw Material 


Raw Material


Raw Material


Raw Material


Raw Material


Raw Material

Data Cables

Raw Material


Raw Material


Raw Material

Samsung Computer

Finish Good

When you create a stock of raw material and finish good, you have to add the details of each stock item there. 

Step 4: After creating all the stock items you have to purchase them in the next step 

Step 5: After entering the purchase, you have to set the bill of material in the stock item of the finished goods and configure it, first of all, you have to open the stock item with finished goods and while it is there, press the F12 key form your keyboard, while will bring you to the screen with the configuration, and while on the configuration screen, you have to YES the option (Set Component list Bill of Material in Stock Item). after clicking this option, a new option will be shown on the screen containing the stock item of finished goods (Alter Component)

Step 6: Now in the next step you have to set the bill of material inside your finished goods, That is, what raw material will be required to make a finished good, that configuration will have to be done, form which when that bill of material in entered, then all this will come automatically there. 

So far, we have explained all the basic information to you with the help of the post, but the bill of material is a very advanced topic and all the steps from this onward are most important. So if you want to learn the Bill of Material step by step complete it in detail then you can

watch the video given below

You will get complete information basic to advanced in this video and if you have any doubt even after watching the video then you can contact us on WhatsApp your doubt will be cleared and if you find the way to understand our video, then you can also buy our courses, in this, you will be given basic to advanced complete information which will make you knowledge of account much bigger than before, and along with the course, you will also be provided with a course completion certificate.

Tally Prime Basic to Advanced Complete Course with Certificate
MS Basic to Advanced Course with Certificate
Tally ERP 9 Basic to Advanced Complete Course with Certificate