Make or Assemble Product setup
You will need to follow the guidelines and steps below for making or assembling products from components or input ingredients.
Assembled products have individual components in inventory that are put together to make a finished product at the point of sale. Example salads, burgers, smoothies, meals in a restaurant. Costbucket software tracks the components inventory only.
Manufactured products are premade products from components that are converted into a finished product. They are physical inventory with inventory tracking both on the components and the finished product. examples are laptops, phones, cars, baked goods (bread, donuts, cakes) etc.
Start by clicking on the Inventory icon on the dashboard then click on Inventory management on the left menu.
Create new products or search for input components and edit the unit of measurement and quantity in batch to ensure they are set up correctly.
Example. A honey reseller purchases from their supplier by the barrel (18,000ml) and manages it by milliliter. The unit of measurement should be set up as milliliter and the Quantity in Batch should be 18,000.
Setup the saleable product (parent) to be sold as a manufactured or assembled item by editing or creating a product and selecting the item type as manufactured or assembled. NOTE: THIS IS NOT REVERSIBLE AFTER CONFIGURED.
Click on the "Make / Assemble" on the left menu to set up the Bill of Material (BOM). A bill of material tells Costbucket how to make a product and how to treat the inventory according to the assemble or manufacture setting of the product.
Click "Add BOM" Button
Bill of Material Display Screen
BOM Creation Steps
Select the Parent product ie the product sold to the customer. You will see the Parent Product unit of measurement display in the center column
Select the component used to make the parent product. The Purchase Unit of Measurement will display the unit of measurement assigned to the product for inventory tracking purposes.
Input the Yield. ie if you make the product by a batch of 100, Costbucket will calculate the cost of making one.
Select the location to pull inventory.
Select the Usage unit of measurement (UOM) ie. This converts the component unit of measure to the way in which you actually consume the product when making the product. Example you purchase products by the gallons and consume it by the liter or ounces.
Input the Quantity used based on the Usage UOM. Example if your yield is 100 when making products, then you should input the Usage UOM based on what is required to make the 100.
Bill of Materials Columns description
Component name - Name of product / component purchased for consumption into a parent product eg ingredients (Rice)
Usage UOM - The unit of measurement used when actually making the product
Purchase UOM - The unit of measurement used to manage and track the inventory
Conversion Rate - The conversion rate for Costbucket to use to convert the purchase UOM to Usage UOM
Usage Quantity - The actual usage quantity to make the product
Converted Purchase Usage - Conversion of the purchase cost per unit of measurement to the cost per usage UOM.
Purchase Rate / Unit - Purchase cost per unit of product
Inventory Location - The location where inventory will be deducted
Total Cost - Total cost of making a batch
Usage / Product for sale (each) - Cost to make a batch of product
Total Cost / Product for sale (each) - Cost to make each unit of a product
Update Button - Process the Bill of Material table
Return to BOM list - Return to the Bill of Material list page
Managing, Adding or Updating the conversion rates is available by going to the left menu and clicking on "conversion factor".