Questions and Answers
Q: This article clarifies and explains the differences between the following Bill of Materials (BOM) settings:
- Kit on Sales Order (SO) Entry
- Generate Work Order (WO) on SO Entry
- Explode on SO Shipment.
A:
Explanations of BOM Settings
| BOM Setting | Description |
| Kit During SO Entry | Once a finished good BOM is added to a sales order, the system presents two choices: Kit Item or Sell Item. If Kit Item is selected, the system will make sales order allocations only to the components. The finished good BOM will not have any allocations. Once the sales order is voided, all allocations will be reversed. If Sell Item is selected, a sales order allocation will be made to the finished good BOM. Voiding the sales order will reverse the allocation of the finished good BOM. |
| Generate WO on SO Entry | Once a finished good BOM is added to a sales order, the system presents two choices: Create WO or Sell Item. If Create WO is selected, the system will make a sales order allocation for the finished good BOM item and create work order allocations for the components and finished good BOM item. A work order will also be created from this sales order which may be accessed in the WO module. If the sales order is voided, the sales order allocation for the finished good BOM item will be reversed. However, this will not affect the work order allocations for the BOM item and components. The newly created work order must be voided separately in the WO module to reverse the work order allocations. If Sell Item is selected, a sales order allocation for the finished good BOM will be created however a work order will not be created. Once the sales order is voided, the sales order allocation will be reversed accordingly. |
| Explode on SO Shipment | There is some confusion with this setting. It may be expected that allocations will be made to the components upon sales order entry. However, this option is specifically designed to allocate after the order is shipped. Once an order is entered and saved, a sales order allocation is made for the finished good BOM item. The sales order allocation for the finished good BOM item will be reversed once the order is shipped and the on-hand quantities for the components will be depleted. Therefore, the system does make allocations for the components of a finished good BOM but only the on-hand quantity for the component items will be seen as depleted. |
