How to Attach a Bill of Materials (BOM) to a Finished Goods SKU in Luminous

This guide explains how to attach a Bill of Materials (BOM) to a finished goods SKU in Luminous, a necessary step before creating an assembly order.

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Step 1: Create a Bill of Materials (BOM)

1. Navigate to Inventory Admin > Bills of Materials.
2. Review the existing BOMs or create a new one if necessary.
   • Example: A "Chocolate Cookie" BOM.
   • Add the required components and quantities for the finished product.

Step 2: Locate the Finished Goods SKU

1. Search for the SKU representing your finished product.
   
   • Example: If your finished product is a "10 ft rod," search for that SKU.

Step 3: Attach the BOM to the Finished Goods SKU

1. Click on the SKU to open its details.
2. Navigate to the Bill of Materials section.
3. Add the BOM:
   • Search for the appropriate BOM you created.
   • Select and attach the BOM to the SKU.

Step 4: Manage Multiple BOMs (Optional)

• If your finished product can be produced using different methods or substitutes, you can attach multiple BOMs to the same SKU.
  • Example: One BOM might use "Cocoa" from Supplier A, while another BOM substitutes "Cocoa" from Supplier B.
• This provides flexibility in managing inventory and production.

By following these steps, you can successfully attach a BOM to a finished goods SKU in Luminous, preparing it for assembly orders and enabling seamless production processes.

Key Terms

• Bill of materials (BOM): the recipe for a product. It lists every component and how much of each is needed to make one finished unit.
• Finished good: the product you sell, such as the cookie or the rod in the video.
• Component: a raw material, part or packaging item that goes into a finished good.
• Assembly order: the order that uses a BOM to turn components into finished goods in your inventory.

Common Mistakes to Avoid

• Creating the BOM but not attaching it. A BOM sitting in Inventory Admin isn't linked to anything until you add it to the finished goods SKU.
• Attaching it to the wrong SKU. If you sell variants, such as different sizes or colors, make sure each variant has the BOM that matches it.
• Mismatched units of measure. If components are bought in one unit and used in another, check the units before your first assembly order so quantities and costs come out right.

When to Create a Substitute BOM

A second BOM is worth setting up when you regularly switch suppliers for a key component, when one ingredient or part is often out of stock, or when the same product can be made two different ways. Having the alternative ready in Luminous means a stock-out on one component doesn't stop production.

Checklist Before Your First Assembly Order

• Every component exists as its own SKU in Luminous.
• Each component has the right unit of measure.
• The BOM lists every component and the quantity needed for one finished unit.
• The BOM is attached to the correct finished goods SKU, or to each variant.
• You have enough of each component in stock at the warehouse where you'll assemble.

Once all five are in place, you're ready to run an assembly order. Luminous will pull the components from inventory and add the finished goods, with a new cost layer based on what went into them.

BOMs vs. Kits and Bundles

Luminous also supports kits and bundles, which are different from a BOM. A kit or bundle groups items you already have in stock and sell together, and those items are deducted when the order ships. A BOM is for building a new product out of components through an assembly order, so the finished good becomes its own item in your inventory. If you're combining products at the point of sale, a kit or bundle is usually the better fit. If you're producing something, use a BOM.

Related videos: How to Set Up a Bill of Material (BOM) in Luminous, How to Complete an Assembly Order in Luminous, How to Set Up and Manage Kits in Luminous and How Cost Layers Work When Completing an Assembly Order.