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Creating Bills of Materials (BOMs) for Manufactured Products

Here's how to set up a BOM that neatly aligns production, purchasing, and cost price.

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December 30, 2025 by
Creating Bills of Materials (BOMs) for Manufactured Products
DAADit Group, Nick

Do you make a composite product — say a machine with dozens of sub-components — and track it in Excel? Then you know how quickly it goes wrong: stock no longer adds up, the cost price is a guess and purchasing orders that one part just too late. A well-configured bill of materials (BOM) in Odoo solves that in one go for manufacturing, purchasing and cost price.

Creating a bill of materials

First install the Manufacturing app. Then go to Manufacturing → Products → Bills of Materials and create a new BOM:

  1. Select the finished product and the quantity the bill of materials applies to (usually 1 unit).
  2. Add the components with their quantities — for example 1x frame, 4x wheel, 12x M8 bolt.
  3. Optionally add operations (routings) so Odoo creates work orders per work centre: cutting, welding, assembly.

When you then create a manufacturing order, Odoo automatically reserves the components from stock and writes them off as soon as the order is finished. The cost price of the finished product is built up from the component costs plus any operation time.

Kit BOMs: assembling without manufacturing

Not everything you sell as a bundle is something you actually manufacture. Think of a 'starter pack' of existing items: a laptop with a bag, mouse and docking station. Use a Kit BOM for that. You then do not need to create a manufacturing order — Odoo automatically splits the kit into its components during picking. The delivery slip lists the individual parts; the invoice simply shows the pack.

Variants and versions

Do you sell the same product in several versions? With one BOM and the 'Apply on Variants' column, you determine per component which variant it counts for. That saves you three near-identical bills of materials that you have to maintain separately. If you work in Odoo 17 or higher, also look at ECOs (Engineering Change Orders) in the PLM app to roll out BOM changes in a controlled way.

Finally

Practical tip: after creating a BOM, always check the Structure & Cost overview (the button at the top right of the bill of materials). You then immediately see the full tree including the cost price build-up — errors in quantities stand out there straight away. Unsure about the best BOM structure for your product range? Contact DAADit Group, we are happy to think along with you.

Do you build an assembled product — say a machine with dozens of subcomponents — and track it in Excel? Then you know how quickly things go wrong: stock levels drift, the cost price becomes a guess, and purchasing orders that one critical part just too late. A well-built bill of materials (BOM) in Odoo fixes this in one go for production, purchasing and costing.

Creating a bill of materials

First install the Manufacturing app. Then go to Manufacturing → Products → Bills of Materials and create a new BOM:

  1. Choose the finished product and the quantity the BOM applies to (usually 1 unit).
  2. Add the components with their quantities — for example 1x frame, 4x wheel, 12x M8 bolt.
  3. Optionally add operations (routings) so Odoo creates work orders per work centre: cutting, welding, assembly.

When you then create a manufacturing order, Odoo automatically reserves the components from stock and books them out once the order is done. The cost of the finished product is built up from component costs plus any operation time.

Kit BOMs: bundling without manufacturing

Not everything you sell as a bundle is actually manufactured. Think of a 'starter pack' of existing items: a laptop with a bag, mouse and docking station. Use a Kit BOM for that. No manufacturing order is needed — Odoo splits the kit into its components automatically during picking. The delivery slip shows the individual parts; the invoice simply shows the pack.

Variants and versions

Selling the same product in several configurations? With one BOM and the 'Apply on variants' column, you decide per component which variant it counts for. That saves you from maintaining three nearly identical BOMs. On Odoo 17 or later, also look at ECOs (Engineering Change Orders) in the PLM app to roll out BOM changes in a controlled way.

Wrapping up

Practical tip: after creating a BOM, always open the Structure & Cost report (the button at the top right of the BOM form). It shows the full tree including cost build-up — quantity mistakes stand out immediately. Not sure about the best BOM setup for your product range? Contact DAADit Group, we are happy to help.

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