Manufacturers need the material for preparing the product. When the material is purchased from someone, the manufacturer completely relies on the information provided by the seller in the bill of material. Typically, the details that are added to the bill of materials are:
- Names of the parts purchased
- Number of each part
- Total bill
There can also be some of the details such as the description of each part that can be added to this bill of materials. It depends on how much thoroughly you want the bill to be. This is very important information that is kept in record by the companies.
Some companies use MS Excel to keep a record of the information while some companies also download a bill of materials template that not only saves their time but also provide them a professional document. The template is available in MS Excel format, and it can be edited according to the needs and demands of the user.
The format of the bill of materials:
The information of the bill of materials is added in different columns. These columns are used to input the information such as the price of each part and the details of the parts’ units purchased. The top level products that play a major role in assembly of an item are added at the top of the bill.
How to prepare a bill of materials?
Before you prepare this bill, it is required for you to know about the specific amount of raw material, their quantity, and all other finished items. It is important to stay as specific as you can while adding the information in this bill.
When your business is small, you know everything about the material and also about the seller. However, when your business grows, and you place many orders at a time, then you may not know who is going to handle your bill of materials.
For this reason, it is always recommended to stay distinct while creating a bill of materials no matter you run a large business or a small business.
Bill of Materials Template
File Size: 19 KB | Format: MS Excel