Sage 100 Bill Of Materials

Bill of Materials can be perplexing to new users, especially those who recently upgraded from QuickBooks and QuickBooks Enterprise. In QuickBooks Enterprise you can run an “Assembly”. You must get everyone out of the software, obtain “Single User Status”, run the Assembly on Sub-Assemblies and then run the Assembly on the next level again and again until you have “built” your Assembly.

When users upgrade from that onerous process, many times they don’t understand how to really take advantage of an ERP system that handles Bill of Materials like it is designed to be used.

Sage 100 ERP uses full Bill of Materials with or without the Work Order Module. You can create a “Production Run”, or you can use the Work Order Module in conjunction with Bill of Materials.

Further, in Sage 100 ERP you may choose to use a “Phantom Bill” for sub-assemblies. We can use a Phantom Bill on sub-assemblies that we choose to not assemble “ahead of time”.

Let me give an example of a good use of a Phantom Bill. Let’s say you’re are making a Go-Cart. In order to assemble the Go-Cart, you purchase the raw materials including the engine. In our case the Engine must have a mounting plate attached before it can be mounted to our various Go-Cart models.

We don’t want to attach the mounting plate ahead of time because the engine could be used for various models of our Go-Cart. Further it causes an additional paperwork to create a Work Order or to make a Production Run to simply add the Mounting Plate to the Engine. We have chosen to create a “Phantom Bill”.

The Phantom Bill only has two parts, the Mounting Plate and the Engine. Because we never intend to actually create the Sub Assembly ahead of time, it is a “Phantom”.

When we make our Production Run or move Through the Work Order process, Sage 100 ERP automatically creates the Phantom Assembly for us.

But what if we have Options?

Options always look “tricky”, but they are really very simple.

If your Bill of Materials has various configurations that won’t change the cost or your process, using Options can be very advantageous.

Our Go-Cart can be made in a variety of colors. We don’t want to create a separate Bill of Materials for each color so we make “Color” and Option. When we select the Go-Cart in our Sales Order Processing, the Sales Order automatically asks us to fill in the “Option”. If we choose “Red”, the Bill of Materials will automatically understand that we need Red paint to finish our Go-Cart. The Option will show up in our Production Run for the Assembly, or be listed in the appropriate “Step” in our Work Order.

When The LSI Group sets up your Bill of Materials properly, your ERP system will not only account for your parts along with their costs, it will allow your Sales Process to flow through your Manufacturing Process.


Sage Certified Consultant



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