Set up bills of materials on finished good SKUs so Work Orders can explode components, calculate shortages, and drive purchasing.
Collection: Work Orders: Admin Setup
Priority: P0
Who this is for
Account administrators and product managers configuring manufactured SKUs before production planning.
Before you begin
- Work Orders module prerequisites
- Component SKUs exist in Luminous for all raw materials
Steps
1. Open the finished good product
Identify the SKU you manufacture (the finished good) under Inventory → SKUs.
2. Open Bill of Materials
Go to Inventory → Inventory Admin → Bills of Materials and click Create BOM, or open the existing BOM for this SKU (see the Produced SKU column) and click Edit.
3. Add component lines
For each raw material or sub-assembly:
| Field | Notes |
|---|---|
| Component SKU | Raw material or sub-assembly product |
| Quantity per unit | Qty consumed per one finished good |
| Unit | Stockkeeping unit |
| Supply method | Not a BOM column — comes from the component SKU's Default Supply Method (can override on work order) |
| Basis (consumption basis) | Planned or Actual — see Configure consumption basis |
4. Configure sub-assemblies
If the finished good includes sub-assemblies that are built separately, add them as BOM components. Quick Complete handles sub-assemblies automatically during production.
5. Save and verify
Save the BOM. When a work order is created for this SKU, the BOM auto-populates and drives:
- Shared Components shortage calculations
- Generate Purchase Orders line items
- Assembly order component depletion
Consumption basis guidance
| Component type | Recommended basis |
|---|---|
| Bulk raw materials (liquids, powders) | Actual — scales with yield |
| Labels, boxes, packaging | Planned — fixed qty per batch |
| Sub-assemblies | Depends on process — consult your ops team |
What happens next
Ops teams can add this SKU to production runs (Create a production run).
Related articles
Still stuck?
Contact support if BOM components do not appear on work orders after save.