A Bill of Materials (BOM) tells Shop+ which tracked products go into making another product, and in what quantity. With a BOM in place, selling or building the finished item uses up its components, and you get a unit cost that includes labor and overhead. This article shows how to create one.
The end result
A Recipe BOM for a Classic Cheeseburger: one burger bun, one quarter-pound beef patty and two cheddar slices, with $0.75 labor and $0.25 overhead per build. Shop+ works out a cost of $3.55 per burger and shows that 50 can be built from the stock on hand.
Before you start
The finished item must exist as a product (the parent).
Each component must exist as a product with inventory tracking turned on, a cost per item and a count. Ingredient products do not need to be published to any sales channel.
In this example the three components are Burger Bun ($0.45), Beef Patty 1/4 lb ($1.60) and Cheddar Slice ($0.25), each tracked with 100 on hand.
Step 1 – Open the BOMs tab
In the left sidebar click Shop+, stay on Products and click the Inventory tab. In the Inventory Hub sidebar click Stock, then the BOMs tab. The cards at the top count your Recipes, Kits and Assemblies and the builds in the last 30 days. Click New BOM.
Step 2 – Choose the parent, yield and type
The New BOM / Recipe window opens.
Parent Product (what you make/sell): search for and select the finished item.
Yields: how many units of the parent one build produces. Leave it at 1 for a single burger. Enter 12 for a batch recipe that makes twelve.
Type: Recipe for restaurant items such as a burger, pizza or drink, Kit / Bundle for bundles and gift sets, or Assembly for manufactured items.
Step 3 – Enter labor and overhead
Labor Cost Per Build and Overhead Cost Per Build are optional dollar amounts added to the component cost each time the item is built. Enter them if you want the unit cost to reflect more than ingredients. Leave them at 0 otherwise.
Step 4 – Add the components
Click Add component for each item that goes into the parent. On each row pick the product, enter the Qty used per build and the Unit (for example ea), and tick Optional if the component is not always used. Use the trash icon to remove a row. A BOM needs at least one component.
Step 5 – Set auto-deduct and notes
Auto-deduct components when this parent is sold is on by default. Keep it on for recipes and kits so sales of the parent consume the components automatically. Turn it off if you only want components used when you build stock ahead of time. Use Notes for prep instructions or allergens. Click Create BOM.
Step 6 – Check the BOM in the list
The new BOM appears in the Bills of Materials table with its type, yield, number of components and an Auto-deduct switch you can turn on or off from the list. Each row has Build, Edit and delete buttons. Use Filter by parent product to find a BOM in a long list.
Step 7 – Build from the BOM
Click Build on a row to make units ahead of time. The window shows how many builds are possible from stock on hand and the cost per unit, then lists each component with the quantity per build, the total needed and the amount on hand. Enter a Build Count and click Build. Component stock goes down and the parent's stock goes up.
Which type to choose
Recipe: made to order from ingredients. Burgers, pizzas, drinks. Keep auto-deduct on.
Kit / Bundle: a set of finished products packed together. Gift baskets, sample packs. Keep auto-deduct on, or build sets ahead and stock them.
Assembly: an item you manufacture in batches and then sell from stock. Candles, bottled sauces, pre-filled growlers. Use Build when you make a batch.
Tips
Give every component a cost when you receive stock. The BOM's unit cost is only as good as the component costs.
Use Yields for batch recipes, so the component quantities are the amounts for the whole batch.
Keep ingredient products off the Point of Sale and Online Store channels so they do not appear for sale.
Common questions
How do I make ingredients come out of stock when a menu item sells? Create a Recipe BOM for the item with Auto-deduct turned on.
How is the unit cost calculated? The cost of the components for one build, plus labor and overhead, divided by the yield.
What does "Can build up to 50 times" mean? It is the number of builds the component with the least stock allows.
What is the difference between a BOM and a bundle? A bundle is set on the product form and lists component products and quantities. A BOM adds type, yield, labor, overhead and advance builds. See "Bundle, sub product, BOM kit or Recipe Map: which one to use".
Where do I learn more about building? See "Building finished items from a Bill of Materials (BOM)".