Understanding Bills of Materials in Odoo Manufacturing  

A Bill of Materials (BoM) is a central concept in any manufacturing process. It serves as the blueprint for production, detailing everything required to create a finished product, from raw materials to operations. In Odoo’s Manufacturing module, BoMs are powerful tools that not only define what’s needed for production but also help streamline inventory, plan work orders, and improve manufacturing accuracy. 

In this article, you’ll learn what a BoM is, how to configure it in Odoo 19.0, and how to use its advanced features.

What Is a Bill of Materials?

A Bill of Materials is essentially a recipe for manufacturing a product. It lists:

• Components — the materials required

• Quantities — how much of each material is needed

• Operations — steps or processes to turn components into the finished product

BoMs in Odoo can also include optional settings like consumption rules, variant tracking, production readiness rules, and by‑products. 

This makes a BoM more than just a list — it becomes the foundation for how Odoo plans and executes your production jobs.

To get started:

1. Open the Manufacturing app.

2. Go to Products → Bills of Materials.

3. Click New to create a BoM. 

At the top of the form:

• BoM Type: Set this to Manufacture this Product.

• Product: Choose the finished product this BoM applies to.

• Quantity: Enter how many units this BoM produces.

Quick Tip

You can also create a BoM directly from a product form by clicking the Bill of Materials smart button — making the process faster and linked directly to the product.

Once you’ve selected the product and quantity, you’ll configure the components:

1. Switch to the Components tab.

2. Click Add a line.

3. Select a component from the dropdown menu.

4. Enter the quantity needed.

You can add as many components as necessary until your BoM reflects all materials required for production. 

Advanced Component Options

Click the settings (gear) icon next to the components list to activate extra options:

• Apply on Variants: Choose which product variants use this component.

• Consumed in Operation: Assign the component to a specific operation in the BoM.

• Manual Consumption: Require operators to manually mark components as consumed on manufacturing orders. 

These options give you more control over how and when parts are used during production.

BoMs can include specific operations, such as assembly steps or processing tasks. This enhances planning, scheduling, and cost tracking.

Before adding operations, you must enable Work Orders:

• Go to Manufacturing → Configuration → Settings.

• Turn on Work Orders. 

Now in the BoM:

1. Open the Operations tab.

2. Click Add a line.

3. Enter:

   • Operation Name (e.g., Assembly)

   • Work Center — where the operation takes place

   • Duration and scheduling details

Operations are useful for:

• Scheduling work centers

• Tracking time for labor cost

• Defining detailed production steps

Each operation in a BoM is unique and linked only to that BoM, which keeps instructions accurate and contextual. 

Some manufacturing processes yield additional products besides the main finished good. These are called by‑products.

To use by‑products:

1. Enable By‑Products in Manufacturing → Configuration → Settings.

2. Open your BoM and go to the By‑Products tab.

3. Add the by‑product, its quantity, and whether it’s tied to a specific operation. 

This feature is particularly valuable especially useful across sectors such as in industries like:

• Food processing

• Chemicals

• Wood products

• Any scenario with secondary outputs

Here are just a few reasons why well‑configured BoMs improve your manufacturing process:

1. Clear Production Instructions

BoMs serve as precise guides for materials and steps.

2. Accurate Inventory Usage

Odoo automatically reserves and consumes materials when production starts.

3. Cost Tracking

Components and operations can be used to calculate production costs, which feed into pricing and accounting. 

4. Better Planning

BoMs are the basis for schedules, procurement automation, and manufacturing orders.

Imagine your business manufactures bicycles. A BoM for a bicycle might include:

• Frame

• Wheels

• Handlebar

• Chain

• Seat

Each component is added with specific quantities. If your BoM includes operations, you might also list tasks like:

• Frame assembly

• Wheel mounting

• Quality inspection

This BoM becomes the production plan for every bicycle you manufacture in Odoo.

✔  Always include all raw materials and quantities.

✔  Use operations only when work order tracking is needed.

✔  Update your BoMs when product designs change.

✔  Use by‑products if you produce more than one output.

These practices prevent errors and keep your production process smooth. 

A Bill of Materials in Odoo Manufacturing is more than a component list — it’s the heart of your production logic. Understanding how to configure and optimize BoMs empowers you to manage inventory, schedule production, and control costs effectively.

By following this guide, you’d be ready to:

• Create accurate BoMs

• Add components and operations

• Use advanced settings like by‑products and flexible consumption

With well‑defined BoMs, your manufacturing process becomes structured, efficient, and reliable — essential for any business aiming to scale production with confidence.