Available in Sage 50 Premium Accounting and higher.

Bill of Materials

If your company builds inventory items from other inventory items, you can use the Build tab on the assembled item's record to store the Bill of Materials required to create the item. For example, assume you keep a supply of hinges, wood, and glue, which are used to build doors. On the build tab, you would record the quantity of each component item of each item needed to build the door in addition to any other costs associated with the item's assembly. Every time you build a door in the Bill of Materials window, you record a transaction which:


  • All of the component parts of the item you are building must have their own inventory item records in Sage 50 Accounting before they can be used to build an item.
  • Multiple Locations. You can select where an item is to be built. The item being assembled and the assembly items need to be in the same location to process the transaction. This may require transferring some inventory items. (Sage 50 Premium Accounting)
  • FIFO inventory costing. Every item build transaction creates a new cost layer for the item being built. Every component item used in the build transaction removes inventory from the oldest layers for those items. (Sage 50 Premium Accounting)
  • Serial numbers. If some of the component items use serial numbers and are also items that you build, recursive builds (see Advantages) are not possible. You must build the component items in a separate transaction before you can build the next item. (Sage 50 Quantum Accounting)
  • Serial Numbers. Once a serialized build item is used in a bill of materials transaction, its build definition cannot be changed. (Sage 50 Quantum Accounting)

If you need to build an item for which you don't want to define a bill of materials, use the Item Assembly feature.