Create Bill of Materials (BOM)

Glossary

Prerequisites & Setup

Step-by-Step Instructions

Important Considerations

System Impacts & Dependencies

Troubleshooting Common Issues

Overview: Why We Use This Feature

A Bill of Materials (BOM) defines the expected outputs and inputs for a finished good, so that ingredients are deducted from your Non-Cannabis Inventory when a cannabis package is produced and the appropriate Cost of Goods Sold are assigned to the cannabis package.

Bill of Materials can be applied automatically through Split and Combine Package flows, or be used to pre-populate Production runs with the correct materials. Once you've set expected outputs and inputs on your bill of materials, you'll be able to use it on production runs to pre-populate expected outputs and inputs, saving time and ensuring the proper materials and COGs are tracked and recorded.

Users are able to select more than one product to associate a bill of materials with. This means when you're creating a single item type across more than one strain, for example, 1/8th jars for a dozen different strains, you can create a single Canix bill of materials to manage those processes instead of 12. Materials can be applied to each output item independently (splitting Non-Cannabis Inventory across each cannabis output item) or across all output item quantities (sharing Non-Cannabis Inventory across multiple cannabis output items, in manufacturing only), so that inventory is consumed the way your process actually works.

Glossary

• Bill of Materials (BOM): A record that deducts ingredients from your Non-Cannabis Inventory whenever a cannabis package is produced.
• Bill of Materials Name: User preference, used for identification purposes.
• Associated Output Item: The cannabis Item being used, will reflect in Inventory. One or more finished goods may be associated with a single BOM.
• Non-Cannabis Inventory (NCI): The non-cannabis materials (jars, lids, labels, gloves, case packs, etc.) consumed as inputs on a BOM.
• Source Cannabis Inventory: The cannabis inputs allowed, and in what quantities, to create the desired finished goods.
• COGs (Cost of Goods Sold): The cost associated with the materials consumed, tracked through the BOM and the Costing tab.
• Proportional: The same amount of inventory will be used for each unit of output. For example, 100 1/8ths require 100 jars.
• Fixed: Regardless of the quantity produced, the NCI used remains the same. For example disposable gloves or cleaning supplies.
• Active Date: The soonest date the Bill of Materials can be used in Canix. Required.
• Expiration Date: Optional date after which the BOM can no longer be used.
• Case Pack: A grouping of items (e.g., 20 eighth jars) that can be automatically consumed by listing quantities according to the size of the case pack.
• Costing Tab (Item Modal): The tab previously named "Standard Costing," which now contains BOM association and standard cost features.

Prerequisites & Setup

Before beginning, ensure the following requirements are met:

• Permissions: Permissions: Edit access to Inventory > Non-Cannabis > Bill of Materials, and to Facility Settings for creating Items (if needed for your workflow).
• Necessary Data:
  • Creating Ingredients in Non-Cannabis Inventory should be completed before Creating a Bill of Materials.
  • Be sure to create the Cannabis Item in facility settings prior to creating the BOM. You can add the Item to Facility Settings here: https://app.getcanix.com/facility/settings
  • For BOM association in the Item Modal, the item must have a weight unit specified, and the item's weight unit must match the BOM.

Step-by-Step Instructions

Follow these steps or watch the demo video to Create, Duplicate, Edit and Manage BOMs.

Create Bill of Materials

1. Navigate to Operate > Inventory Management > Bills of Materials
2. Find “Create Bill of Materials” in the top right of the page

3. Specify Output Items: Complete required fields: Bill Of Materials Name, Associated Output Item, Estimated Output Quantity, Unit of Measure, and Active Date.

1. Bill of Materials Name – User Preference, used for identification purposes. 
2. Associated Output Items – Cannabis Item being used, will reflect in Inventory. Users are able to select more than one finished good to associate a bill of materials with. Here you can also select how Non-Cannabis Inventory is applied to outputs. 
   1. Apply materials to each output item independently is the default and will split the Non-Cannabis Inventory across each of the cannabis output items in both manufacturing and when splitting and combining packages. 
   2. Apply materials across all output item quantities (in manufacturing only) will share the Non-Cannabis Inventory across multiple cannabis output items. 
3. Package Quantity and Unit of Measure – How much of the matching Item will be used in the BOM. You can add additional packages with differing quantities for the Item(s). By selecting the ellipses next to the Item, you will have three options to choose from:
   1. Add Package Quantity
      • Selecting Add Package Quantity will add another quantity field and units selector for the Item with no quantity prefilled, and the same units prefilled from the first quantity field.
   2. Apply Quantities to All Output Items
      • Selecting Apply Quantities to All Output Items will apply the quantities and units from the Item to all output Items listed on the BOM.
      • If there is more than one quantity set for the Item, quantities will be added or removed on the other Items to match the quantity.
      • If Output Items have different unit types, the Item quantities and units will be highlighted in red with the message "Item unit type does not allow [unit being applied to all items] units."
   3. Remove Item
      • Selecting Remove Item will remove the Item from the BOM.
      • To remove a package quantity from an Item, simply select the red X next to the package quantity you wish to remove.
4. Active Date – Each Bill of Materials is required to have an Active Date, the soonest date the Bill of Materials can be used in Canix, however Expiration Date is optional. Setting the Expiration Date is most helpful when transitioning from the first version of a Bill of Materials to the next version. For example, upgrading lids and jars at the start of a quarter. By setting an expiration date you can prevent the old bill of materials from being used incorrectly.

4. Add Non-Cannabis Inputs: After completing the output information on the left side of the Bill of Materials, you'll be able to add inputs on the right side, starting with Non-Cannabis Inventory (NCI). To Add Non-Cannabis Inventory (NCI) begin typing to search by SKU or Non-Cannabis Products. When adding NCI, add the Quantity and Unit of Measure for each. A few tips when adding NCI:

1. You can automate the consumption of case pack boxes by listing the quantities of each item according to the size of a case pack. For example, 20 eighth jars is equal to one case pack.
2. You can add NCI more than once. This can be helpful in situations where Non-Cannabis material is used more than once, for example in the first step of a process and the final step.
3. For each item you'll have the option to set materials Proportional to the output, or Fixed. Proportional means that the same amount of inventory will be used for each unit of output. For example, 100 1/8ths require 100 jars. Fixed means that regardless of the quantity produced, the NCI used remains the same. For example disposable gloves or cleaning supplies.
4. Finally you'll also have the option to re-order your NCI after adding them to a bill of materials. Typically it makes the most sense to organize them in the order you'll use them. This helps create clarity for the processing and manufacturing teams creating the finished goods. Simply reorder the items by using the up and down arrows to rearrange items.

5. Add Cannabis Inputs: The final step will be setting which Source Cannabis Inputs are allowed, and in what quantities, to create the desired finished goods. There are a few options for restricting which source cannabis inputs are allowed, and each option can be used in combination with the others.

1. Item Type: restricting inputs to buds might make sense for bulk flower items, only allowing concentrates can be used for vapes, etc.
2. Item Sub-Type: restricting by sub-type allows for more granular control of inputs. For Premium 1/8ths jar you could restrict Item Sub-Types to A Buds to ensure the highest quality buds are used. Similarly standard 1/8ths could be restricted to B Buds or popcorn to prevent higher quality buds from being used.
3. Item: finally, for the most granular level of control, a specific Item can be specified for source cannabis. This can be useful when a specific strain, or strain item type combination is required.

6. Review & Save: Once all fields have been completed, select Create. The BOM will now populate: Inventory Management > Bill of Materials.

Duplicate Bill Of Materials

1. Navigate to Inventory > Non-Cannabis > Bill of Materials.
2. Select a BOM you would like to duplicate, navigate to Actions > Duplicate BOM.
3. This will duplicate the BOM. Make any necessary edits and select Duplicate.

Edit & Delete Bill of Materials

1. Navigate to Inventory > Non-Cannabis > Bill of Materials.
2. Select a BOM you would like to edit or delete by clicking on the BOM.
3. Update the BOM with any needed edits and select Update.
4. Needing to delete a BOM? Simply navigate to Actions > Delete.

Manage BOMs on the Item Modal

The Item Modal in Canix includes an enhanced Costing tab, allowing you to associate Bills of Materials (BOM) with your items, which impacts inventory management, costing, and production workflows.

Key features of the Costing tab:

• Renaming the "Standard Costing" Tab – The previous "Standard Costing" tab has been updated and renamed to "Costing". This tab now contains additional features related to BOM associations and standard costs.
• Bill of Materials (BOM) Association Section – In the Costing tab, you'll find a section titled Bill of Materials Association. This section enables you to associate a BOM with the item you're editing, ensuring accurate inventory deductions and proper tracking of Cost of Goods Sold (COGs).

Steps to associate a Bill of Materials with an Item:

1. Select a Bill of Materials (BOM) – You can search for and select active Bills of Materials that match the weight unit of the item you are editing. This ensures that the correct BOM is associated with the item, maintaining consistency in production.
2. Enter Package Quantity – A Package Quantity field is required for associating the item with a BOM. If this field is left blank, the Update button will be disabled.
3. View BOM and Package Quantity Sync – Once a Bill of Materials has been associated, the BOM name will appear as a clickable hyperlink in the Costing tab, allowing quick access to the BOM. Additionally, if the Package Quantity is updated in either the Item Modal or the BOM, changes will sync automatically between the two.
4. Dissociate a Bill of Materials – If you need to remove a BOM from an item, the system allows dissociation. When a BOM is dissociated from the Item Modal, it will also remove the item as an output from the BOM, and vice versa.

Important Considerations

These "pro-tips" and warnings help avoid common pitfalls:

• Field Requirements: Note which fields are mandatory vs. optional to avoid submission errors.
• Logic Constraints: Remind users of system-specific rules, such as how delivery dates are handled during creation.
• Best Practices: Use tags and labels for easier cross-referencing and searchability later.

System Impacts & Dependencies

Changing data in one area often triggers updates elsewhere. Understanding these relationships is critical for data integrity.

Troubleshooting Common Issues

If you encounter an error, check these common scenarios before contacting support.

• Conflict Errors (e.g., Unique ID Violations): This often occurs if a manual entry matches an auto-incremented sequence. Try allowing the system to generate the next number automatically.
• Inventory Mismatches: If "Product" and "Item" counts don't align, verify if sales are being mixed between the two hierarchies, which can bypass shared reservation logic.
• Sync Failures: Check if the API release version supports the specific endpoint you are utilizing.

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