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Dynamics 365 Community / Forums / Supply chain | Supply Chain Management, Commerce / Formula or BOM
Supply chain | Supply Chain Management, Commerce
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Formula or BOM

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Posted on by EGrotberg 389
Hi all
 
When should you use formula and when should you use BOM production?
What is for and against?
 
Thanks
Erik
I have the same question (0)
  • Suggested answer
    Komi Siabi Profile Picture
    Komi Siabi 13,208 Most Valuable Professional on at
  • Suggested answer
    Adis Profile Picture
    Adis 6,597 Super User 2026 Season 1 on at
    Hey,
     
    The only question is, what kind of production do you have, discrete or process manufacturing. 
     
    Discrete manufacturing:
    You are using items (purchased) and assemble them into other items or change them like in a molding process => in this case "BOM" is used
     
    Process manufacturing:
    You are mixing ingredients (powder, liquids etc) together. This is used in the food or pharmaceutical industry => in this case "Formula" is used.
     
    Kind regards, Adis
  • Suggested answer
    Drew Lencsak Profile Picture
    Drew Lencsak 433 on at
    This depends on use cases. Generally speaking, Formulas are designed for Process manufacturing and BOMs are designed for Discrete manufacturing. Most of the functionality offered with formulas to manage the consumption and handling of ingredients, liquids, and food and going through Batch production orders is not needed for discrete manufacturers using Production orders and BOMs.
     
    However, in design and implementation, even discrete manufacturing companies would implement Formulas occasionally because they offered features and functionality such as Rework orders, and Plan groups for alternative/substitution planning and you could implement similarly to discrete without being required to use all of the Formula line, coproduct, byproduct, and other functionality and just take advantage of features you needed. However, a few months ago Microsoft introduced substitution related to BOMs as well so that disparity has been resolved:

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