Manufacturing & Recipe Costing

Bill of Materials Software for Production Costing & Assembly

Define master product formulas, calculate true unit costs with scrap and waste factors, and deduct raw material components automatically during manufacturing runs.

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Workflow Overview

What is Bill of Materials (BOM) software and why is it important?

Bill of Materials (BOM) software defines the exact formula or component list required to produce a finished product. It calculates accurate production costs including component prices and scrap losses, automatically depleting raw materials and replenishing finished goods inventory upon production.

Core Capabilities

What Likhtam delivers for this workflow.

Real features engineered for real business operations, not generic templates.

01

Master Recipe & Component Blueprint

Specify the exact quantities of raw materials, sub-assemblies, and packaging items required to produce one finished unit.

02

Built-In Scrap & Waste Tracking

Account for unavoidable production waste and scrap percentages so true manufacturing costs are absorbed into unit valuation.

03

Proportional Batch Scaling

Define a BOM for 1 unit, 10 units, or 1,000 units; when scheduling a production run, component requirements scale automatically.

04

Automatic Raw Material Depletion

Executing a manufacturing entry automatically deducts raw component inventory and increments finished goods stock in one step.

05

Accurate Cost of Goods Manufactured (COGM)

Calculate precise per-unit production cost based on purchase costs of consumed components plus estimated scrap factor.

06

Packaging Supplies Integration

Include outer cartons, labels, bottles, and tape directly in the BOM formula so packaging overhead is never overlooked.

Likhtam BOM recipe builder: ingredient quantities, scrap percentage, and finished goods replenishment

Live Product Likhtam BOM recipe builder: ingredient quantities, scrap percentage, and finished goods replenishment

Practical Workflow

How it works from start to finish.

A clear, step-by-step process designed to keep your books completely balanced.

01

Define Master Product BOM

Select raw materials, specify input quantities per finished unit, and configure expected scrap rates.

02

Procure Raw Inventory

Record incoming supplier bills for raw components into designated raw material godowns.

03

Execute Production Run

Enter the batch quantity produced; Likhtam calculates total component consumption and verifies stock availability.

04

Auto-Post Inventory & Valuation

Raw materials decrement from stock and finished goods replenish at the true calculated per-unit cost.

05

Commercial Sale & Margin Review

Bill finished products with accurate cost visibility, protecting gross profit margins.

Who this is built for

Designed specifically for:

  • Small manufacturing factories, fabrication workshops, and assembly plants converting raw materials into finished goods
  • Food processors, bakeries, chemical producers, and cosmetic makers managing standard recipes and ingredient batches
  • OEM fabricators and packaging businesses requiring multi-component cost roll-up and waste tracking
Frequently Answered Questions

Factual questions, straight answers.

Clear details about Likhtam's capabilities, offline support, and compliance.

Yes. Likhtam allows you to specify expected scrap percentage on the BOM so that wasted material costs are absorbed into the final unit cost, preventing margin erosion.

Yes. The finished goods inventory account increases while raw material asset accounts decrease, keeping financial books and physical inventory in complete harmony.

Yes. While the master BOM provides the standard formula, you can fine-tune actual consumed quantities on individual production batch vouchers.

Yes. You can manufacture intermediate sub-assemblies (e.g., motor units or pre-assembled frames) and include them as raw components in higher-level master BOMs.

Get Started

Ready to run your books with total clarity?

Free forever on your phone or PC. Optional cloud sync and multi-user access when you need it.