An example of a product requiring bill options is a lawn mower. This particular lawn mower offers three main choices: a 3 hp or 4 hp engine, powered by self-propelled or push propulsion, with or without a grass catcher. The following table illustrates the eight possible configurations of the lawn mower.
|
Engine Size |
Self-Propelled |
Grass Catcher |
Required |
|
3 hp |
yes |
yes |
no |
|
3 hp |
yes |
no |
no |
|
3 hp |
no |
yes |
no |
|
3 hp |
no |
no |
no |
|
4 hp |
yes |
yes |
no |
|
4 hp |
yes |
no |
no |
|
4 hp |
no |
yes |
no |
|
4 hp |
no |
no |
no |
The advantage of using option bills becomes clearer as the number of options increases. If a color option is added (for example, white or black), the number of possible configurations increases to 16. Using option bills, the addition of a single option bill accommodates the new option. Also, the price of any option can be added to the price of the parent bill.
The base bill for the lawn mower should represent the default bill configuration. The default configuration of the lawn mower consists of a 3 hp engine without the self-propelled or grass catcher option.
The base bill consists of the following components.
Bill Number: LM0100 Description: Standard Lawn Mower
|
Component Item Code |
Description |
U/M |
Quantity/Bill |
|
MB1100 |
Mower Body Assembly |
Each |
1.0 |
|
LE6003 |
3 hp Engine |
Each |
1.0 |
|
/LABOR |
Assembly Labor |
Hour |
0.5 |
To complete the option information, it is necessary to define the option categories to be used with this bill. Three categories must be defined: Engine Size, Self-Propelled, and Grass Catcher.
For the first option category (Engine Size), you must define a single option code to represent the 4 hp engine. Because the base bill configuration includes the 3 hp engine, that engine must be subtracted from the base bill. Option code 4H is used to identify this option. This method requires that the Allow Entry of Negative Quantities check box is selected in the Bill of Materials Options window.
An alternate method for setting up the bill would be to remove the engine from the base bill and enter both 3 hp and 4 hp as options under Engine Size category. Because a lawn mower would not be made without a motor, make the option required and enter the option price of each engine type. When the engine size is selected, the option price is added to the base bill price automatically. There is a less chance of introducing pricing errors when done this way.
This option bill consists of the following components.
Bill Number: LM0100 Category: 1 (Engine Size) Option Code: 4H
|
Component Item Code |
Description |
U/M |
Quantity/Bill |
|
LE6004 |
4 hp Engine |
Each |
1.0 |
|
LE6003 |
3 hp Engine |
Each |
-1.0 |
|
LB5010 |
Standard Engine Bracket |
Each |
2.0 |
|
/LABOR |
Assembly Labor |
Hour |
0.25 |
For the second and third option categories, you must define an option code for each category to indicate that the option is selected (for example, SP for Self-Propelled and GC for Grass Catcher).
These option bills consist of the following components.
Bill Number: LM0100 Category: 2 (Self-Propelled) Option Code: SP
|
Component Item Code |
Description |
U/M |
Quantity/Bill |
|
SP0100 |
Self-Propelled Assembly |
Each |
1.0 |
|
/LABOR |
Assembly Labor |
Hour |
0.20 |
Bill Number: LM0100 Category: 3 (Grass Catcher) Option Code: GC
|
Component Item Code |
Description |
U/M |
Quantity/Bill |
|
GC0101 |
Grass Catcher Assembly |
Each |
1.0 |
|
/LABOR |
Assembly Labor |
Hour |
0.15 |
For more information, see:
