What is BOM (Bill of Material)?

Bill of materials is a complete list of components, sub-components, raw-material; intermediate assemblies, parts and the proportion of all the requirements that is needed to manufacture a desired finished good. Bill of materials is generally tied to multiple departments internally. So that if a production order is generated it automatically allocates the required amount of stock while generating requisitions simultaneously for that are unavailable in stocks by raising an issuance in Bill of Materials.
BOM records multiple types of data like Product Designs (Bill of Material for Engineering), Product Built (Bill of Material for Manufacturing), Products Orders (Bill of Material for Sales), Product inventory status(Bill of materail for inventory). Different BOMs have different industry specific functionalities to perform. BOM for Process industries is also known as Formula, or recipe.