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A formula is a subtype of BOM that is typically used for process manufacturing. In addition to components and ingredients, a formula describes co-products and by-products. In the actual version, the definition of co-products and by-products for the formula requires the formula version.

Dynamics 365. Supply Chain Management. Finance. A bill of materials (BOM) defines the components that are required to produce a product. The components can be raw materials, semi-finished products, or ingredients.

A formula consists of one or more formula lines that identify the ingredients or items that make up the formula. A formula line can contain Bill of materials (BOM) items, formula items, catch-weight items, purchased items, co-products, or by-products.