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Bill of Materials Software: What to Buy and What It Costs

Bill of materials software ties parts lists to stock and cost. Five users pay $150 to $655 a month, plus Salesforce licences on the Salesforce-native plan. Test how it handles revisions.

By Praveen Nune, Co-Founder & CEO · Updated 4 Oct 2026

Two workers assemble small electronic devices at a workbench beside open bins of components.

Key takeaways

  1. 01
    Buy BOM software when recording a build must deduct components and update cost automatically. Choose the type of tool (inventory software, ERP or PLM) before you compare brands.
  2. 02
    The decision that matters most is how a tool handles change: editing a BOM already in use, moving products to a new revision, and refreshing cost.
  3. 03
    As of October 2026, five users cost between $150 and $655 a month across six published plans. On our Salesforce-native plan, Salesforce licences are extra.
  4. 04
    Run the eight-point test below on your three most awkward BOMs in every demo before you pay.
In this article
  1. 1What does bill of materials software do that Excel cannot?
  2. 2Should you buy inventory software with a BOM, an ERP or PLM?
  3. 3Is a kit the same as a bill of materials?
  4. 4Why do BOMs break after the first revision?
  5. 5What does BOM software cost for a five-user team?
  6. 6How do you test BOM software in a demo?
  7. 7How does Arka Inventory run a BOM from stock to production?
  8. 8Frequently asked questions

A bill of materials (BOM) is the list of parts, quantities and costs behind one finished product. It goes stale the moment a supplier changes a price or a design changes a part. In a 2025 survey of 180 manufacturing professionals run by NewtonX for Galorath, 52% said their initial cost estimates are inaccurate. In our view, a product's cost estimate is built up from its parts list, so a stale BOM feeds straight into it.

Software only helps if it handles that change well. That means editing a BOM already in use, moving products to a new revision and refreshing cost. Price lists and feature lists rarely show how a tool does those three things.

This page is for Indian manufacturers, assemblers and product sellers who are outgrowing Excel. It gives a table for choosing the right type of tool, a five-user cost comparison and an eight-point test to run in any demo. Prices are US dollar list prices, so confirm Goods and Services Tax (GST) and rupee invoicing with each vendor.

What does bill of materials software do that Excel cannot?

Bill of materials software ties the parts list to stock and cost. When you record a build, it deducts the components, adds the finished product to stock and prices the batch from current component costs. An Excel sheet holds the same list, but nothing in it reacts when stock or prices change.

Four terms decide how useful a tool is:

  • Multi-level BOM: a product made of subassemblies that are themselves made of parts. The software expands it into the raw parts needed.
  • Revision: a numbered version of a BOM, so you know which version built which batch.
  • Where-used: a list of every product that contains a given part, so a supplier or price change shows its full reach.
  • Scrap allowance: extra material you expect to lose to cutting or rejects.

Our recommendation: Excel is enough while you make a handful of products from flat lists that rarely change. Once components are shared across products, or stock must move on every build, a spreadsheet becomes the place where errors hide.

This page covers manufacturing BOMs. The cybersecurity term "software bill of materials" is a different subject, explained in the FAQ.

Should you buy inventory software with a BOM, an ERP or PLM?

Buy inventory software with a BOM when stock must move on every build and your products have a few levels of subassemblies. Choose an enterprise resource planning (ERP) system when you also need routings, scheduling and capacity planning. Choose product lifecycle management (PLM) software when computer-aided design (CAD) driven engineering changes drive the BOM.

This is our recommendation, by situation:

Your situationExcelInventory software with BOMERPPLM
Flat lists, few products, rare changesEnoughOptionalMore than neededMore than needed
Stock must deduct on every build, with subassembliesFailsFitsFitsNot its job
Routings (the sequence of operations to make a product), machine capacity, finite scheduling (scheduling against real machine capacity)FailsCheck carefullyFitsNot its job
CAD-driven design with formal approvals (engineering change orders, or ECOs)FailsWeakPartlyFits

In our view, most small and mid-size manufacturers sit in the second row. Our guide on when you need an ERP for inventory covers the move to the third.

Is a kit the same as a bill of materials?

No. A kit bundles items you already stock into one sellable package. A bill of materials defines a new finished item built from components and costed as a build. Use a kit (kitting, meaning bundling items into one sellable pack) at order time, and a BOM when you assemble ahead and hold the finished product.

Tools name these ideas differently. Some inventory tools separate kits, which group existing items for sale without any physical assembly, from assemblies, where you physically assemble a single item from components. Whatever a tool calls the feature, check what recording a build does to stock, using check 1 below. A working assembly should consume the components and increase the stock of the finished item.

Three separate items being packed into one carton beside a single finished assembled device.
A kit only bundles stock you already hold, while a bill of materials makes a new item that is built and costed.

Why do BOMs break after the first revision?

BOMs break because a list is easy to store and hard to change safely. A BOM in use is referenced by open orders, parent products and cost reports. A tool must let you revise it, move parent products to the right version and refresh cost. Weak tools fail at least one of those three.

Our eight-point test below catches all three failures:

  • Locked after use: the tool refuses edits once a BOM has transactions. Check 2 finds this.
  • Stale cost: a parent product keeps an old component price. Check 3 finds this.
  • Parent ignores the new version: a product containing a revised subassembly keeps building from the old one. Check 4 finds this.

Here is a worked example. The numbers are ours, chosen to show the arithmetic, not market data. The formula is: requirement = quantity per unit × (1 + scrap allowance) × units built.

ComponentPer unitScrapNeeded for 200 unitsUnit costCost
Aluminium frame1 piece2%204 pieces₹180₹36,720
LED driver1 piece0%200 pieces₹95₹19,000
Diffuser sheet0.5 m²10%110 m²₹240 per m²₹26,400

The batch costs ₹82,120, or ₹410.60 per unit. If the driver rises to ₹110, the batch costs ₹85,120, or ₹425.60 per unit. A parent BOM still showing ₹95 under-quotes by ₹15 a unit, which is ₹3,000 on this batch.

What does BOM software cost for a five-user team?

As of October 2026, five users cost between $150 and $655 a month across six published plans that include a BOM. Prices are US dollars from each vendor's own price page. The $655 is our subscription only, because each user also needs a Salesforce licence, bought from Salesforce. We publish this page, and our Advance plan is one of the six compared.

PlanPricing basisFive users, per month
$30 per seat, billed yearly$150
$49 per user, monthly billing$245
"Starts at $299/month"; monthly and annual billing both offered; unlimited users$299
$69 per user, monthly billing$345
$90 per seat, billed yearly$450
$499 with 2 users, $52 per extra user, billed yearly$655, Salesforce licences not included

Our working: 5 × $30 = $150; 5 × $49 = $245; 5 × $69 = $345; 5 × $90 = $450; $499 + (3 × $52) = $655. Over a year, five users on Advance cost 12 × $655 = $7,860 before Salesforce licences.

Read the table with these points in mind:

  • Salesforce licences. As of October 2026, Salesforce's India pricing page lists its five paid Sales Cloud editions in US dollars, from US$25 to US$550 per user per month. The lowest edition is billed monthly or annually and the others annually. Which licence type your users need depends on your Salesforce setup, so confirm it with Salesforce and with us.
  • The AppExchange figure. As of October 2026, the Salesforce AppExchange listing for Arka Inventory shows "Starting at $79/User/Month". Bills of Material sit on our Advance plan, so use the Advance figures here and ask us to confirm the total for your user count.
  • Per-seat versus flat. $299 ÷ $49 is about 6.1. On listed monthly prices, MRPeasy Starter is cheaper through six users ($294) and Katana's listed price is cheaper from seven ($343 against $299).
  • "From" and billing. Katana's "from" price is before add-ons and extra locations. MRPeasy gives one month free on annual billing.
  • Records count. OpenBOM includes 2,000 records free and charges $100 a month, billed yearly, up to 5,000 records. Five Team seats plus that tier come to $250.

For a wider view across inventory tools, see our guide to inventory management software cost.

How do you test BOM software in a demo?

Take your three most awkward BOMs into every demo, including one with subassemblies, and run the same eight checks. Each has a clear pass and fail. A tool that fails check 3 will misprice orders, and one that fails check 2 or 4 cannot show which version built a batch. The thresholds are our recommendation.

Two buyers at a desk compare three sample assemblies while watching a software demo on a laptop.
Bringing your hardest real products to the demo shows whether the tool handles them.
#TestPassFail
1Build 10 units of a three-component productComponents fall by the exact required quantity and finished stock rises by 10Any quantity is typed by hand
2Edit the BOM after that buildNew quantities save and the earlier build's record is unchangedEdit is blocked or history changes
3Raise a component's price, then open the parent productParent cost changes without re-keyingParent shows the old cost
4Create revision 2 of a subassembly, then build a parent product that contains itThe new build uses revision 2 and the earlier build still shows revision 1The parent keeps using revision 1, or no revision is recorded
5Open a product containing a subassemblyRaw parts for the whole product appear in one viewYou open each BOM separately
6Pick one component and ask which products use itA where-used list appears in under a minuteYou search manually
7Enter 10% scrap on one lineRequirement and cost rise by 10% on that lineScrap is ignored
8Count seats for shop floor, purchasing and accounts, and ask what else each seat needsPrice at your real seat count, including any licences the tool depends on, is confirmed in writingPrice changes when those users or licences are added

Score every vendor on the same BOMs and compare the totals, not the feature lists.

How does Arka Inventory run a BOM from stock to production?

We built Arka Inventory 100% native on Salesforce, meaning it is built to run inside Salesforce itself. Each user signs in with a Salesforce login, and Salesforce licences are bought from Salesforce and priced separately from our subscription. Our Bills of Material feature lets you create standard and order-based BOMs for multi-component products, check material availability against each BOM, plan purchases, and track consumption and production.

You also get product-wise costing. Teams that need to trace materials by batch add lot and serial tracking, which is on our Enterprise plan as of October 2026. Read more on our Bills of Material feature page, and see our guide to manufacturing inventory software for how BOMs fit the wider picture.

Bills of Material, production and kitting start on our Advance plan. The cost section above has the plan price and the Salesforce licence note. As of October 2026, Salesforce AppExchange lists Arka Inventory at 4.8 stars from 46 reviews. If your products need revision history or multi-level structures, ask us about them before you decide.

See Arka Inventory pricing, or book a demo and bring one of your BOMs.

Price Arka Inventory for your team

See the Advance plan price and bring one of your own BOMs to a demo.
See pricing

Frequently asked questions

List the finished product, then add one row per component with quantity per unit, unit of measure, scrap allowance and unit cost. Give each subassembly its own BOM so it can be reused. Multiply quantity by (1 + scrap) by units built to get what to purchase.
An engineering BOM lists the product as designed, usually from CAD. A manufacturing BOM lists what you need to build it on your shop floor, including packaging, consumables and approved substitutes. Many small manufacturers need only the manufacturing BOM.

Partly. As of October 2026, Katana's free plan covers up to 30 SKUs (stock keeping units, meaning distinct items you stock). OpenBOM charges $30 per seat a month billed yearly, with its first 2,000 records free. We offer a no-commitment trial of core features; ask us whether it covers Bills of Material.

A software bill of materials is "a formal record containing the details and supply chain relationships of various components used in building software," according to the NIST glossary. It is a cybersecurity document, unrelated to manufacturing BOM software.

Usually not. Many accounting packages hold an item list but do not deduct components or add the finished product to stock when you record a build. QuickBooks, for example, offers manufacturing orders with bills of materials only in Intuit Enterprise Suite. Run check 1 in the test table to confirm for your tool.

Sources

  1. 1.Galorath 2025 Manufacturing Industry Report, Galorath
  2. 2.OpenBOM pricing, OpenBOM, October 2026
  3. 3.MRPeasy pricing, MRPeasy, October 2026
  4. 4.Katana pricing, Katana, October 2026
  5. 5.Salesforce India Sales Cloud pricing, Salesforce, October 2026
  6. 6.Intuit: manufacturing orders and assemblies, Intuit
  7. 7.NIST glossary: software bill of materials, NIST
  8. 8.Arka Inventory on Salesforce AppExchange, Salesforce AppExchange, October 2026

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