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When in a doubt, find additional information about the subject!
This blog will help you overcome your indecisiveness by providing more information on the most common this-or-that ERPAG questions!

Of course, all answers here, will depend on what you actually want to achieve!

KIT or BOM

This depends on whether you want to manufacture the item in question.

KIT is an assembly of items that are ready-made, and those items are joined together without any manufacturing process.
For example, if you are selling cosmetics, and you want to make a bathing kit, you would just add together a bath bomb, a sponge and Epson salt. You are not manufacturing anything, you are just making a set of the items that are already in your stock and selling them all together for a custom price.
On the contrary, BOM is something that has to be manufactured. In order for this item to reach your stock, you have to start and complete the work order. In the process, you will use up the material, and deliver the finished item to stock.

WORK ORDER or MANUFACTURING PROJECT

This depends on whether your manufacturing process is simple or complex.

If the manufacturing process is simple, then you can use the WORK ORDER. This means that you don’t need any sub-components in the manufacturing process. You are using only the material that you are buying directly from the supplier.
The MANUFACTURING PROJECT actually consists of multiple work orders and it should be used if your manufacturing process is branched out. In this case, Erpag will create one work order for each sub-component and display them under the manufacturing project as a tree-view.
The manufacturing project will also have a summary report that will show you:
the list of all materials used while manufacturing the finished goods
the work operations list
all related costs

SINGLE LEVEL or EXPLODED

This depends on how you want to manage your manufacturing process.

If you choose ‘SINGLE LEVEL’ manufacturing, that means that each work order will display only one level of the manufacturing process. Each additional level, ie sub-component, will be manufactured in a separate work order and loaded into the top level.
In other words, each manufacturing process will be separated into different work orders.
If you choose the EXPLODED option, as a result, all the sub-components will be broken into the material that is required to manufacture them. The work operations and material needed for each sub-component and for the finished goods will all be listed in one work order and manufactured from there. No additional work orders necessary.
These two options will give you two completely different views.

Hope we cleared all doubts with the few rows above!