Costed multilevel BOM
what is Costed multilevel BOM ?
Costing calculates the cost of goods manufactured for each material made in-house in the BOM structure.
The materials in a BOM are called BOM components, these can consist of a material without its own BOM (material components), or a material with its own BOM (assembly).
If the product has a <i>multilevel BOM</i>, then the costs for the material components are calculated and taken into account when the next highest assembly is costed. The structure of the BOM determines the sequence in which the materials are costed. The BOM components with the largest low-level code (that is, the material components) are costed first, then the BOM components with the next low-level code and so on.