How costs are calculated?

Lets see how an item's estimated cost is calculated.Lets create a basic bom first.

image

Purchasing

As you can see we cant see the cost of the bom.The reason is we didnt buy any products yet.Lets open a purchase dispatch. image

We open a purchase dispatch and add items we used in the bom...

image

After the purchase dispatch we can see that now the boms cost is 13 EUR which is 3x3=9 ,2x2=4, 9+4=13...

Producing

What if we dont buy that item instead we produce it?

image

We open a bom for example product 4... image

And open a production slip with it.

image

As you can see now 1 piece of example product 4 is 4EUR which we produce it with 2 example product 2's so 2x2=4

Using a Sub Bom

Also instead of producing it we can use a sub item bom...

image

Lets update example product 4 and add a sub item bom...

image

After saving and looking at cost again, we can see the sub item bom and how its calculated... Because we use 2 example product 2's in the bom pdm will get the latest purchase price of the example product 2 and calculate the sub item bom from that.

Summary

In this document