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

We open a purchase dispatch and add items we used in the bom...
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?
We open a bom for example product 4...

And open a production slip with it.
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...
Lets update example product 4 and add a sub item bom...
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
Firstly Pdm will check if there is a purchase dispatch for the item.If so the items estimated cost will be the latest purchase price.
If there is no purchase dispatch, the price will be based on the latest production or material management slip.





