Bill of Material & Formula Cost Roll-UP

Introduction

The Bill of Materials (BOM) and Formula Cost Roll-Up process is a crucial element in manufacturing, involving the detailed calculation of costs associated with a product. The BOM outlines all necessary components, and the cost roll-up aggregates these costs, offering a comprehensive view of production expenses. This process is essential for accurate pricing, strategic decision-making, and effective financial planning in manufacturing businesses.

 

Business process 

The business process for the Bill of Materials (BOM) and Formula Cost Roll-Up involves a systematic approach to calculate and manage the costs associated with manufacturing a product. Here's a simplified overview:

Process- Bill of Material & Formula Cost Roll-UP

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Organization : User have to mention the organization here.

Accounting schema :  user have to select the accounting schema here

cost Type : user have to select the cost type according. 

costing method:  user have to select the costing method.

product:  user have to select the product here.

product category:  user have to select the product category here

product type : user can select the product type

resource:  user can select the resource here.

warehouse: user can select the warehouse here. 

 

while user click on the "ok" button system will intergrade with the bill of material and formal cost element cost