====== Manufacturing Cost Calculation ======

Let’s break down how this multi-level (nested) BOM structure would work in CushionsERP’s native setup, and how you can track the cost for each level — component and final product.

===== 🧩 Your Structure: Multi-Level BOM =====

  * Madrid Sofa (FG)
    * Mattress Cushion (Sub-Assembly)
      * [BOM: Foam, Fabric, Zipper...]
    * Back Cushion (Sub-Assembly)
      * [BOM: Foam, Fabric...]
    * Pillows (Sub-Assembly)
      * [BOM: Stuffing, Cover...]
    * Raincover (Sub-Assembly)
      * [BOM: Waterproof Fabric, Zip...]

Each component is:
  * A product in CushionsERP (typically “manufactured” type)
  * Has its own BOM
  * Can be produced via its own Manufacturing Order

Then the final product (Madrid Sofa) has:
  * A BOM that includes these 4 sub-assemblies as its inputs
  * Possibly no raw materials directly — only components

===== ✅ How CushionsERP Handles This =====

==== 1. Create Each Sub-Component with BOM ====

  * Go to: '''Products > New Product'''
    * Name: "Mattress Cushion", type: Manufactured
  * Then: '''Manufacturing > BOMs > New BOM'''
    * Add raw materials for this component
    * Save and validate

**✅ Do this for all 4 sub-components**

==== 2. Create BOM for Madrid Sofa ====

  * Go to: '''Products > New Product'''
    * Name: "Madrid Sofa", type: Manufactured
  * Add BOM:
    * Line 1: Mattress Cushion (Qty: 1)
    * Line 2: Back Cushion (Qty: 1)
    * Line 3: Pillows (Qty: 2?)
    * Line 4: Raincover (Qty: 1)

**✅ This is your top-level BOM**

==== 3. Manufacture Each Sub-Component ====

  * Use a Manufacturing Order to build each component
  * CushionsERP will calculate:
    * Cost based on the raw materials used
    * Output as stock of that component

**✅ Result: "Mattress Cushion" now exists in stock at calculated cost**

==== 4. Manufacture Madrid Sofa ====

  * When all 4 components are ready
  * Use MO to manufacture "Madrid Sofa"
  * The cost will be:
    * Sum of 4 components’ stock value
    * Plus any additional manual cost lines (labor, etc.)

**✅ Now you have full cost rolled up to final product**

===== 📊 Where You See the Cost =====

^ Item ^ Where to View It in UI ^
| Component cost | Inside its MO or product card |
| Madrid Sofa total cost | In its MO (after manufacturing) |
| Stock valuation (by unit) | In Products > Stock tab |
| BOM cost estimation | In BOM detail view (before MO) |

===== ✅ Benefits of This Setup =====

  * Cost roll-up is native: sub-assembly → final product
  * Accurate costing per MO
  * You can manufacture components in batches and reuse them
  * You can reuse components across different finished goods

===== 🔧 Optional Enhancements =====

^ Goal ^ Method ^
| Auto-trigger sub-component MOs | Custom script or planning manually |
| View cost summary per Sofa | Export MO data or use CushionsERP Reporting modules |
| Overhead allocation | Add services/labor to each MO manually |
| MO dashboard | Use Manufacturing widgets or external dashboards |

===== 🧠 Conclusion =====

Yes — CushionsERP supports your nested BOM model very well, and it calculates cost at each level accurately, as long as:

  * You manufacture each level as its own MO
  * You configure product types and BOMs correctly