manufacturing:cost_of_manufacturing
Table of Contents
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
manufacturing/cost_of_manufacturing.txt · Last modified: by admin