In this article: using the BOM cost estimate to plan and price finished items.

What the estimate shows

For a parent item with a BOM, AssetBlaze can calculate an estimated cost per one finished unit. For each component it takes:

component cost = current unit cost × quantity required × (1 + wastage % / 100)

…and sums those values across all components.

When to use it

• Pricing. A quick input into your sale price for a made item.

• Planning. Seeing whether a component's cost change meaningfully affects the finished item.

• Quoting. As a reference figure when customers ask for build-to-order pricing.

What it is not

The estimate is a planning number. The real, recorded cost of a finished item is only known when a Manufacturing Order is completed (see Completing a Manufacturing Order) — because that uses the actual quantities consumed and the real cost of the batches drawn down.

Tips

• If a component has no cost recorded, it contributes 0 to the estimate. Check that all components have costs set for a meaningful number.

• The estimate uses the current unit cost of each component, not a blended historical average.