## Disassembly BOM

The Disassembly BOM functionality allows disassembling (cutting) a product into parts. The cost of the product is divided between new parts.

This functionality can be enabled at Settings -> System settings -> Professional functions -> Disassembly BOM.

### Configuring disassembly BOM

1. When creating a BOM, choose the "This is disassembly BOM" option.
2. Enter the parts into which the product can be disassembled.
3. For each part, enter a quantity and a cost percentage. The sum of the cost percentages must be 100%. See the example below.

Connecting the disassembly BOM with routings:

• The routing can be selected in the disassembly BOM details. In this case, the disassembly manufacturing order will contain operations.
• If no routing is selected in the disassembly BOM details, then the manufacturing order will contain no operations and will be considered as an un-kitting MO.
• Routing can be linked to a normal BOM or a disassembly BOM, but not both.

#### Disassembly cost calculation example

For example, we wish to disassemble a table into its parts: 1 table top and 4 table legs. We have already figured out the expected standard costs (or cost ratios) for the parts.

The disassembly cost percentages for parts are calculated as follows:

 Part Standard cost (or cost ratio) of the part Cost percentage Comment Table top \$ 7 7 / 10 = 70% Note that the quantity of the part in the Disassembly BOM does not play any role in calculating the cost allocation percentage. Table leg \$ 3 3 / 10 = 30% Total: \$ 10 100%

And the disassembly BOM will look as follows:

 Part Quantity Cost percentage Table top 1 70% Table leg 4 30%

If we disassemble the product, when the Disassembly MO has a cost of \$19 per piece, we get the following result:

 Total MO cost: A = Direct materials + Direct labor + Overhead = \$ 19 Cost of 1 table top: B = 1 x 70% x A / (1 x 70% + 4 x 30%) = \$ 7 This correctly equals the expected standard cost in our previous calculation. Cost of 4 table legs: C = 4 x 30% x A / (1 x 70% + 4 x 30%) = \$ 12 Cost of 1 table leg: C / 4 = \$ 3 This correctly equals the expected standard cost in our previous calculation.

## Disassembling a product

To disassemble a product, create a manufacturing order and select a disassembly BOM.

If the manufacturing order contains operations, then please complete operations and report the results. Parts are added to the stock when an operation is paused or finished.

If a manufacturing order contains no operations, it is automatically executed after the required quantity of products has been ordered and received. Parts are added to the stock automatically.

We use cookies to enhance your experience on our website. If you continue using this website, we assume that you agree with these. Agree Learn more