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
- When creating a BOM, choose the "This is disassembly BOM" option.
- Enter the parts into which the product can be disassembled.
- 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%|
And the disassembly BOM will look as follows:
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.