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.

Jump to:

  1. Demo video: Disassembly BOM.
  2. Configuring disassembly BOM.
  3. Cost allocation percentage calculation.
  4. Disassembling a product.

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.

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