Bills of Materials That Roll Up Their Own Cost
Build multi-level BOMs, explode them into component requirements, and let Fintra roll standard cost up through every level automatically.
What bill of materials management does
A bill of materials defines what goes into a finished product - and, done right, it also defines what that product should cost. Fintra's BOM module supports multi-level structures, explodes a top-level BOM into every component requirement, and rolls standard cost up from raw materials through sub-assemblies to the finished item.
- Multi-level BOMs supporting sub-assemblies within finished products
- BOM explosion generates full component requirements for a production run
- Standard cost rolls up automatically from the lowest-level component
- Changes to a component cost immediately reprice every BOM that uses it
Core capabilities
| Capability | What it does | What it replaces |
|---|---|---|
| Multi-level BOMs | Models sub-assemblies nested within finished products | Flat single-level BOM spreadsheets |
| BOM explosion | Generates full component requirements for a run | Manually listing components per order |
| Cost rollup | Rolls standard cost from components up to the finished item | Hand-calculated product costing |
| Component repricing | Repricing a component updates every BOM using it | Updating each affected BOM manually |
How it works
From components to a costed product
- 1
Build the BOM
Define each component and quantity needed, including nested sub-assemblies.
- 2
Roll up standard cost
Fintra calculates the finished-item standard cost from every component and level.
- 3
Explode for a run
Generate the full component requirement list for a planned production quantity.
- 4
Reprice on change
Update a component cost once and every BOM referencing it recalculates automatically.
Version control on what you build
BOM changes are tracked with version history, so a work order always references the exact BOM revision that was in effect when it was released - important when a product cost or specification changes mid-year and you need to explain which version produced a given batch.
What stays traceable
- Which BOM revision was active for a given work order
- The standard cost rollup at each BOM level
- Who changed a component and when
Frequently asked questions
Can Fintra handle BOMs with sub-assemblies?
Yes. BOMs support multiple levels, so a sub-assembly can itself have its own bill of materials, and Fintra rolls standard cost up through every level to arrive at the finished-item cost.
What does "exploding" a BOM mean?
Exploding a BOM generates the full list of components and quantities needed to produce a given quantity of the finished item, across every level of the structure, so you know exactly what to pull from inventory or purchase for a production run.
What happens when a raw material price changes?
Update the component's standard cost once, and every BOM that includes it - directly or through a sub-assembly - recalculates its rolled-up cost automatically, rather than requiring a manual update to each affected product.
Does BOM management connect to work orders and inventory?
Yes. Work orders reference a specific BOM revision to determine material requirements, and material issued against a work order draws from the same perpetual inventory ledger that BOM cost rollups are based on.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
Cost your products from the parts up
Talk to us - we will map it to your stack. Build a BOM and let standard cost roll up automatically.
Talk to us