Why is the BOM Divisor important for managing multi-level BOMs?

Why is the BOM Divisor important for managing multi-level BOMs?


Multi-level BOMs involve Finished Goods (FG), Work-in-Progress (WIP), and Raw Materials (RM).
The BOM Divisor ensures:

  • 🔹 Accurate material planning per unit or batch

  • 🔹 Consistent scaling of quantities across nested BOMs

  • 🔹 Automatic pull of child BOMs (e.g., WIP → RM) into the FG BOM

  • 🔹 Cleaner structures without fractional or rounding errors

It supports cleaner hierarchy management, especially in complex assemblies.


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