Bill of Materials Setup

A Bill of Materials (BOM) defines what NexWave needs to make a finished item. It brings together the output quantity, raw materials, sub-assemblies, operations, expected scrap or process loss, and the estimated production cost.

Use this guide when you are creating a BOM, reviewing an existing setup before production, refreshing costs, or replacing a submitted BOM with a new version.

Before you start

Confirm these points before creating the BOM:

The finished Item already exists, is enabled, and has Maintain Stock ticked.
Every stock component and sub-assembly exists as an Item with the correct Default Unit of Measure.
Any service, labour, packaging, or overhead component that is not stock tracked has Include Item In Manufacturing ticked on its Item record.
Operations, Workstations, Workstation Types, and a Routing already exist if you plan to include production steps.
The material rate source is agreed: Valuation Rate, Last Purchase Rate, or Price List.
The expected output quantity, component quantities, scrap, and process loss have been checked by someone who understands the production process.
You have the required manufacturing access to create and submit BOM records.

The finished Item's Item UOM is read-only on the BOM. It comes from the Item's Default Unit of Measure, so correct the Item record first if the unit is wrong.

Choose the material rate source

Open Cost Configuration and select Rate Of Materials Based On. The selected method controls the rates NexWave fetches for stock components.

Option	What NexWave uses	When it is useful
Valuation Rate	The recorded inventory valuation for the company, with fallback logic when no current warehouse valuation is available.	You want the BOM estimate to follow the current carrying value of stock.
Last Purchase Rate	The Item's stored last purchase rate. This is not a live supplier quote.	Recent purchasing cost is the preferred planning basis.
Price List	The selected buying Price List. Its currency must match the BOM currency or company currency.	The business maintains an approved standard-cost or buying-price list.

Material rate source in Cost Configuration

If a component is not stock tracked, enter and maintain its Rate on the BOM row. Update Cost does not refetch non-stock or scrap-item rates.

Step 1: Create the BOM and set the output

Open Manufacturing.
Open Bill of Materials, then Bill of Materials again.
Click Add BOM.
Select the finished Item.
Confirm Company and the read-only Item UOM.
Enter Quantity. This is the finished output represented by all component and operation quantities in this BOM.
Leave Is Active ticked when the BOM should be available for normal production use.
Tick Is Default when this should be the BOM selected automatically for the finished Item.

Production Item and raw materials on a submitted BOM

Only submitted, active BOMs appear in normal BOM selectors. Marking a BOM as default also makes it active and updates the Item's default BOM. Setting a new default unsets the previous default, but it does not deactivate the older BOM.

Step 2: Add raw materials and cost components

In Production Item > Raw Materials, add one row for each material or cost component.

For each row, review:

Item Code: the stock item, sub-assembly, service, labour, packaging, or overhead item.
Qty: the quantity required for the BOM output quantity.
UOM: the unit used for the component quantity.
Rate and Amount: the estimated component cost.
BOM No: the active child BOM used for a sub-assembly.
Include Item In Manufacturing: whether the component belongs in the manufacturing cost and requirements.
Do Not Explode: whether the sub-assembly should remain a single component instead of exposing its lower-level ingredients.

Use the row editor to review additional fields such as Source Warehouse, Conversion Factor, and Allow Alternative Item when your process needs them.

Stock components

For stock-tracked components, NexWave fetches the rate using Rate Of Materials Based On. Check the UOM and conversion factor before accepting the amount, especially when purchasing and production use different units.

Non-stock cost components

A non-stock Item can contribute labour, subcontracting, freight, packaging, or another non-inventory cost when Include Item In Manufacturing is enabled on the Item. It contributes to production cost but is not transferred from a warehouse as inventory.

Enter a reasonable Rate on the row and maintain it deliberately. It will not be refreshed by Update Cost.

Sub-assemblies

When a component has its own active default BOM, NexWave normally fills BOM No. Tick Set rate of sub-assembly item based on BOM when its cost should come from the child BOM's unit cost.

If Do Not Explode is ticked, NexWave clears BOM No and treats the sub-assembly Item as a direct component. It does not keep the child BOM while merely hiding its ingredients.

Whether lower-level materials appear on a Work Order or stock transaction also depends on Use Multi-Level BOM on that downstream record. A linked child BOM is not automatically exploded everywhere.

Step 3: Add operations or a Routing

Tick With Operations when the BOM should include production activities, time, and operating cost.

You can add operations manually or select a Routing. A Routing copies its operations only when the Operations table is empty, so do not use it to overwrite an existing operation list.

Each operation needs:

Operation
either Workstation or Workstation Type
Operation Time greater than zero

Selecting a Workstation fetches its hourly rate. NexWave normally calculates the operation cost from that hourly rate and the operation time in minutes. Use Fixed Time only when the planned time should not scale with the BOM quantity.

Operations and estimated operating costs

When With Operations is ticked, NexWave will not submit the BOM without at least one valid operation row.

Step 4: Record scrap and process loss

Open Scrap & Process Loss when production creates measurable by-products or regularly produces less finished output than planned.

Use the two controls differently:

Control	Use it for	Cost effect
Scrap Items	Measurable scrap, recoverable material, or by-products that can be recorded as an Item.	The scrap value is deducted from the BOM's total cost.
% Process Loss	Expected loss of finished output caused by the process.	NexWave calculates the read-only Process Loss Qty from the percentage and BOM output quantity.

Expected process loss fields

The process-loss percentage cannot exceed 100%. If the output UOM only allows whole numbers, choose a percentage and output quantity that do not produce a fractional Process Loss Qty.

Review scrap-item rates manually. Update Cost does not refetch them.

Step 5: Review cost and submit

Open Costing and review the summary:

Operating Cost: the total planned operation cost.
Raw Material Cost: the total component cost.
Scrap Material Cost: the value credited for scrap or by-products.
Total Cost: operating cost plus raw material cost, less scrap material cost.

Operating, material, scrap, and total cost summary

Before submitting, confirm:

Quantity represents the intended finished output.
Every required component is present with the correct Qty and UOM.
Sub-assemblies use the intended BOM No, cost basis, and explosion setting.
Non-stock and scrap-item rates have been reviewed manually.
Operations match the real sequence, workstation, and planned time.
Scrap and process loss are realistic and not counted twice.
Total Cost is reasonable for one BOM output quantity.
Is Active and Is Default match how the BOM should be selected after submission.

Save, then Submit the BOM. Use Browse BOM after submission when you need to inspect the component hierarchy.

Refresh costs when rates change

Use Update Cost on the BOM after valuation rates, last purchase rates, Price List rates, or Workstation hourly rates change.

The action refreshes stock-component and Workstation rates, recalculates the totals, saves the BOM, and can update submitted parent BOMs when the total changes. It does not refetch non-stock component or scrap-item rates, so review those rows separately.

For many BOMs, open Manufacturing > Tools > BOM Update Tool and use Update latest price in all BOMs. NexWave processes lower-level BOMs before their parents. Use View BOM Update Log to confirm whether the update completed or reported an error.

Refreshing rates does not create a structural version. Use it only when the materials, quantities, operations, routing, and expected yield remain the same.

Create a new version when the structure changes

Use New Version when a submitted BOM needs different components, quantities, operations, routing, scrap, or yield.

Open the current submitted BOM.
Click New Version.
Make the approved structural changes.
Review all materials, operations, loss settings, and costs.
Save and submit the replacement.
Set Is Default on the replacement if it should be selected automatically.
Review the old BOM's Is Active and Is Default settings.

New Version does not deactivate or cancel the old BOM automatically. Keep the older BOM active only when users genuinely need to select it for existing or alternate production.

Use Amend only after a BOM has been cancelled. Cancellation can be blocked when an active submitted parent BOM or another linked record still references it, so New Version is the normal path for structural changes.

Final review checklist

Before releasing the BOM for production, confirm:

The finished Item and output UOM are correct.
The BOM output quantity matches the unit used to plan production.
All stock, non-stock, and sub-assembly components are included.
Component quantities and conversion factors match the physical recipe or build specification.
The material rate source is appropriate for this company and currency.
Manual non-stock and scrap rates are current.
Operations, Workstations, and times are complete.
Expected scrap and process loss are realistic.
Total cost is reviewed against an independent estimate or recent production result.
The correct submitted BOM is active and default.
A draft Work Order has been checked before the first live production run.

Troubleshooting

Issue	What to check
The finished Item cannot be selected	Confirm the Item is enabled, has Maintain Stock ticked, and has not passed its end-of-life date.
A component cannot be selected	Confirm the Item is enabled, is not a fixed asset, and has Include Item In Manufacturing ticked.
The Item UOM is wrong	Update Default Unit of Measure on the Item. Item UOM is read-only on the BOM.
Price List rates do not appear	Select a Price List and confirm its currency matches the BOM currency or company currency.
A supplier's latest quote is not reflected	Last Purchase Rate uses the Item's stored last purchase rate, not a live quote. Update the relevant purchasing data or use another approved rate basis.
A non-stock or scrap rate did not change after Update Cost	These rates are not refetched. Review and update them manually where appropriate.
A sub-assembly has the wrong cost	Confirm BOM No, Set rate of sub-assembly item based on BOM, and whether the child BOM is active and default. Refresh the child BOM before the parent.
Lower-level materials do not appear on a Work Order	Confirm the component has a linked BOM No, Do Not Explode is not ticked, and Use Multi-Level BOM is enabled on the downstream record.
Selecting a Routing does not replace the operations	Routing copies only when the Operations table is empty. Clear the draft operation rows first only if it is safe to replace them.
The BOM cannot be submitted with operations	Add at least one row and confirm Operation, Workstation or Workstation Type, and a positive Operation Time.
Process Loss Qty is rejected	Keep % Process Loss at or below 100% and avoid a fractional result when the output UOM requires whole numbers.
The old BOM is still selectable after New Version	New Version does not deactivate the old BOM. Review Is Active and Is Default after submitting the replacement.
The old BOM cannot be cancelled or deactivated	Check whether an active submitted parent BOM or another linked record still references it. Replace or retire parent references in a controlled order.
Production cost looks out of date	Run Update Cost, then separately review non-stock and scrap rates. For a multi-level BOM, refresh lower levels before parents or use BOM Update Tool.