So how do I update Bill of Material?

There are two tasks used to regenerate and replace bill of material items for the selected routings. These tasks are located on the Activities > Bill of Material menu.

BOM Regeneration

Use BOM Regeneration to regenerate the bill of material standard cost for the selected routings. Use this task when a large number of routings and versions are updated, material standard costs have changed, or work center labor and burden costs have changed. For a single routing you might  access the routing directly with Maintain Routings and make your update on each line. This process will update variable and fixed labor costs and material costs and outside processing costs defined in the routing for all routing steps but it will not update the standard cost for the standard costed items. In order to update the standard cost for the standard costed items it is necessary to run BOM Cost Rollup afterwards. This process prints the BOM Cost Report, Inventory adjustment Journal, and General Ledger update for cost change based on quantity on hand (if the item is flagged as a standard cost item) and updates Inventory Management item/warehouse record with new Standard Cost. The standard cost in the item/ warehouse record will be used to cost Inventory Management transactions. If the item is designated as Average Cost, Actual Cost, LIFO Cost, or FIFO Cost, this field is used for information purposes only.

Bill of Material Global Replace


This task replaces bill of material items and non-inventory items in routings. An inventory item may be replaced by a non inventory item or visa versa. The appropriate routings are selected by entering the item to replace and the item to replace it with. All uses of the item to be replaced are displayed on the screen. Routings displayed may be deleted prior to processing the global replace which allows select processing. After the Bill of Material Global Replace make sure to run BOM Regeneration and then BOM Cost Rollup Journal to update the standard cost for all items using standard costing method. 

This task can be launched from Manufacturing > Activities > Bill of Material > BOM Global Replace.