Multi-Level Calculations

Multi-Level Calculation calculates costs across multiple levels by including all subordinate Bill of Materials (BOMs) in a single calculation. Without Multi-Level Calculation enabled, only the top-level item and its immediate components are calculated. With Multi-Level Calculation enabled, components that have their own BOMs are calculated recursively, including all routing operations and material costs across the entire BOM hierarchy.

Common Scenarios

Use Multi-Level Calculation when an item's BOM contains components that themselves have production BOMs. Common scenarios include:

• A manufactured item (Replenishment System = Prod. Order) with multiple levels of nested production BOMs
• Make-to-order production where each sub-assembly has its own production BOM
• Assembly items (Replenishment System = Assembly) that include manufactured components requiring production BOMs and routing costs

Calculation Process

For calculations based on an item or BOM, when you enable Multi-Level Calculation on the Calculation Card, the following occurs:

1. The top-level item's BOM is processed
2. For each component with its own BOM:
   • The component's BOM is calculated
   • Routing operations (for manufactured components) are included
   • If the component itself contains sub-components with BOMs, they are processed recursively
3. Material and capacity costs from all levels are included in the final calculation

For calculations based on production orders, the calculation follows the multi-level production order structure instead. Components supplied by another production order line are calculated through that line. For details, see Calculation (Expected) and Calculation (Actual).

Calculation depth is limited to 50 levels. If a BOM structure is deeper, for example because of a circular BOM structure, the calculation fails with the error Too many levels. Must be below 50.

Integration with Discrete Manufacturing

When using Multi-Level Calculation with COSMO Discrete Manufacturing, the Multi-Level Calculation field is automatically activated for calculations based on Document BOMs and Construction Orders. For information about automatic activation and make-to-order production scenarios, see Multi-Level Calculations in Discrete Manufacturing.

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The following table outlines related tasks, with links to the topics that describe them.

To	See
Set up items for multi-level calculations.	Multi-Level Calculation Setup
Create multi-level calculations.	Create a Multi-Level Calculation
Understand multi-level calculations for manufacturing items.	Multi-Level Manufacturing Calculations
Understand multi-level calculations for assembly items with manufactured components.	Mixed Assembly and Manufacturing Items
Learn about expected calculations with multi-level structures.	Calculation (Expected)
Learn about actual calculations with multi-level structures.	Calculation (Actual)
View multi-level calculations in concurrent calculations.	Multi-Level Calculation in Concurrent Calculation

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