Value Proposition: Instead of relying on “estimated costs” or manual collection of components, this template performs an automatic Roll-up of costs at each level of the BOM until reaching the final product cost, with clear breakdown: Materials + Conversion/Operating + Overhead (optional) + Scrap/Yield (optional).

In 20 seconds: What will you get?

• Multi-level Cost Roll-up: Calculate FG cost across all levels of the BOM (including Subassemblies).
• Subassembly Costing: Automatically calculate the cost of each subassembly from its components.
• Version & Effective Date: Compare BOM costs by version/effective date (Current vs New).
• Change Impact: Report on “what impact does changing quantity/component/alternative” have on unit cost.
• Component Cost Updates: A central page for updating material/component costs (Purchase/Standard/Last).
• Cost Breakdown: Breakdown of costs by (Level / Component Type / Make vs Buy).
• Controls: Identify components with no cost, BOM loops (Circular), duplicates, and mismatched units of measure.
• Scenario Analysis: Scenarios for “new supplier price” or “material alternative” or “increasing Scrap%.”
• Dashboard: Top products by cost/change in cost/most impactful components.
• Export-ready: Cost summary per unit suitable for pricing/standard cost/update in ERP.

Delivery associated with the button: BOM Master + Cost Table + Roll-up + Change Impact + Dashboard + Controls.

Suitable for

• Factories with multiple manufacturing levels: (FG → Subassembly → Parts).
• Pricing/Product Teams: Want to accurately calculate unit cost before pricing or before bids.
• Engineering/Industrialization: Assessing the impact of BOM changes (ECO) on cost.
• Finance/Costing: Updating Standard Cost and comparing “old vs new” costs.

Not Suitable for

• If there is no approved BOM or quantities/units are not consistently defined.
• If you need complete engineering management (PLM) with workflow approvals — this is outside the scope of the Excel template.
• If the BOM is too complex with thousands of items and requires database processing — you can start with the template and then convert it to a larger tool.

Without the template / With the template

Before Use: 5 Symptoms That You Need Multi-level Cost Roll-up

• Material prices change frequently, but the final product cost is not updated systematically.
• Multiple Subassemblies exist, and no one knows the cost of each subassembly “today.”
• Every change in the BOM leads to lengthy discussions: “Is the cost increase 3% or 12%?”
• Difficulty in identifying “the most impactful component” on product cost (Cost Driver) for alternative/negotiation decisions.
• Pricing new products without a clear defensible Cost Breakdown in front of management or audit.

What Does the Multi-level BOM Cost Roll-up Template Cover?

It covers the journey “from raw BOM table to precise unit cost” through:
BOM Data Cleaning → Component Cost Identification → Multi-level Roll-up →
Change Impact Analysis → Outputs ready for pricing/Standard Cost.

Key Definitions (Simply)

• Single-level BOM: Components at a single level for a product.
• Multi-level BOM: Components + subassemblies that also contain BOMs.
• Roll-up: Summing component costs across levels to reach the final product cost.
• Where-used: Where this component is used within products/assemblies.
• Effectivity: Date/period of validity of the BOM version (before/after engineering change).

Implementation Method (6 Steps)

Step 1: Prepare BOM Data

• Unified table structure: Parent | Component | Qty per | UOM | Scrap% (optional) | Version | Effective From/To.
• Determine if the Component is “Purchased” or “Manufactured/Subassembly.”

Step 2: Enter Component Cost Table

• Cost Table for components: Material Cost | Last Purchase | Standard | Currency | Vendor (optional).
• You can add Landed Cost/Packaging/Other Add-ons if needed.

Step 3: Calculate Subassembly Costs

• The cost of each Subassembly is calculated from its components (even if Subassemblies are within Subassemblies).
• Display the level (Level) for easier review.

Step 4: Roll-up for FG Cost

• FG Cost = Sum (Qty × Cost) for each component after calculating the cost of subassemblies.
• Optional: Apply Scrap/Yield to consumption quantity or waste cost.

Step 5: Analyze Change Impact

• Compare BOM Version A vs Version B or Baseline vs Scenario.
• Show “Top 10 Components driving delta” to identify the cause of increase/decrease.

Step 6: Output Results for Use

• Unit Cost + Cost Breakdown for use in pricing or updating Standard Cost in ERP.
• Review report: Missing Costs / Circular BOM / UOM Issues before finalizing results.

Product Components (Clear Inventory)

1. BOM Master (Multi-level BOM Structure)
   • Fields: Parent | Component | Qty per | UOM | Level (calculated/optional) | Version | Effective Dates | Make/Buy.
   • Purpose: Source of truth for product structure and its branches.
2. Item/Component Cost Table (Component Costs)
   • Fields: Item | Cost Type | Standard/Last/Avg | Currency | Updated Date | Notes.
   • Purpose: Quick update of material costs linked to the Roll-up.
3. Subassembly Cost Sheet (Subassembly Costs)
   • Outputs: Cost of each Subassembly + Breakdown of its components + Depth level.
   • Benefit: Knowing “block costs” within the product instead of just seeing FG.
4. Roll-up Engine (Cost Roll-up Engine)
   • Outputs: Total FG Cost | Unit Cost | Cost Breakdown by Level/Type.
   • Options: Scrap/Yield | Additional Add-ons | Conversion/OH (optional).
5. Change Impact Analyzer (BOM Change Impact Analysis)
   • Outputs: Delta Cost vs Baseline + List of top impactful components.
   • Cases: Material alternative, quantity change, component deletion/addition, subassembly change.
6. Where-used Report (Where the component is used)
   • Outputs: List of products/assemblies that will be affected if the cost of this component changes.
   • Benefit: Support negotiation with suppliers and manage risks of price increases.
7. Data Quality Controls (Data Quality Controls)
   • Checks: Missing Cost | Circular BOM | Duplicate Lines | UOM mismatch | Negative Qty.
   • Benefit: Prevent approval of incorrect costs due to uncontrolled BOM data.
8. Dashboard (Dashboard)
   • KPIs: Highest FG Cost | Highest Cost Delta | Most Impactful Component | Cost distribution by BOM levels.

Suggested Tabs within the Delivery File

• BOM | Costs | Roll-up | Subassemblies | Change Impact | Where-used | Controls | Dashboard.

After Implementation (Only Two Points)

• Result for Product/Engineering: You will immediately know the impact of any change in the BOM or material alternatives on unit cost, before approving the change.
• Result for Finance/Pricing: You will have a reviewable Unit Cost and Cost Breakdown, making it easier to update Standard Cost and explain any changes in margins.

FAQ — Questions Before Purchase

Does the template support multiple BOM versions and effective dates?

Yes. You can enter Version and Effective From/To and then compare costs “before/after” (Baseline vs New).

How does the template handle Subassemblies?

If the component is “Manufactured/Subassembly” and has a BOM, the template will calculate its cost from its components and then roll it up to the higher level automatically.

Does it support Scrap/Yield?

Yes (optional). You can enter Scrap% or Yield Factor to adjust consumption/cost and show the impact of waste on Unit Cost.

Can OH or Conversion cost be included?

Yes as an option: either add a fixed Conversion Cost for each Subassembly/FG, or add OH as a value/percentage within the assemblies according to your policy.
(If you need advanced OH based on hours/work centers, it is best to link it with Routing/Work Centers or Job Costing models).

How does the template ensure result accuracy?

Through the Controls tab that reveals: components with no cost, BOM loops, duplicates, UOM issues.
Before approving any Cost Roll-up, review the warning list and resolve them.

Can it be used for pricing (Cost-Plus)?

Yes. Because it provides a detailed Unit Cost, you can add a target margin (Markup) and analyze the impact of BOM changes on price/margin.

If your goal is to accurately calculate the final product cost through multi-level BOM + analyze the impact of BOM changes

Outputs: FG Unit Cost + Subassembly Costs + Change Impact + Where-used + Dashboard + Data Controls.