We created a BOM with raw materials and other expenses. But when we created the manufacturing record, the cost per product is higher than expected. Why is this happening?
Did you check whether the raw material rates changed after the BOM was created?
Yes, purchase rates were updated last week.
That explains it.
BOM defines structure (quantities + ratios), but the manufacturing record calculates cost based on the current item rates at the time of manufacturing.
If rates changed, cost per product will change accordingly.
Understood. So BOM is structural, not a locked cost template.