A ERP system like Business Central becomes the backbone of manufacturing when the BOM is accurate. But even small errors in Bill of Materials can disrupt production, costing, procurement, and delivery timelines. This guide covers the most common BOM errors and clear steps to correct them inside your system.
Common BOM Problems in Business Central
- Missing Components
Critical items not added to the assembly or production BOM cause delays because procurement teams don’t get demand signals on time. - Incorrect Quantities
Overstated or understated component consumption leads to either over-buying or frequent stock-outs. - Wrong Item Versions or Codes
Selecting obsolete or incorrect part numbers creates failures on the shop floor and inventory mismatches. - Improper Unit of Measure (UoM)
Using “pcs” instead of “kg” or vice versa breaks material planning and cost calculations. - Circular BOM Structures
When a parent item is mistakenly added as a child component, the structure creates a loop and production orders fail to process. - Costing Gaps
Components added without updated costs distort the final product cost, affecting margins and pricing.
How BOM Drives Manufacturing Impact
- Production Delays → Work orders pause when items are missing or invalid.
- Planning Issues → MRP pulls wrong demand if structure or UoM is faulty.
- Margin Leakage → cost roll‑up becomes unreliable with quantity or costing errors.
- Purchase Chaos → requisitions and vendor orders inflate or miss materials.
- Inventory Noise → Output entries don’t match actual consumption, breaking warehouse accuracy.
Step-by-Step BOM Troubleshooting
1. Validate the BOM Structure
Open the BOM card of the parent item and verify:
- Every required component is listed
- No obsolete or discontinued item codes exist
- Parent item is not listed as its own component (avoid circular loop)
Use the Where-Used feature to check if the parent component is incorrectly referenced elsewhere in its own structure.
2. Check Quantities & Unit of Measures
- Confirm component quantities per 1 finished product
- Validate Unit of Measure on each component (pcs, kg, box, liters etc.)
- Compare with engineering or product design sheet to verify correctness
3. Review Item Master Data
Go to the Item List and check:
- Blocked or inactive items
- Missing replenishment method (Purchase, Make, Assembly)
- Variant/version mismatches
If items are obsolete, replace them with updated codes on the BOM and re-certify the BOM status.
4. Run Cost Roll-Up
After structural fixes:
- Update component costs
- Run the Cost Roll-Up batch job to refresh the parent item cost
- Verify landed cost if applicable
This ensures finance teams see the right valuation before releasing production orders.
5. Test with a Production Order
Create a sample Production Order for the finished product and verify:
- All components pull correctly
- Consumption posting works without errors
- No planning or UoM conflicts are triggered
6. Lock & Version-Control the BOM
To prevent repeated errors:
- Maintain BOM versions (Use BOM Versioning for engineering changes)
- Use approval workflows for BOM modifications
- Assign role permissions so only authorized teams edit production BOMs
Useful Built-in Business Central Features for BOM Accuracy
| Feature | Benefit |
|---|---|
| Where-Used | Identifies incorrect parent/child relationships |
| BOM Versioning | Tracks engineering updates without breaking active orders |
| Item Variants | Ensures correct part version is issued |
| Cost Roll-Up | Refreshes finished goods cost after BOM change |
| Production Order Simulation | Tests BOM reliability before release |
| Workflow Approvals | Prevents unauthorized or accidental edits |
Best Practices to Avoid Future BOM Issues
- Do BOM reviews with engineering before release
- Standardize naming and UoM for all item masters
- Maintain BOM versions for every change instead of modifying the base BOM
- Run costing updates before month-end valuation
- Train teams to use “replace component” instead of deleting parts directly
- Keep audit logs enabled for BOM modifications
Final Note
BOM accuracy isn’t just a manufacturing need — it improves operational planning across finance, purchase, warehouse, and sales. Regular validation using Business Central’s built-in checks can eliminate planning failures and margin erosion before they reach your shop floor.
