Multi-Level BOM Cost Calculation when BOMs are for different warehouses.

​@apallawala22 

Did you try specifying the warehouse for the Level 0 BOM in its parent BOM?

For example, if your finished product A with BOM A is manufactured in Warehouse A, but its subassembly is manufactured in Warehouse B, then the subassembly material is being supplied to BOM A from Warehouse B. In that case, you should specify Warehouse B on the subassembly material line in BOM A.

This allows the system to determine which warehouse-specific BOM should be used during the cost roll-up and ensures that the correct costs are calculated based on the BOM defined for that warehouse.

@apallawala22 you've read it right. With the level 0 material line on the other warehouse, one multi-level roll won't carry the new level 1 cost up.

The roll does calculate level 1 first. It saves that cost against the level 1 BOM's warehouse, though, and level 0 looks for it in the warehouse on its own material line. Nothing's there, so level 0 takes the item's current standard cost.

To keep your setup, do it in two rounds. On 2025 R2 and later, run Generate Cost Rollups with Level set to Multi. Then on Process Cost Rollup Results, update pending costs for just the level 1 and level 2 items and run Update Standard Costs for those two. Roll again and level 0 picks up the new level 1 standard. Finish by updating pending and standard for level 0. Update Standard Costs revalues stock on hand, so check Standard Cost Change Preview before running it and try the sequence in a test tenant first.

Pragati's suggestion gets it done in one roll if you can put the level 1 warehouse on that material line. Before you rely on it, check the replenishment source on the level 1 item's warehouse record for the level 0 warehouse. If it's Transfer, the roll still uses current standard cost unless you select Ignore Replenishment Source on Generate Cost Rollups.