Users have the option to adjust the Currency within the BOM before its submission. The system computes the costing based on the currency specified in the Price List. By modifying the currency within the BOM, users can review the manufacturing cost in a specific currency.

For instance, suppose your company imports plastic raw materials from Japan, and the sales invoices are denominated in Yen. Although your company’s currency is INR, you may prefer to calculate the BOM costing in Yen. By setting the ‘Rate Of Materials Based On’ to ‘Price List’, the rates for the raw materials listed in the BOM will be set in Yen. These rates are retrieved from the Price List created for Japan, typically known as ‘Import Japan’.

Alternatively, if you opt for ‘Rate Of Materials Based On’ as ‘Valuation Rate’ or ‘Last Purchase Rate’, the prices will be obtained from the Item master or the Sales Invoice respectively. When using the Item master, you need to input the Valuation Rate in your company’s currency. Subsequently, in the BOM, the Valuation Rate will be converted to the currency specified within the BOM.