Question: What are for various options in Valuation Based On in the Bill Of Materials (BOM)?

Answer: There are 3 available options in the Valuation Based On field:

Valuation Rate: Item valuation rate is defined based on its purchase or manufacture value.

For items you buy, the valuation rate is set based on the costs recorded in the Purchase Receipt. If you haven’t made a Purchase Receipt for an item or done a Stock Reconciliation, there won’t be any valuation rate for that item.

Price List Rate: This option allows to pull item rates from Price List.

Last Purchase Rate: It will be the last Purchase (Order) Rate of an item.