How Cost Price Is Computed from BoM in Odoo 18 (Ent) 

In Odoo 18, the Cost Price of a product can be automatically calculated using its Bill of Materials (BoM). This feature is mainly used for manufactured products, where the final product cost depends on raw materials and operations.

This blog explains how BoM-based cost computation works step by step.

What Is BoM-Based Costing?
BoM- based costing means:
  * The cost of a finished product is calculated from: 
          * Raw materials cost
          * Manufacturing operations cost (if any)
  * When raw material cost changes, the product cost can be recomputed automatically

Step 1: Create Raw Materials with Cost Price
  * Go to sales Module → Products   →  Create New Product 

  Step 2: Create the Finished Product
    * Create a new product (Finished Product)
    * Set Product Type: Goods
  Step 3: Create Bill of Materials (BoM)
    * Click  Bill of material Button →  Bill of Materials
    * Click New
    * Select:

  
  * BoM Type: Manufacture this product
 Step 4: Compute Cost Price from BoM
  * Open the Finished Product
  * Go to General Information
  * Click Compute Price from BoM 

The Cost Price field will be updated automatically.

 Step 5: Cost Update When Component Price Changes
If a raw material cost changes:
  * Update the Cost Price of the component
  * Re-click Compute Price from BoM
 The finished product cost will be recalculated based on the updated values.

Important Notes
  * BoM cost computation works only for manufactured products
  * Sub-BoMs (multi-level BoMs) are also included in cost calculation
  * Scrap cost can be included if configured
  * Used mainly with:
           * Standard Price
           * Automated inventory valuation (Manufacturing)

Business Benefits
      * Accurate manufacturing cost
      * Automatic cost update
      * Better margin calculation
      * Reduced manual errors

Conclusion: 

In Odoo 18, BoM-based cost price computation helps businesses maintain accurate product costing by automatically calculating costs from raw materials and operations. By using the Compute Price from BoM option, manufacturers can ensure their cost prices are always up to date and reliable.