make to order or BoM line type in AX

Hi, I am trying to run the BoM calculation using planned costing. I have several sub-BoMs and routes for both parent and sub-boms. I am trying to understand the implications when I set the explosion mode to ‘multi-level’ vs BoM line type or Make to Order. Does it affect the price calculation of BoM or from a planning perspective? Appreciate if someone could give an example. Thanks a lot

From msdn for the explosion mode:

BOM calculations with planned costs. Policies within the costing version (for planned costs) can optionally mandate enforcement of five BOM calculation policies, or simply provide default values. The recording restriction check box within the costing version determines whether the BOM calculation policy about miscellaneous charges will be mandated, or act as a default value. Miscellaneous charges can be optionally included in the unit price.

The calculation restriction check box within the costing version determines whether the other four BOM calculation policies will be mandated or act as default values.

  • The source of a purchased item’s cost contributions can be the item cost records within a costing version or the source can be defined by the BOM calculation group that is assigned to the item. For example, the BOM calculation group could define purchase price trade agreements as the source of cost contribution data.

  • The explosion mode can be single level, multilevel, make-to-order, or based on the BOM line item. The explosion mode for BOM line type replicates the cost calculation logic for production order estimates.

  • The profit setting can be mandated or a default value. The costing version must allow content of sales prices in order to use the profit setting and to generate the item sales price records.

  • The fallback principle can be mandated or a default value, where the principle can be none, active cost records, or a specified costing version.

From the manual:

Single level - The calculated cost reflects the previously calculated costs of first-level manufactured components.

Multilevel - The calculated cost reflects a complete recalculation of costs for all manufactured components in a multilevel bill.

According to BOM line type - The calculated cost reflects a complete recalculation of costs for all manufactured components, but considers the BOM line type of a manufactured component. For cost calculation purposes, a manufactured component will be treated as a purchased item when the BOM line type is item. This option (according to BOM line type) replicates the cost calculations for production order estimates.

Make to order - The calculated cost reflects a complete recalculation for all manufactured components, but the specified quantity will be used to amortize constant costs that are associated with manufactured components (rather than each item’s standard order quantity).