When you are setting up bill of materials you have to consider the effort to maintain the data. If you create a BOM specific to each finished SKU and you have a lot of SKU’s then you will have a lot of BOM data to maintain. If  SKU’s share the same BOMs then you can re-use the BOMs for different SKU’s.

Here is a quick overview.

AX2012 R3 CU11

Cheers

Lachlan