
Yes, this can be handled effectively in Business Central by using a multi-level BOM or semi-finished item structure. In your example, the Ottoman can be produced as its own finished or semi-finished item, and then that same item can be used as a component in another Production BOM for the final product with the back attached.
When you produce the second item, Business Central will consume the Ottoman item from inventory along with the additional components required for the upgraded product.
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Regards,
Mansi Soni