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SAP AG 2007
Production
Maintaining bills of material (BOM)
Production process
Contents:
SAP AG 2007
Production: Unit Objectives
Describe the differences between individual bills of material (BOMs)
Carry out a production process for a production BOM
At the conclusion of this unit, you will be able to:
SAP AG 2007
Production: Business Scenario
Some of the items in your product range consist of various other items. You assemble these items before they are delivered to the customer.
SAP AG 2007
Elements in Production
Bills of Material (BOM) Sales BOM Template Production BOM
Production Orders(Production BOMs only) Standard Production Orders Special Production Orders Disassembly Production Orders
SAP AG 2007
Maintaining Bills of Material: Topic Objectives
Describe the differences between the individual types of bills of material
Maintain bills of material in the SAP Business One System
At the conclusion of this topic, you will be able to:
SAP AG 2007
Sales / Assembly BOM
M1007Monitor1 Unit
K1014Keyboard
1 Unit
V001PC Set1 Unit
S1008System Unit
1 Unit
Finished product: must be a sales item
Components: can be sales, purchase and stock items.
Category of the Item master records:
SAP AG 2007
Sales BOM
Define Bill of MaterialsDefine Bill of Materials
Product No.Description PC Set
V001
Customer
Item No. Description Quantity
C1000C1000
Total
V001
S1008
M1007
PC Set
System Unit
Monitor 1
1
1
K1014 Keyboard 1
50
275
10
Sales OrderSales OrderItem No. Description Quantity Total
S1008
M1007
K1014
System Unit
Monitor
Keyboard 1
1
1
50
10
275
Sales
315
BOM Type
315Total
Parent Product Price
You can not change or deletethe components
If there is a price on product- or component-
level depends on theDocument Settings in
the System Initialization
BOM TypeSales
SAP AG 2007
Template
Define Bill of MaterialsDefine Bill of Materials
Product No.Description Digital Camera Kit
X500
Customer
Description Qty
C1000C1000
X500
A1005
A1006
Digital Camera Kit
Case
Battery 2
2
1
A1015 UV Filter 1
99,96
73,80
21,05
Sales OrderSales OrderItem No. Description Quantity Total
A1005
A1006
A1015
Case
Battery
UV Filter 1
2
2
99,96
21,05
73,80
Template
BOM Type
194,81
Parent Product Price
BOM TypeTemplate
You could change the quantities and prices of the
product and the componentsand you could as well delete
components.
TotalItem No.
Total
SAP AG 2007
Production BOM
Board1 Unit
Axis2 Units
Screws8 Units
Wheels4 Units
Tire 1 Unit
Rim1 Unit
Screws4 Units
Skateboard1 Unit
Category of the item master record:
finished product must be an inventory item
SAP AG 2007
Category of the Item Master Record of the Finished Product for Bills of Material
Assembly Assembly BOM*BOM*
Production Production BOMBOM
Sales Sales BOMBOM
Inventory Item
Sales Item
Purchased Item (1.)
(1.) optional
TemplateTemplateBOMBOMTypeType
ItemItemCategoryCategory
(1.)
(1.)
(1.)(1.)
* The assembly BOM is only available for customers upgrading from previous versions.
SAP AG 2007
Phantom Item
Board1 Unit
Axis2 Units
Screws8 Units
Wheels4 Units
Tire 1 Unit
Rim1 Unit
Screws4 Units
Skateboard1 Unit
Phantom Item(does not appear in production orders and only for information in MRP)
SAP AG 2007
Additional Costs in Production
Board1 Unit
Axis2 Units
Screws8 Units
Wheels4 Units
Tire 1 Unit
Rim1 Unit
Screws4 Units
Skateboard1 Unit
Labor Costfor
Assembly
Labor Cost(Created as non-inventory item master record. Appear in production orders.)
SAP AG 2007
Product No. Quantity
Price List Price List High Volume
A1019
A1020
A1021
1
4
2
22,50
17,82
26,10
22,50
71,28
52,20
145,98
129,99 Product Price
Item No. Quantity Unit Price Total
Product Description
BOM Type
Skateboard
Production
Sales
Production
Template
P1001
CancelUpdate
1
Creating a Bill of Material
Quantity of the item produced with the
components
Price of finished productfor specified price list
Price list fordetermining
the component prices
Totalprice of
components
Finished Product
Components Determine price of finished products
from component
prices
SAP AG 2007
Update Parent Item Prices
Price for Child Items in Price List changes
or
Accept the suggested price for the BOM
Keep the current price for the BOM
Update Parent Items Prices Globally
32,5032,50
Difference
129,99129,99Suggested PriceItem
10 10
New Price
139,99139,99Current Price
17,82 17,82
P1001A1019A1020
run report
Update Remove
SAP AG 2007
Production Process: Topic Objectives
Describe the production process
Carry out a production process for a production BOM
At the conclusion of this topic, you will be able to:
SAP AG 2007
Production Order Types
Standard Production Order
Product
A B C
Special Production Order
Item
X Y Z
Disassembly Production Order
Product
A B C
SAP AG 2007
Production Process
ProductionOrder
Status: Planned
ProductionOrder
Status: Released
ProductionOrder
Status: Closed
manually
MRP
release close1.)
2.)
3b.)
4.)
receipt from production and
report completion
3a.)issue the
components for production
Components are committed but stock is
not yet affected.
SAP AG 2007
Type Standard / Special / Disassembly Due Date 20.10.2004Status Planned / Released / Closed / Cancelled Origin Manual / MRPProduct No. P1001 User Marc ManagerPlanned Qty 2 Sales Order …Warehouse 01 Customer …
Production Order: Component Tab Page
Components
Item No. Base Planned Issued Available Warehouse Issue Method
A1019 1 2 2 12 01 Manual / Backflush
A1020 4 8 96 01 Manual / Backflush
A1021 2 4 48 01 Manual / Backflush
Production OrderProduction Order
Summary
Base:Displays the quantity of the components necessary to manufacture one product.
Planned:Displays the value
of the planned quantity, which is the multiple of the base
quantity and the product planned
quantity.
Issued:Displays the total quantity
already issued for the
production order.
Available:Displays the
quantity of the item units
available in the specific
warehouse.
Issue Method:Manual – individual components of a
a parent item are issued manually.Backflush – components of a parent item are automatically issued to the production order once you report the
completion of the parent item.
SAP AG 2007
Type Standard / Special / Disassembly Due Date 20.10.2004Status Planned / Released / Closed / Cancelled Origin Manual /
AutomaticProduct No. P1001 User Marc ManagerPlanned Qty 2 Sales Order …Warehouse 01 Customer …
Production Order: Summary Tab Page
Components
Costs
Actual Component Cost 80Actual Additional CostActual Product Cost 80Total VarianceVariance per ProductVariance %
Journal Remark Production Order - P1001
Production OrderProduction Order
Summary
Quantities
Planned Quantity 2Completed Quantity 2Rejected QuantityDatesDue Date 20.10.2004 Actual Close Date Overdue
SAP AG 2007
Production Process Postings
Issue For ProductionIssue For
Production
Receipt from Production
Receipt from Production
Production Order CloseProduction Order Close
100
Stock AccountStock Account(of components)(of components)
90
Stock AccountStock Account(of Product)(of Product)
100
WIP AccountWIP Account
90
WIP AccountWIP Account
-10
WIP AccountWIP Account
-10
WIP Variance WIP Variance AccountAccount
SAP AG 2007
Stock Changes for Standard Production Order
In Stock - Committed + Ordered = Available
Sta
nd
ard
P
rod
uct
ion
Ord
er
Completion reported
Status: Planned
Components
Finished Product
Components
Finished Product
+ +
+
+ -
-
- -
SAP AG 2007
Production: Unit Summary
Describe the differences between individual bills of material
Carry out a production process for a production BOM
You are now able to:
