SAP AG 2003

Production

Maintaining bills of material (BOM)

Production process

Contents:

SAP AG 2003

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 2003

Production: Course Overview Diagram

Purchasing

A/P

Production

Master Data

Fundamentals of SAP Business One

Cross-Functionalities

Document Handling

Human

Resources

Sales

- A/RCRM

Service

Inventory

Transactions

MRP

SAP AG 2003

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 2003

Elements in Production

Bills of Material (BOM)

Sales BOM

Assembly BOM

Template

Production BOM

Production Orders

(Production BOMs only)

Standard Production Orders

Special Production Orders

Disassembly Production Orders

SAP AG 2003

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 2003

Sales / Assembly BOM

A1007

Golf Balls

6 Units

A1014

Tee Set

1 Unit

V001

Golf Set

1 Unit

A1008

Golf Clubs

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 2003

Sales BOM

Define Bill of Materials

Product No.

Description Golf Set

V001

Customer

Item No. Description Quantity

C1000

Total

V001

A1008

A1007

Golf Set

Golf Club

Golf Balls 6

1

1

A1014 Tee Set 1

6,25

275

2,5

Sales OrderItem No. Description Quantity Total

A1008

A1007

A1014

Golf Club

Golf Balls

Tee Set 1

6

1

6,25

2,5

275

Sales

315

BOM Type

315Total

Parent Product Price

You can not

change or delete

the components

If there is a price on

product- or component-

level depends on the

Document Settings in

the System Initialization

BOM Type

Sales

SAP AG 2003

Assembly BOM

Define Bill of Materials

Product No.

Description Golf Set

V001

Customer

Item No. Description Quantity

C1000

Total

V001 Golf Set 1 315

Sales OrderItem No. Description Quantity Total

A1008

A1007

A1014

Golf Club

Golf Balls

Tee Set 1

6

1

6,25

2,5

275

Assembly

315

BOM Type

Parent Product Price

315Total

BOM Type

Assembly

The components

are not

displayed

SAP AG 2003

Template

Define Bill of Materials

Product No.

Description Ball Set X5

X500

Customer

Description Quantity

C1000

X500

A1005

A1006

Ball Set X5

Football St.

Football WC 2

2

1

A1015 Volleyball 1

99,96

73,80

21,05

Sales OrderItem No. Description Quantity Total

A1005

A1006

A1015

Football St.

Football WC

Volleyball 1

2

2

99,96

21,05

73,80

TemplateBOM Type

194,81

Parent Product Price

BOM Type

Template

You could change the

quantities and prices of the

product and the components

and you could as well delete

components.

TotalItem No.

Total

SAP AG 2003

Production BOM

Board

1 Unit

Axis

2 UnitsScrews

8 UnitsWheels

4 Units

Tire

1 UnitRim

1 Unit

Screws

4 Units

Skateboard

1 Unit

Category of the item master record:

finished product must be an inventory item

SAP AG 2003

Category of the Item Master Record of the Finished

Product for Bills of Material

Assembly

BOM

Production

BOM

Sales

BOM

Inventory Item

Sales Item

Purchased Item (1.)

(1.) optional

TemplateBOM

TypeItem

Category

(1.)

(1.)

(1.)(1.)

SAP AG 2003

Phantom Item

Board

1 Unit

Axis

2 UnitsScrews

8 UnitsWheels

4 Units

Tire

1 UnitRim

1 Unit

Screws

4 Units

Skateboard

1 Unit

Phantom Item

(does not appear in production orders

and only for information in MRP)

SAP AG 2003

Additional Costs in Production

Board

1 Unit

Axis

2 UnitsScrews

8 UnitsWheels

4 Units

Tire

1 UnitRim

1 Unit

Screws

4 Units

Skateboard

1 Unit

Labor Cost

for

Assembly

Labor Cost

(Created as non-inventory item

master record.

Appear in production orders.)

SAP AG 2003

Product No. Quantity

Price List Price List High Volume

A1019

A1020

A1021

1

4

2

Eur 22,50

Eur 17,82

Eur 26,10

Eur 22,50

Eur 71,28

Eur 52,20

Eur 145,98

Eur 129,99Parent Product Price

Item No. Quantity Unit Price Total

Product Description

BOM Type

Skateboard

Production

Assembly

Sales

Production

Template

P1001

CancelUpdate

1

Creating a Bill of Material

Quantity of the item

produced with the

components

Price of finished product

for specified price list

Price list for

determining

the component

prices

Total

price of

components

Finished Product

Components Determine

price of

finished

products

from

component

prices

SAP AG 2003

Update Parent Item Prices

Price for Child Items in Price List changes

or

Accept the suggested

price for the BOMKeep the current

price for the BOM

Update Parent Items Prices Globally

32,50 EUR

Difference

129,99 EUR

Suggested PriceItem

10 EUR

New Price

139,99 EUR

Current Price

17,82 EUR

P1001

A1019

A1020

run report

Update Remove

SAP AG 2003

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 2003

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 2003

Production Process

Production

Order

Status: Planned

Production

Order

Status: Released

Production

Order

Status: Closed

manually

MRP

release close1.)

2.)

3b.)

4.)

receipt of

the product

from production

3a.)issue the

components

for production

SAP AG 2003

Type Standard / Special / Disassembly Due Date 20.10.2004

Status Planned / Released / Closed / Cancelled Origin Manual / MRP

Product No. P1001 User Marc Manager

Planned 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 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 2003

Type Standard / Special / Disassembly Due Date 20.10.2004

Status Planned / Released / Closed / Cancelled Origin Manual / Automatic

Product No. P1001 User Marc Manager

Planned Qty 2 Sales Order Warehouse 01 Customer

Production Order: Summary Tab Page

Components

Costs

Actual Component Cost 80

Actual Additional Cost

Actual Product Cost 80

Total Variance

Variance per Product

Variance %

Journal Remark Production Order - P1001

Production Order

Summary

Quantities

Planned Quantity 2

Completed Quantity 2

Rejected Quantity

Dates

Due Date 20.10.2004

Actual Close Date

Overdue

SAP AG 2003

Production Process Postings

Issue For

Production

Receipt from

Production

Production

Order Close

100

Stock Account

(of components)

90

Stock Account

(of Product)

100

WIP Account

90

WIP Account

-10

WIP Account

-10

WIP Variance

Account

SAP AG 2003

Stock Changes for Standard Production Order

In Stock - Committed + Ordered = Available

Sta

nd

ard

Pro

du

cti

on

Ord

er

Completion reported

Status: Planned

Components

Finished Product

Components

Finished Product

+ +

+

+ -

-

- -

SAP AG 2003

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: