alternae item group bom

Generated by Jive on 2015-04-21+02:001

Concept of Alternative Item group functionalityin BOM

Use of Alternative Items:

When there are several alternative components in an assembly, you can enter these in the bill of material and

combine them by grouping the alternative items.These alternative items are taken into account when exploding

the BOM during the planning run and when reservations are generated against orders.

Additional Checks:• An alternative item cannot also be a co-product• Discontinuation data (Discontinuation data function key) is not supported for alternative items• If an alternative item is defined as a material to be discontinued in its material master, you see a

warning when you enter the alternative item group in the BOM: When the BOM is processed inrelated application areas (for example, MRP), the alternative item overrides the discontinuation data.

• An item in an alternative item group cannot be a phantom assembly

Data to be maintained in BOM:• Priority : Defines the priority of the item within an alternative item group. This determines the priority

for planned withdrawal of items.• Strategy: Strategy will determine how selection of the item for planned withdrawal is controlled within

the alternative item group.Strategy should be the same for all alternative items in an alternative itemgroup.If the value 2 (100% check) is defined for the strategy, the first material in the defined prioritysequence for which sufficient quantities are available is reserved.

• Usage Probability: MRP plans these alternative material components according to probabilityof use.Percentage is entered to show the probability of using an object in production. Materialrequirements for the BOM components are planned according to the usage probability. The plannedwithdrawal for the production order is based on reservation lists. These lists are based on the priorityand strategy for the alternative item.

Process Steps:• Maintain PIR for FERT material in MD61• Run MRP (MD02)• Check Stock Requirements List (MD04)• Convert Planned Order to Production Order ( CO40 or CO01)• Reservation List (MB24)

Scenario 1: What is the impact on MRP and Reservation List if Master data like different priority,

strategy 1 and different probability % is maintained for alternative items in BOM.

Conclusion : When alternative item strategy is maintained as 1(Manual maintenance/by usage pr) in

MRP Run and Reservations stock availabilty and does not have any role. Probability % maintained will

drive for procurement proposals quantity and reservations will be generated on probability % only.

Master data Maintained for Scenario 1 :

Concept of Alternative Item group functionality in BOM


FERT Material (M-800) , ROH Alternative 1 Material (T-T029),ROH Alternative 2 Material (100-210) are

created.

BOM maintained for FERT with two ROH alternative materials as given in below screen shot:

For Alternative material 1 (T-T029) - Maintained Priority - 1, Strategy - 1, Usage Probability - 70 are

maintained as given below:

For Alternative material 2 (100-210) - Maintained Priority - 2, Strategy - 1, Usage Probability - 30 are




Step 1: Maintain PIR for FERT Material ( MD61):

PIR maintained for the FERT Material M-800 in MD61 as shown below

http://scn.sap.com/servlet/JiveServlet/showImage/102-52036-1-380097/ac00.png



MD04 Stock Requirement list

Step 2: Run MRP(MD02)

MRP executed for FERT M-800 in MD02



Step 3: Stock Requirements List:

After MRP executon, planned order generated for FERT M-800 material for qty 100 as PIR maintained for 100

qty.

http://scn.sap.com/servlet/JiveServlet/showImage/102-52036-1-380071/AC6.png



For Alternative 1 Raw material T-T029 PR generated for qty 140 as the below calculation

Actual Qty = BOM Qty 2 X FERT PIR Requirement qty (100) = 200

Probability % maintained as 70. Hence system should calculate 200 * 70 /100 = 140

For Alternative 2 Raw material 100-210 PR generated for qty 60 as the below calculation





Step 4 : Creation of Production Order for FERT material M-800:

Production Order created for FERT material M-800 for 100 qty as displayed below



Production Order - Component Overview:

System generated reservation for alternative materials 1(T-T029) and alternative material 2(100-210) for qty

140 and 60 as displayed below.

Priority does not have any impact on reservation when strategy is maintained as 1 (Manual maintenance/by

usage pr)



Step 5 :Reservation List (MB24)

Scenario 2: What is the impact on MRP and Reservation List if Master data like different priority,

strategy 2 and different probability % is maintained for alternative items in BOM.

Conclusion : When alternative item strategy is maintained as 2(100% check) in MRP Run system will

generate procurement proposals as per the Probability % maintained. In case of reservations based

on priority stock availability will be checked for the alternative materials and accordingly system will

create reservation.




Master data for Scenario 2:

For Alternative material 1 (T-T029) - Maintained Priority - 1, Strategy - 2, Usage Probability - 70 are


For Alternative material 2 (100-210) - Maintained Priority - 2, Strategy - 2, Usage Probability - 30 are


http://scn.sap.com/servlet/JiveServlet/showImage/102-52036-1-380340/E1.png



Step 1: MD02 MRP run for Finsihed Material M-800

Planned order created for FERT material M-800 as displayed below:

http://scn.sap.com/servlet/JiveServlet/showImage/102-52036-1-380341/E2.png



For Alternative 1 Raw material T-T029 PR generated for qty 140 as the below calculation



In case of MRP probability % is considered for generating Purchase Requisitions.

Similarlly for Alternative 2 Raw material 100-210 PR generated for qty 60 as the below calculation





Step 2 : MB1C Stock Posting for Alternative materials:

Inorder to check the priority functionality incase of stock availability, manually posted stock for both the

alternative materials as given below:

Step 3: Stock Requirement List:

Stock requirement lis t of Priority 1 maintained alternative material (T-T029) is displayed as shown below



Step 4: Create Production Order :

Production order created for FERT material M-800. In case of strategy 2, system first checks the priority and for

priority 1 material system checks the stock avialabilty. Stock is available for both the alternative materials, but

system proposed reservation for priority 1 material T-T029 for 200 qty as shown below. ie; Probability % is

not considered.

Step 5: Reservation List :

Reservation list is displayed below.



FAQ'S:

1. What happens if the stock of priority 1 material is not available, but stock of priority 2 material is

available?

Solution:

Stock of priority 1 material (T-T029) = 100 qty

Stock of priority 2 material (100-210) = 500 qty

As displayed below, system created reservation for priority 2 material as stock is available only for priority 2

material.

Reservation List for Priority 2 material is displayed below:

2. Can we maintain Pobability % as 0 (ZERO) for any one of alternative material ?



Solution:

Yes you can maintain. System will throw warning message but it will be saved.

3. What happens if probability % is maintained as 0 (ZERO) for any one of alternative material ?

Solution:

MRP will not plan any requirement for that material and in order also system will not generate any reservation

quantity.

Documentation Referred:

Alternative Items (SAP Library - Production Orders (PP-SFC))

http://help.sap.com/saphelp_erp2004/helpdata/en/b1/c044c4439a11d189410000e829fbbd/content.htm

alternae item group bom

Documents

alternative item strategy

alternative components

alternative itemgroup

roh alternative materials

fert material

material master

usage probability

material tt029