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BOM Group: It is collection of bill of materials which enable you to describe a product or similar
products
Eg: All variants of a variant BOM and all alternatives of a multiple BOM is an example of BOM
Group
Group BOM: It is a BOM wherein u do not assign any plant while its creation. This means this
BOM can be later assigned to any plants as per requirement.....There is no specific plant
assigned while making it
BOM Group :
this gives you an additional way of accessing the BOM. The system stores the following under a
BOM group:
all the alternatives in a multiple BOM
all the BOMs entered for a variant BOM
All the alternatives and variants are stored under the BOM group
and
A bom WITHOUT A PLANT IS CALLED GROUP BOM.
Group BOM:
If you create a material BOM without reference to a plant, the BOM is valid throughout your
company. To do this, you leave the Plant field blank. The system checks whether material
masters exist. There are no system checks for plant data.
However, you can also create a group BOM, without reference to a plant. For example, a
designer maintains a group BOM during the design phase of a product, then the BOM is
allocated to one or more plants for production purposes.
Group Bom is independent of plant and you can create the Group bom using the same
transaction CS01, without entering a plant.
Once you created the group bom , you can assign to individual plants using CS07.
Be aware, if you make any changes in the group bom it will affects all the plants assigned to it.
Use
Each item has a unique identification in a BOM group (all alternatives of a multiple BOM or all
variants of a variant BOM).
Features
The item ID identifies an item. The item ID can only be assigned on the Item Overview:
General screen or the General data item detail screen.
Internally
If you do not enter an item ID, the system assigns one automatically. Internally assigned item IDs are
always numeric.
Externally
An external item ID can only be assigned once in a BOM group. For example, once you assign item ID
MAD01 in alternative 01 of a multiple BOM, you can no longer assign item ID MAD01 in alternative
02.
If you want to use the same item ID for different items that belong together (such as different
versions of an item), you must define additional settings in Customizing.
See also:
Use
You can enter the same external item ID for logically-related items. For example, you might want to
define that different versions of an item become effective again under the same item ID.
Prerequisites
You have assigned the item ID of the item externally. In this case, the item ID has at least one
alphanumeric character (for example, MA000001).
In Customizing for bills of material, set the following indicators under Define modification
parameters:
EC management active
This indicator defines that an item can become effective again under the same external item ID. The
system does not check the effectivity conditions, such as the Valid-fromdate.
Procedure
1. Go to the item overview for entering the component for example, the material item
overview for entering a stock item.
2. Check the item ID of the item that you want to replace with a new item as a result of a
change (for example, item ID MA000001).
In the item ID field, enter the item ID that is already defined externally for another item in the BOM
group (for example, MA000001).
Author Written by Velmurugan Saravanavelu and last updated on Posted onApril 30, 2017.
Welcome to the tutorial about SAP Bill of Materials (BOM) in SAP PP. This tutorial is part
of our free SAP PP Training course. In this tutorial, we will explain what is BOM in SAP,
how to create it, meaning of various fields in BOM master data, and how to change existing
bills of materials.
SAP bill of materials (BOM) is one of the elements of SAP PP master data which contains
information like list of components and their quantities required to produce an assembly or a
finished good (FG). In SAP, different BOM categories are available which are used in
different applications or functional areas of an organization.
In SAP production planning, SAP bill of materials (BOM) is used for the
following functions:
MRP uses BOM to calculate required raw materials or semi-finished goods (SFG) or components
quantity for customer demand of finished materials.
MRP performs Net Requirement Calculation at all the level of BOM by exploding it to determine
the shortage quantity.
During finished good (FG) product costing, the SAP system performs costing of its component by
exploding BOM.
Product costing comprise of raw material, activity and overhead costs. Here, raw material price
is maintained in a material master and its required quantity for a particular FG is maintained in
BOM.
During product costing, the SAP system multiplies quantity in BOM with material master price to
determine its cost against the particular FG.
When production order is created for an assembly or FG, its BOM components are copied to the
order.
At the time of goods issue against order, the system posts the consumption based on this BOM
components in an order.
There are 3 different types of BOM that are used in SAP PP:
1. Simple BOM
2. Multiple or Alternate BOM (technical type M)
3. Variant BOM (technical type V)
An Alternate Bill of
Materials
Here, the end product is same but its components are different.
Variant BOM
Here, the end products are different but having common or similar parts like frame, saddles,
etc. and a variant part.
BOM explosion means break down of an assembly from a higher level to components in
lower levels. The SAP system breaks down the assembly by means of its lower level codes.
Lower level codes will be assigned by the system automatically when an item is linked with
the BOM. When one material is appearing in several assembly BOM at different levels, the
system represents the lowest low level code.
BOM Explosion
We can display the lower level code of a material in a material master (transaction MM03)
(additional data menu item or by clicking button).
SAP Bill of Materials can be created by accessing the transaction code mentioned below
Create an SAP
A material master must exist for all assemblies and components before creating a BOM.
Here BOM Usage controls application or business function that can use this Bill of Materials.
For example, BOM of a product in a design phase will have the usage 2 which cannot be used
for production purposes.
Each BOM has a unique structure which is applicable for all BOM types as illustrated below.
SAP Bill of Materials
Structure
BOM Header
BOM NUMBER
This number is assigned internally by the system. System uses this for linking with
transaction data and other PP applications like MRP, production order, etc.
ALTERNATE BOM
This field represents an alternate BOM if more than one BOM exists for the material.
TECHNICAL TYPE
This field tells which technical types the BOM belongs to.
When we create a BOM for an assembly, the SAP system creates Alternate 1 with technical type
(Blank).
When we create a BOM the second time for the same assembly, it creates Alternate 2 and
changes technical types as M
For products that have common similar parts, BOM will be created as a Variant BOM (Technical
types V)
BOM BASE QUANTITY
This is the quantity for which component quantity will be entered. This base quantity will be
used in BOM explosion at the time of MRP and costing.
BOM Items
ITEM CATEGORY
Each BOM components is assigned an item category which classify the BOM items. Here are
the possible item categories for BOMs:
Stock Item Item can be kept in stock. The SAP system generates reservation at the time of order creation.
Item cannot be kept in stock, may be procured directly at the time of consumption. The SAP system generates PR or Planned order at the
Non-Stock Item time of Order creation.
Variable Size
Different sized materials are assigned with this item category. Required quantity is calculated based on Sizes and Formula entered.
Item
PM Structure
This item category will be used only for Plant maintenance BOM.
Item
Intra Material Temporary material which exist between 2 operations/phases. Commonly used in Process Industry.
Document (design, drawing, photos, etc.) can be assigned to the BOM as an item using this Item category. A valid document master
Document Item record is required for this.
Text Item A text required for shop floor paper can be maintained here.
Class Item This item category is used for configurable material to classify the materials.
Basic Data in BOM Items
FIXED INDICATOR
When component quantity is not based on an assembly quantity and always consumed in
fixed amount, this indicator can be used.
Example:
Catalyst used for a chemical process is always fixed without respect to quantity of FG
produced.
COMPONENT SCRAP
Scrap that occurs when a component is converted into a final assembly is called Component
Scrap. Component scrap can occur by means of any one of the following:
Component scrap can also be entered in BOM as well as in a material master. Component
scrap maintained in a material master is applicable for all BOM products. When different
component scrap percentage is required for particular product, it can be maintained in BOM.
Example:
Lets say 1 PC of Assembly A1 requires 2 PC of Raw material R1 which has 20% component
scrap in Bill of Materials. Assume that there is no stock available for A1 and R1. When
demand of 500 PCs is received for an assembly, MRP calculates requirement quantity as
follows:
Here, the system will only consider the operation scrap percentage entered here and not
include assembly scrap (if any) entered in the MRP-1 view of a material master.
This WIKI page aims at providing an overview of various scraps involved in day to day Production & Procurement
activities, their dependencies and the calculation of scrap quantities.
Content
1. Scrap
2. Types of Scrap
3. Assembly Scrap
4. Component Scrap
5. Operation Scrap
6. Scrap Calculation
Scrap
Non-conforming material that cannot be reworked or used and has no value except for its material content.
Types of Scrap
The following are the various scraps that are maintained
1. Assembly Scrap
2. Component Scrap
3. Operation Scrap
Assembly Scrap
Percentage scrap that occurs during production of the material if the material is an assembly.
Takes into account all faults that occur when the individual components of an assembly are assembled (in production).
Maintained in the Material Master - MRP 1 View as percentage
Assembly scrap is used in materials planning to calculate the lot size of the assembly. The system increases the
quantity to be produced by the scrap quantity calculated.
Dependency:
The system increases the quantity to be produced for all of the assembly's components accordingly.
Let the material master record of header material FERT contains an 10% of assembly scrap. The subordinate
component ROH quantity will be calculated as below to include the scrap.
The resulting component quantities for ROH is calculated for 1,100 pieces of assembly FERT.
Component Scrap
Percentage of scrap that occurs during production of the material if the material is a component. It takes into account all
faults that occur before the component is put into an assembly (material provision scrap).
Applies only to one component
Component scrap can be maintained
- In the BOM on the Item detail screen: basic data under Quantity data. This component scrap is only relevant to the
individual BOM.
- In the material master record on the MRP 4 screen under Requirements explosion. If the same component scrap
applies to a material in a number of BOMs, then it can be maintained in the material master record.
Component scrap is used in material requirements planning (MRP) to determine the quantities of components required.
When exploding the bill of material (BOM), the system increases the required quantities of the components by the
calculated scrap quantity
If the component scrap is only relevant to the individual BOM, then it can be maintained in the BOM Item detail screen
If the same component scrap applies to a material in a number of BOMs, then it can be maintained in the material
master record.
below.
In BOM, component scrap of 10% is maintained for a material component ROH. The component quantity will be
calculated as below to include the scrap.
If an adjusted required quantity of 1,100 pieces of FERT is to be produced, then 1,210 pieces of component ROH are
required.
Operation Scrap
Scrap that is expected in one operation for the quantity of a component to be processed
Used to override the assembly scrap for materials of high value
If operation scrap is maintained, situations where too much of the material is planned in MRP for the components of
subsequent operations can be avoided
If an entry for Operation scrap is made, then Net Scrap Indicator must be set to active
Applies to only one component
Determines whether scrap for the component is calculated on the basis of the net required quantity (the required
quantity without assembly scrap from the material master record).
Must be set to exclude Assembly scrap
Must be set to override assembly scrap with operation scrap
Can be set if only component scrap is entered, to calculate scrap on the basis of the net required quantity for the
assembly
Operation scrap is maintained as 1% for one of the component ROH2 in the BOM. This component is also subject to
assembly scrap of 10%. For 1000 pieces of FERT assembly, the following is the scrap calculation for component
quantities.
Scrap Calculations
Scrap calculation depends on the entry of various scraps (Assembly, Component & Operation scrap) for the Assembly
& Component Material and also influenced by Net Scrap Indicator in the BOM Item detail.
Master data:
The following are the scrap quantities calculated for the above master data:
Hi,
There are three types of scraps used in SAP PP.
1. Assembly Scrap.
2. Component Scrap
3. Operation Scrap..
Assembly Scrap
During Production there will be some loss always due to various reasons and due to this we will get
less output than the planned onefor example if planned to produce a qty of 100 KG we may get
around 99.5 KG as the final output or yield..Now to get the actual output as the planned one we need
to increase the planned qty by some percentage so that we will get the output as per the expectation..
For this we use Assembly Scrap
Assembly scrap increases the order quantity of the header material and subsequently increases the
order quantity for corresponding components. The dependent requirements of the material
components are therefore increased correspondingly.
Settings : You have to maintain the assembly scrap in the material master (MRP1 view) as a
percentage in the Assembly scrap field for the assembly header material.
Flow :
Maintain 5% as the assembly scrap in the MRP1 view in material master for the header material
Create Process order for header material with order qty as 1
system increases the order qty by 5% as shown below.
Now go to components overview you can observe components qtys are also increased by 5%
Flow :
Maintain 5% as component scrap in in the BOM item details for the component 200-210 as shown
below..
create process order for header material with order qty 1
Now go to component overview in the process order and you can observe that only qty of
component 200-210 is increased by 5%
You can maintain the component scrap in material master MRP4 view of the component 200-210
as shown below.
Operation Scrap
During Production process after a particular operation you may get some loss. Now you need to
adjust the qty, standard values and other values of the subsequent operations. For this Operation
scrap is used in production.
Settings :
You can enter operation scrap (in %) in the routing and in the BOM.
The operation scrap entered in the routing refers to the activity quantity consumed, while the
operation scrap entered in the BOM refers to the material quantity used. In this case, the net
indicator must be turned on.
Flow :
Now create Production order for header material with order qty 100 KG
Now go to Operation overview
Scroll to right..you will be able to see operation qty of second operation and third operations
are reduced by 10%
Maintain the operation scrap as 5% in the BOM component 2160 and also activate indicator Net
ID in the item details as shown below
Also refer
https://help.sap.com/saphelp_erp60_sp/helpdata/en/d1/95d7531a4d414de10000000a174cb4/fra
meset.htm
Example:
GENERAL DATA
RECURSIVE ALLOWED
When the same material is as a header material as well as BOM item, the BOM is called
Recursive BOM. This case frequently happens in Process industry as well as
Pharmaceutical industry. For instance, consider an example below:
In foundry process, liquid metal is produced by melting charge materials like ion, brass, etc. They
are melted and poured into a mold to form a casting.
During the melting process unconsumed liquid metal also consumed in every cycle.
Liquid metal (Unconsumed) + Charge Material (Ion, Brass etc.) under High Temperature -> Liquid
metal
Here input and output materials are the same which cause recursion in BOM. It leads to the
situation when BOM will be exploded indefinitely without stopping.
By setting the indicator recursive allowed at BOM item level BOM explosion will be stopped.
We can group to gather all alternate items using Alternate Item Group. Alternate Item Group
uses 3 keys to determine the alternative material:
Usage Probability
Priority
Strategy
MRP uses Usage Probability and Priority to create dependent requirements. Production order
also creates reservations based on Usage Probability. But consumption is based on Strategy
defined in the alternate item group.
Let say a company manufactures a car where different brands of tires are used to fit in the
car. Depending upon availability, a suitable tire will be used by the system. Lets say
requirement for a tire (based on car requirement) is 1000 PC and below settings were
maintained in BOM items for an Alternate Items Tire Brand A, Tire Brand B, and Tire Brand
C.
Example Alternate Item Group
DISCONTINUATION ITEM
SORT STRING
Based on Sort String, the SAP system will sort the components display in report and PP
transactions.
STATUS/LONG TEXT
ENGINEERING/DESIGN INDICATOR
Item that is relevant for Plant Maintenance will be set by default for usage 4.
SPARE PART INDICATOR
It is generally used in Plant Maintenance (equipment BOM) which can be assigned to the
equipment operations.
COSTING RELEVANCY
This Indicator controls relevancy for MRP. Generally, it is used for subcontracting materials.
If subcontracting components are provided by the production plant, no need to activate this
indicator. So that MRP generates dependent requirement for the components.
If components are not provided by the production plant and are already available at a vendors
location, activate this indicator. So that MRP will not plan or generate dependent requirements.
BULK MATERIAL
Material which are available directly at the machine location(s) like grease, washers can be
defined as bulk materials. For bulk materials:
Location from which raw materials /components are consumed for production. On release of
a production order, a warehouse person will issue the material from the warehouse to a
production storage location. Production storage location in BOM item has a higher priority
than the location in a material master (MRP2 view).
Production Storage Location in SAP Bill of Materials
SUPPLY AREA
Supply area can be defined in any of the master data elements mentioned below:
Selection or determination of a Supply area is also performed in the same order. Supply area
is assigned with a storage location. Supply area is used in the following scenarios:
1. KANBAN
2. Warehouse Management
The transaction CS02 is used to change an existing SAP Bill of Materials. We can also
change many BOMs at the same time using the transaction CS20. This transaction enables us
to:
Did you like this tutorial? Have any questions or comments? We would love to hear your
feedback in the comments section below. Itd be a big help for us, and hopefully its something
we can address for you in improvement of our free SAP PP tutorials.
Navigation Links
1. Puneetsays:
Reply
1. Cleo Iscosays:
You need to use a different transaction for this purpose: CS20 and/or CEWB. I hope
that we will make another tutorial on this topic in the future. Thank you for the
question!
Reply
2. prasadsays: