4 Types of BOMs in SAP B1
SAP Business One can be adopted by any small and medium-sized enterprise to meet the growing demands of the market to fulfil their production process. From simply gathering raw materials to making a final product, manufacturing companies have to deal with many challenges to reach their desired goals. To solve this issue, SAP Business One has dropped a module known as “Production Module”. In the production process, an organization can work effectively with different types of BOMs to manage their business operations effectively. The following module has many features, such as:
- Bill of Materials
- Production order
- Procurement confirmation wizard
- Receipt for production
- Issue from production
- Update parent item price globally
- Product cost recalculation wizard
- Bill of Material – component management
- Production Reports
What is a Production Order?
A production order is a set of instructions for planning and assembling a production item. It tracks the material transaction and cost involved in the production process, along with other additional costs. It also takes note of the timeframe in which the work must be completed.
SAP B1 has a production module where you can define or maintain the Bill of Material, define production orders, and more. Now, the user can track all the costs and the materials required for production in SAP Business One through the Bill of Material.
But what exactly is a Bill of Material in SAP B1?
A Bill of Material is basically a list of raw materials, where you can specify the quantities of components that make up a product. A BOM supports better inventory management, planning, costing, etc. in an organized manner. In other words, a list of materials required by any contractor to complete any contract or by the supplier to complete an order is known as a BOM. We use BOM in order to create any multilevel BOM or any hierarchical arrangement of components. Here, the parent item refers to the finished goods, and the child item refers to the components used to gather the end product. To learn more about SAP B1 BOM, let’s look at the types of BOM.
SAP B1 BOM (Bill of Material) Types:
- Sales BOM: The sales bill of material features the parent item on the sales transaction rather than the inventory, and the child item is made into a sub-item when the parent item is selected. Any user in an organization can change the present number of child items in a sales BOM but cannot edit, add, or delete any child component from its package.
- Assembly BOM: The assembly bill of material is somewhat similar to the sale BOM. It can be defined as a set or a collection of individual items in an assembly at a particular price. Unlike the sales BOM, only the finished product appears in the sales order, but the components do not appear as sub-items.
- Production BOM: The production BOM in SAP B1 is used in the production order. Here, the parent item is the final product, and the child item is the component. You can turn the components into a finished product during the production process.
- Template BOM: The template bill of material can be used for both sales and purchasing documents as a way to bring in a list of items. It has no restrictions at all. It is very flexible in its usage.
In SAP Business One, once you select any parent item, all its children appear. You can invariably delete, alter, add, or duplicate rows as and when necessary. This is important when you want to eliminate the duplication of records of the finished goods that contain similar sub-items.
- Step to create a Bill of Material (BOM):
- Create the Item Master record for final goods in SAP Business One. These are represented by the parent items in the Bill of Materials. If by any chance you do not have a sub-item or a child item, then you need to create them too and later proceed to create the BOM.
SAP Business One gives you a better hold on your business operations to leverage your business growth. Manufacturers in various industries can improve their critical processes with efficiency. A better understanding of using SAP Business One will help your enterprise in production planning and execution. Contact SoftCore Solutions; leading SAP Business One Gold Partners in Jaipur to implement SAP B1 in your organization. For more details on the SAP B1 Bill of Materials, book a call with our experts today!