Production Planning Master Data: Bill of Material

[DafinaZahra]

What is Bill of Material in Production Planning?

In a simple word, Bill of Material (BOM) is a structured list of all components (raw materials, semi-finished goods, finished goods) required to manufacture a finished product. It defines the relationship between a product and its components in Production Planning and Material Requirements Planning (MRP). BOM are use in several manufacturing types such as discrete manufacturing, process manufacturing, and repetitive manufacturing in SAP system.

Example of Bill of Material table

Example of Bill of Material structure

Bill of material is used to determine the required quantity of components (MRP), defines the production process and operations for the materials in the BOM, production order who used BOM to consume components in manufacturing, and also used to calculate the material costing. SAP will calculate the price for each material in the bill of material to be included in the cost of goods manufactured.

SAP supports various BOM types depending on the production and business requirements:

• Material BOM – Used in production to define product structures.
• Equipment BOM – Used in Plant Maintenance (PM) for maintenance planning.
• Functional Location BOM – Used for maintenance at a specific location.
• Sales Order BOM – Specific to customer requirements in Make-to-Order (MTO) scenarios.
• Variant BOM – Supports configurable materials with different variations.
• Multi-Level BOM – A hierarchical BOM where components also have their own sub-components.

Now let’s talk about how to create a BOM.

You can go to CS01 and insert the material, plant, and BOM usage. 
Then, go to the BOM header.

Choose the BOM status ‘1’ if you want to set the BOM active.

Then insert the components for this material. Also choose the item category and quantity.

So that's basically how you create a BOM. Feel free to discuss more if you have any other insights or questions!

A lifetime learner,
Dafina