Understanding BOM Structure in SAP: A Complete Guide

This document provides a detailed overview of Bill of Materials (BOMs) within the SAP Production Planning (PP) module. A Bill of Material (BOM) is a structured list of components and their quantities required to manufacture a product, serving as a critical master data element in production planning and costing processes. The document describes different BOM types and their usage in the PP module.

Primary Subjects Explored in the Document:

  1. What is a Bill of Material?: Defines BOM as a master data element that specifies the components and quantities needed to produce a finished good. It also introduces various BOM categories such as Material BOM, Equipment BOM, etc., and their applications.
  2. Role of Material BOM in PP: Explains the usage of material BOMs in Material Requirements Planning (MRP), product costing, and production consumption, highlighting their role in calculating raw material needs, determining costs, and managing consumption during production.
  3. Material BOM Technical Types: Describes the three main BOM types: Simple BOM, Alternate or Multiple BOM, and Variant BOM and how their usage scenarios and configuration differ from one another.
  4. What is BOM Explosion?: Defines BOM explosion as the process of breaking down a finished good into its lower-level components, based on lower-level codes automatically assigned by the system.
  5. How to Create a Bill of Material: It provides menu paths and transaction codes (CS01) to create Material BOMs, also providing details of the initial screen of CS01 and the parameters that can be entered here such as plant and BOM usage.
  6. BOM Structure: Details the structure of a BOM, including the header information (BOM number, alternate BOM, technical type, and base quantity) and item-level data.
  7. Significance of each field in BOM Item: Explains item categories (Stock Item, Non-stock Item, Variable Size Item, etc.) used to classify different BOM items and how each item category behaves differently within the ERP.
  8. Basic Data in BOM Item: Details the quantity data (Fixed Indicator, Component Scrap, Operation Scrap) and general data (Recursive Allowed, Alternate Item Group, Discontinuation Item, Sort String) associated with the BOM Item.
  9. Status/Long text: Details Status indicators (Production Relevant, Engineering/Design, Plant Maintenance, Spare Part) and other settings like Costing Relevancy, Material Provision Indicator, Bulk Material, Production Storage Location, and Supply Area.
  10. Change Bill of Material: Explains usage of the transaction code CS02 to change a BOM and also introduces the functionality of mass change to BOMs using transaction CS20.

The document provides comprehensive insights into the structure, creation and key configuration options for BOMs in SAP, including various item level settings and their impact on various functionalities in the PP module, such as costing and MRP.

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