1.  SAP AG 2007 Production Maintaining bills of material (BOM) Production process Contents:

2.  SAP AG 2007 Production: Unit Objectives Describe the differences between individual bills of material (BOMs) Carry out a production process for a production BOM At the conclusion of this unit, you will be able to:

3.  SAP AG 2007 Production: Business Scenario Some of the items in your product range consist of various other items. You assemble these items before they are delivered to the customer.

4.  SAP AG 2007 Elements in Production Bills of Material (BOM) Sales BOM Template Production BOM Production Orders (Production BOMs only) Standard Production Orders Special Production Orders Disassembly Production Orders

5.  SAP AG 2007 Maintaining Bills of Material: Topic Objectives Describe the differences between the individual types of bills of material Maintain bills of material in the SAP Business One System At the conclusion of this topic, you will be able to:

6.  SAP AG 2007 Sales / Assembly BOM M1007 Monitor 1 Unit K1014 Keyboard 1 Unit V001 PC Set 1 Unit S1008 System Unit 1 Unit Finished product: must be a sales item Components: can be sales, purchase and stock items. Category of the Item master records:

7.  SAP AG 2007 Sales BOM Define Bill of Materials Product No. Description PC Set V001 Customer Item No. Description Quantity C1000 Total V001 S1008 M1007 PC Set System Unit Monitor1 1 1 K1014Keyboard1 50 275 10 Sales Order Item No. Description Quantity Total S1008 M1007 K1014 System Unit Monitor Keyboard1 1 1 50 10 275 Sales 315 BOM Type 315 Total Parent Product Price You can not change or delete the components If there is a price on product- or component- level depends on the Document Settings in the System Initialization BOM Type Sales

8.  SAP AG 2007 Template Define Bill of Materials Product No. Description Digital Camera Kit X500 Customer Description Qty C1000 X500 A1005 A1006 Digital Camera Kit Case Battery2 2 1 A1015UV Filter1 99,96 73,80 21,05 Sales Order Item No. Description Quantity Total A1005 A1006 A1015 Case Battery UV Filter1 2 2 99,96 21,05 73,80 Template BOM Type 194,81 Parent Product Price BOM Type Template You could change the quantities and prices of the product and the components and you could as well delete components. Total Item No. Total

9.  SAP AG 2007 Production BOM Board 1 Unit Axis 2 Units Screws 8 Units Wheels 4 Units Tire 1 Unit Rim 1 Unit Screws 4 Units Skateboard 1 Unit Category of the item master record: finished product must be an inventory item

10.  SAP AG 2007 Category of the Item Master Record of the Finished Product for Bills of Material Assembly BOM* Production BOM Sales BOM Inventory Item Sales Item Purchased Item (1.) (1.) optional Template BOM Type ItemCategory (1.) * The assembly BOM is only available for customers upgrading from previous versions.

11.  SAP AG 2007 Phantom Item Board 1 Unit Axis 2 Units Screws 8 Units Wheels 4 Units Tire 1 Unit Rim 1 Unit Screws 4 Units Skateboard 1 Unit Phantom Item (does not appear in production orders and only for information in MRP)

12.  SAP AG 2007 Additional Costs in Production Board 1 Unit Axis 2 Units Screws 8 Units Wheels 4 Units Tire 1 Unit Rim 1 Unit Screws 4 Units Skateboard 1 Unit Labor Cost for Assembly Labor Cost (Created as non-inventory item master record. Appear in production orders.)

13.  SAP AG 2007 Product No.Quantity Price ListPrice List High Volume A1019 A1020 A1021 1 4 2 22,50 17,82 26,10 22,50 71,28 52,20 145,98 129,99 Product Price Item No.Quantity Unit PriceTotal Product Description BOM Type Skateboard Production Sales Production Template P1001 CancelUpdate 1 Creating a Bill of Material Quantity of the item produced with the components Price of finished product for specified price list Price list for determining the component prices Total price of components Finished Product Components Determine price of finished products from component prices

14.  SAP AG 2007 Update Parent Item Prices Price for Child Items in Price List changes or Accept the suggested price for the BOM Keep the current price for the BOM Update Parent Items Prices Globally 32,50 Difference 129,99 Suggested Price Item 10 New Price 139,99 Current Price 17,82 P1001 A1019 A1020 run report Update Remove

15.  SAP AG 2007 Production Process: Topic Objectives Describe the production process Carry out a production process for a production BOM At the conclusion of this topic, you will be able to:

16.  SAP AG 2007 Production Order Types Standard Production Order Product A B C Special Production Order Item X Y Z Disassembly Production Order Product A B C

17.  SAP AG 2007 Production Process Production Order Status: Planned Production Order Status: Released Production Order Status: Closed manually MRP release close 1.) 2.) 3b.) 4.) receipt from production and report completion 3a.) issue the components for production Components are committed but stock is not yet affected.

18.  SAP AG 2007 TypeStandard / Special / DisassemblyDue Date20.10.2004 StatusPlanned / Released / Closed / CancelledOriginManual / MRP Product No.P1001UserMarc Manager Planned Qty2Sales Order… Warehouse01Customer… Production Order: Component Tab Page Components Item No.BasePlannedIssued Available Warehouse Issue Method A101912212 01 Manual / Backflush A10204896 01 Manual / Backflush A10212448 01 Manual / Backflush Production Order Summary Base: Displays the quantity of the components necessary to manufacture one product. Planned: Displays the value of the planned quantity, which is the multiple of the base quantity and the product planned quantity. Issued: Displays the total quantity already issued for the production order. Available: Displays the quantity of the item units available in the specific warehouse. Issue Method: Manual – individual components of a a parent item are issued manually. Backflush – components of a parent item are automatically issued to the production order once you report the completion of the parent item.

19.  SAP AG 2007 TypeStandard / Special / DisassemblyDue Date20.10.2004 StatusPlanned / Released / Closed / CancelledOriginManual / Automatic Product No.P1001UserMarc Manager Planned Qty2Sales Order… Warehouse01Customer… Production Order: Summary Tab Page Components Costs Actual Component Cost80 Actual Additional Cost Actual Product Cost80 Total Variance Variance per Product Variance % Journal Remark Production Order - P1001 Production Order Summary Quantities Planned Quantity 2 Completed Quantity 2 Rejected Quantity Dates Due Date 20.10.2004 Actual Close Date Overdue

20.  SAP AG 2007 Production Process Postings Issue For Production Receipt from Production Production Order Close 100 Stock Account (of components) 90 Stock Account (of Product) 100 WIP Account 90 WIP Account -10 WIP Account -10 WIP Variance Account

21.  SAP AG 2007 Stock Changes for Standard Production Order In Stock-Committed+Ordered= Available Standard Production Order Completion reported Status: Planned Components Finished Product Components Finished Product ++ + + - - --

22.  SAP AG 2007 Production: Unit Summary Describe the differences between individual bills of material Carry out a production process for a production BOM You are now able to: