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 物料清單 (BOM) > specify the various components that make up that product Sales BOM Template ( 樣板 ) Production BOM Production Orders (Production BOMs only) > produce or repair a production item Standard Production Orders - for regular production; are copied from the item’s bill of material Special Production Orders - to produce items or performing activities at the shop floor that are not based on the item BOM Disassembly ( 拆開 ) Production Orders - to report the disassembly of a regular production item

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: Sales and assembly BOMs: are collections of individual items in a set with a specific price; represent a finished product that is assembled at the sales stage Difference between the assembly BOM and the sales BOM: Assembly BOM - the finished product appears in the sales order document Sales BOM – both the finished product and the components appear as separate items in the sales order document. E.g. the finished product can be a PC set. ---- Assembly BOM defines the PC set. Both the sales BOM and the assembly BOM manage the finished product as a sales item. The components can be sales items and stock items at the same time

7.  SAP AG 2007 Sales BOM (1) 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 Displays both the finished product and its components Specify whether the price in the order is calculated from the parent product price or from the components

8.  SAP AG 2007 Sales BOM (2) - DEMO Administration  System Initialization  Document Settings and choose the General tab page.

9.  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 A template is a collection of individual items in a set that can be used as a copy model in a sales order. In that case, the components appear as a list of items in a sales document, rather than a finished product with components.

10.  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 Production BOM represents a finished product (made up of different inventory components). The Production BOM is the only type used in the MRP run and it is always used in standard production orders.

11.  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 Components can be (Purchased, Sales, and Inventory Items), and can also be purchased or sold individually. The components for Sales BOMs and Assembly BOMs must be sales items. Template BOM Type ItemCategory (1.) * The assembly BOM is only available for customers upgrading from previous versions. Depending on the BOM Type, the item master record of the finished product has to be a:

12.  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) A phantom item – Does not actually exist in inventory. Is used to simplify the BOM. Production Order will show the components needed to make the phantom item rather than the phantom item itself. An item can be defined as a phantom item in the Item Master Data.

13.  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: (i) non-inventory item master record, (ii) Valuation Method : Standard, (iii) Issue method: backflush > Appear in production orders on the Summary tab: the additional costs will be displayed in the field Actual Additional Cost.

14.  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 Choose Production -> Bill of Materials

15.  SAP AG 2007 Update Parent Item Prices (1) 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

16.  SAP AG 2007 Update Parent Item Prices (2) - DEMO

17.  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:

18.  SAP AG 2007 Production Order Types 1. Standard Production Order Product A B C 2. Special Production Order Item X Y Z 3. Disassembly Production Order Product A B C 1. Standard production order is based on the BOM; use it to produce a regular production item 2. Special production order to produce and repair items not necessarily Bill of Material items, e.g., repair order for rejected assemblies 3. E.g. you can purchase a used car, take it apart, and sell the individual components

19.  SAP AG 2007 Production Process Production Order Status: Planned Production Order Status: Released Production Order Status: Closed manually MRP Recommendation release close 1.) 2.) 3b.) 4.) receipt from production and report completion 3a.) issue the components for production (manual or backflush – auto. goods issue) Components are committed but stock is not yet affected. No items can be issued until the order is released Choose Production  Issue Components Choose Production  Receipt from Production

20.  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. link the production order to a sales order or a customer

21.  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 Total Variance = actual products value - actual components value

22.  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 If any variances occur: WIP Account field and the WIP Variance Account field on the Inventory tab of the item master record

23.  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 ++ + + - - --

24.  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: