The Bill of Materials (BOM) is a vital component of SAP Production Planning (PP), serving as the foundation for manufacturing processes. A BOM is essentially a structured list of all materials, components, and assemblies needed to produce a finished product. It supports various business functions such as production, costing, sales, and maintenance.
Bill of Materials (BOM) in SAP PP
Definition: BOM outlines the structure of a product by detailing its components and their quantities.
Components of a BOM:
Material: Raw materials, semi-finished goods, or finished products.
Assembly: Group of components assembled together.
Sub-Assembly: Intermediate assembly used in a larger assembly.
Applications: BOMs support production planning, inventory control, cost estimation, and order processing.
Steps to Create a Material BOM
You can create a BOM using Transaction Code: CS01 or through the SAP Easy Access Menu. Here’s a structured summary:
Step
Action
Details
1. Navigation
Access via SAP Menu: Logistics → Production → Master Data → BOM → Material BOM → Create, or use CS01.
Navigate to the BOM creation screen.
2. Enter Material
Specify the material number for which the BOM is created. Use F4 Help if needed.
Links the BOM to a specific material.
3. Specify Plant
Define the Plant where the BOM is applicable.
BOMs can be allocated to additional plants as required.
4. Select BOM Usage
Choose the BOM usage type (e.g., Production, Engineering, Universal).
Usage determines the application area and defines the range of item statuses.
5. Define Validity
Enter Valid From and Valid To dates.
Controls the time period during which the BOM is effective.
6. Set Alternatives
For simple BOMs, leave this field blank. Enter alternative codes for multiple BOMs.
Defaults to Alternative 01 if left blank.
7. Specify Change Number
Optional: Add a change number to track modifications.
Enables version control and allows tracking of changes.
8. Add Components
On the Item Overview, specify the material numbers, quantities, and units for each component.
Details all the items included in the BOM.
9. Set Segmentation
Use the Segmentation feature for stock or requirement segmentation values.
Ensures the BOM aligns with segmentation strategies during planning and production.
10. Save BOM
Review and confirm entries, then save the BOM.
Finalizes the BOM details.
Types of BOMs
Type
Description
Example
Single-Level BOM
Lists only the direct components of a product.
A bicycle’s single-level BOM includes wheels, gears, and brakes.
Multi-Level BOM
Includes sub-components and sub-assemblies, forming a hierarchy.
A brake assembly includes levers, pads, and calipers, which are part of a bicycle’s multi-level BOM.
Variant BOM
Manages variations of a product within a single BOM.
A bicycle with different frame colors or sizes.
Phantom Assemblies
Logical grouping of materials that simplifies the structure but isn’t stocked physically.
A kit of bolts and nuts included as part of a larger assembly.
Alternative BOM
Represents different production methods or material substitutions for the same product.
Manufacturing a product using steel in one plant and aluminum in another.
Key Applications of BOM Usage
Usage Type
Purpose
Notes
Engineering/Design
Used during product design to list components for approval.
Not used in MRP runs or production orders.
Production
Used in manufacturing processes and MRP runs.
Lists components required for production orders.
Sales & Distribution
Defines materials needed for sales orders.
Used in assembling products for specific customer orders.
Plant Maintenance
Details spare parts and components required for maintenance tasks.
Helps streamline maintenance processes.
Universal
Applies across multiple business functions (e.g., production, sales).
Versatile but requires broad planning and integration.
Advanced Concepts
Concept
Description
Example/Use Case
Engineering Change Management (ECM)
Tracks BOM modifications with change numbers and validity dates.
A new version of a product design requires ECM to manage changes in the BOM.
Recursive BOM
BOMs where a component appears within its own structure.
Chemical processes where part of the output is recycled as input.
Segmentation
Links BOM components to specific stock or requirement segments for advanced planning.
Ensures components are planned based on stock/requirement segmentation strategy.
Production Processes Involving BOMs
Material Requirements Planning (MRP):
BOMs are exploded to calculate material needs.
Helps determine procurement proposals (planned orders or purchase requisitions).
Production Orders:
BOM components are listed in production orders.
Tracks material allocation and consumption during production.
Sample Multi-Level BOM Structure: Mountain Bike
Level
Material
Description
Quantity
Unit
0
MTB-1000
Mountain Bike
1
EA
1
FRAME-200
Aluminum Frame
1
EA
1
WHEEL-700C
Wheel Set
2
EA
1
BRAKE-SET
Brake Assembly
1
SET
2
BRAKE-LEV
Brake Lever
2
EA
2
BRAKE-CAL
Brake Caliper
2
EA
1
GEAR-21SP
Gear System (21-Speed)
1
EA
1
SEAT-STD
Standard Seat
1
EA
Reporting and Analysis
Report
Description
Transaction Code
BOM Explosion Report
Displays all components and sub-components in a BOM.
CS12
Where-Used List
Shows all BOMs that include a specific component.
CS15
BOM Comparison
Compares two BOMs to highlight differences.
CS14
Conclusion
BOMs in SAP PP are indispensable for managing production planning, cost control, and inventory. By understanding basic and advanced concepts, such as segmentation, ECM, and recursive BOMs, businesses can improve efficiency, reduce errors, and streamline manufacturing operations. BOM management is essential for ensuring accurate material planning, production execution, and cross-functional integration.
