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Production Contents: SAP AG 2007 Maintaining bills of material (BOM) Production process Production: Unit Objectives At the conclusion of this unit, you will be able to: SAP AG 2007 Describe the differences between individual bills of material (BOMs) Carry out a production process for a production BOM Production: Business Scenario SAP AG 2007 Some of the items in your product range consist of various other items. You assemble these items before they are delivered to the customer. 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 SAP AG 2007 Maintaining Bills of Material: Topic Objectives At the conclusion of this topic, you will be able to: SAP AG 2007 Describe the differences between the individual types of bills of material Maintain bills of material in the SAP Business One System Sales / Assembly BOM Category of the Item master records: V001 PC Set 1 Unit Finished product: must be a sales item Components: can be sales, purchase and stock items. SAP AG 2007 S1008 System Unit 1 Unit M1007 Monitor 1 Unit K1014 Keyboard 1 Unit Sales BOM BOM Type Sales Define Bill of Materials Product No. Description BOM Type V001 If there is a price on product- or componentlevel depends on the Document Settings in the System Initialization PC Set Sales Item No. Description Quantity Total S1008 System Unit 1 275 M1007 Monitor 1 50 K1014 Keyboard 1 10 Parent Product Price 315 You can not change or delete the components SAP AG 2007 Sales Order Customer C1000 Item No. Description Quantity Total V001 PC Set 1 S1008 System Unit 1 275 M1007 Monitor 1 50 K1014 Keyboard 1 10 Total 315 Template BOM Type Template Define Bill of Materials Product No. Description BOM Type You could change the quantities and prices of the product and the components and you could as well delete components. X500 Digital Camera Kit Template Item No. Description Quantity Total A1005 Case 2 73,80 A1006 Battery 2 99,96 A1015 UV Filter 1 21,05 Parent Product Price Sales Order Customer C1000 Item No. Description Qty X500 Digital Camera Kit 1 A1005 Case 2 73,80 A1006 Battery 2 99,96 A1015 UV Filter 1 21,05 Total SAP AG 2007 Total 194,81 Production BOM Category of the item master record: Skateboard 1 Unit Tire 1 Unit SAP AG 2007 Axis 2 Units Board 1 Unit Wheels 4 Units Rim 1 Unit finished product must be an inventory item Screws 4 Units Screws 8 Units Category of the Item Master Record of the Finished Product for Bills of Material BOM Type Assembly BOM* Sales BOM Template Production BOM Item Category Inventory Item (1.) Sales Item (1.) (1.) Purchased Item (1.) (1.) * The assembly BOM is only available for customers upgrading from previous versions. SAP AG 2007 (1.) optional Phantom Item Phantom Item (does not appear in production orders and only for information in MRP) SAP AG 2007 Axis 2 Units Board 1 Unit Wheels 4 Units Tire 1 Unit Skateboard 1 Unit Rim 1 Unit Screws 4 Units Screws 8 Units Additional Costs in Production Labor Cost (Created as non-inventory item master record. Appear in production orders.) Wheels 4 Units Labor Cost for Assembly SAP AG 2007 Tire 1 Unit Skateboard 1 Unit Board 1 Unit Rim 1 Unit Axis 2 Units Screws 4 Units Screws 8 Units Creating a Bill of Material Finished Product Product No. P1001 Product Description Skateboard BOM Type Production Item No. Sales Production Template A1019 A1020 A1021 Components Quantity Price List Quantity of the item produced with the components 1 Price List High Volume Quantity Unit Price Total 1 22,50 22,50 4 17,82 71,28 2 26,10 52,20 Total price of components 145,98 Product Price Update Cancel Price of finished product for specified price list SAP AG 2007 129,99 Price list for determining the component prices Determine price of finished products from component prices Update Parent Item Prices Price for Child Items in Price List changes run report Update Parent Items Prices Globally Item P1001 A1019 A1020 New Price Current Price Difference 129,99 32,50 17,82 or SAP AG 2007 139,99 10 Update Accept the suggested price for the BOM Suggested Price Remove Keep the current price for the BOM Production Process: Topic Objectives At the conclusion of this topic, you will be able to: SAP AG 2007 Describe the production process Carry out a production process for a production BOM Production Order Types Standard Production Order Special Production Order Product Item A B C X Disassembly Production Order Product A SAP AG 2007 B C Y Z Production Process manually Production Order 1.) MRP Production Order 2.) release Status: Planned Components are committed but stock is not yet affected. 3b.) SAP AG 2007 Production Order close Status: Released 3a.) 4.) issue the components for production receipt from production and report completion Status: Closed Production Order: Component Tab Page Production Order Type Status Product No. Planned Qty Warehouse Standard / Special / Disassembly Planned / Released / Closed / Cancelled P1001 2 01 Components Item No. Base: Displays the quantity of the components necessary to manufacture one product. SAP AG 2007 Due Date Origin User Sales Order Customer 20.10.2004 Manual / MRP Marc Manager … … Summary Base Planned Issued A1019 1 2 2 A1020 4 A1021 2 Planned: Displays the value of the planned quantity, which is the multiple of the base quantity and the product planned quantity. Available Warehouse Issue Method 12 01 Manual / Backflush 8 96 01 Manual / Backflush 4 48 01 Manual / Backflush 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. Production Order: Summary Tab Page Production Order Type Status Product No. Planned Qty Warehouse Standard / Special / Disassembly Planned / Released / Closed / Cancelled P1001 2 01 Components Due Date Origin User Sales Order Customer 20.10.2004 Manual / Automatic Marc Manager … … Summary Costs Actual Component Cost Actual Additional Cost Actual Product Cost Total Variance Variance per Product Variance % Journal Remark SAP AG 2007 80 80 Production Order - P1001 Quantities Planned Quantity Completed Quantity Rejected Quantity Dates Due Date Actual Close Date Overdue 2 2 20.10.2004 Production Process Postings Issue For Production WIP Account 100 Receipt from Production Stock Account (of Product) 90 Production Order Close WIP Account -10 SAP AG 2007 Stock Account (of components) 100 WIP Account 90 WIP Variance Account -10 Stock Changes for Standard Production Order In Stock - Committed + Ordered = Available Standard Production Order Status: Planned SAP AG 2007 - + Components + Finished Product Completion reported Components - Finished Product + - + Production: Unit Summary You are now able to: SAP AG 2007 Describe the differences between individual bills of material Carry out a production process for a production BOM