feature image

4 BOMs that SAP Business One helps you create

For many companies, the production process begins with the raw materials and the creation of a production order, since having the list of materials helps them to have much more efficient and accurate processes and to cover the demand of their clients in a timely manner. However, to achieve this properly, an ERP such as SAP Business One is required.

The production process begins with raw materials and the creation of a production order that contains all the materials and steps required to produce an item in a given time. The materials for a production order are found in the lists that you can generate with an ERP system.

Without an integrated ERP system, the generation of bills of materials and the production process, in general, is much more complex and error-prone, as it faces greater challenges.

So, in order for you to take full advantage of the 4 different types of bills of materials, we will explain what they are:

  1. Production Bill of Materials

For any Material Requirements Planning (MRP) or standard production order, a Production BOM is required.

This list contains items that are finished products and sub-items that are the components that complete the order. Finally, during the production process, the sub-items can be transformed into finished products.

     2. Sales Bill of Materials

A sales bill of material in SAP Business One is used for sales documents where the parent item is listed only as a sales item, not inventory. Once the parent item is selected in the sales document, all other items appear as sub-items.

You can modify the quantity of the items, but you cannot delete any that are within the sales document.

    3. Mounting Bill of Materials
An assembly bill of materials is similar to a sales bill in that it represents a collection of individual items included in a set with a specific price. The difference is that only the finished product, and not the sub-items, appears in the sales document of the ERP system.

     4. Model Bill of Materials
A model BOM has no real restrictions, as it is very flexible: any type of item can be superior. This type of list can be used in both sales and production documents, displaying the top item first and its components listed below.

These components can be moved and replaced, as well as deleted, and the sales documents will update automatically.

Uses you can give to lists:

  • Material Requirements Planning.
  • Supply of material for manufacturing.
  • Product cost calculation.
  • Maintenance

Bills of materials are one of the many features of SAP Business One to facilitate your business processes. Know the value of implementation and of taking advantage of the features of SAP Business One for your business.

About the Author