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Sales BOM Implementation

A bill of material (BOM) describes the different components that together create a product. A
BOM for a bicycle, for example, consists of all the parts that make up the bicycle: the frame, the
saddle, wheels, and so on.
Process Flow
When you enter the material number of a bill of materials that is relevant for sales order
processing, the system displays the material that describes the whole bill of materials as a main
item. The individual components are displayed as lower-level items.
There are two ways to process a bill of materials in Sales. Once you have entered a bill of
material in a sales order, the system runs pricing, inventory control, and delivery processing at:
- Main item level if the material is assembled, or
- Component level if the material is not assembled
The type of processing used by the system is determined by the item category group that you
enter in the material master record for relevant materials.

Processing at Main Item Level
If you want the system to carry out pricing, inventory control, and delivery processing at main
item level, enter ERLA in the Item category group field of the Sales: sales org. 2 screen in the
material master record of the finished product. This means that the components only function
as text items and are not relevant for delivery. The following graphic shows how a bill of
material is processed at main item level.

Processing at Component Level
If you want the system to carry out pricing, inventory control, and delivery processing at the
component level, enter LUMF in the Item category group field of the Sales: sales org. 2
screen in the material master record of the finished product. In this case, only the
components are relevant for delivery. During processing the system automatically creates a
delivery group. The latest delivery date among all the components becomes the delivery date for
the entire delivery group.

Sales BOM
A bill of material (BOM) describes the different components that together create a product. A
BOM for a bicycle, for example, consists of all the parts that make up the bicycle: the frame, the
saddle, wheels, and so on.
Process Flow
When you enter the material number of a bill of materials that is relevant for sales order
processing, the system displays the material that describes the whole bill of materials as a main
item. The individual components are displayed as lower-level items.
There are two ways to process a bill of materials in Sales. Once you have entered a bill of
material in a sales order, the system runs pricing, inventory control, and delivery processing at:
- Main item level if the material is assembled, or
- Component level if the material is not assembled
The type of processing used by the system is determined by the item category group that you
enter in the material master record for relevant materials.
Processing at Main Item Level
If you want the system to carry out pricing, inventory control, and delivery processing at main
item level, enter ERLA in the Item category group field of the Sales: sales org. 2 screen in the
material master record of the finished product. This means that the components only function
as text items and are not relevant for delivery. The following graphic shows how a bill of
material is processed at main item level.
Processing at Component Level
If you want the system to carry out pricing, inventory control, and delivery processing at the
component level, enter LUMF in the Item category group field of the Sales: sales org. 2
screen in the material master record of the finished product. In this case, only the
components are relevant for delivery. During processing the system automatically creates a
delivery group. The latest delivery date among all the components becomes the delivery date for
the entire delivery group.
http://www.sap-img.com/sap-sd/sales-bom-implementation.htm

What Is BOM Referring to SAP SD
BILL OF MATERIALS

We need to maintain Material master records for the BOM Item and for the components also.

The item category group of the BOM items is ERLA/LUMF and the item category is NORM.

Creating BOM item:
- Logistics
- Sales and distribution
- Master data
- Products
- Bills of material
- Material BOM
CS01 create

Specify the data for the following fields.

Material: Specify the material for which components are to be maintained.

Plant: Specify the plant of BOM item.
BOM usage: Specify the application in which BOM is maintained (5 for SD).

Alternative BOM: Specifies the sequence of a BOM within a group of BOMs.
(L = stock item N = Non-stock item)

In the overview screen specify the components which makes the main item and the
corresponding quantities and save it.
Note: During sales document processing if we enter the BOM item the system automatically
determines corresponding components.

1) For the BOM to be exploded in the sales document the following customizing setting is
required.

A) If the item category group is ERLA the item category of the BOM is TAQ, in the definition of
which we have to specify the value A (Explode single level BOM) in the structure scope.
B) If the item category group is LUMF the item category of the BOM item is TAP in the
definition of which we have to specify the value A in the field structure scope.

2) If the item category group is LUMF the system shows price for the components but not for the
BOM item. For this the following customizing setting is required.

A) The item category of the BOM item is TAP which is not relevant for pricing, so the BOM
item is not Priced.
B) The item category of the components is TAN which is relevant for pricing, so the components
are priced

3) If the item category group is ERLA the system shows price for the BOM item but not for
components. For this following customizing setting is required.

A) The item category of BOM item is TAQ, which is relevant for pricing, so the BOM is priced.
B) The item category of components is TAE which is not relevant for pricing, so the components
are not priced.

While creating sales document to get the list of alternative BOMs in the definition item category
of BOM item we have to check the field Manual Alternative

ITEM CATEGORY DETERMINATION FOR BOM ITEM

SD type ITCaGr Usg HLItCa DftItCa

OR ERLA TAQ
OR NORM TAQ TAE
OR LUMF TAP
OR NORM TAP TAN
OR NORM TAN
OR NORM TAE TAE
OR NORM TAN TAE

NOTE: A Explode single level BOM item
B Explode multi level BOM item
CS01 Transaction code for creating BOM Item

Statistical value x or y
Make TAP relevant for pricing but values for statistical only.
http://www.sap-img.com/sap-sd/what-is-bom-referring-to-sap-sd.htm
Pricing Customization For Sales BOM
What are the steps of customization to pricing for header level or item level then?
By: John
You can create a sales bom, and price it at header level or sub level.
If you want to assemble the products and depending upon the assemblies you want to price. For
eg. if the customer asks for a certain combinationa of Material A, B and C respectively, then you
create a Material Master record Material D with item category group as LUMF. While the
Materials A, B and C are created with standared item category groups NORM only.
Then create a sales BOM using Tcode CS01 and enter the following details:
Material : Material D
Plant : Plant in which you created the material.
BOM Usage : 5 (Sales and Distribution)
then give the Materials A, B, and C and give their respective quantities.
Before you have to create pricing condition records for Materials A, B, and C.
Then configure the item categories ( T - code : VOV4).
When processing the sales order, just give the Material D and the system will pick up the
corresponding assemblies for that material and populate in the order.
The item category for the header item will be TAP and the item cateory for the items will be
TAN.
In this cas the Material D is called as the higher level Item , and all the assemblies are called as
the sub items. Here the subitems are relevant for pricing and delivery where as the header item is
not relevant for neither pricing nor delivery. It just acts as a text item.
This type of configaration of BOM is known as pricing at item level. This is used when you
dont know what quantities of assemblies the customer is going to order and if the price of the
assembly keeps varies.
There is another way of configaring BOM which is pricing at header level. The difference is
that the Material Master D has to be confugured using the item category group ERLA.
Creation of BOM is same.
But you need to maintain the pricing condition record for the header item.
The item categories in this case would be
Header item : TAQ
Sub item TAE;
Where the header item is relevant for pricing and delivery. and subitems are not relevant for
neither the pricing nor the delivery. Depending upon your requirement you configure
accordingly.
In Summary:
-->Befor going to create sales BOM you need to create:
Master data for that Header Material and Components in the MM01 transaction.
-->If you want Header price you create Header Materil with ERLA Itemcategory group.
-->If you want pricing at item level you create header material with LUMF Itemcategory group.
-->To create Sales BOM go to the transaction CS01 there you give enter the data
Header Material which you have created in the MM01 transaction.
Delivering Plant.
BOM Usage as '5' (Sales and Distribution)
Then proceed with enter system will take you the BOM detail screen here you maintain the
details of the components (How many components you need to make a Header material)
-->Check the item category determinetion settings in the transaction VOV4.
-->Maintain the Pricing procedure according to that.
-->Now you can create sales order with the BOM material
http://www.sap-img.com/sap-sd/pricing-customization-for-sales-bom.htm
How to Know that Sales BOM is working or not?
I have set up a sales BOM. How do I know or test that is is working or not?
Once you enter a material (for whch you have created a BOM thru CS01) in the sales doc
another material pops under the main material line item as a sub-item (s). If it doesn't then your
BOM isn't working.
In my experience BOMs work if all maintenance has been done properly.
A number of things to check is:
1. The bom hasn't been defined for the plant used, or you haven't defined the plant in SO.
2. Main item category - has BOM application SD01 been assigned to it?
3. Item categories for main items and sub-items have not been mainteined properly.
4. Sales items maintenance - You should assign item categories for BOM header items and sub-
items to a specific sales doc.
5. Has the BOM itself been configured properly (i.e. right plant, BOM usage '5')?
6. Are you trying it out on an order created after all BOM maintenance was done?
7. Also , what's the 'Structure scope' set as? Anything except C may be useful here? We have that
set to A, since our BOMs are all single-level. You could set it to B if BOM are configured multi-
level.
Those are probably main reasons why BOM shouldn't work. Apart from that, just re-check your
whole config - the truth is out there somewhere.