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BILLS OF MATERIALS

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:

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
 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 (Structured Material Above): -

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.

Processing at Component Level (Structured Material Below): -

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.

Structured Material above: Main Item Item Category group: LUMF Item Category: TAP OR + LUMF = TAP Schedule line = CT Sub-Item Item Category group: NORM Item Category: TAN Billing Relevance and Pricing is controlled at sub-item level. Structured Material Above 2. 1. OR + ERLA = TAQ Schedule line = CP Sub-Item Item Category group: NORM Item Category: TAE OR + NORM + TAQ = TAE Schedule line = CT 2. OR + NORM + TAP = TAN Schedule line = CP END-USER WORK: 1. Structured Material Below. Code: OS30 Application: SD01 As we know that there are two possibilities in BOM: 1. Create Main Material With Item Category ERLA/LUMF . Structured Material above: Main Item Item Category group: ERLA Item Category: TAQ Billing Relevance and Pricing is controlled at main item level.CONSULTANT WORK: Path: SPRO → IMG → Production → Basic Data → Bill of Material → Alternative Determination → Define Applications T.

If the Main Material is created with Item Category LUMF the Sum Total of Prices of Sub Material Items will appear in Sales Order and Billing Document.BOM List = 5 (for Sales and Distribution) .Enter the Main Material Number in Header . Create BOM: Path: SAP Easy Access → Logistics → S&D → Master Data → Products → Bills of Materials → Material BOM → Create T Code: CS01 . If the Main Material is created with Item Category ERLA. 2. Sub Material Items will appear in quantities mentioned as per BOM Creation. .Start Entering from Step 20 Sub Material Number and Quantity required for making one Main Item. Create Sub Material Items Normally with Item Category NORM 3. the Price mentioned for main Material will appear in the Sales Order and Billing Document.Leave the Step 10 in Item Blank .