Production - Solution

Unit: Production
Topic: Bills of Material (BOMs)

1-1 You want to define a sales BOM for a PC set.

1-1-1 First create a (header) item, VS001 (Basic PC Set) in inventory

management. The item belongs to the item group PCs. Do not enter any
price.
Choose Inventory Item Master Data.
Choose Data  Add.
Field Name Value
Item No. VS001
Description Basic PC Set
Item Group PCs
Change the category of the item to be appropriate for a sales bill of
materials.
Uncheck Inventory Item and Purchased Item, leaving only Sales Item
checked. Save your newly created item by choosing Add.
1-1-2 Now define the sales BOM for the PC set in the Production menu. As price
list, choose Base Price. The PC set includes one unit each of item below.
The price for the PC set is calculated from the component prices.
Choose Production  Bill of Materials.
Choose Data  Add.

Field Name Value

Product No. VS001
Quantity 1
BOM Type Sales
Price List Base Price
Item C00008
Quantity 1
Item C00009
Quantity 1
 Item C00010
Quantity 1
Copy the total of the component prices into the Product Price field by
selecting the arrow above the Product Price field. Finally, choose Add.

1-1-3 Create a sales order for customer C20000, who wants to buy five PC sets.
What items appear in the order?
Choose Sales – A/R  Sales Order.

Field Name Value

Customer C20000
Delivery Date Today’s date
Item No. VS001
Quantity 5
You can see both the header item and the components in the order.
Save your order by choosing Add.
1-1-4 What items would display if you had created item VS001 as a production
BOM?
In production BOMs, you can only see the header item in the order.

1-2 Update Parent Item Prices: The price of a component of the sales BOM VS001
changes.
1-2-1 Change the price of the component C00009 in the Base Price list. Check
in the base price list whether the base price of the parent item VS001 has
also changed.
Inventory  Price Lists  Price Lists
Double-click the line with Base Price.
Change the price for C00009.
Now look to see if the price for VS001 has changed in the list.
No, the price of the parent item VS001 has not changed.
1-2-2 Using what report can the system determine the BOMs affected by the
change of price for component C00009?
Choose Production  Update Parent Item Prices Globally.
1-2-3 Choose the report; all changes caused by the child item C00009 should be
selected. Finally update the parent price.
In the window Update Parent Item Prices – Selection Criteria:
All Price Lists,
Code From C00009 to C00009,
Selection Criterion Component Items, choose OK.
 In order to display the entire bill of material and the price situation select
the orange drill down icon in front of the parent item or choose the Expand
button.
Select the Update checkbox in the respective parent item row, and then
choose the Update button.
1-2-4 Check the result in the Price Lists menu, directly in the item master record
or in the BOM.
Use one of the following three menu paths:
Option 1: Inventory  Price Lists  Price Lists
Option 2: Inventory Items Master Data
Option 3: Production  Bill of Materials.

1-3 The types of BOM and the item master records of the finished product:
1-3-1 What type of BOM is the only one that can be used for MRP and
production orders?
The production BOM.
1-3 2 Do you need an item master record for the finished product (parent item) of

the production BOM?

Yes, you need an item master record for the finished product.
1-3-3 Do you need an item master record for the finished product (parent item) of

a template or a sales BOM?

Yes, you have to create an item master record for each finished product.
1.3.4 What item category is required in an item master of the finished product of
a sales BOM?
For the sales BOM the finished product has to be a sales item.