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In this blog post you will get to know about how to create the sales Bill of Material (BOM) or
Sales Kit and its limitation.
Usually in sales process where in item can be sold in assembled way, can be sold individually
as well. Sales BOM is used mostly when we have to sell the goods in assembled, it is
observed that below are the common issues faced by many customers
How to create the Sales BOM in cloud step by step
Concept of Header and item pricing and inventory management
Limitation in Sales Kit Process
Blog Applicability
SAP S/4HANA Cloud Release 2005
Target Audience
Business Users, Key Users, Consultants
Target Industry
Any
BOM -bill of material can work in sales to cater the business requirements where in header or item
level pricing and inventory can be tracked
Example: Company wants to sell item A, it comes with Item A1, A2 and A3.
So, the Sales BOM can be created or called as: 1 quantity of Material A, which consist of 1 quantity of
material A1, A2, A3 respectively.
Sometimes the component is interlinked that all individual component has to be sold together,
example changer with Phone.
Another reason is when selling in bundled form it is ease for customer and cost effective as well.
Business benefit
Sales BOM process manage pricing and logistics is on the header level or the item level
Process to sell the assembled item or when more than 1 item to be provided as free to
customer
Issue details
How to create the Sales BOM in cloud step by step
Concept of Header and item pricing and inventory management
Limitation in Sales Kit Process
Solution
How to create the Sales BOM in cloud step by step
Open app Maintain Bill of Material as shown bellow
Example : Dummy screen shots , just to show the process
Here system will ask for Main Item and BOM usage as mandatory fields
For the sales process usage is always “5” – Sales and distribution, press ok
Here the relevant item category and no of components required with there quantity can be maintained
and save
So for 1 quantity of sales BOM E002 – component are E003, E004, 1 quantity each.
Concept of Header and item pricing and inventory management
Sales process can be mapped at 2 levels as
1. Main Item Level – Pricing and inventory managed on the main item.
2. Component level - Pricing and inventory managed on the sub item.
Example
Main Item Level: My main item (High level item in SO) is A.
System to carry out the pricing, inventory control and delivery processing at main item level. So
material Item A , Should be with Gen Item Category Group as ERLA.
In this case components will only function in the exploded BOM as text items and will not be relevant
for any functionality.
Component Level: Means Item A to be just for Text and all pricing and inventory to be managed at
sub item level only.
So material Item A, should be with Gen Item Category Group as LUMF.
Based in the above selection (ERLA or LUMF), Item Category is determined
For ERLA:
Item category for Header item is TAQ (relevant for pricing)
Item category for Low level item is TAE (not relevant for pricing)
For LUMF:
Item category for Header item is TAP (not relevant for pricing)
Item category for Low level item is TAN (relevant for pricing)
Limitation in Sales Kit Process
Limitations in Foreign Trade
ERLA:
Intrastat will be reported on header level. The item categories for subitems should be excluded from
Intrastat Reporting, because reporting should happen on header level, customers have to adjust
Intrastat Reporting manually
LUMF:
Item categories for header or main item should be excluded from Intrastat Reporting. Accordingly,
customers have to adjust Intrastat Reporting manually.
Packaging material in the sales kit from Intrastat Reporting point of view is not supported. In case the
customer wants to use packaging material in the BOM, an own item category is needed to be
distinguished from the Intrastat Perspective. This is how it could be excluded from Intrastat Reporting.
Currently this cannot be solved via SSC UIs.
Limitations in Analytics
ERLA:
There is no specific analytics reporting available currently. Header position is relevant for analytics.
LUMF:
There is no specific analytics reporting available currently. Only subitems are relevant for analytics,
no header.
Limitations in ARM (Accelerated Returns Management)
Only the physical relevant parts of the sales kits taken over into the ARM (Accelerated Returns
Management) process are supported.
ERLA:
LUMF:
Only subitems are relevant for return, no header. A Return Order item is considered as not relevant
for refunding when its item category is set up as not “relevant for billing”. Accordingly, a sales delivery
FoC (SDF) is not supported for item-category RBLN.
Only physical products as part of the sales kits are currently supported (for example, no service
products…).
There is no automatic quantity correlation done when POD is made via the UI as the pod quantities
are entered.
ERLA:
LUMF:
ERLA:
LUMF:
Sales BOM explosion is not supported in value contract.