4 Types of Bill of Materials in SAP Business One:

1. Production Bill of Materials –

For any standard production order, a Production Bill of Materials is required which is generated in SAP. The
Production Bill of Material lists down all the finished parent items and the child item components that are
required to finish the product (complementary items with the main product). Also, the states of components can
be turned into finished products.

2. Sales Bill of Materials –

In case of a situation where the parent item is listed only as a sales item and not inventory item, a Sales Bill of
Material is generated. This means that when the parent is selected in the sales document, all the child items
become sub-items. In a Sales BoM, a user can edit the quantities of existing child items; but a user will not be
able to delete or add new child or sub-items to the existing package in the sales document. A perfect example
would be a printer where the parent item is the printer whereas all the necessary components within the printer
fall under the child item category.

3. Assembly Bill of Materials –

In Assembly BoM, we can see a collection of individual items in a set with a particular price. Assembly Bill of
Materials is just like Sales BoM; there is however a little difference – the final product is not managed as an
inventory item, it is managed as a sales item. Also, when the final product appears in Assembly BoM, only the
finished parent product is shown, unlike the case in Sales BoM, where the child components appear as sub-
items.

4. Template Bill of Materials –

There are no restrictions in Template BoM – it is flexible. The parent item and the child item can be of any type.
This type of Bill of Material can be used for both purchases as well as sales document with the parent item
listed on top and then the child items. These items can be easily replaced, updated or omitted with/without
other components.

By employing best-of-the-breed solutions that support the sharing of BoMs, manufacturers can now operate
with greater efficiency and gain higher productivity. The sharing of the bills of materials within the organization,
especially the engineers and the supply chain management, facilitates the free flow of business information and
brings out a prospect for the manufacturers to gain a competitive edge in the market.