Production Control in D365 F&O Bill of Materials (BOM)

Bill of materials or BOM are defined by Engineering Team.

A bill of materials (BOM) defines the components that are required in order to produce a
product. The components can be raw materials, semi-finished products, or ingredients.
In some cases, services can be referenced in a BOM. However, BOMs typically
describe the material resources that are required.

When it's combined with a route or production flow that describes the operations and
resources that are required in order to build a product, the BOM forms the foundation for
calculating the estimated cost of the product.

A BOM is an individual entity that is described by the following information:

 BOM ID
 BOM name
 The BOM lines that describe the components and ingredients
 The BOM versions, which define the product and period that the BOM can
be used for

A single BOM describes a single level that is identified by a unique ID. Components
might have their own BOMs that are referenced by BOM versions. You can display and
edit the complete hierarchy of BOMs for a specific product in the BOM designer.

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Production Control in D365 F&O Bill of Materials (BOM)

Types of BOM in the Product Life cycle

In the product lifecycle, many types of BOM might be created for various reasons:

 Sketching/Draft BOM – Gives a draft estimation of required materials in an

early design phase and helps you do a rough estimate of cost and
estimated product attributes. This BOM isn't usually used in enterprise
resource planning (ERP).
 Engineering BOM – Typically used when you design products that are
based on existing product portfolios. Engineering BOMs are structured to
simplify the design process and group complex products into engineering
modules. For simple products, it might be possible to engineering BOMs for
the actual production process. However, for other products, the engineering
BOM must be converted to an actual production BOM. Engineering BOMS
are typically represented by phantoms in the BOM hierarchy. Although
engineering BOMs can be used for the planning and execution of
manufacturing operations, this approach can lead to inefficiencies,
especially in repetitive operations where many orders are created.
 Planning BOM – Used to do planning for material requirements. The
demand of components and ingredients is calculated based on the demand
of the finished products. Like costing BOMs, planning BOMs might
represent a specific mix of material that is used in a period.
 Production BOM – The actual BOM that is used for a specific production. A
production BOM must take into account the actual resources that are used
to produce the product. When a production order, batch order, or kanban is
created, the multiple levels of BOMs that are represented by phantoms are
collapsed into one level and distributed over the operations for the order.
 Costing BOM – Used to calculate the estimated cost of a product. For
example, you can use a costing BOM when standard cost is used or the
estimated planned cost of a given product is calculated. Costing BOMs can
refer to a specific mix of materials and resources that are expected to be
used. Therefore, you can use the costing BOM to create a representative
estimated cost for a period and help avoid variances over time.

The types of BOM that are used in an implementation depend on the

implementation, and on the business scenarios and requirements. In simple
implementations, a planning BOM, production BOM, and costing BOM can be
modeled as one BOM. In environments that have frequent engineering changes
and multiple alternative routes, a larger set of BOM types will probably be
required.

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Production Control in D365 F&O Bill of Materials (BOM)

Working with BOM

“You can create BOM separately but released product will not have a BOM until
below mentioned step is not done”

Navigation - Product information management > Products > Released products

1) Select a product for which we need a BOM

2) open the product
3) Go to Engineer Fast Tab
4) Under Formula planning head Production type drop down choose BOM

How to Create a BOM

Navigation: - Product information management > Bill of Materials and formula >
Bill of Materials

1) On the Action Pane click on New

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BOM number is coming from Number sequence setup

2) Specify name and Site as per requirement and click on Save

3) Now go to Header view from line view

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4) In the Header go to BOM Version

5) Click on Add and you can select the item.

To relate a specific BOM to a product variant that can be produced, you will need to
create a BOM version.

The validity of BOM versions can be constrained by:

 Period
 Quantity
 Site
 Specific product dimensions
 Other criteria

In the above image we have constrained the BOM version with FROM and TO date
with Qty 1.

6) Go back to lines View

7) Go to Bill of materials line.
8) Click on New and add item which are used to make the Finished product.

Now the Quantity and per series and unit play a vital role in BOM for raw material consumption.
Let me explain with some examples

Example 1 - If quantity = 1, unit = liter, and per series = 100, one liter of the item is required to produce

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Production Control in D365 F&O Bill of Materials (BOM)
100 finished BOM items.

Example 2 – If quantity – 2, unit = Pcs, and per series = 1 , 2 Pcs of item is required to produce 1 finished
BOM items.

9) On action pane click on bill of material and click on approval

10) Go to header view and BOM version and first Approve and then activate the BOM versions.

11) Go line view go to BOM lines select any item number

12) Go to line details Fast Tab and open General

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BOM line types:

 Item - Select the Item line type for materials or services that are directly
consumed and that don't require further explosion or pegged supply.
 Pegged supply - Select the Pegged supply line type when you want to
create a sub production, a BOM line event kanban, or a direct purchase
order for any product variant that the BOM line references. The sub
production, event kanban, or purchase order is created when you estimate
the production order. The required item quantities are automatically
reserved for the consuming production order.
 Phantom - Select the Phantom line type when you want to explode any
lower-level BOM items that are contained on the BOM line. When using
BOM lines of the Phantom type, the parent BOM line that refers to a
product variant that has a phantom BOM is replaced by the component
items that are listed as BOM lines in that BOM. This is determined by the
applicable active BOM version of that product variant. If the product variant
has an applicable active route, the operations of that route are merged into
the parent route.

Note that phantoms are typically used to simplify the engineering process.
Extensive use of phantom BOMs in many levels influences performance,
especially in highly repetitive manufacturing scenarios. To improve
performance, you should avoid deep hierarchies of phantoms. Instead, use
pre-exploded production BOMs and routes.

 Vendor - Select the Vendor line type if the production process uses a
subcontractor and you want a sub production or purchase order to be
created automatically for the subcontractor.

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Alternative BOM versions

Sometimes, the active BOM version or formula version should not be used in forecasts,
sales, or a parent product. In this case, you can select a specific approved BOM as part
of the requirement (forecast line, sales line, or BOM line) if an approved BOM version or
formula version exists for the alternative BOM or formula.

When planned orders, production orders, or kanban’s are created, the planner or shop
floor supervisor can use any approved BOM version that is valid on the requested
planned production date to plan for or produce a specific product. The BOM version that
is used doesn't have to be activated as the default BOM version.

From Formula line applies as of this date

To Formula line applies to this date.

Oper. No .A link between a BOM line and a route operation indicates that the materials
are consumed as part of the operation. The End flag controls whether the consumption
happens at the beginning or at the end of the operation. Only BOM lines and route
operations that are related to production of the same finished product can be linked
together. This setting affects the material requirement date in the master planning
process.

End The End flag controls whether material consumption happens at the beginning or at
the end of the route operation that is linked to the current BOM line. This setting affects
the material requirement date in the master planning process.

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13) Now open Setup under lines details

Flushing principle If a Flushing Principle is specified on the BOM, then that will be the
flushing principle that would be applicable. Otherwise, though the Flushing principle for
the item does not show up on the BOM Line, the Flushing principle that is set on the
item will be applicable for the BOM line whenever the Flushing principle is blank or not
set on the BOM line.

Constant Scrap. The Quantity of material used during the initial setup and startup of a
line is called as the Constant scrap. This is the amount of material that is not dependent
on the quantity produced and will always be scraped during the machine start-up and
calibration for this item.

Variable Scrap. This is the amount of material that is discarded during the production
run and as the name suggests it varies based on the quantity produced. This field is
defined as a percentage and the raw material requirement is increased by the quantity
specified in this field.

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How to attach a BOM version to a Finished Product or create a new BOM version
from Finished product

Navigation - Product information management > Products > Released products

1) Select the Item

2) Go to Engineer Tab

BOM Version
Already associated BOM and their version associated with Finished product can be
seen in the list.

If we wish to create then click on new and a drop down will open.

When using BOM version you can create new BOM version from here for that Finished
product.

When you use BOM and BOM version then you can copy it from other available BOM.

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Either we can copy from Base data that is available BOM version or we can choose
Production and then select the production order number.

Active BOM version

It will only show the active BOM versions only.

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Designer
The BOM designer has two sections:

 The Tree view of the BOM structure.

 The Details section, which shows details of the selected data. When you
select a node in the tree view, the FastTabs in the details section are
updated based on that node:
o BOM line details - Shows the details of the BOM line that is
selected in the tree view.
o Item data - Shows the details of the main item or the item that is
used in the selected node. You can select Edit released product to
maintain the selected item.
o BOM - Shows the header of the BOM that is related to the
selected node.
o Route - Shows the header of the route that is related to the
selected node.
o Route operations - Shows a preview of the operations for the
route. When a BOM line that is assigned to a specific operation is
selected, the operation is selected as Component needed at
operations.

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Use the designer to perform the following actions:

 Create new BOM versions or edit the existing ones.

 Edit and delete BOM lines.
 Check BOMs for errors, for example, BOM circularity.
 Check which BOM versions (if there are any) are attached to the selected
BOM.
 Check at which sites the BOM versions are assigned.
 Print BOM and BOM lines for the selected BOM.
 Verify the site to which the BOM line belongs.
 Add and edit BOMs and BOM lines.

Use the BOM lines or BOM functions to modify the BOM lines or BOM. When you select
a node in the tree, the type of node determines the functions that are available. The
following is a list of the nodes and their descriptions and conditions.

 BOM lines > Edit - Opens a dialog box where you can edit the BOM line
attributes. This function is available when a BOM lines node is selected.
 BOM lines > Delete - Deletes a BOM line from the selected BOM. This
function is available when a BOM lines node is selected and the BOM isn't
locked for editing.
 BOM lines > Add before line - Opens a dialog box where you can select a
product variant to include before the selected BOM line. This function is
available when a BOM lines node is selected.
 BOM lines > Add to component BOM - Opens a dialog box where you
can select a product variant to include at the end of the selected BOM. This
function is available when the node that is selected has a selected BOM. If
this function isn't available, a BOM version might be missing for the
selected item variant. In this case, you can select BOM > Create version to
create the missing version for the selected node.
 BOM lines > Add after line - Opens a dialog box where you can select a
product variant to include after the selected BOM line. This function is
available when a BOM lines node is selected.
 BOM > Create version - Creates a new BOM version or BOM for the
product variant of the selected node. This function is available when the

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BOM lines node that is selected is linked to an item that has a production
type of BOM or Formula.
 BOM > Calculation - Opens a dialog box where you can run the cost or
sales price calculation for the selected product variant. This function is
available when the node that is selected is related to a BOM version.
 BOM > Check - Validates and checks the selected BOM. This function is
available when the node that is selected is related to a BOM version.

The following is an overview of the process to create a BOM:

1. Create all products that are included in all BOM versions that include the
BOM itself.
2. Create a BOM.
3. Create BOM version(s), and then approve and activate it. This is performed
either before or after the component products are added.
4. Add products to specify which items to include in the BOM.
5. If necessary, create configurations and associated rules for the BOM.
6. Create site-specific BOM/routes to allow for the automatic selection of the
correct BOM and route version, in addition to the item dimensions, when
you are working with multiple sites.
*Note:- Designer can be used to create both BOM and ROUTE. If BOM and ROUTE
are not correct and setup is missing then Designer validation fails and give you
an error in the Tree View*.

BOM levels

A single-level BOM consists of the immediately subordinate components that are

necessary to build the product. It does not contain the "components of the components."

When a BOM contains another BOM as its component, it is known as a multilevel BOM,
where the sub-BOM is referred to as level one and its components as level two. BOMs
can consist of as many levels as necessary, depending on the type of product being
produced.

Product information management > Bills of materials and formulas > Bill of
materials > (Select product) > Maintain > Designer

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Example of a multilevel BOM

Adult bicycles consist of two wheels, a seat, handlebars, and a frame. All these
components are reflected in the bicycle BOM. However, the frame also consists of
several discrete items (three or four tubes welded together). Therefore, the frame has a
BOM of its own. The frame's BOM is known as a sub-BOM, that is, a bill of material
within the bill of material for the end product, the bicycle.

Assume that a BOM is created to assemble bicycles. The following items are set up as
the product type. The products types are used in the BOM and do not require assembly.

 Wheels
 Seat
 Handlebars

The bicycle frame is assembled in production. This part of the process is set up as a
sub-BOM that includes the following items:

 Tubes
 Welding wire
 Brackets or brace

Complex BOM items frequently have several sub-BOMs. The number of levels, or sub-
BOMs, depends on how the item is managed.

Generally, an item needs its own level in the BOM if, at a stage, the item must be:

 Tracked
 Stored
 Sold

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