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Bill of Materials

Bill of Materials. Objective At the end of this course, you will be able to. define the different types of bills of materials and use them. 2007 – Bill of Materials. Please review the following terminology changes that apply in SAP Business One 2007:. Production & Bill of Materials.

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Bill of Materials

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  1. Bill of Materials Objective At the end of this course, you will be able to define the different types of bills of materials and use them

  2. 2007 – Bill of Materials Please review the following terminology changes that apply in SAP Business One 2007:

  3. Production & Bill of Materials • The Production module supports production processes, starting from the bill of materials definition to the issue and the completion of the Production Order • A Bill of Materials (BOM) in SAP Business One is a combination of several components that form a single parent item • Effect of production processes on the stock valuation is detailed in a separate lesson

  4. Bill of Materials Types • It is possible to define 4 types of bills of materials: Sales, Assembly, Production and Template • Sales - The parent item is composed of its child items only when the parent item is actually sold • Assembly – Only the parent item appears in Sales documents • Template – A “flexible” bill of materials • Production – The parent item (the final product) is produced from its child items (the raw materials) using the Production Order window • Note! The work method with the first 3 types will be explained at the end of this lesson

  5. Initial Definitions 1 • 1. Item Master Data • Inventory  Item Master Data  General tab:

  6. Initial Definitions 2 • 2.Defining Bills of Materials • Production  Define Bill of Materials:

  7. Labor Items in a Production BOM • To add additional costs, such as Labor, to a Production Order, include non-inventory items in the bill of materials • The Issue Method of such items should be Backflush • The total amount of the non-inventory items in the bill of materials is displayed in the Production Order on the Summary tab, in the Actual Additional Cost field • These costs will be reflected in the journal entry created by the Receipt from Production and will affect the parent item’s cost

  8. Working with Sales & Assembly Bills of Materials • For a Sales bill of materials, determine whether the price of the parent item or child items will appear in Sales documents • Determine the display mode via Administration  System Initialization  Document Settings  General tab, and select the required option: • “When Splitting a Sales BOM in Documents Show:” • Price and Total for Parent Item Only Or • Price for Child Items that Comprise • Changing the Parent quantity in the Sales document changes the child item quantities accordingly • Note! The item’s price is determined by the customer’s price list and not by the BOM definition

  9. Demo – Sales and Assembly

  10. Working with a Template Bill of Materials • When selecting a template bill of materials in a document, all its child items are displayed in the document • You can change the prices for both the parent and child items, and add or delete items from the document as desired

  11. Demo – Template Bill of Materials

  12. Test Your Knowledge

  13. Bill of Materials: Course Summary The course explained how to • define the different types of bills of materials and use them

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