How are Bills of Material Used in SAP PP?

February 21, 2010 by mySAP
Filed under: Production Planning Module

The data stored in BOMs (bills of material) serves as a basis for production planning (SAP PP)activities such as:

A design department (working with CAD) can base its work on bills of material. BOMs can be created in the SAP system from CAD program, via the SAP-CAD interface.
Material requirements planning (MRP) department explodes bills of material) on a certain date to calculate cost-effective order quantities for materials.
A work scheduling department uses bills of material as a basis for operation planning and production control.
A production order management department, uses bills of material to plan the provision of materials.

The data stored in BOMs is also used in other activities in a company such as:

· Sales orders: As an aid to data entry. You can also create and maintain a BOM specifically for a sales order (variant configuration).

· Reservation and goods issue: As an aid to data entry

· Product costing: To calculate the costs of materials required for a specific product

This simultaneous use of BOM data in different areas of a company illustrates the advantage of a system based on integrated application components. Links between application components facilitate continuous data exchange between different application areas, giving all users access to the latest data at all times.