What is BOM Group and Group BOM

BOM Group: It is collection of bill of materials which enable you to describe a product or similar
products
Eg: All variants of a variant BOM and all alternatives of a multiple BOM is an example of BOM
Group
Group BOM: It is a BOM wherein u do not assign any plant while its creation. This means this
BOM can be later assigned to any plants as per requirement.....There is no specific plant
assigned while making it

BOM Group :
this gives you an additional way of accessing the BOM. The system stores the following under a
BOM group:
all the alternatives in a multiple BOM
all the BOMs entered for a variant BOM

All the alternatives and variants are stored under the BOM group
and
A bom WITHOUT A PLANT IS CALLED GROUP BOM.
Group BOM:
If you create a material BOM without reference to a plant, the BOM is valid throughout your
company. To do this, you leave the Plant field blank. The system checks whether material
masters exist. There are no system checks for plant data.
However, you can also create a group BOM, without reference to a plant. For example, a
designer maintains a group BOM during the design phase of a product, then the BOM is
allocated to one or more plants for production purposes.

Group Bom is independent of plant and you can create the Group bom using the same
transaction CS01, without entering a plant.
Once you created the group bom , you can assign to individual plants using CS07.
Be aware, if you make any changes in the group bom it will affects all the plants assigned to it.

Setting up BOM Groups

A BOM group is used to group together material BOMs that describe one
product or several similar products.
A BOM group can be:
All variants of a variant BOM
All alternatives of a multiple BOM
The material BOMs that are grouped together in a BOM group are stored
under one internal number by the system.
Within the BOM group, each item has a unique item ID. You can enter the
same item ID for logically related items, such as different versions of an
item. See also: Identifying BOM Items .

Identifying BOM Items

Use

Each item has a unique identification in a BOM group (all alternatives of a multiple BOM or all
variants of a variant BOM).

Features

The item ID identifies an item. The item ID can only be assigned on the Item Overview:
General screen or the General data item detail screen.

In the standard system, the item ID can be assigned as follows:

Internally

If you do not enter an item ID, the system assigns one automatically. Internally assigned item IDs are
always numeric.

Externally

You enter an item ID that has at least one non-numeric character.

An external item ID can only be assigned once in a BOM group. For example, once you assign item ID
MAD01 in alternative 01 of a multiple BOM, you can no longer assign item ID MAD01 in alternative
02.

If you want to use the same item ID for different items that belong together (such as different
versions of an item), you must define additional settings in Customizing.

See also:

Entering the Same Item ID for Different Items

Entering the Same Item ID for Different Items

Use

You can enter the same external item ID for logically-related items. For example, you might want to
define that different versions of an item become effective again under the same item ID.

Prerequisites

You have assigned the item ID of the item externally. In this case, the item ID has at least one
alphanumeric character (for example, MA000001).

In Customizing for bills of material, set the following indicators under Define modification
parameters:

EC management active

BOM validity maint.

 Rptd itm effctvty via external item ID

This indicator defines that an item can become effective again under the same external item ID. The
system does not check the effectivity conditions, such as the Valid-fromdate.

Procedure

Change the BOM with a change number.

1. Go to the item overview for entering the component for example, the material item
overview for entering a stock item.

2. Check the item ID of the item that you want to replace with a new item as a result of a
change (for example, item ID MA000001).

3. Enter the new item.

4. Enter, for example, component and quantity.

In the item ID field, enter the item ID that is already defined externally for another item in the BOM
group (for example, MA000001).

5. Save your BOM.

SAP Bill of Materials (BOM)

Author Written by Velmurugan Saravanavelu and last updated on Posted onApril 30, 2017.

Welcome to the tutorial about SAP Bill of Materials (BOM) in SAP PP. This tutorial is part
of our free SAP PP Training course. In this tutorial, we will explain what is BOM in SAP,
how to create it, meaning of various fields in BOM master data, and how to change existing
bills of materials.

SAP bill of materials (BOM) is one of the elements of SAP PP master data which contains
information like list of components and their quantities required to produce an assembly or a
finished good (FG). In SAP, different BOM categories are available which are used in
different applications or functional areas of an organization.

Bill of Material Application Used

Material BOM Production Planning

Equipment BOM Plant Maintenance

Functional Location BOM Plant Maintenance

Order BOM Sales and Distribution

WBS BOM Project System

Role of SAP Bill of Materials (BOM) in SAP PP

In SAP production planning, SAP bill of materials (BOM) is used for the
following functions:

1. Material Requirement Planning (MRP)

2. Product costing
3. Material Consumption
Usage of BOM in MRP

MRP uses BOM to calculate required raw materials or semi-finished goods (SFG) or components
quantity for customer demand of finished materials.
MRP performs Net Requirement Calculation at all the level of BOM by exploding it to determine
the shortage quantity.

Usage of BOM in Costing

During finished good (FG) product costing, the SAP system performs costing of its component by
exploding BOM.
Product costing comprise of raw material, activity and overhead costs. Here, raw material price
is maintained in a material master and its required quantity for a particular FG is maintained in
BOM.
During product costing, the SAP system multiplies quantity in BOM with material master price to
determine its cost against the particular FG.

Usage of BOM in Production Consumption

When production order is created for an assembly or FG, its BOM components are copied to the
order.
At the time of goods issue against order, the system posts the consumption based on this BOM
components in an order.

Technical Types of SAP Bills of Materials

There are 3 different types of BOM that are used in SAP PP:

1. Simple BOM
2. Multiple or Alternate BOM (technical type M)
3. Variant BOM (technical type V)

Simple Bill of Material

A Simple Bill of Materials

Alternate or Multiple BOM

An Alternate Bill of
Materials

Here, the end product is same but its components are different.

Variant BOM

A Variant SAP Bill of Materials

Here, the end products are different but having common or similar parts like frame, saddles,
etc. and a variant part.

What is BOM Explosion?

BOM explosion means break down of an assembly from a higher level to components in
lower levels. The SAP system breaks down the assembly by means of its lower level codes.
Lower level codes will be assigned by the system automatically when an item is linked with
the BOM. When one material is appearing in several assembly BOM at different levels, the
system represents the lowest low level code.
BOM Explosion

We can display the lower level code of a material in a material master (transaction MM03)
(additional data menu item or by clicking button).

Low-Level Code in a Material Master

How to Create SAP Bill of Materials?

SAP Bill of Materials can be created by accessing the transaction code mentioned below

Transaction Code Description

CS01 Create Material BOM

or by navigating to the following menu path:

Create an SAP

Bill of Materials Transaction in SAP Menu

Create SAP Bill of Materials Initial Screen

A material master must exist for all assemblies and components before creating a BOM.
Here BOM Usage controls application or business function that can use this Bill of Materials.
For example, BOM of a product in a design phase will have the usage 2 which cannot be used
for production purposes.

Different Values of BOM Usage

Parameter
In component overview, the SAP system shows all the components required to produce the
assembly (for base quantity).

SAP Bill of Materials Header Data (Base Quantity)

Overview of Components of SAP Bill of Materials

SAP Bill of Materials (BOM) Structure

Each BOM has a unique structure which is applicable for all BOM types as illustrated below.
 SAP Bill of Materials
Structure

BOM Header

BOM header contains below information:

BOM NUMBER

This number is assigned internally by the system. System uses this for linking with
transaction data and other PP applications like MRP, production order, etc.

ALTERNATE BOM

This field represents an alternate BOM if more than one BOM exists for the material.

TECHNICAL TYPE

This field tells which technical types the BOM belongs to.
When we create a BOM for an assembly, the SAP system creates Alternate 1 with technical type
(Blank).
When we create a BOM the second time for the same assembly, it creates Alternate 2 and
changes technical types as M
For products that have common similar parts, BOM will be created as a Variant BOM (Technical
types V)
 BOM BASE QUANTITY

This is the quantity for which component quantity will be entered. This base quantity will be
used in BOM explosion at the time of MRP and costing.

BOM Items

ITEM CATEGORY

Each BOM components is assigned an item category which classify the BOM items. Here are
the possible item categories for BOMs:

Stock Item Item can be kept in stock. The SAP system generates reservation at the time of order creation.

Item cannot be kept in stock, may be procured directly at the time of consumption. The SAP system generates PR or Planned order at the
Non-Stock Item time of Order creation.

Variable Size
Different sized materials are assigned with this item category. Required quantity is calculated based on Sizes and Formula entered.
Item

PM Structure
This item category will be used only for Plant maintenance BOM.
Item

Intra Material Temporary material which exist between 2 operations/phases. Commonly used in Process Industry.

Document (design, drawing, photos, etc.) can be assigned to the BOM as an item using this Item category. A valid document master
Document Item record is required for this.

Text Item A text required for shop floor paper can be maintained here.

Class Item This item category is used for configurable material to classify the materials.
Basic Data in BOM Items

FIXED INDICATOR

When component quantity is not based on an assembly quantity and always consumed in
fixed amount, this indicator can be used.

Example:

Catalyst used for a chemical process is always fixed without respect to quantity of FG
produced.

COMPONENT SCRAP

Scrap that occurs when a component is converted into a final assembly is called Component
Scrap. Component scrap can occur by means of any one of the following:

Losses during storage

Losses during delivery from a vendor
Losses during transportation to production facilities

Component scrap can also be entered in BOM as well as in a material master. Component
scrap maintained in a material master is applicable for all BOM products. When different
component scrap percentage is required for particular product, it can be maintained in BOM.

Example:

Lets say 1 PC of Assembly A1 requires 2 PC of Raw material R1 which has 20% component
scrap in Bill of Materials. Assume that there is no stock available for A1 and R1. When
demand of 500 PCs is received for an assembly, MRP calculates requirement quantity as
follows:

Example Component Scrap

 OPERATION SCRAP WITH NET INDICATOR

Here, the system will only consider the operation scrap percentage entered here and not
include assembly scrap (if any) entered in the MRP-1 view of a material master.

This WIKI page aims at providing an overview of various scraps involved in day to day Production & Procurement
activities, their dependencies and the calculation of scrap quantities.

Content
1. Scrap
2. Types of Scrap
3. Assembly Scrap
4. Component Scrap
5. Operation Scrap
6. Scrap Calculation

Scrap

Non-conforming material that cannot be reworked or used and has no value except for its material content.

Types of Scrap
The following are the various scraps that are maintained

1. Assembly Scrap
2. Component Scrap
3. Operation Scrap

Assembly Scrap

Percentage scrap that occurs during production of the material if the material is an assembly.
Takes into account all faults that occur when the individual components of an assembly are assembled (in production).
Maintained in the Material Master - MRP 1 View as percentage
Assembly scrap is used in materials planning to calculate the lot size of the assembly. The system increases the
quantity to be produced by the scrap quantity calculated.

Dependency:

The system increases the quantity to be produced for all of the assembly's components accordingly.

Assembly Scrap-MRP1 View

 Assembly Scrap Calculation

Let the material master record of header material FERT contains an 10% of assembly scrap. The subordinate
component ROH quantity will be calculated as below to include the scrap.

The resulting component quantities for ROH is calculated for 1,100 pieces of assembly FERT.

Component Scrap

Percentage of scrap that occurs during production of the material if the material is a component. It takes into account all
faults that occur before the component is put into an assembly (material provision scrap).
Applies only to one component
Component scrap can be maintained

- In the BOM on the Item detail screen: basic data under Quantity data. This component scrap is only relevant to the
individual BOM.

- In the material master record on the MRP 4 screen under Requirements explosion. If the same component scrap
applies to a material in a number of BOMs, then it can be maintained in the material master record.

Component scrap is used in material requirements planning (MRP) to determine the quantities of components required.
When exploding the bill of material (BOM), the system increases the required quantities of the components by the
calculated scrap quantity

Component Scrap - Dependencies

 Component scrap maintained for a material component in a BOM overrides the component scrap maintained in the
material master record.
If there is also assembly scrap for a higher-level assembly, the system adds together the two types of scrap

BOM Item detail screen: Basic data

If the component scrap is only relevant to the individual BOM, then it can be maintained in the BOM Item detail screen

Component Scrap - MRP4 View

If the same component scrap applies to a material in a number of BOMs, then it can be maintained in the material
master record.

Component Scrap Calculation

If a component scrap of 10% is maintained for the material component ROH in the BOM, then the component quantity
 will be calculated to include the scrap as

below.

Component Scrap & Assembly Scrap

Assembly scrap of 10% is maintained in the material master record of assembly FERT.

In BOM, component scrap of 10% is maintained for a material component ROH. The component quantity will be
calculated as below to include the scrap.

If an adjusted required quantity of 1,100 pieces of FERT is to be produced, then 1,210 pieces of component ROH are
required.

Operation Scrap

Scrap that is expected in one operation for the quantity of a component to be processed
Used to override the assembly scrap for materials of high value
If operation scrap is maintained, situations where too much of the material is planned in MRP for the components of
subsequent operations can be avoided
If an entry for Operation scrap is made, then Net Scrap Indicator must be set to active
Applies to only one component

Operation Scrap - BOM Item detail screen: basic data

 Net Scrap Indicator

Determines whether scrap for the component is calculated on the basis of the net required quantity (the required
quantity without assembly scrap from the material master record).
Must be set to exclude Assembly scrap
Must be set to override assembly scrap with operation scrap
Can be set if only component scrap is entered, to calculate scrap on the basis of the net required quantity for the
assembly

Net Scrap Indicator - BOM Item data

Operation Scrap Calculation

Operation scrap is maintained as 1% for one of the component ROH2 in the BOM. This component is also subject to
assembly scrap of 10%. For 1000 pieces of FERT assembly, the following is the scrap calculation for component
quantities.
Scrap Calculations
Scrap calculation depends on the entry of various scraps (Assembly, Component & Operation scrap) for the Assembly
& Component Material and also influenced by Net Scrap Indicator in the BOM Item detail.

Master data:

The following are the scrap quantities calculated for the above master data:

From another website

Hi,
There are three types of scraps used in SAP PP.

1. Assembly Scrap.

2. Component Scrap
3. Operation Scrap..

Assembly Scrap

During Production there will be some loss always due to various reasons and due to this we will get
less output than the planned onefor example if planned to produce a qty of 100 KG we may get
around 99.5 KG as the final output or yield..Now to get the actual output as the planned one we need
to increase the planned qty by some percentage so that we will get the output as per the expectation..
For this we use Assembly Scrap

Assembly scrap increases the order quantity of the header material and subsequently increases the
order quantity for corresponding components. The dependent requirements of the material
components are therefore increased correspondingly.

Settings : You have to maintain the assembly scrap in the material master (MRP1 view) as a
percentage in the Assembly scrap field for the assembly header material.

Flow :

Following is the BOM structure of header material with two components.

Maintain 5% as the assembly scrap in the MRP1 view in material master for the header material
Create Process order for header material with order qty as 1
system increases the order qty by 5% as shown below.
Now go to components overview you can observe components qtys are also increased by 5%

Now save the order.

Component Scrap
Some times a particular component always consumed more during a production process than the
planned one. component scrap only applies to one component. Component scrap increases the
dependent requirements quantity of the component.
Settings :
You can enter values for calculating component scrap in the material master or the BOM in the
BOM on the Item Detail Screen General Data (data block for quantity data). This component scrap is
only relevant for the individual BOM.
In the material master (view MRP 4) in the Component scrap field. This component scrap is
relevant for all BOMs.
-The component scrap quantity maintained for a material component in the BOM has the higher
priority.

Flow :

Following is the BOM structure of header material with two components.

Maintain 5% as component scrap in in the BOM item details for the component 200-210 as shown
below..
create process order for header material with order qty 1
Now go to component overview in the process order and you can observe that only qty of
component 200-210 is increased by 5%
You can maintain the component scrap in material master MRP4 view of the component 200-210
as shown below.

Operation Scrap

During Production process after a particular operation you may get some loss. Now you need to
adjust the qty, standard values and other values of the subsequent operations. For this Operation
scrap is used in production.
Settings :

You can enter operation scrap (in %) in the routing and in the BOM.
The operation scrap entered in the routing refers to the activity quantity consumed, while the
operation scrap entered in the BOM refers to the material quantity used. In this case, the net
indicator must be turned on.
Flow :

Following is the routing structure of header material with three operations.

Maintain 10% as operation scrap in the operation details of the operation 1 as shown below.

Now create Production order for header material with order qty 100 KG
Now go to Operation overview

Scroll to right..you will be able to see operation qty of second operation and third operations
are reduced by 10%
Maintain the operation scrap as 5% in the BOM component 2160 and also activate indicator Net
ID in the item details as shown below

Now create production order for 100 KG for header material

Go to components overview and observe that component qty of 2160 is increased by 5%

Also refer
https://help.sap.com/saphelp_erp60_sp/helpdata/en/d1/95d7531a4d414de10000000a174cb4/fra
meset.htm
Example:

Let say requirement quantity of R1 and R2 is 100 PCs.

Example Operation Scrap with Net Indicator

GENERAL DATA

General Data of BOM Component

 Co-Product Indicator is activated if more than one finished product is produced in a production
process.
Material which are defined as co-product will be entered with (negative sign). This means, that a
particular material will be considered as Output Material along with the header material.
Material entered with a negative sign but no co-product indicator is activated will be consider as
a By-product.

RECURSIVE ALLOWED

When the same material is as a header material as well as BOM item, the BOM is called
Recursive BOM. This case frequently happens in Process industry as well as
Pharmaceutical industry. For instance, consider an example below:

In foundry process, liquid metal is produced by melting charge materials like ion, brass, etc. They
are melted and poured into a mold to form a casting.
During the melting process unconsumed liquid metal also consumed in every cycle.
Liquid metal (Unconsumed) + Charge Material (Ion, Brass etc.) under High Temperature -> Liquid
metal
Here input and output materials are the same which cause recursion in BOM. It leads to the
situation when BOM will be exploded indefinitely without stopping.
By setting the indicator recursive allowed at BOM item level BOM explosion will be stopped.

ALTERNATE ITEM GROUP

We can group to gather all alternate items using Alternate Item Group. Alternate Item Group
uses 3 keys to determine the alternative material:

Usage Probability
Priority
Strategy

MRP uses Usage Probability and Priority to create dependent requirements. Production order
also creates reservations based on Usage Probability. But consumption is based on Strategy
defined in the alternate item group.

This can be explained with the following example:

Let say a company manufactures a car where different brands of tires are used to fit in the
car. Depending upon availability, a suitable tire will be used by the system. Lets say
requirement for a tire (based on car requirement) is 1000 PC and below settings were
maintained in BOM items for an Alternate Items Tire Brand A, Tire Brand B, and Tire Brand
C.
Example Alternate Item Group

Alternate Item Strategy

DISCONTINUATION ITEM

Discontinuation material is a material which is replaced by its follow-up material. We can

maintain a discontinuation material in SAP material master as well as in SAP bill of
materials. Bill of materials setting override material master record setting. MRP will transfer
the dependent requirement to follow-up material if discontinued component is no longer in
stock or has insufficient stock.

The following conditions must be fulfilled for discontinuation:

Conditions for Discontinuation

There are certain cases where we cannot activate discontinuation logic:

1. We cannot activate discontinuation logic for Alternate Items.

2. Co-products cannot be discontinuation items.
3. Non-stock items cannot be discontinuation items.

SORT STRING

Based on Sort String, the SAP system will sort the components display in report and PP
transactions.
STATUS/LONG TEXT

Status/Long text in a Component of SAP Bill of Materials

PRODUCTION RELEVANT INDICATOR

This Indicator will be activated by default for BOM usage 1 and 3.

If this indicator is activated, the item is relevant for material planning and production orders.
For items which you want to use only for costing purposes but not for planning and production
orders uses like bulk materials, this indicator can be deactivated.

ENGINEERING/DESIGN INDICATOR

This Indicator will be activated by default for BOM usage 2.

Usage of this BOM in other application like costing, production is optional.

PLANT MAINTENANCE IN DICATOR

Item that is relevant for Plant Maintenance will be set by default for usage 4.
SPARE PART INDICATOR

It is generally used in Plant Maintenance (equipment BOM) which can be assigned to the
equipment operations.

COSTING RELEVANCY

Item relevancy for costing is decided by this Indicator.

On deselecting this Indicator, Particular BOM Item will be excluded from Costing but not relevant
for Production/Planning.

MATERIAL PROVISION INDICATOR

This Indicator controls relevancy for MRP. Generally, it is used for subcontracting materials.

If subcontracting components are provided by the production plant, no need to activate this
indicator. So that MRP generates dependent requirement for the components.
If components are not provided by the production plant and are already available at a vendors
location, activate this indicator. So that MRP will not plan or generate dependent requirements.

BULK MATERIAL

Material which are available directly at the machine location(s) like grease, washers can be
defined as bulk materials. For bulk materials:

Item will not be relevant for costing.

Dependent requirement will not be generated by MRP.
There will not be any production storage location for this item to issue store from, as it is directly
available at Machine/Work center location.
Replenishment is based on consumption based planning.
If a Material is used as a bulk material for all products, we can set it in its material master (MRP2
view).
If it is used for some products and not for every product, we can set it at BOM item level.

PRODUCTION STORAGE LOCATION

Location from which raw materials /components are consumed for production. On release of
a production order, a warehouse person will issue the material from the warehouse to a
production storage location. Production storage location in BOM item has a higher priority
than the location in a material master (MRP2 view).
Production Storage Location in SAP Bill of Materials

SUPPLY AREA

Supply area can be defined in any of the master data elements mentioned below:

1. SAP Work center

2. SAP Bill of Materials
3. SAP Material Master

Selection or determination of a Supply area is also performed in the same order. Supply area
is assigned with a storage location. Supply area is used in the following scenarios:

1. KANBAN
2. Warehouse Management

How to Change SAP Bill of Material?

The transaction CS02 is used to change an existing SAP Bill of Materials. We can also
change many BOMs at the same time using the transaction CS20. This transaction enables us
to:

Replace items in all BOMs

Change item data like quantity, etc.

 Did you like this tutorial? Have any questions or comments? We would love to hear your
feedback in the comments section below. Itd be a big help for us, and hopefully its something
we can address for you in improvement of our free SAP PP tutorials.

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4 thoughts on SAP Bill of Materials (BOM)

1. Puneetsays:

March 28, 2017 at 8:01 pm

How to do addition for a new material in number of FG materials collectively where

reference material is also not present

Reply

1. Cleo Iscosays:

March 29, 2017 at 2:22 am

You need to use a different transaction for this purpose: CS20 and/or CEWB. I hope
that we will make another tutorial on this topic in the future. Thank you for the
question!

Reply

2. prasadsays:

May 11, 2017 at 8:35 am

I am SAP FICO consultant and learning this PP training material. Such a wonderful
one. I received upto lesson 1.5. I didnt receive after that. Pls continue and i dont
want to lose this opportunity. Thanks Prasad