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A bill of material is a complete, formally structured list of the components that make up a product or assembly. The list contains the
object number of each component, together with the quantity and unit of measure. A bill of material contains essential master data for
integrated materials management and production control. This master data is used in Master Recipe and Process Orders to identify
which components are being used in manufacturing and in what quantity.
BOMs are used in their different forms in various situations where a finished product is assembled from several component parts or
materials. Depending on the industry sector, they can also be called material list or lists of ingredients and so on. They contain
important basic data for numerous areas of a company, for example:
o MRP (Material requirements Planning)
o Material provisions for production
o Product costing
o Plant Maintenance
The data stored in bills of material serves as a basis for production planning activities such as:
o A design department can base its work on bills of material.
o A material requirements planning (MRP) department explodes bills of material on a certain date to calculate cost-effective order
quantities for materials.
o A work scheduling department uses bills of material as a basis for operation planning and production control.
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Process Definition Document
o A production order management department, uses bills of material to plan the provision of materials.
The data stored in bills of material is also used in other activities in a company such as:
o Reservation and goods issue : As an aid to data entry
o Product costing : To calculate the costs of materials required for a specific product
S.no
Transaction T-Code Input Output User Role Controls
1. Authorisation based on
1 Creation of BOM CS01 Production Process design BOM
role
2
Change Of BOM BOM Updated BOM Authorisation based on
CS02
role
Exceptions / Variations:
Integration points:
Materials Management for Material Codification
Enhancements / Developments:
Reporting Requirements:
SAP Standard
S. No. Report Required Key information Frequency Remarks
Report
1. Down-level Material requirement CS11 / CS12 / As & When
Component List
list CS13 required
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Process Definition Document
Reporting Requirements:
1. Master Data compilation for BOM Master data (for Non-SAP plants.)
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