BILLS OF MATERIALS

A Bill of Material (BOM) describes the different components that together create a product. A
BOM for a bicycle, for example, consists of all the parts that make up the bicycle: the frame, the
saddle, wheels, and so on.

Process:

When you enter the material number of a bill of materials that is relevant for sales order
processing, the system displays the material that describes the whole bill of materials as a main
item. The individual components are displayed as lower-level items.

There are two ways to process a bill of materials in Sales. Once you have entered a bill of
material in a sales order, the system runs pricing, inventory control and delivery processing at:

Main item level if the material is assembled

Component level if the material is not assembled

The type of processing used by the system is determined by the item category group that you
enter in the material master record for relevant materials.

Processing at Main Item Level (Structured Material Above): -

If you want the system to carry out pricing, inventory control and delivery processing at main
item level, enter ERLA in the Item category group field of the Sales: sales org. 2 screen in the
material master record of the finished product. This means that the components only function as
text items and are not relevant for delivery.

Processing at Component Level (Structured Material Below): -

If you want the system to carry out pricing, inventory control and delivery processing at the
component level, enter LUMF in the Item category group field of the Sales: sales org. 2 screen
in the material master record of the finished product. In this case, only the components are
relevant for delivery. During processing the system automatically creates a delivery group. The
latest delivery date among all the components becomes the delivery date for the entire delivery
group.
CONSULTANT WORK:

Path: SPRO IMG Production Basic Data Bill of Material Alternative

Determination Define Applications
T. Code: OS30
Application: SD01

As we know that there are two possibilities in BOM:

1. Structured Material Above
2. Structured Material Below.

1. Structured Material above:

Main Item
Item Category group: ERLA
Item Category: TAQ
Billing Relevance and Pricing is controlled at main item level.
OR + ERLA = TAQ
Schedule line = CP
Sub-Item
Item Category group: NORM
Item Category: TAE
OR + NORM + TAQ = TAE
Schedule line = CT

2. Structured Material above:

Main Item
Item Category group: LUMF
Item Category: TAP
OR + LUMF = TAP
Schedule line = CT
Sub-Item
Item Category group: NORM
Item Category: TAN
Billing Relevance and Pricing is controlled at sub-item level.
OR + NORM + TAP = TAN
Schedule line = CP

END-USER WORK:
1. Create Main Material With Item Category ERLA/LUMF
 If the Main Material is created with Item Category ERLA, the Price mentioned for main
Material will appear in the Sales Order and Billing Document. Sub Material Items will
appear in quantities mentioned as per BOM Creation.

If the Main Material is created with Item Category LUMF the Sum Total of Prices of Sub
Material Items will appear in Sales Order and Billing Document.

2. Create Sub Material Items Normally with Item Category NORM

3. Create BOM:
Path: SAP Easy Access Logistics S&D Master Data Products Bills of
Materials Material BOM Create
T Code: CS01
- Enter the Main Material Number in Header
- BOM List = 5 (for Sales and Distribution)
- Leave the Step 10 in Item Blank
- Start Entering from Step 20 Sub Material Number and Quantity required for making one
Main Item.