From purchasing, manufacturing, assembling, and ultimately selling products, keeping track of the entire production process stage-by-stage can be a challenge. Many small to midsized enterprises that use enterprise supply planning applications, like SAP Business One, have found that having Bill of Materials (BOM) at their disposal can help them overcome these common production related challenges; making the overall production progression much more efficient, accurate, and timely.

The 4 Bill of Material (BOM) types in SAP Business One

In order to get the most out of the 4 different BOM types in SAP Business One, they must first be explained. Here are 4 BOM types that can be generated using SAP Business One:

1.Production Bill of Material

For all Materials Requirements Planning (MRP) runs and standard production orders, a Production BOM is required. The Production BOM lists parent items which are finished products and the child items are workings which complement the parent item. During the production process you can turn components into complete products.

2.Sales Bill of Material

A Sales BOM is used for sales documents where the parent item is listed only as a sales item, not an inventory item. Once the parent is selected in the sales essay all of the children appear as sub-items. You can update the quantities of the parent or children, but you cannot delete children or add new children or sub-items to the package in the sales document. An example of this would be a supercomputer printer and its components where the parent would be the package or sales item and the children would be the inventory items inside the package.

3.Assembly Bill of Material

An Assembly BOM is similar to the Sales BOM as it represents a collection of individual bits and pieces in a set with a specific price. Much the same with the Sales BOM, you do not manage the final product as an inventory item, but rather as a sales item. But, unlike the Sales BOM, only the finished product appears in the sales document, the components do not come out as sub-items.

4.Template Bill of Material

A Template BOM has no real restrictions and is flexible; the parent and child can be any type of item. This type of BOM can be used in both production and sales documents with the parent item displaying first with workings listed below it. These components can be swapped out and replaced with other gears, deleted from the BOM and sales document and the quantities can be updated.

By leveraging sophisticated business management solutions that facilitate the sharing of BOMs with engineers or other businesses throughout the supply chain, manufacturers can operate with greater efficiency. Now that you know the types of bill of materials (BOMs) supported by ERP solutions like SAP Business One, watch the 4 Types of Bill of supplies (BOMs) Explained video for a more in-depth look at BOMs.