Component Processing 

Purpose

The engineering/design department for your power plant project has used CAD systems to create work breakdown structure BOMs and material master records. In order to be able to plan material costs in detail and trigger procurement of the components, you transfer a BOM to one of the activities in your project.

You can either handle materials in the network or you can assign them dynamically using the BOM PS interface. The latter has the advantage that you can process the project and the BOM separately. If, due to order-specific adjustments, for example, the engineering/design department needs to update the BOM, you can copy these changes to your project by using BOM transfer functionality.

You execute material requirements planning if you want to ensure that the materials you require are available.

Prerequisites

A BOM for material IECPP-2-GE01 exists in the system.

Process Flow

  1. Checking a BOM

    2. You check the BOM for the generator component for completeness.

  2. Maintaining the Reference Point for the Network Activity

    3. You have to maintain the reference point in the network activity in order to create a logical connection between the BOM item and the appropriate network activity (advance procurement for generator).

  3. Checking the Stock/Requirements List

    4. The stock/requirements list displays the currently valid requirements and stock situation for a specific material.

    You can often make use of this function to check stock when you process components.

  4. Executing a BOM Transfer

    5. After a successful design phase, you now want to transfer individual BOM components for the generator to the appropriate network for further processing in order to trigger the procurement process on time.

  5. Executing Material Requirements Planning

    6. You execute materials requirements planning for the whole project. The system generates planned orders for materials that are to be produced in-house and purchase requisitions for the purchasing department for components that are to be procured externally. At this moment in time, the materials that first have to be procured are of interest.

  6. Creating a Purchase Order

    7. The ordering transaction is triggered for materials that have to be procured externally. You can create purchase orders from the purchase requisitions in the stock/requirements list.

  7. Posting the Goods Receipt for the Purchase Order

    8. You enter the goods receipt from external procurement. The vendor has only delivered part of the purchase order. The quantities provided by external procurement are kept in store and managed with inventory management.

  8. Entering an Invoice Receipt

    9. The invoice is with respect to the purchase order. Freight costs have been incurred. Moreover, the incoming invoice contains sales/purchase tax. You enter this tax data when you enter the invoice.

    The invoice check creates a link between materials management and accounting (financial accounting, asset accounting and cost accounting).

  9. Assigning BOM Material in a Project

You assign the BOM (generator) to the activity (production of generator) in your project. Since you have created a new material in the project, calculate your planned costs again.