BOM Transfer: Example (SAP Library

BOM Transfer: Example

In this example we produce and assemble a turbine using a network. We assign the items from the two-level BOM to various network activities using BOM transfer.

Item T-20100 is a directly procured material (item category N) with a long delivery time. It is assigned via the reference point PROC1 to activity 3000 "Advance procurement"

The sub-items T-20210, T-20220, T-20230 for the production of assembly T-20200 are to be procured in activity 3100. Since these BOM items are all procured in the same activity, they have the same reference point PROC2.

Turbine assembly also requires material component T-20300 and T-20400 that are procured using MRP ( item category L). They are assigned via the reference point PROC3 to activity 3200.

Assembly Items

Instead of using production orders, the production of assemblies can be modeled using assembly items. In the transfer table you enter the project, the assembly to be produced and the reference point of the activity in which the assembly is produced.

In this example, assembly T-20200 is produced in activity 4000 with reference point PROD, and turbine T-20000 is assembled in activity 5000 with reference point ASSBLY. The system assigns these assembly items with quantity -1 ("receipt from activity") and sets the requirements date to the finish date of the activity.

Allocation and Material Requirements Planning (MRP)

After you have defined reference points in the BOM and the network activities, and the assignment in transfer control, you execute the BOM transfer assignment program

You enter as selection parameters the Project definition, the Material T-20000 and set the Multi-level and Preliminary reqmnts indicators.

The system assigns the BOM items to the network activities and when the system activates requirements, it generates reservations and preliminary requirements as follows:

In activities 5000 and 4000 reservations are created for the assembly items T-20000 and T-20200 with quantity -1 in both cases. The "requirements date" is the finish date of the respective activity.

Although the Preliminary reqmnts indicator is set, real requirements are generated for the subordinate components in the assembly items in the form of reservations for the activity start date.

As a result, reservations (dependent requirements) are generated for components T-20210, T-20220, and T-20230 in activity 4000. These components are consumed during the assembly of T-20200. However, since these components have a different reference point than the superior assembly, with which they are assigned to activity 3100, preliminary requirements are generated in activity 3100. In the case of externally procured components these are preliminary purchase requisitions.

Similarly, preliminary requirements are generated for the components, for which dependent requirements are generated in activity 5000, but which are assigned via reference points to other activities. If the components are procured via MRP, the preliminary requirements are planned independent requirements, as in the example for T-20300 and T-20400.

As illustrated in the following graphic, the system settles preliminary requirements against the reservations that are generated later. The prerequisite for this is that the material is managed in the same individual stock segment in both activities, that is. both activities are assigned to the same WBS element.