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You can enter additional data that controls specific business activities, such as the Material provision indicator.

Material provision indicator

This identifies the item as provided either by a customer or by a vendor.

In Customizing, you define who provides the item for each material provision indicator by choosing Bill of Material ® Item Data ® Define material provision indicators. You set either the Material to be provided by customer indicator or the Material to be provided by vendor indicator.

In material requirements planning (MRP), the system reads the material provision indicator. In BOM reporting functions, you can use this indicator as a selection criterion.

Material Provided by Vendor

In Customizing, you define Material to be provided by vendor indicators by choosing Bill of Material ® Item Data ® Define material provision indicators.

Note

Only maintain this indicator for the BOM component if the material master record of the header material supports subcontracting (MRP data, field Special procurement).
The special procurement key Subcontracting means that all components of the BOM are provided to the vendor for further processing. The items are copied to a subcontracting order.

The BOM for a material defined for subcontracting can contain the following items:

These items are in the subcontracting order as materials to be provided. Goods issue can be planned in advance using a reservation. In inventory management, a transfer posting is made for these components from unrestricted-use stock to vendor stock.

Subcontracting and Production Versions

When processing a purchase document item (type subcontracting), the system determines the material BOM in accordance with the vendor you want to order from. These BOM versions of a material are stored in the material master as production versions.
Individual production versions are linked to suppliers either in the quota arrangement or in the purchasing info record.

Example

You order material M1 as item 10 of a subcontracting order. Different BOM versions are defined for this material, depending on whether you order the material from vendor X in the US or vendor Y in Japan.

Subcontracting vendor X in the US has almost all components in stock, and these meet the required standard, so the BOM contains only 1 component.
However, if you order from subcontracting vendor Y in Japan, you must provide 4 components, because this vendor’s components do not meet the standard for material M1.

Material Provided by Customer

In Customizing for Production, you define Material to be provided by customer indicators by choosing Bill of Material ® Item Data ® Define material provision indicators.

This provision indicator has no control functions.

Bulk material indicator

A bulk material is a material component to which you have direct access at the work center (a loose material, such as grease or washers). You can enter the bulk material indicator in the material master record and the BOM item.

If a material is defined as a bulk material, dependent requirements for this material are not relevant to MRP. MRP for bulk materials is based on consumption.

Indicator in the material master record

You can define a material as a bulk material in the MRP data of the material master record.

If you set the bulk material indicator in the material master record, the system sets the bulk material in material master indicator in the BOM.

Indicator in the BOM

The indicator in the material master overrides the indicator in the BOM item. An indicator in the BOM item tells you whether the material is defined as a bulk material in the material master.

If the BOM is only allocated to one plant, you see the default value from the material master record in this plant when you create an item.

Production Storage Location

This storage location is for issuing the material during the production process. A production storage location supports backflushing. This means that a goods issue for the material is posted automatically when you post the production order to stock.
The issue location in the item is displayed in the production order as a default.

When you enter a BOM item, the system checks whether the material is defined for the chosen plant and storage location.

You can only maintain a production storage location for material items that are relevant to production and/or plant maintenance. If an item that is relevant to production is defined as a bulk material, you cannot make an entry for the production storage location.

For production purposes, the storage location in the BOM item overrides the storage location in the material master. If you have not entered a production storage location in the BOM item, the system uses the value from the material master.

Supply Area

The supply area is used for supplying materials in the production area itself. You must enter the relevant production storage location.

 

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