How are Bills of Material Used in PP? (SAP Library

How are Bills of Material Used in PP?

The data stored in bills of material serves as a basis for production planning activities such as:

A design department (working with CAD) can base its work on bills of material. You can also create a BOM in the R/3 System from your CAD program, via the SAP-CAD interface.

A material requirements planning (MRP) department explodes bills of material on a certain date to calculate cost-effective order quantities for materials.

A work scheduling department uses bills of material as a basis for operation planning and production control.

A production order management department, uses bills of material to plan the provision of materials.

The data stored in bills of material is also used in other activities in a company such as:

Sales orders

As an aid to data entry. You can also create and maintain a BOM specifically for a sales order (variant configuration).

Reservation and goods issue

As an aid to data entry

Product costing

To calculate the costs of materials required for a specific product

This simultaneous use of BOM data in different areas of a company illustrates the advantage of a system based on integrated application components. Links between application components facilitate continuous data exchange between different application areas, giving all users access to the latest data at all times.