Production Contents SAP AG 2007 n Maintaining bills

Production Contents: ã SAP AG 2007 n Maintaining bills of material (BOM) n Production process

Production: Unit Objectives At the conclusion of this unit, you will be able to: ã SAP AG 2007 n Describe the differences between individual bills of material (BOMs) n Carry out a production process for a production BOM

Production: Business Scenario n ã SAP AG 2007 Some of the items in your product range consist of various other items. You assemble these items before they are delivered to the customer.

Elements in Production Bills of Material (BOM) Sales BOM n Template n Production BOM n Production Orders (Production BOMs only) Standard Production Orders n Special Production Orders n Disassembly Production Orders n ã SAP AG 2007

Maintaining Bills of Material: Topic Objectives At the conclusion of this topic, you will be able to: ã SAP AG 2007 n Describe the differences between the individual types of bills of material n Maintain bills of material in the SAP Business One System

Sales / Assembly BOM Category of the Item master records: V 001 PC Set 1 Unit Finished product: must be a sales item Components: can be sales, purchase and stock items. ã SAP AG 2007 S 1008 System Unit 1 Unit M 1007 Monitor 1 Unit K 1014 Keyboard 1 Unit

Sales BOM Type Sales Define Bill of Materials Product No. Description BOM Type V 001 PC Set If there is a price on product- or componentlevel depends on the Document Settings in the System Initialization Sales Item No. Description Quantity Total S 1008 System Unit 1 275 M 1007 Monitor 1 50 K 1014 Keyboard 1 10 Parent Product Price 315 You can not change or delete the components ã SAP AG 2007 Sales Order Customer C 1000 Item No. Description Quantity Total V 001 PC Set 1 S 1008 System Unit 1 275 M 1007 Monitor 1 50 K 1014 Keyboard 1 10 Total 315

Template BOM Type Template Define Bill of Materials Product No. Description BOM Type You could change the quantities and prices of the product and the components and you could as well delete components. X 500 Digital Camera Kit Template Item No. Description Quantity Total A 1005 Case 2 73, 80 A 1006 Battery 2 99, 96 A 1015 UV Filter 1 21, 05 Parent Product Price Sales Order Customer C 1000 Item No. Description Qty X 500 Digital Camera Kit 1 A 1005 Case 2 73, 80 A 1006 Battery 2 99, 96 A 1015 UV Filter 1 21, 05 Total ã SAP AG 2007 Total 194, 81

Production BOM Category of the item master record: Skateboard 1 Unit Tire 1 Unit ã SAP AG 2007 Axis 2 Units Board 1 Unit Wheels 4 Units Rim 1 Unit finished product must be an inventory item Screws 4 Units Screws 8 Units

Category of the Item Master Record of the Finished Product for Bills of Material BOM Type Assembly BOM* Sales BOM Template Production BOM Item Category Inventory Item (1. ) Sales Item (1. ) Purchased Item (1. ) * The assembly BOM is only available for customers upgrading from previous versions. ã SAP AG 2007 (1. ) optional

Phantom Item (does not appear in production orders and only for information in MRP) ã SAP AG 2007 Axis 2 Units Board 1 Unit Wheels 4 Units Tire 1 Unit Skateboard 1 Unit Rim 1 Unit Screws 4 Units Screws 8 Units

Additional Costs in Production Labor Cost (Created as non-inventory item master record. Appear in production orders. ) Wheels 4 Units Labor Cost for Assembly ã SAP AG 2007 Tire 1 Unit Skateboard 1 Unit Board 1 Unit Rim 1 Unit Axis 2 Units Screws 4 Units Screws 8 Units

Creating a Bill of Material Finished Product No. P 1001 Product Description Skateboard BOM Type Production Item No. Sales Production Template A 1019 A 1020 A 1021 Components Quantity Price List Quantity of the item produced with the components 1 Price List High Volume Quantity Unit Price Total 1 22, 50 4 17, 82 71, 28 2 26, 10 52, 20 Total price of components 145, 98 Product Price Update Cancel Price of finished product for specified price list ã SAP AG 2007 129, 99 Price list for determining the component prices Determine price of finished products from component prices

Update Parent Item Prices Price for Child Items in Price List changes run report Update Parent Items Prices Globally Item P 1001 A 1019 A 1020 New Price 129, 99 32, 50 17, 82 Update Accept the suggested price for the BOM ã SAP AG 2007 Current Price Difference Suggested Price 139, 99 10 or Remove Keep the current price for the BOM

Production Process: Topic Objectives At the conclusion of this topic, you will be able to: ã SAP AG 2007 n Describe the production process n Carry out a production process for a production BOM

Production Order Types Standard Production Order Special Production Order Product Item A B C X Disassembly Production Order Product A ã SAP AG 2007 B C Y Z

Production Process manually 1. ) MRP Production Order 2. ) release Status: Planned Components are committed but stock is not yet affected. 3 b. ) ã SAP AG 2007 Production Order close Status: Released 3 a. ) 4. ) issue the components for production receipt from production and report completion Status: Closed

Production Order: Component Tab Page Production Order Type Status Product No. Planned Qty Warehouse Standard / Special / Disassembly Planned / Released / Closed / Cancelled P 1001 2 01 Components Item No. Base: Displays the quantity of the components necessary to manufacture one product. ã SAP AG 2007 Due Date Origin User Sales Order Customer 20. 10. 2004 Manual / MRP Marc Manager … … Summary Base Planned Issued A 1019 1 2 2 A 1020 4 A 1021 2 Planned: Displays the value of the planned quantity, which is the multiple of the base quantity and the product planned quantity. Available Warehouse Issue Method 12 01 Manual / Backflush 8 96 01 Manual / Backflush 4 48 01 Manual / Backflush Issued: Displays the total quantity already issued for the production order. Available: Displays the quantity of the item units available in the specific warehouse. Issue Method: Manual – individual components of a a parent item are issued manually. Backflush – components of a parent item are automatically issued to the production order once you report the completion of the parent item.

Production Order: Summary Tab Page Production Order Type Status Product No. Planned Qty Warehouse Standard / Special / Disassembly Planned / Released / Closed / Cancelled P 1001 2 01 Components Due Date Origin User Sales Order Customer 20. 10. 2004 Manual / Automatic Marc Manager … … Summary Costs Actual Component Cost Actual Additional Cost Actual Product Cost Total Variance per Product Variance % Journal Remark ã SAP AG 2007 80 80 Production Order - P 1001 Quantities Planned Quantity Completed Quantity Rejected Quantity Dates Due Date Actual Close Date Overdue 2 2 20. 10. 2004

Production Process Postings Issue For Production WIP Account 100 Receipt from Production Stock Account (of Product) 90 Production Order Close WIP Account -10 ã SAP AG 2007 Stock Account (of components) 100 WIP Account 90 WIP Variance Account -10

Stock Changes for Standard Production Order In Stock - Committed + Ordered = Available Standard Production Order Status: Planned ã SAP AG 2007 - + Components + Finished Product Completion reported Components - Finished Product + - +

Production: Unit Summary You are now able to: ã SAP AG 2007 n Describe the differences between individual bills of material n Carry out a production process for a production BOM