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SAP PP · Lesson

BOM

Quick answer

The BOM drives MRP (what components to plan/procure), production orders (what to consume), and product costing (roll-up of component costs).

Key takeaways

  • A BOM is a structured list of the components required to produce a finished or semi-finished product, each with a quantity.
  • Header & items: the product and its components.
  • BOM usage: e.g. production, engineering, costing.
  • Watch out: Inaccurate BOM, wrong planning/production/costing.

What a BOM is

A BOM is a structured list of the components required to produce a finished or semi-finished product, each with a quantity. For a bicycle, the BOM lists the frame, wheels, chain and so on. BOMs can be multi-level (components that themselves have BOMs), forming the product structure.

Key concepts

  • Header & items: the product and its components.
  • BOM usage: e.g. production, engineering, costing.
  • Multi-level BOMs and where-used lists.
  • Alternative & variant BOMs for product variants.

Why it matters

The BOM drives MRP (what components to plan/procure), production orders (what to consume), and product costing (roll-up of component costs). An incorrect BOM causes wrong planning, wrong production and wrong costs, so BOM accuracy is critical. It works together with the routing (the steps) to define how a product is made.

Common pitfalls

  • Inaccurate BOM, wrong planning/production/costing.
  • Wrong BOM usage selected.
  • Not maintaining variants/alternatives.

Want to learn this properly?

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Check your understanding

  1. Which statement is true of BOM?

    • A. SAP Gateway errors affect RFC communication and, in the OData sense, Fiori apps.
    • B. MARC is a key SAP table in MM (Materials).
    • C. For a bicycle, the BOM lists the frame, wheels, chain and so on.
    Show answer

    C. For a bicycle, the BOM lists the frame, wheels, chain and so on.

    Covered in the “What a BOM is” section of this lesson.

  2. Which of these also applies to BOM?

    • A. Learning screens, not the end-to-end process.
    • B. BOMs can be multi-level (components that themselves have BOMs), forming the product structure.
    • C. Upgrading without reading the notes.
    Show answer

    B. BOMs can be multi-level (components that themselves have BOMs), forming the product structure.

    Covered in the “What a BOM is” section of this lesson.

  3. Which part of the Learn SAP curriculum covers BOM?

    • A. SAP APIs
    • B. SAP PP
    • C. SAP labs
    Show answer

    B. SAP PP

    This lesson sits in the SAP PP section of the Learn SAP course.

Frequently asked questions

What does BOM stand for in SAP?

A Bill of Materials (BOM) lists the components (and quantities) needed to make a product, the recipe for manufacturing. It is fundamental master data in PP, driving material planning and production.

What is another point to note about BOM?

The BOM drives MRP (what components to plan/procure), production orders (what to consume), and product costing (roll-up of component costs).

What else is worth knowing about BOM?

A BOM is a structured list of the components required to produce a finished or semi-finished product, each with a quantity.

What tends to go wrong with BOM?

Inaccurate BOM, wrong planning/production/costing. Wrong BOM usage selected. Not maintaining variants/alternatives.
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