Bill of Materials is a critical feature of SAP Business One that brings efficiency in the production process and makes it easier to manage. But what is a Bill of Materials (BoM)? What are its types? Let’s dive into it.
In Production, there are numerous steps involved at each stage. Right from procuring materials to the finished product and the eventual sale of it. Keeping a record of every single process in detail can be a task.
That’s where Bill of Materials come in. It comes in handy in organizing all that information in a detailed manner and streamlining the production process. A typical BoM contains a list of the raw materials/components, required quantities, and steps to produce the finished goods.
In BoM, the list items are arranged in a hierarchical order, i.e. parent and child. Parent items refer to finished product and child items refer to components used to assemble the finished product.
In SAP Business One, you get 4 types of BoMs to choose from depending on the requirements of the products. They are:
- Production Bill of Materials
Generated for standard production orders, the Production BoM lists down all parents & child inventory items. The child items can also be turned into finished products in this BoM.
- Sales Bill of Materials
In Sales BoM the parent item is listed as a sales item as opposed to an inventory item in Production BoM. Child items become sub-items in Sales BoM. The quantities of existing child items can be edited but not deleted and no new ones can be added.
- Assembly Bill of Materials
Similar to Sales, the Assembly BoM represents a collection of individual items with particular prices. The difference in Assembly is that only finished products appear as sales items in it. There are no child items.
- Template Bill of Materials
Template BoM is the most flexible of the lot. There are no restrictions and items can be parent and child as per your requirements. You can add, change, swap and delete items as per your need. Can be used in both, production & sales documents.
In conclusion Bill of Materials help in improving their production efficiency. By using the ones available in SAP Business One, you eliminate room for any manual errors and improve overall accuracy and productivity that helps your business grow.
Want more helpful information about processes in SAP Business One? Or would you like a more in-depth understanding of SAP Business One? Then get in touch with Accelon - a Certified SAP Business One Gold Partner & the most reliable ERP software provider in India.