Consider an assembled computer named Xanadu being sold by Charles Kane Ltd. Xanadu comprises of three parts – Alpha monitor, Beta CPU and Gamma keyboard. Xanadu is sold as one single unit however individually Alpha and Gamma are also sold. BOM is the acronym for Bill Of Materials. BOM stands for a group of different components which are sold together. In this example, Xanadu is a BOM having Alpha, Beta and Gamma as components.
When shown in a sales order, BOM shows as a material which describes the entire unit as one and is shown as the main item. Components are displayed as lower level items.
Following are steps to create a material BOM –
- Create material master data for both BOM and components.
- Call TCode – CS01. Pass Material, Plant and BOM Usage to create the BOM.
- On General Item Overview screen – add component materials, quantity per unit of BOM and unit of the component along with the item number.
BOM is a widely used feature in SD. Many products are functionally or fiscally tied up with another product. Like – greeting cards and soft toys, cornflakes and dry fruits, shoes and fitness bands.