Analyzing the Bill of Materials (BOM) from a Controlling Perspective

So, how does SAP S/4HANA determine which and how many raw materials and semi-finished products go into a product?

In the following video, we explain a bill of materials for product, semi-finished products, and raw materials.

The Bill of Materials (BOM) is a directory for materials and their constituent parts.

Each assembly level of a multilevel BOM is maintained independently in a separate BOM. The system automatically constructs the multilevel structure. Keep this in mind when accessing and maintaining BOMs.

The example shows two stages in assembling a bike. First, the bike is created from two semifinished products. These semifinished products are made from raw materials. The details of these three assemblies are listed in separate Bills of Materials (BOMs) for the finished bike, the bike body, and the bike wheel.

The header of a Bill of Materials (BOM) gives an overview of the product. It usually includes the BOM number, description, and quantity.

The positions of a BOM list the details of each component or material required to make the product. This includes the material number, description, quantity, unit of measure, and any details like expected waste for each item.