Material component assignment approach to an activity

[Former Member]

Dear Sir,

We are in the manufacturing of customized Industrial Machinery . The machine being manufactured has multi-level BOM and total numbers of material component (including bought-out items and in-house manufactured components) in the BOM runs into approx 800 numbers .

In our existing Project manufacturing appraoch , we are simply attaching the FERT item (Finish Material Code which will be supplied to customer) to an activity in the Project . Subsequently , we are executing MRP run using MD51 and in turn various planned orders gets generated .

While reading the SAP HELP document , it mention that in the Project system there is a concept of Bill of Material transfer component which makes it easier for you to assign material components to network activities .

Dear sir , I am finding myself confused to understand as in what way the BOM transfer apparoch is different from the appraoch we are currently using . Which appraoch is a better one and in which situation (business scenario) the company must use BOM transfer appraoch .

I will be highly greatful to you for the kind help on the above query pl .

With Thanks and Regards

Sonia Agarwala

[Former Member]

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[former_member203108]

Praveen,

sharing email id is not allowed as per forum rules. Read Rules first.

[Former Member]

BOM transfer process is useful if you want ot treat the network as production order or you really do not want to use production orders. While the first approach of linking finished goods material to activity and then subsequently MRP taking care of child component procurement/production and finally you generate finished goods with production order.

The BOM transfer process is useful only when you do not want production orders. There are other functions available in BOM transfer such as handlling the changes in BOM.

I would suggest to use first approach if there are significant activities of 'inhouse production' ,and use BOM transfer only in case the 'inhouse production' activities are minimal.

Regards,

Mahendra

[fortian]

I'm far from being an expert but I think you can use BOM Transfer to add the components (FERT items) to your activities and still executing the MRP.

The point is that setting the Bom transfer you could speed-up the components attaching process.

And with the BOM Transfer it would be easier to you to maintain updates in the BOMs and to keep track of the different assemblies (as you told you had multilevel BOMs I believe it could useful for you).

Regards